Value for Money metrics – Technical note guidance
This note includes the value for money metrics that providers must report on as part of their Annual Accounts reporting and also explains how to calculate the metrics.
Applies to England
Documents
Details
May 2024
Contents
1. Introduction
2. Reporting expectations
3. Value for Money metrics
Metric 1 – Reinvestment %
Metric 2 – New supply delivered %
Metric 3 – Gearing %
Metric 4 – EBITDA MRI Interest Cover %
Metric 5 – Headline social housing cost per unit
Metric 6 – Operating margin %
Metric 7 – Return on capital employed %
Annex A: Reference lines to FVA 2024
Annex B: Guidance note on the Value for Money metrics reporting for small providers
1 - Introduction
1.1 - The Value for Money Standard requires all private registered providers to annually report on their performance against a suite of measures defined by the regulator along with their own value for money measures and targets, with which to measure economy, efficiency, and effectiveness.
1.2 - This technical note document sets out the details of the range of VFM metrics and how these metrics are defined including the calculation of each measure drawn from the Electronic Annual Accounts (FVA) 2024footnote 1.The latest submission date for the FVA return is six months after a provider’s year end. For most of the sector this will be 30 September 2024.
1.3 - One of the key objectives in defining a set of standard VFM metrics was to support transparency and allow providers to analyse their performance alongside that of their peers on a comparable basis. To support this objective, we publish providers’ performance on the range of VFM metrics to help organisations benchmark their performance more easily and allow interested stakeholders to understand how providers perform when compared to the rest of sector. A key change to the benchmarking tool this year allows for greater flexibility when comparing organisations with similar characteristics based on providers’ own knowledge of their peers. The VFM benchmarking tool can be found here.
1.4 - Small registered providersfootnote 2, should refer to Annex B which sets out how the VFM metrics are calculated, using designated lines from provider’s annual accounts (Financial statements).
2 - Reporting expectations
2.1 - The VFM metrics have been selected on the basis that they work for the majority of the sector. However, we acknowledge that any metric, however calculated, will inevitably be more appropriate for some providers than others, and there may be a minority of cases where reporting on a particular basis is difficult, or inappropriate, given the unusual nature of a given organisation’s business or differences in accounting practice.
2.2 - We cannot change the required VFM metrics for individual providers because this would undermine comparability of results across the sector. However, where a provider’s reported data is affected by a factor particular to that organisation, they should clarify this in the commentary accompanying the publication of their data.
2.3 - It is essential that the metrics are calculated on the precise basis required. Inconsistent or inaccurate reporting undermines transparency to tenants and other stakeholders and could affect the reputation of an organisation.
2.4 - We will continue to seek assurance that providers make best use of their resources and have on-going plans in place to make improvements to the value for money in their organisations. As a part of that assurance work, we will use the VFM metrics to support our understanding of providers overall strategic delivery performance. We may follow up with a provider where there are gaps or conflicting evidence and will come to a view regarding the level of assurance we have about the provider in the delivery of the outcomes of the VFM Standard.
2.5 - Further detail of the regulator’s approach to Value for Money regulation is set out in Regulating the Standards.
3 - The Value for Money metrics
Metric 1 – Reinvestment %
3.1 - The Reinvestment metric looks at the investment in properties (Existing stock and New supply) as a percentage of the value of total properties heldfootnote 3.
| Measurement of VFM cost chain – efficiency | Enter value in FVA as |
|---|---|
| [Development of new properties (Total housing properties) | Positive |
| + Newly built properties acquired (Total housing properties) | Positive |
| + Works to existing (Total housing properties) | Positive |
| + Capitalised interest (Total housing properties) | Positive |
| + Schemes completed (Total housing properties)] | Either |
| Divided by footnote 4 | |
| [Tangible fixed assets: Housing properties at cost (Current period) | Positive |
| OR Tangible fixed assets: Housing properties at valuation (Current period)]. | Positive |
Metric 2 – New supply delivered %
3.2 - The New supply metric sets out the number of new social housing and non-social housing units that have been newly constructed (acquired or developed) in the year as a proportion of total social housing units and non-social housing units owned at period end.
