Financial Statements 2018 financial statement- joomag | Page 14

4.1 Metric 1: Reinvestment percentage The regulatory definition of this metric is: “This metric looks at the investment in properties (existing stock as well as New Supply) as a percentage of the value of total properties held”. Accord’s recent performance against this metric is outlined below. Metric 1 - Reinvestment (%) 20% 15% Metric 1 - Reinvestment % 10% 5% 0% 2015 2016 2017 2018 2015 saw a peak in performance as this was the final year of the 2011-2015 Homes England Affordable Homes Programme (Homes and Communities Agency at the time of the programme). It is typical to see significant activity in the final year of a programme. It is also typical to see significantly reduced activity in the subsequent year, being the first year of the next programme, as was the case in 2016. The increasing activity in 2017 and 2018 is reflective of the progress being made in the delivery of the 2016-2021 Shared Ownership Affordable Homes Programme. Performance against the benchmark cohort is outlined below and identifies that in both 2017 and 2018 Accord’s reinvestment metric performs favourably when compared to peers. Metric 1 - Reinvestment (%) 10% 8% 6% Metric 1 - Reinvestment % 4% 2% 0% Accord 2018 Accord 2017 RP1 (2017) RP2 (2017) RP3 (2017) RP4 (2017) RP5 (2017) RP6 (2017) RP7 (2017) RP8 (2017) RP9 (2017) Did Accord meet its VFM target/objectives? Yes – Development targets as agreed with Homes England for both completions (new homes coming in to management) and starts on site (the number of new homes build commenced, but not yet completed) for 2017/18 were exceeded. In addition, amounts invested in existing properties aligned with expectations both in respect of budgets committed and works undertaken against plans. Future performance aspirations for this metric Accord is committed to supporting Homes England’s strong appetite to increase the supply of new homes delivered by the Social Housing sector. Furthermore, Accord is committed to maintaining high quality homes and communities. As a result Accord expects the current upward trend for reinvestment percentage to continue to increase in the future. Financial Statements 2018 13