Key Determinants of Key Determinants of Performance in the Scottish Performance in the Scottish Housing Association SectorHousing Association Sector

Daniel Pace, PhD Researcher, Daniel Pace, PhD Researcher, Department of Urban Studies, Department of Urban Studies,

University of GlasgowUniversity of Glasgow

Aims of Social HousingAims of Social Housing

Social justiceSocial justice ‘‘a decent home for all at a price they can afford’a decent home for all at a price they can afford’

Economic rationalesEconomic rationales Counter market failure – affordability and supplyCounter market failure – affordability and supply

Counter effects of residulaisationCounter effects of residulaisation Regeneration – housing and wider challengesRegeneration – housing and wider challenges Mixed communities?Mixed communities?

Meet challenges of current and future tenant Meet challenges of current and future tenant base – younger and more vulnerable? – more base – younger and more vulnerable? – more options needed but finance limitedoptions needed but finance limited

Why housing associations?Why housing associations?

Avoid perceived ‘public sector failure’Avoid perceived ‘public sector failure’

More entrepreneurial and innovative – but More entrepreneurial and innovative – but independence compromised by levels of independence compromised by levels of regulation?regulation?

More locally-focussed and responsive to service More locally-focussed and responsive to service usersusers

Recent studies have shown housing Recent studies have shown housing associations to be better performers than local associations to be better performers than local authority landlords (Scottish Government, 2009)authority landlords (Scottish Government, 2009)

Scotland’s Housing Association Scotland’s Housing Association SectorSector

217 RSLs217 RSLs270,000 homes and 5,000 bedspaces270,000 homes and 5,000 bedspacesDifferent types of associationDifferent types of association Community-based (80% of HAs have less than 2,000 Community-based (80% of HAs have less than 2,000

units – 1/3 of total stock)units – 1/3 of total stock) National (operating in several areas)National (operating in several areas) Stock transferStock transfer Specialist (providing for elderly and disabled persons)Specialist (providing for elderly and disabled persons)

Investment programme for 2010/11 - £471 Investment programme for 2010/11 - £471 millionmillion

Scotland’s Housing Association Scotland’s Housing Association Sector 2Sector 2

Regulated by the Scottish Housing Regulator Regulated by the Scottish Housing Regulator (SHR)(SHR) Single regulator for LAs and HAsSingle regulator for LAs and HAs No more cyclical inspections for HAsNo more cyclical inspections for HAs Performance standards to be revised – Scottish Social Performance standards to be revised – Scottish Social

Housing CharterHousing Charter

Other regulators include Care Commission, Other regulators include Care Commission, Charities Regulator,local authorities (particularly in Charities Regulator,local authorities (particularly in Edinburgh and Glasgow)Edinburgh and Glasgow)Subject to Scottish Government targets – 2015: Subject to Scottish Government targets – 2015: quality standard (including emissions), 2012: quality standard (including emissions), 2012: homelessness targethomelessness target

Perspectives on performance:Perspectives on performance:1. New Public Management1. New Public Management

Introduced by Thatcher governments to address Introduced by Thatcher governments to address perceived deficiencies in public service deliveryperceived deficiencies in public service deliveryMain approachesMain approaches Increased management control of budgets, Increased management control of budgets,

benchmarking, transfer of power to managers and benchmarking, transfer of power to managers and service usersservice users

Decentralisation of services – e.g. stock transferDecentralisation of services – e.g. stock transfer

HA sector: regulation, performance returns, HA sector: regulation, performance returns, internal performance management and internal performance management and benchmarking – overall aims = efficiency, benchmarking – overall aims = efficiency, effectiveness & economyeffectiveness & economy……but do PIs reflect tenants’ actual experiences?but do PIs reflect tenants’ actual experiences?

Perspectives on performance:Perspectives on performance:2. Government Policy Aims2. Government Policy Aims

Increase supply of affordable housing – difficult Increase supply of affordable housing – difficult in current climate – some innovations in financein current climate – some innovations in financeHigh levels of public subsidy (£471M 2010/11) – High levels of public subsidy (£471M 2010/11) – need for effective regulationneed for effective regulationEnsure that properties meet quality and Ensure that properties meet quality and emissions standards – SHQS by 2015emissions standards – SHQS by 2015Address concerns regarding the performance Address concerns regarding the performance and efficiency of RSLs (SHR, 2009)and efficiency of RSLs (SHR, 2009)HAs used as vehicles for wider regeneration of HAs used as vehicles for wider regeneration of disadvantaged communities – set to increase in disadvantaged communities – set to increase in the future?the future?