3.3 - Registered providers will report on two New supply delivered ratios:
A. New supply delivered (Social housing units)
B. New supply delivered (Non-social housing units).
Measurement of VFM cost chain – effectiveness
| A. New supply delivered (Social housing units) % | Enter value in FVA as |
|---|---|
| [Total social housing units developed, or newly built units acquired in-year (owned) | Positive |
| (Social rent general needs housing (excluding Affordable Rent), Affordable Rent general needs housing, social rent supported housing and housing for older people (excluding Affordable Rent), Affordable Rent supported housing and housing for older people, Low-Cost Home Ownership, care homes, other social housing units, Social leasehold)] | Positive |
| Divided by | |
| Total social housing units owned at period end (‘social units’ as defined in numerator). | Positive |
Measurement of VFM cost chain – effectiveness
| B. New supply delivered (Non-social housing units) % | Enter value in FVA as |
|---|---|
| [Total non-social units developed, or newly built units acquired in-year (owned) | Positive |
| (Total non-social rental housing units owned, non-social leasehold units owned, New outright sale units developed or acquired)] | Positive |
| Divided by | |
| [Total social and non-social housing units owned (Period end) | Positive |
| (Total social housing units owned, Total non-social rental housing units owned, social leasehold units owned, non-social leasehold units owned (Period end))]. | Positive |
Metric 3 – Gearing %
3.4 - The gearing metric assesses how much of the adjusted assets are made up of debt and the degree of dependence on debt finance. It is often a key indicator of a registered provider’s appetite for growth.
3.5 - Note: Registered providers can be restricted by lenders’ covenants and therefore may not have the ability in which to increase the loan portfolio despite showing a relatively average gearing result.
| Measurement of VFM cost chain – efficiency | Enter value in FVA as |
|---|---|
| [Short-term loans | Positive |
| + Long-term loans | Positive |
| - Cash and cash equivalents | Positive |
| + Amounts owed to group undertakings | Positive |
| + Finance lease obligations] | Positive |
| Divided byfootnote 5 | |
| [Tangible fixed assets: Housing properties at cost (Current period) | Positive |
| OR Tangible fixed assets: Housing properties at valuation (Current period)]. | Positive |
Metric 4 – Earnings Before Interest, Tax, Depreciation, Amortisation, Major Repairs Included (EBITDA MRI) Interest Cover %
3.6 - The EBITDA MRI Interest Cover measure is a key indicator for liquidity and investment capacity. It seeks to measure the level of surplus that a registered provider generates compared to interest payable; the measure avoids any distortions stemming from the depreciation charge.
Note: Grants related to capitalised major repairs expenditure must be excluded.
| Measurement of VFM cost chain – efficiency | Enter value in FVA as |
|---|---|
| [Operating surplus / (deficit) (overall) | Either |
| - Gain/(loss) on disposal of fixed assets (housing properties) | Either |
| - Gain/(loss) on disposal of other fixed assets | Either |
| - Amortised government grant | Positive |
| - Government grants taken to income | Positive |
| + Interest receivable | Positive |
| - Capitalised major repairs expenditure for period | Positive |
| + Total depreciation charge for period] | Positive |
| Divided by | |
| [Interest capitalised | Negative |
| + Interest payable and financing costs]. | Negative |
Metric 5 – Headline social housing cost per unit
3.7 - The Headline social housing cost per unit metric assesses the headline social housing cost per unit as defined by the regulator. It is a proxy cash measure of a social housing cost per unit. This means it excludes non-cash items such as depreciation, amortisation and write downs.
Note: Grants related to capitalised major repairs expenditure must be excluded.
| Measurement of VFM cost chain – economy | Enter value in FVA as |
|---|---|
| [Management costs | Positive |
| + Service charge costs | Positive |
| + Routine maintenance costs | Positive |
| + Planned maintenance costs | Positive |
| + Major repairs expenditure | Positive |
| + Lease costs | Positive |
| + Capitalised major repairs expenditure for period | Positive |
| + Other (social housing letting) costs | Positive |
| + Charges for support services (Operating expenditure) | Positive |
| + Development services (Operating expenditure) | Positive |
| + Community / neighbourhood services (Operating expenditure) | Positive |
| + Other social housing activities: Other (Operating expenditure) | Positive |
| Divided by | |
| Total social housing units owned and/ or managed at period endfootnote 6 | |
| (Social rent general needs housing (excluding Affordable Rent), Affordable Rent general needs housing, social rent supported housing and housing for older people (excluding Affordable Rent), Affordable Rent supported housing and housing for older people, Low-Cost Home Ownership, care homes, other social housing units). | Positive |
Metric 6 – Operating margin %
3.8 - The Operating margin demonstrates the profitability of operating assets before exceptional expenses are taken into account. Increasing margins are one way to improve the financial efficiency of a business. In assessing this ratio, it is important that consideration is given to registered providers’ purpose and objectives (including their social objectives). Further consideration should also be given to specialist providers who tend to have lower margins than average.
