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Housing providers are embracing new roles in which they are partners in the delivery of a wider range of services, but fear that the delivery of core services could be adversely affected. While the new roles are welcomed, further diversification could be hampered by an aversion to risk and limited resources in the housing sector. These are some of the key findings of a survey of senior managers in registered social landlords conducted by Zurich Municipal ahead of the National Housing Federation (NHF) Finance Conference 2003.
The survey revealed extensive involvement in multi agency partnerships, including:
- Over two thirds of respondents (71.2%) are working in partnerships with local health and social service providers
- Half (50.0%) are involved in initiatives to tackle crime and anti-social behaviour
- Nearly one third (32.7%) are involved in regeneration partnerships
- Over a quarter (26.9%) are renting property at market rates
More such developments are expected in the future, with one in five (21.4%) planning to diversify their activities further within the next three years.
The survey also revealed that housing providers see these developments as far more than just sidelines. The vast majority (89.3%) of respondents feel that partnerships with other local service providers and the private sector are essential if their own roles are to be guaranteed in the future.
However, 60.7% of respondents voice concerns that the diversification of housing providers into new areas could affect the delivery of core services to tenants. This and other risks appear to be being taken increasingly seriously by housing providers. In this year's survey, 78.5% of respondents said that their organisation had processes in place to effectively identify and manage risk when diversifying into new areas. When this question was asked in last year's survey only 54.4% said they had such processes in place.
The Government's Decent Housing Target has also encouraged a focus on strategic planning for the future. As part of the planning process to meet the target, 67.9% of housing providers have conducted a full review of risks and opportunities.
Despite this growing confidence amongst housing providers in their abilities to diversify, and to manage the risks associated with such moves, many feel that the true potential of the sector is not being realised. Innovation in the sector is being hampered by a general aversion to risk, according to 34% of respondents. Resources are also a factor here, with 48.2% of respondents saying that their ability to develop new services or greater partnerships with other service providers is being restricted by the deteriorating financial position of the sector.
David Forster, Principal Consultant (Housing) at Zurich Municipal Management Services, said: "Housing providers are playing a growing part in the delivery of a diverse range of services, through an ever more complex network of partnerships. Our survey shows that these partnerships bring real opportunities to secure a bright future for housing providers. But it is important that fears surrounding the impact of these new roles on core service delivery are recognised and planned for.
"A strategic approach to risk management will play a key part in ensuring that opportunities are identified and grasped, without putting at risk the delivery of core services for tenants and the wider local community."
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The Zurich Financial Services Group is an insurance-based financial services provider that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs well over 70,000 people. | 