Facilities Services Provision - Social Housing Market - UK 2009-2013

Facilities Services Provision - Social Housing Market - UK 2009-2013 published by AMA Research in October, 2009. This report price starts from US $ 1350.

Introduction

Abstract

INTRODUCTION and OVERVIEW

AMA Research have published the two brand new reports:-

Facilities Services Provision - Local Authority Housing Market UK

Facilities Services Provision - Housing Association Market UK

The reports offer unique reviews of the individual markets for outsourced service provision of non-core services with a specific focus on the Local Authority (LA) and Housing Association (HA) owned social houses respectively.

The changing structure of the social housing market and pressures to achieve ' best value for money' is impacting on facilities services provision within the social housing sector. A wide range of approaches are currently being adopted by the LAs and HAs.

The vast majority of LAs and HAs retain the overall management of the housing stock but sub-contract out at least some of the work to external contractors. Despite the positive underlying shift towards outsourcing ' bundled' work activities, currently many LAs and HAs are not outsourcing overall facilities management of the social housing stock. The social housing sector is currently one of the least mature in terms of Total Facilities Management, therefore providing considerable opportunities for FM suppliers.

The reports contain a detailed assessment of these and other market trends and influences, with analysis of future prospects and potential opportunities.

Key areas covered by the reports include:

• Specific analysis of Facilities Services within each social housing sector - extent of outsourcing, types of contracts placed, activities typically bundled,
• sector interest and potential future opportunities in outsourcing.
• Analysis of expenditure - Breakdown of current and capital expenditure and analysis of management and maintenance costs in each sector.
• Review of the leading providers - company profiles for the leading contractors of facilities services within the social housing sector.
• Overview of the social housing sector - size, recent trends and key market influences, forecasts and future prospects.

Areas of particular interest:

• Analysis of facilities service provision and a breakdown of the types of contracts placed with respect to the properties owned by the LAs and HAs.
• Positive underlying shift towards outsourcing ' bundled' contracts, but LAs and HAs retain management of housing stocks.
• Facilities Services market anticipated to demonstrate good growth, with social housing representing an end use sector with substantial potential opportunities in the medium to long term.

Some of the companies included:

Apollo Property Services Group, Carillion Facilities Management, Connaught Partnerships Ltd, Enterprise plc, Environmental Property Services plc, Exor Group, Inspace, Integral UK, Interservefm, Jeakins Weir Limited, Kier Support Services (KSS), Kinetics Group, KNK Building Services Ltd, Mears Group plc, MITIE plc, Morrison Facilities Services, Mouchel, Pinnacle Group, Quadron Services Limited, Serco Group plc, Vinci Facilities.

Each of the reports covers the following key areas:

THE FACILITIES MANAGEMENT OUTSOURCING MARKET

In both reports:

• Overview of the overall Local Government Facilities Management outsourcing market - estimates of total market size from 2003-2008, with forecasts for the period from 2009 to 2013.
• Key market influences and future prospects - macro-economic factors, increasing maturity in a number of end use sectors, trend towards ' bundling' and legislative influences.
• Overall market mix by end use sector amongst Healthcare & Education, Central & Local Government and Corporate sectors.

SOCIAL HOUSING SECTOR

In both reports:

• Market size from 2003-2008, with forecasts from 2009 - 2013, including key market influences.
• Analysis of social housing stocks by ownership - decline in Local Authority ownership 2002-2008.
• Breakdown of the social housing market by country.

FACILITIES SERVICES PROVISION

In both reports:

• Facilities Provision Market size and trends, mix by service type, prospects to 2013.
• Key market influences - current and capital expenditure programmes, growing penetration of outsourcing, construction output and developments, impact of Decent Homes programme.
• Penetration of Outsourcing - services outsourced, trend to TFM and ' bundled' services. Trend towards partnerships and similar co-operative procurement approaches.
• Facilities Provision Market size and trends, mix by service type, prospects to 2013 in each report.

Specific to each report:

• Specific analysis of Facilities Services Provision within the Local Authority owned/managed social housing sector - extent of facilities services outsourcing, expenditure, types of contracts placed, activities typically bundled, sector interest and potential opportunities for further facilities services outsourcing. Prospects for growth.

CONTRACTORS REVIEW

In both reports:

• Key trends - recent acquisitions & mergers, expansion and diversification of service provision.
• Identification of key FM providers to social housing sector - includes company structure, areas of specialization, turnover, etc

Table of Contents

Local Authority Housing Market report

UPDATE CONTENTS and LIST OF TABLES & CHARTS

1. INTRODUCTION 4

2. SUMMARY AND FUTURE PROSPECTS 6

• 2.1 EXECUTIVE SUMMARY 6
• 2.2 FUTURE PROSPECTS 9

3. ECONOMIC ENVIRONMENT 10

• 3.1 GDP 10
• 3.2 INFLATION & INTEREST RATES 11
• 3.3 UNEMPLOYMENT 12
• 3.4 HOUSEHOLD CONSUMPTION 12
• 3.5 HOUSING & CONSTRUCTION 13
• 3.6 POPULATION PROFILE 14
• 3.7 CONCLUSIONS 15

4. FACILITIES MANAGEMENT OUTSOURCING MARKET 17

• 4.1 DEFINITION 17
• 4.2 FM OUTSOURCING SECTORS 18
• 4.3 LOCAL GOVERNMENT FM OUTSOURCING MARKET 19
• 4.4 KEY MARKET INFLUENCES 20
• 4.4.1 Legislation 20