3.9 - Registered providers will report on two Operating margin ratios:
A. Operating margin (social housing lettings only)
B. Operating margin (overall).
Measurement of VFM cost chain – efficiency
| A. Operating margin (social housing lettings only) % | Enter value in FVA as |
|---|---|
| Operating surplus / (deficit) from social housing lettingsfootnote 7 | Either |
| Divided by | |
| Turnover from social housing lettings. | Positive |
Measurement of VFM cost chain – efficiency
| B. Operating margin (overall) % | Enter value in FVA as |
|---|---|
| [Operating surplus / (deficit) (overall) | Either |
| - Gain/(loss) on disposal of fixed assets (housing properties)] | Either |
| - Gain/(loss) on disposal of other fixed assets | Either |
| Divided by | |
| Turnover (overall). | Positive |
Metric 7 – Return on capital employed %
3.10 The Return on capital employed (ROCE) compares the operating surplus to total assets less current liabilities and is a common measure in the commercial sector to assess the efficient investment of capital resources. The ROCE metric supports registered providers with a wide range of capital investment programmes.
| Measurement of VFM cost chain – efficiency | Enter value in FVA as |
|---|---|
| [Operating surplus / (deficit) (overall) | Either |
| (including gain / (loss) on disposal of fixed assets) | Either |
| + Share of operating surplus/(deficit) in joint ventures or associates] | Either |
| Divided by | |
| Total assets less current liabilities. | Positive |
Annex A: Reference lines to FVA 2024
Metric: 1. Reinvestment %
| FVA24 Field |
FVA24 Part |
FVA24 Line |
FVA24 Column |
Enter value in FVA as |
|---|---|---|---|---|
| [Development of new properties (Total housing properties) | E: Notes 1 | 33 | 7 | Positive |
| + Newly built properties acquired (Total housing properties) | E: Notes 1 | 34 | 7 | Positive |
| + Works to existing (Total housing properties) | E: Notes 1 | 35 | 7 | Positive |
| + Capitalised interest (Total housing properties) | E: Notes 1 | 36 | 7 | Positive |
| + Schemes completed (Total housing properties)] | E: Notes 1 | 37 | 7 | Either |
| Divided by | ||||
| [Tangible fixed assets: Housing properties at cost (Current period) | C: SOFP | 2 | 1 | Positive |
| OR Tangible fixed assets Housing properties at valuation (Current period)]. | C: SOFP | 3 | 1 | Positive |
Metric: 2. New supply delivered % (social housing and non-social housing)
| FVA24 Field |
FVA24 Part |
FVA24 Line |
FVA24 Column |
Enter value in FVA as |
|---|---|---|---|---|
| A. New supply delivered (Social housing units) | ||||
| [Total social units developed, or newly built units acquired in-year (owned) | ||||
| (Social rent general needs housing (excluding Affordable rent), Affordable rent general needs housing, social rent supported housing and housing for older people (excluding Affordable rent), Affordable rent supported housing and housing for older people, Low-cost home ownership, care homes, other social housing + Social leasehold units owned)] |
E: Notes 1 E: Notes 1 |
10 16 |
2 2 |
Positive Positive |
| Divided by | ||||
| [Total social housing units owned (Period end) | E: Notes 1 | 10 | 6 | Positive |
| + Social leasehold units owned (Period end)]. | E: Notes 1 | 16 | 6 | Positive |
| B. New supply delivered (Non-social housing units) % | ||||
| [Total non-social housing units developed, or newly built units acquired (owned) | ||||
| (Total non-social rental housing units owned | E: Notes 1 | 13 | 2 | Positive |
| + Non-social leasehold units owned | E: Notes 1 | 19 | 2 | Positive |
| + New outright sale units developed or acquired)] | E: Notes 1 | 22 | 1 | Positive |
| Divided by | ||||
| [Total social and non-social housing units owned (Period end) | ||||
| Total social housing units owned (Period end) | E: Notes 1 | 10 | 6 | Positive |
| + Total non-social rental housing units owned (Period end) | E: Notes 1 | 13 | 6 | Positive |
| + Social leasehold units owned (Period end) | E: Notes 1 | 16 | 6 | Positive |
| + Non-social leasehold units owned (Period end)]. | E: Notes 1 | 19 | 6 | Positive |
Metric: 3. Gearing %
| FVA24 Field |
FVA24 Part |
