Our marketplace
Accord recognises the operating environment continues to change. Successful business planning is based on a foundation of
understanding of the current and future political, regulatory and economic environment and the ability to shape and influence
local, regional and national policy. Our understanding is based upon work including:
n Analysis of the housing and social care markets including regular sector/peer benchmarking.
n Developing and maintaining relationships with key partners through regular and ongoing dialogue.
n Research into the local demographics and how demand for our services might change in the future.
n Consultation and dialogue with staff and Board members and external stakeholders.
n Ongoing proactive dialogue and relationship building with regulatory bodies.
n Understanding of the political, economic, social, legislative, environmental and technological drivers for change in our sector.
n Detailed understanding of Accord’s cost base and cost drivers to ensure that value for money solutions are identified and
implemented.
n Robust risk analysis of the activities we are engaged in.
n Consultation with our customers to maintain and develop excellent services.
Our analysis of the operating environment suggests that the key factors and drivers are:
n Ensuring value for money is achieved and demonstrated but is built on a foundation of quality service provision.
n The increasing necessity for greater integration between housing, health and social care.
n Increase new homes supplied to address a growing homelessness problem and to meet housing need.
n Modern, agile services which continue to respond to the ongoing retraction of the public sector, notably Local Authority
commissioning.
n Working with customers to help them understand and manage increasing financial pressures.
n Increased transparency and accountability to customers, service users and communities.
n The need to work collaboratively with commissioners to solution-led services focussing on the needs of the commissioner, the
community and service users.
2017/18 was the second year of the rent reduction regime. Rent reductions of 1% were applied to rents, with a further 1%
reduction budgeted for in 2018/19 and 2019/20. For Accord this means financial pressure of £5m in 2016/17 and 2017/18; and
around an additional £14m over the following two years – a total financial exposure of circa. £19m when compared to pre-rent
reduction business plan projections.
The driver for the rent reduction regime was to highlight the Government’s expectations of the sector to provide increased value
for money to support the delivery of more new housing supply. In response to this Accord simplified its organisational structure
in March 2017. A subsequent operational reorganisation exercise was undertaken which has resulted in more responsive and
leaner service delivery models which further enhance Accord’s commitment to customer oriented services. The outcome of
these organisational changes has been surpluses of £10.8m, 226 new homes completed and handed over into management (2017:
187), and a further 569 homes on site and under construction at the year end. Accord continues to demonstrate it is well placed
to manage the financial pressures associated with the rent reduction regime at the same time as being committed to increasing
new housing supply.
In addition, Accord and its cu stomers continue to experience the financial challenges of the ongoing implementation of Welfare
Reform. Accord continues to identify the extent of the impact of welfare reforms, both on the Association’s finances and on
individual customers. Whilst Accord is committed to supporting our customers to ensure they understand how these financial
challenges impact upon their financial obligations, the acute and precarious financial circumstances of some of Accord’s
customers is also acknowledged. Accord has reviewed its financial assumptions and decisions in order to reflect all current
economic risks and equip the organisation to manage the associated pressures. Accord also continues to periodically stress test
the Business Plan with various scenarios to demonstrate the ability to manage these pressures.
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Accord Housing Association