MAXIMISING RETURN ON ASSETS
Understanding Accord’s asset base
The foundation of Accord’s strength is built on the homes it owns and manages. Data and intelligence on housing
assets provides the Board and management with ongoing oversight over Accord’s approach to the utilisation and
management of these assets. The Board sets the strategy for asset management in line with the strategic Business
Plan objectives and approves an organisation-wide approach to the delivery of active asset management. The strategy
is based on the premise ‘The right property, in the right condition and in the right location’.
Return on assets: Strategy Statement
Accord aims to provide high quality homes in which people want to live. Our homes must offer VFM for Accord in
terms of build cost and asset management as well as offering low running costs for our customers. This ensures
customers will be better able to pay their rent and will also reduce the wider impacts of fuel poverty. Accord
will pro-actively manage its property assets to support Corporate Plan objectives. Recognising the increasing
emphasis on long term performance, the strategy includes “traditional” stock investment actions and “active
asset management” activities. The strategy distinguishes between these as:
n Stock investment – those actions that will maintain the stock to a standard that meets housing demand need
n Active asset management – those activities to improve or replace properties that either have a poor economic
and/or social performance or high market value
The strategy also includes the concept of “Sweating our Assets.” Accord has finite amount of resources to expend
on Asset Management and it is the Association’s duty to manage these resources to derive maximum benefit for
the maintenance of the housing stock.
INVEST OR DIVEST? A DECISION-MAKING TOOL
Location/ geography
STOCK
APPRAISAL
MODEL
Value of asset
Social housing grant
26
Rent levels
Accord Housing Association
Condition / investment
Tenancy turnover