Derwent Living is an organisation going from strength to strength, unique in its make-up, it brings together an affordable housing ethos, with a commercial edge. This approach means Derwent Living is not solely reliant on public funding and as a result remains stable and fit for the future, at a time when other organisations are facing difficulties.
The housing sector has seen significant change in the recent past and the external environment is likely to become more challenging in the coming years. We are faced with increasing uncertainties and risk, with the downturn in the housing market, impact of the credit crunch, introduction and subsequent abolition of the Tenant Services Authority, the disbanding of the Audit Commission, changes in the investment model and public sector expenditure cuts.
In 2011, funding for social housing reduced from £8.4 billion to £4.5 billion, there was a £700 million cut to Supporting People funding, new ‘affordable rents’ at up to 80% of market value, proposed cuts in Housing Benefit for the long term unemployed or those under occupying, introduction of fixed term tenancies and a VAT increase to 20%. Public funding is minimal and securing private funding has become increasingly complex.
Derwent Living’s financial strength enables continued investment in services and the provision of new homes. 40% of activity is ‘commercial’ and surpluses support its core purpose, the provision of affordable housing andservices. Derwent Living is an innovator and is the first housing provider to secure direct pension fund investment in social housing. It excels at emerging strategies, with a track record of sound financial management and delivery of new homes and services. It will continue this approach to maintain its strength in the market place.
The business plan 2012-2014
We know that effective business planning will give us the drive and focus needed to remain viable and successful and is a critical element of the way Derwent Living manages its business. This Business Plan covers the period 2012-2014 and will be reviewed as economic conditions unfold and assumptions need to be re-examined over the period. It has been developed in conjunction with customers, Board, colleagues and other key stakeholders, taking into account strengths and weaknesses and identifying the opportunities and threats presented by the external environment to form the basis for how the business will move forward.
You can download a copy of the business plan by following the link Business Plan 2012-2014