FVA24 Line |
FVA24 Column |
Enter value in FVA as |
|---|---|---|---|---|
| [Short-term loans | C: SOFP | 18 | 1 | Positive |
| + Long-term loans | C: SOFP | 25 | 1 | Positive |
| - Cash and cash equivalents | C: SOFP | 14 | 1 | Positive |
| + Amounts owed to group undertakings | C: SOFP | 26 | 1 | Positive |
| + Finance lease obligations] | C: SOFP | 27 | 1 | Positive |
| Divided by | ||||
| [Tangible fixed assets: Housing properties at cost (Current period) | C: SOFP | 2 | 1 | Positive |
| OR Tangible fixed assets: Housing properties at valuation (Current period)]. | C: SOFP | 3 | 1 | Positive |
Metric: 4. EBITDA MRI Interest Cover %
| FVA24 Field |
FVA24 Part |
FVA24 Line |
FVA24 Column |
Enter value in FVA as |
|---|---|---|---|---|
| [Operating surplus/(deficit) (overall) | B: SOCI | 6 | 1 | Either |
| -Gain/(loss) on disposal of fixed assets (housing properties) | B: SOCI | 4 | 1 | Either |
| - Gain/(loss) on disposal of other fixed assets | B: SOCI | 5 | 1 | Either |
| - Amortised government grant | D: Op Surp Note | 20 | 5 | Positive |
| - Government grants taken to income | D: Op Surp Note | 21 | 5 | Positive |
| + Interest receivable | B: SOCI | 10 | 1 | Positive |
| - Capitalised major repairs expenditure for period | F: Notes 2 | 1a | 1 | Positive |
| + Total depreciation charge for period] | F: Notes 2 | 2 | 1 | Positive |
| Divided by | ||||
| [Interest capitalised | E: Notes 1 | 116 | 1 | Either |
| + Interest payable and financing costs]. | E: Notes 1 | 11 | 1 | Negative |
Metric: 5. Headline social housing cost per unit
| FVA24 Field |
FVA24 Part |
FVA24 Line |
FVA24 Column |
Enter value in FVA as |
|---|---|---|---|---|
| [Management costs | D: Op Surp Note | 25 | 5 | Positive |
| + Service charge costs | D: Op Surp Note | 26 | 5 | Positive |
| + Routine maintenance costs | D: Op Surp Note | 27 | 5 | Positive |
| + Planned maintenance costs | D: Op Surp Note | 28 | 5 | Positive |
| + Major repairs expenditure | D: Op Surp Note | 29 | 5 | Positive |
| + Lease costs | D: Op Surp Note | 31 | 5 | Positive |
| + Capitalised major repairs expenditure for period | F: Notes 2 | 1a | 1 | Positive |
| + Other (social housing letting) costs | D: Op Surp Note | 34 | 5 | Positive |
| + Charges for support services | D: Op Surp Note | 2 | 3 | Positive |
| + Development services | D: Op Surp Note | 3 | 3 | Positive |
| + Community/neighbourhood services | D: Op Surp Note | 4 | 3 | Positive |
| + Other] | D: Op Surp Note | 6 | 3 | Positive |
| Divided by | ||||
| Total social housing units owned and/or managed at period end. | E: Notes 1 | 8 | 6 | Positive |
Metric: 6. Operating margin %
| FVA24 Field |
FVA24 Part |
FVA24 Line |
FVA24 Column |
Enter value in FVA as |
|---|---|---|---|---|
| A. Operating margin (social housing lettings) % | ||||
| Operating surplus/(deficit) (social housing lettings) | D: Op Surp Note | 36 | 5 | Either |
| Divided by | ||||
| Turnover from social housing lettings. | D: Op Surp Note | 24 | 5 | Positive |
| B. Operating margin (overall)% | ||||
| [Operating surplus/(deficit) (overall) | B: SOCI | 6 | 1 | Either |
| - Gain/(loss) on disposal of fixed assets (housing properties)] | B: SOCI | 4 | 1 | Either |
| - Gain/(loss) on disposal of other fixed assets | B: SOCI | 5 | 1 | Either |
| Divided by | ||||
| Turnover (overall)]. | B: SOCI | 1 | 1 | Positive |
Metric: 7. Return on capital employed %
| FVA24 Field |
FVA24 Part |
FVA24 Line |
FVA24 Column |
Enter value in FVA as |
|---|---|---|---|---|
| [Operating surplus/(deficit) (overall) (including gain/(loss) disposal fixed assets) |
B: SOCI | 6 | 1 | Either |
| + Share of operating surplus/(deficit) in joint ventures or associates] | B: SOCI | 9 | 1 | Either |
| Divided by | ||||
| Total assets less current liabilities. | C: SOFP | 24 | 1 | Positive |
Annex B: Guidance note on the Value for Money metrics reporting for small providers
(Registered providers with fewer than 1,000 units)
This part of the guidance should be used by registered providers with a stock holding of fewer than 1,000 units, (those providers that are not required to submit an electronic copy of the annual accounts, to the regulator).