Perspectives on performance:Perspectives on performance:3. Private Finance3. Private Finance

Need to meet borrowing repayments – Need to meet borrowing repayments – HAs forced to work within budgetsHAs forced to work within budgetsNeed to secure new/continued borrowing Need to secure new/continued borrowing – HAs forced to demonstrate efficiency – – HAs forced to demonstrate efficiency – business plansbusiness plansLenders a stakeholder Lenders a stakeholder andand a determinant a determinant of performanceof performanceEffective regulation needed to ensure Effective regulation needed to ensure continued access to lendingcontinued access to lending

Perspectives on performance:Perspectives on performance:4. Tenants4. Tenants

Performance means delivering on tenant priorities Performance means delivering on tenant priorities – quality, repairs, tackling ASB– quality, repairs, tackling ASBPerformance vital as lack of supply/choice limits Performance vital as lack of supply/choice limits tenants’ ability to choose another provider – tenants’ ability to choose another provider – cannot therefore be seen as true ‘consumers’cannot therefore be seen as true ‘consumers’Should be seen as citizens – this requires…Should be seen as citizens – this requires…Opportunities for participation?Opportunities for participation? Discontinuity?: HAs report difficulties in fostering tenant Discontinuity?: HAs report difficulties in fostering tenant

involvement but studies show tenants involvement but studies show tenants areare interested in interested in participation(McKee, 2008) participation(McKee, 2008)

more than just opportunities to become board membersmore than just opportunities to become board members

Framework of performance 1Framework of performance 1

Aim not to create an ‘ideal type’ HA that meets Aim not to create an ‘ideal type’ HA that meets all performance goalsall performance goals

Framework designed to set out what is required Framework designed to set out what is required from the sector as a wholefrom the sector as a whole

1.1. Housing managementHousing management• Innovation and success in managing issues Innovation and success in managing issues

including repairs, rent arrears, ASBincluding repairs, rent arrears, ASB

2.2. Development and qualityDevelopment and quality• Innovations in financing and developing/improving Innovations in financing and developing/improving

stock – finance, partnerships and mergersstock – finance, partnerships and mergers

Framework of performance 2Framework of performance 2

3.3. Wider regenerationWider regeneration• Involvement in successful and inclusive community Involvement in successful and inclusive community

projects and servicesprojects and services

4.4. Tenant involvementTenant involvement• Innovative and successful ways of involving and Innovative and successful ways of involving and

consulting tenants regarding housing and other consulting tenants regarding housing and other services (including co-op model)services (including co-op model)

5.5. EfficiencyEfficiency• Successful performance monitoring and Successful performance monitoring and

benchmarkingbenchmarking• Innovations in customer serviceInnovations in customer service

Determinants of Performance?Determinants of Performance?

Policy – including HAG system – more Policy – including HAG system – more competition needed?competition needed?Regulation – effectiveness of new system?Regulation – effectiveness of new system?Private lendersPrivate lendersTenants – delivering on priorities - consultation Tenants – delivering on priorities - consultation and participationand participationHousing associations – good practice and Housing associations – good practice and innovationinnovationSize and organisational type? – smaller orgs Size and organisational type? – smaller orgs (better performance) vs larger orgs (economies of (better performance) vs larger orgs (economies of scale) – worth considering?scale) – worth considering?

Key LiteratureKey LiteratureHills Review, 2007Hills Review, 2007Malpass, 2005Malpass, 2005Newhaven Research, 2006Newhaven Research, 2006Walker & Murie, Walker & Murie, Housing StudiesHousing Studies, 2004, 2004Scottish Government: Scottish Government: Firm FoundationsFirm Foundations, 2007 & tenant , 2007 & tenant priorities study, 2009priorities study, 2009SHR, SHR, Shaping up for improvementShaping up for improvement, 2009, 2009Whitehead, in Gibb & O’Sullivan, 2003Whitehead, in Gibb & O’Sullivan, 2003Previous reviews of performancePrevious reviews of performance Generally comparisons between LSVT orgs and former Generally comparisons between LSVT orgs and former

landlords (LAs, Scottish Homes etc)landlords (LAs, Scottish Homes etc) E.g. Pawson et al, JRF, 2009E.g. Pawson et al, JRF, 2009

DiscussionDiscussion

What about my Framework of Performance? – What about my Framework of Performance? – too wide?too wide?

Any other literature that may be helpful to my Any other literature that may be helpful to my study?study?

MethodsMethods Case studies of different types of association? – Case studies of different types of association? –

include focus groups with tenants?include focus groups with tenants? Survey and statistical analysis of larger number of Survey and statistical analysis of larger number of

HAs?HAs? Alternative methods?Alternative methods?