On 20th February 2019, the Regulator for Social Housing ("RSH") published a new accounting direction for both profit and non-profit making registered providers of social housing.
The new rules require RPs to report on Value for Money ("VfM") in their accounts. This takes the form of reporting progress against the 7 financial metrics in the VfM standard dated April 2018. The RSH's aim is to ensure that housing providers are viable and efficient.
The requirement should enable RPs to measure their VfM performance against other comparable organisations. It can be a useful tool for Boards to identify where further efficiencies can be made, but you should bear in mind that some organisations are likely to see higher costs and therefore lower operating margins. For example, those supporting clients with additional needs and/or those who are recent LSVTs.
Accounting Direction for social housing in England from January 2019