This guidance note is intended to help small providers calculate the VFM metrics from their Annual Accounts (Financial statements).
The regulator is aware that not all the VFM metrics will be applicable to every small provider given the diversity of business models across the sector. In the spirit of transparency and accountability, where the value of a VFM metric is calculated as zero, this should be reported as so.
The Value for Money Standard requires providers to report on the VFM metrics, including the two sub-metrics, within their annual accounts (Financial statements). For reporting purposes, providers should discuss and agree the format of their annual accounts with their auditor or their accountant.
Key
| Numerator | The figure(s) in an equation which is above the line |
| Denominator | The figure(s) in an equation which is below the line |
| SORP | Statement of Recommended Practice |
| SOCI | Statement of Comprehensive Income (Housing SORP) |
| SOFP | Statement of Financial Position (Housing SORP) |
| SOFA | Statement of Financial Activities (Charity SORP) |
| BS | Balance Sheet (Charity SORP) |
| Note TOE | Note: Turnover and Operating Expenditure; this note may have different names including Income and Expenditure from social housing lettings |
| Note Creds <1 | Note: Creditors: Amounts falling due within one year |
| Note Creds >1 | Note: Creditors: Amounts falling due after more than one year |
Note:
Units in Management may have different names including Accommodation in Management
Where the location of data differs between the Charity SORP and the Housing SORP, this is shown like this: SOCI / [SOFA].
Value for Money metrics calculations
Metric 1: Reinvestment %
| +/- | Numerator/ Denominator | Line | Statutory Accounts Location | Comments | Enter value in FVA as |
|---|---|---|---|---|---|
| + | Numerator | Development of new properties (Total housing properties) | Note: Fixed assets | Positive | |
| + | Newly built properties acquired (Total housing properties) | Note: Fixed assets | Positive | ||
| + | Works to existing (Total housing properties) | Note: Fixed assets | This should include only those works to existing properties which were capitalised (i.e. added to Fixed Assets in the Statement of Financial Position / Balance Sheet). | Positive | |
| + | Capitalised interest (Total housing properties) | Note: Fixed assets | This is sometimes shown in the narrative beneath the Note, rather than as a line in the Note itself. | Positive | |
| + | Schemes completed (Total housing properties) | Note: Fixed assets | The net value for this is often nil. | Either | |
| Divided by | |||||
| + | Denominator | Tangible fixed assets: Housing properties at cost (Period end) | Note: Fixed assets | This line and the next should be Net Book Value, which includes accumulated depreciation. Providers should use the measure agreed in their Statement of Financial Position / Balance Sheet. The figure should be either historic cost or valuation. | Positive |
| + | Tangible fixed assets: Housing properties at valuation (Period end) | Note: Fixed assets | See note for previous line | Positive |
Metric 2a: New supply (Social housing units) %
| +/- | Numerator/ Denominator | Line | Statutory Accounts Location | Comments | Enter value in FVA as |
|---|---|---|---|---|---|
| + | Numerator | Total social units (developed or acquired in-year) | Note: Units in Management | This line and the next should exclude existing properties transferred from other providers. Where a provider develops a unit on behalf of another provider, the new units should only be reported by the provider acquiring (and owning and / or managing the unit). These include shared ownership units and other units which are leased to tenants by the provider as social lettings. | Positive |
| + | Social leasehold units (acquired in-year) | Note: Units in Management | See note for previous line | Positive | |
| Divided by | |||||
| + | Denominator | Total social housing units owned (Period end) | Note: Units in Management | These lines should only include properties owned by the provider. | Positive |
| + | Social leasehold units owned (Period end) | Note: Units in Management | Positive |
Metric 2b: New supply (Non-social housing units) %
| +/- | Numerator/ Denominator | Line | Statutory Accounts Location | Comments | Enter value in FVA as |
|---|---|---|---|---|---|
