Our value for money framework sets out how we define, deliver and demonstrate VfM through everything we do at SNG. Our definition is simple: maximising the impact of every pound to deliver our corporate plan.
Value for Money targets 2024/25
We have agreed measures and targets for VfM which are aligned to our financial plans. The targets for 2024/25 are set out below and progress against those targets is reported bi-annually to our Board and through our annual report and accounts. Our Value for Money performance for 2024/25 is detailed on page 21 of our Annual Report [pdf, 30MB] 
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The most recent value for money statements for Sovereign Housing and Network Homes are available below:
Sovereign Housing Value for Money Statement [PDF, 1.88KB]
Network Homes Value for Money statement [PDF, 13MB] (Refer to page 15 of Network Homes' Financial Statements 2023)
| VFM Financial Measures | SNG Actuals 2023-24 | SNG Target 2024-25 | SNG Actual 2024-25 | SNG Target 2025-26 |
| Reinvestment - Investment in properties (existing homes as well as new supply) as % of the value of total properties held. | 7.8% | 9.0% | 9.6% | 12.1% |
| New Supply (Social) - New social housing properties as % of homes owned in the period. Social housing includes social rent, affordable rent, low cost homeownership (shared ownership). | 2.5% | 2.3% | 1.8% | 2.1% |
| New Supply (Non-Social) - New non- social housing properties as % of homes owned in the period. Includes homes for market rent or sale. | 0.0% | 0.0% | 0.2% | 0.0% |
| Gearing (Housing at Cost) - Debt to asset ratio comparing cash and financing balances against the value of properties held. | 50.4%* | 51.2% | 51.9% | 53.8% |
| EBITDA MRI Interest Cover - Earnings before interest, tax, depreciation and amoritisation, with major repairs included divided by the total interest payable on loans. | 104.3% | 83.2% | 105.5% | 46.0%** |
| Headline Social Housing Cost per unit - Total spend on management, maintenance, major repairs and other social housing costs divided by the total number of properties. | £5,352 | £5,561 | £5,929 | £6,054 |
| Operating Margin (Social Housing Lettings) - Measures the amount of money left over from rental income after the main costs of running the business have been deducted as % of overall turnover. Social housing lettings only. | 23.6%* | 24.7% | 22.3% | 22.2% |
| Operating Margin (Overall) - Measures the amount of money left over from rental income after the main costs of running the business have been deducted as % of overall turnover. | 21.1% | 21.0% | 20.0% | 20.5% |
| ROCE - Return on capital employed compares the operating surplus to total assets less current liabilities. | 2.6% | 2.7% | 2.7% | 2.7% |
* Operating Margin (SHL) 2023-24 Actuals and Gearing 2023-24 Actuals have been re-stated.
** The Board approved a target of 116.4% for 2025-26 which is calculated in line with our Golden rule definition, that excludes net zero spend, and includes the gain/loss on disposal of assets. The 46.0% target is calculated using the RSH (Regulator for Social Housing) definition, which includes net zero spend and excludes gain/loss on disposal of assets.