5. THE SOCIAL HOUSING SECTOR 23

• 5.1 SOCIAL HOUSING MARKET DEFINITION 23
• 5.2 UK SOCIAL HOUSING MARKET 24
• 5.3 SOCIAL HOUSING MARKET BY COUNTRY 25
• 5.4 SOCIAL HOUSING MARKET BY OWNERSHIP 26
• 5.5 KEY SECTOR INFLUENCES 27
• 5.5.1 Decent Homes Standard 27
• 5.5.2 Social Housing Construction 28

6. FACILITIES SERVICES PROVISION IN THE LOCAL AUTHORITY HOUSING SECTOR 33

• 6.1 SECTOR STRUCTURE 33
• 6.2 ARMS LENGTH MANAGEMENT ORGANISATIONS 33
• 6.3 PROCUREMENT OF GOODS & SERVICES 34
• 6.4 FACILITIES MANAGEMENT PROVISION 37
• 6.4.1 Market Size Local Authority Housing Maintenance and Improvement 38
• 6.4.2 Type of Contracts Out-sourced 44
• 6.4.3 Work Activity Types 46
• 6.4.4 Expenditure on Work Activities 48
• 6.4.5 Interest in Out-sourcing Facilities Management 49

7. LOCAL AUTHORITY HOUSING EXPENDITURE & STOCK 51

• 7.1 EXPENDITURE ON HOUSING 51
• 7.2 EXPENDITURE ON HOUSING BY COUNTRY 52
• 7.3 COSTS FOR MANAGEMENT AND MAINTENANCE IN LOCAL AUTHORITY HOUSING 53
• 7.4 HOUSING STOCKS OWNED BY LOCAL AUTHORITIES 54
• 7.4.1 Housing Stocks Owned by Local Authorities 54
• 7.4.2 Housing Stocks Managed ALMOs 55
• 8. CONTRACTORS REVIEW 57
• 8.1 BACKGROUND 57
• 8.2 COMPANY PROFILES 58

TABLES AND CHARTS

• CHART 1 OVERALL EXPENDITURE ON LOCAL AUTHORITY PROPERTIES VALUE ESTIMATES 2008/09 £9.6 BILLION. 7
• CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2013 11
• CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2013 13
• CHART 4 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 CENSUS (' 000) 15
• CHART 5 UK FM SERVICES MARKET SHARE BY VALUE - 2008 18
• TABLE 6 UK OVERALL LOCAL AUTHORITY FM OUTSOURCING MARKET 2002-2013 (CURRENT PRICES) 19
• CHART 7 UK SOCIAL HOUSING MARKET - TOTAL DWELLINGS 2003-2013 24
• CHART 8 UK SOCIAL HOUSING MARKET BY COUNTRY - 2008 25
• CHART 9 UK SOCIAL HOUSING DWELLING STOCKS BY OWNERSHIP, 2002-2008 26
• TABLE 10 NUMBERS OF NON-DECENT LOCAL AUTHORITY DWELLINGS IN ENGLAND (X1000) - 2001/08 28
• TABLE 11 UK SOCIAL HOUSING COMPLETIONS BY OWNERSHIP (' 000), 2003-2013 29
• TABLE 12 CENTRAL GOVERNMENT HOUSING CAPITAL PROVISION IN ENGLAND 2005/06 - 2009/10 (£M) - SPLIT BY SECTOR / PROGRAMME. 31
• CHART 13 MIX OF ORGANISATIONS MANAGING THE LOCAL AUTHORITIES' HOUSING STOCK - 2008 34
• TABLE 14 OVERALL EXPENDITURE ON LOCAL AUTHORITY PROPERTIES VALUE ESTIMATES 2008/09 £M. 38
• TABLE 15 EXPENDITURE ON FACILITIES SERVICES IN LA HOUSING 2008/09. 39
• CHART 16 ESTIMATED TOTAL EXPENDITURE ON HOUSING AND COMMUNITY AMENITIES 2008 -2013 42
• CHART 17 ESTIMATED CHANGE IN RATIO OF TFM TO BUNDLED CONTRACT PLACEMENT BY EXPENDITURE 2008 -2013 43
• CHART 18 MIX OF CONTRACT TYPE PLACED FOR HOUSING FM SERVICES - 2008 44
• CHART 19 PERCENTAGE OF BUNDLING BY WORK ACTIVITY (%) 47
• CHART 20 MIX OF TYPES OF CONTRACTS PLACED FOR FACILITIES SERVICES PROVISION TO LOCAL AUTHORITY HOUSING 2008/09 BY VALUE 48
• TABLE 21 UK EXPENDITURE ON HOUSING AND COMMUNITY AMENITIES 2003/2009 - £ MILLIONS 51
• CHART 22 EXPENDITURE ON HOUSING AND COMMUNITY AMENITIES BY COUNTRY - 2008/09 53
• TABLE 23 ESTIMATED COSTS FOR MANAGEMENT AND MAINTENANCE IN LOCAL AUTHORITY HOUSING (2006/07) 54
• TABLE 24 SOCIAL HOUSING STOCK NUMBERS OWNED BY LOCAL AUTHORITIES 55
• TABLE 25 SOCIAL HOUSING STOCK NUMBERS MANAGED BY ARMS LENGTH MANAGEMENT ORGANISATIONS 56

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