Research and analysis

VFM 2023 glossary of terms

Glossary of the terms used in the 2023 value for money report

Applies to England

Documents

Value for money metrics and reporting - annex to the Global Accounts 2023

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Details

Metric Subdivision-consolidated or social housing Metric description
1 Reinvestment % (in existing homes and new homes) Consolidated Scale of investment into existing housing and acquisition or development of new housing in relation to the size of the asset base
2 New supply delivered % Consolidated and social housing Units acquired or developed in-year as a proportion of existing stock*
3 Gearing % Consolidated Proportion of borrowing in relation to size of the asset base
4 Earnings before interest, tax, depreciation, amortisation, major repairs, included (EBITDA MRI) interest cover % Consolidated The regulator’s measure of interest cover - it measures the ability of registered providers to cover ongoing finance costs
5 Headline social housing cost per unit Social housing only HSHC includes the following social housing lettings items: planned and routine maintenance, major repairs including capitalised repairs plus ‘Other’ costs (Lease costs, Other (social housing letting) costs, Development services (Operating expenditure), Community/neighbourhood services (Operating expenditure), Other social housing activities: Other (Operating expenditure), Charges for support services (Operating expenditure).
6 Operating margin % Consolidated and social housing Operating surplus (deficit) divided by turnover (demonstrates the profitability of operating assets)
7 Return on capital employed % Consolidated Surplus/(deficit) plus disposal of fixed assets plus profit /(loss) of joint ventures compared to total assets

*The VFM metrics are restricted to data derived from registered providers’ Annual Accounts regulatory returns – FVA – New supply developed by joint ventures is therefore excluded from the new supply (non-social) metric.

Updates to this page

Published 15 February 2024

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