| + | Numerator | Total non-social rental housing units owned (acquired in-year) | Note: Units in Management | This and the next two lines should exclude existing properties transferred from other providers. Where a provider develops a unit on behalf of another provider, the new units should only be reported by the provider acquiring (and owning and/ or managing the unit). | Positive |
| + | Non-social leasehold units owned (acquired in-year) | Note: Units in Management | See previous note | Positive | |
| + | New outright sale units (developed or acquired) | Note: Units in Management | See note above | Positive | |
| Divided by | |||||
| + | Denominator | Total social housing units owned (Period end) | Note: Units in Management | This and the next three lines should only include properties owned by the provider. | Positive |
| + | Total non-social rental housing units owned (Period end) | Note: Units in Management | See note above | Positive | |
| + | Social leasehold units owned (Period end) | Note: Units in Management | See note above | Positive | |
| + | Non-social leasehold units owned (Period end) | Note: Units in Management | See note above | Positive |
Metric 3: Gearing %
The metric result for the gearing ratio may be negative where for example a registered provider has no loan agreements in place.
| +/- | Numerator/ Denominator | Line | Statutory Accounts Location | Comments | Enter value in FVA as |
|---|---|---|---|---|---|
| + | Numerator | Short-term loans | Note: Creds <1 | This and the next four lines should include “Amounts owed to related/ connected parties”. | Positive |
| + | Long-term loans | Note: Creds >1 | See note above | Positive | |
| - | Cash and Cash equivalents | SOFP / [BS] | See note above | Positive | |
| + | Amounts owed to group undertakings | Note: Creds <1 and / or Note: Creds >1 | See note above | Positive | |
| + | Finance lease obligations | Note: Creds <1 and / or Note: Creds >1 | See note above | Positive | |
| Divided by | |||||
| + | Denominator | Tangible fixed assets: Housing properties at cost (Period end) | Note: Fixed assets | This and the next line should be Net Book Value, which includes accumulated depreciation. Providers should use the measure agreed in their Statement of Financial Position / Balance Sheet. The figure should be either historic cost or valuation. | Positive |
| + | Tangible fixed assets: Housing properties at valuation (Period end) | Note: Fixed assets | See note above | Positive |
Metric 4: EBITDA MRI Interest Cover %
| +/- | Numerator/ Denominator | Line | Statutory Accounts Location | Comments | Enter value in FVA as |
|---|---|---|---|---|---|
| + | Numerator | Operating surplus/(deficit) (overall) | SOCI / [SOFA] | Either | |
| - | Gain/(loss) on disposal of fixed assets (housing properties) | SOCI / [SOFA] | This figure should only be deducted if it is included in the Operating surplus (overall). | Either | |
| - | Gain/(loss) on disposal of other fixed assets | SOCI / [SOFA] | This figure should only be deducted if it is included in the Operating surplus (overall). | Either | |
| - | Amortised government grant | Note TOE | Positive | ||
| - | Government grants taken to income | Note TOE | Positive | ||
| + | Interest receivable | SOCI / [SOFA] | Positive | ||
| - | Capitalised major repairs expenditure for period | Note: Fixed assets | Positive | ||
| + | Total depreciation charge for period | Note: Fixed assets | This should include depreciation for all assets, not just housing properties. | Positive | |
| Divided by | |||||
| + | Denominator | Interest capitalised | Note: Fixed assets | Negative | |
| + | Interest payable and financing costs | SOCI / [SOFA] | This includes the financing costs (i.e., interest payable) in respect of defined benefit pension schemes. | Negative |
Metric 5: Headline social housing cost £
| +/- | Numerator/ Denominator | Line | Statutory Accounts Location | Comments | Enter value in FVA as | |
|---|---|---|---|---|---|---|
| + | Numerator | Management costs | Note TOE | Positive | ||
| + | Service charge costs | Note TOE | Positive | |||
| + | Routine maintenance costs | Note TOE | This figure should include Void repairs, if these are disclosed separately). | Positive | ||
| + | Planned maintenance costs | Note TOE | Positive | |||
| + | Major repairs expenditure | Note TOE | Positive | |||
| + | Lease costs | Note TOE | Positive | |||
| + | Capitalised major repairs expenditure for period | Note: Fixed assets | Positive | |||
