Value for Money

Our VfM framework reflects our commitment to embedding the four ‘Es’ of VfM – economy, efficiency, effectiveness and equity – across all of our activities. It sets out a comprehensive approach to delivering value across our business.

Key strategic VfM achievements

Online process – Digital checklist displayed on a computer screen

Microsoft licensing renewal

£800k annual savings, while enabling further digital innovation


A pictogram of a mobile phone being pressed by a hand

Technology integration

Unified print, device refresh and network connectivity securing £3.6m benefits over 5 years


Pictogram of textbook with tabs

Transformation portfolio

£1.9m annual benefits delivered (vs £1.6m target), with a 15% underspend against budget


Money transfer – Pound symbol surrounded by two circular arrows, representing a financial transfer or exchange

Integration programme

Delivered £4.8m annual benefits, including a collaboration platform & integrated IT infrastructure


User account – Person using a laptop

Workday implementation

Consolidated 19 legacy Finance and HR systems into one platform, improving data quality & processes


Form completion – Completed checklist on a clipboard

Delivery performance

Around 18 active projects at any time, with 73% green status on average month-to-month



Value for Money targets 2025/26

We have agreed measures and targets for VfM which are aligned to our financial plans. The targets for 2025/26 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 8 of our Annual Report [pdf, 9MB] Opens in new window.


VfM Financial MeasureSNG Actual 2024/25SNG Target 2025/26SNG Actual 2025/26SNG Target 2026/27
Reinvestment – Investment in properties (existing homes and new supply) as a % of the value of total properties held9.6%12.1%9.5%10.7%
New Supply (Social) – New social housing properties as a % of homes owned in the period. Includes social rent, affordable rent and shared ownership1.8%2.1%2.0%2.1%
New Supply (Non-Social) – New non-social housing properties as a % of homes owned in the period. Includes homes for market rent or sale0.2%0.0%0.0%0.2%
Gearing (Housing at Cost) – Debt to asset ratio comparing cash and financing balances against the value of properties held51.9%53.8%52.5%54.5%
EBITDA MRI Interest Cover – Earnings before interest, tax, depreciation and amortisation, with major repairs included, divided by total interest payable on loans105.5%46.0%79.5%52.2%
Headline Social Housing Cost Per Unit – Total spend on management, maintenance, major repairs and other social housing costs divided by the total number of properties5,9296,0546,3076,462
Operating Margin (Social Housing Lettings) – Amount of money left over from rental income after the main costs of running the business have been deducted. Social housing lettings only22.3%22.2%20.2%21.5%
Operating Margin (Overall) – Amount of money left over from rental income after the main costs of running the business have been deducted as a % of overall turnover20.0%20.5%16.0%19.1%
ROCE – Return on Capital Employed compares operating surplus to total assets less current liabilities2.7%2.7%2.4%2.5%

Note 1: Social new supply relates to the following tenure types - General needs housing, Affordable Rent general needs housing, social rent supported housing and housing for older people, Affordable Rent supported housing and housing for older people, Low-Cost Home Ownership, Care homes, other social housing units, Social leasehold.

Note 2: Non-social new supply relates to the following tenure types - Total non-social rental housing units owned (Market rent and Commercial), non-social leasehold units owned, New outright sale units developed or acquired.