Value for money

We’ve been working hard to ensure that Value for Money (VfM) is a key consideration in everything we do. Our Improving Lives strategy is underpinned by our approach to VfM, enabling us to deliver more new homes and provide excellent services to our customers.

Alongside the metrics defined by the Regulator of Social Housing, we’ve also incorporated other key indicators and measures linked to our Improving Lives Strategy. The additional VfM indicators adopted by our Group Board are grouped under our Strategic Pillars and are reported on separately.

Monitoring VfM

Our Board and committees receive quarterly updates on performance against our VfM objectives as part of our normal reporting cycle. We also compare our performance with our peers through a benchmarking group. The organisations we benchmark against have been selected because they’re comparable to our business.

Our performance against each of the Regulator of Social Housing’s Value for Money (VfM) metrics is outlined below. A definition of each of the VfM indicators is provided under Note 37 in our Consolidated Financial Statements.

Metric 1

Reinvestment %

The Group's investment in the provision of new affordable homes and the maintainance of its existing homes to a high standard.

Metric 2A

New supply delivered (social housing) %

Development and delivery of affordable social housing units.

Metric 2B

New supply delivered (non-social housing) %

Development and delivery of market-value private housing units.

Metric 3

Gearing %

The Group's level of gearing has reduced due to its increasing assets and a £15.6m reduction in loans and borrowings since the prior year-end.

Metric 4

EBITDA MRI interest cover %

The Group's EBITDA MRI interest cover has improved compared to the previous year, as a result of growth in the operating surplus while interest payable remained consistent.

Metric 5

Headline social housing cost per unit

Our overall social housing cost per unit reduced from £4,215 in 2020/21 to £4,159 in 2021/22.

Metric 6A

Operating margin (social housing lettings) %

The Group’s operating margin on social housing lettings has further dropped to 27.1 percent in 2021/22, down from 28.1 percent in 2020/22.

Metric 6B

Operating margin (overall) %

Our overall operating margin is being adversely impacted by our strong sales performance.

Metric 7

Return on capital employed %

Our overall return on capital has remained consistent with the previous year.

Longhurst Group Ltd is a charitable housing association registered in England as a community benefit society (Reg. No. 8009) and registered with the Regulator of Social Housing (No. L4277).

Registered Office: 1 Crown Court, Crown Way, Rushden, Northamptonshire NN10 6BS. VAT Reg No. 326 0270 36. A member of the National Housing Federation.