| + | Other (social housing letting) costs | Note TOE | Positive | |||
| + | Charges for support services | Note TOE | Positive | |||
| + | Development services | Note TOE | Positive | |||
| + | Community / neighbourhood services | Note TOE | Positive | |||
| + | Other social housing activities: Other | Note TOE | Positive | |||
| Divided by | ||||||
| + | Denominator | Total social housing units owned and / or managed at period end | Note: Units in Management | This figure includes properties which are either owned by the provider or managed for others. | Positive |
Metric 6a: Operating margin (Social housing lettings) %
| +/- | Numerator/ Denominator | Line | Statutory Accounts Location | Comments | Enter value in FVA as |
|---|---|---|---|---|---|
| + | Numerator | Operating surplus/(deficit) (social housing lettings) | Note TOE | Either | |
| Divided by | |||||
| + | Denominator | Turnover from social housing lettings | Note TOE | Positive |
Metric 6b: Operating margin (Overall) %
| +/- | Numerator/ Denominator | Line | Statutory Accounts Location | Comments | Enter value in FVA as |
|---|---|---|---|---|---|
| + | Numerator | Operating surplus/(deficit) (overall) | SOCI / [SOFA] | Either | |
| - | Gain/(loss) on disposal of fixed assets (housing properties) | SOCI / [SOFA] | This figure should only be deducted if it is included in the Operating surplus | Either | |
| - | Gain/(loss) on disposal of other fixed assets | SOCI / [SOFA] | This figure should only be deducted if it is included in the Operating surplus | Either | |
| Divided by | |||||
| + | Denominator | Turnover (overall) | SOCI / [SOFA] | Positive |
Metric 7: Return on capital employed %
| +/- | Numerator/ Denominator | Line | Statutory Accounts Location | Comments | Enter value in FVA as |
|---|---|---|---|---|---|
| + | Numerator | Operating surplus/(deficit) (overall) | SOCI / [SOFA] | This should include the gain / (loss) on disposal of fixed assets. | Either |
| + | Share of operating surplus/(deficit) in joint ventures or associates | SOCI / [SOFA] | Either | ||
| Divided by | |||||
| + | Denominator | Total assets less current liabilities | SOFP / [BS] | Positive |
(1) Providers should also refer to the FVA guidance note which is available on our data collection website NROSH+. return
(2) Providers who own and or manage fewer than 1,000 low-cost rental accommodation and low-cost home ownership units combined (for providers in a group, units are measured at a registered group level). Such providers are termed ‘small providers’ for the purposes of the requirements in this document. return
(3) This metric is not based on cashflow data given the limitations on data collected as part of the FVA return. return
(4) Providers should use the measure agreed in their Statement of Financial Position / Balance Sheet. The figure should be either historic cost or valuation. return
(5) Providers should use the measure agreed in their Statement of Financial Position / Balance Sheet. The figure should be either historic cost or valuation. return
(6) Leasehold units, which for example include Right to Buy and fully stair-cased shared ownership units where the provider retains the freehold, are excluded from the denominator of this metric. return
(7) Gain/(loss) on disposal of fixed assets must be excluded. return
Updates to this page
Published 27 September 2017Last updated 7 May 2024 + show all updates
-
The Value for Money Metrics technical note guidance has been updated to reflect the line numbers in the 2024 FVA return.
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Value for Money metrics – Technical note guidance for May 2022 replaces the 2021 guidance.
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Updated to 2021 guidance
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2020 updated technical note added.
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VfM metrics technical guidance updated as a result of minor changes to the 2019 FVA template. It also includes an additional note for small providers to help calculate the metrics.
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VfM Metrics Technical Note and annex setting out the FVA reference lines published (29 March 2018).
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Technical Note on Value for Money Metrics published (9 March 2018).
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First published.