1 / 23

The Economic Impact of Housing Organisations on the North

The Economic Impact of Housing Organisations on the North. HSA Value of Housing conference: Wednesday 16 th April 2014. Ian Wilson Centre for Regional Economic and Social Research Sheffield Hallam University. In this presentation. introduce the study

dewey
Télécharger la présentation

The Economic Impact of Housing Organisations on the North

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Economic Impact of Housing Organisations on the North HSA Value of Housing conference: Wednesday 16thApril 2014 Ian Wilson Centre for Regional Economic and Social Research Sheffield Hallam University

  2. In this presentation... • introduce the study • activities of social housing organisations • the economic impact of social housing organisations on the North • factors influencing size of economic impact • consider Welfare Reforms and their affect on economic impact

  3. Introducing the Study

  4. The Study • economic impact of social housing organisations on the North in 2011/12: • encompass 'day to day' activities • key metrics: expenditure, GVA & employment • direct and 'in-direct' impacts • why important… • responds to requests to demonstrate impact • underpin case for housing • add to evidence base • baseline against which to assess change • funded by NHC plus 7 case study organisations

  5. Evidence base: Survey of Northern Housing Organisations • to provide a comprehensive evidence base • sent to 121 organisations each managing c1,000+ properties • includes Housing Associations (HAs), Arms Length Management Organisations ( ALMOs) and councils • 58 responses: c54% of total turnover • questions covered: stock, building, employment, income, expenditure and neighbourhood investment

  6. A (very quick) overview of social housing organisations activities

  7. Core functions which provide economic impact • Managing properties: • just under 1,198,000 dwellings managed • Building: • 8,400 new build completions • 58 responding had 3,100 dwellings in development • Community investment: • remit covers more than just housing: 'want to do it & business case' • links with key Government policy agendas

  8. The Economic Impact of Housing Organisation on the North

  9. Output expenditure • £5,005 million output expenditure into local economies • in addition every £1 spent generates a further £1.05 in the supply chain... • ...therefore social housing organisations support £10,269 million total output expenditure

  10. Gross Value Added • produce an estimated £1,699 million in Gross Value Added (GVA) • this is approximately 0.6 per cent of total Northern GVA • including indirect GVA social housing organisations support £4,646 million: 1.4 per cent of total.

  11. Employment • employ 46,200 employees at workplaces within 3 Northern regions • that working in 'manufacture of motor vehicles' and 'call centres' combined • 41,600 FTE employees work within 3 Northern regions • plus for every FTE directly employed a further 1.8 FTE are indirectly supported: 116,900 FTEs in total

  12. Economic Impact on the North: summary

  13. Factors influencing size of economic impact • Income: gross expenditures • Procurement: regional sourcing • Composition of expenditure: multiplier effect

  14. Income Total 'income' was £6,499 million, of which:

  15. Procurement • Gross expenditure was £6,940 million of which £5,005 million - 72 per cent - was sourced locally • recognise responsibility to local communities and potential opportunities afforded to deliver economic, social and environmental objectives • e.g's of procurement policies and practices: • panels which include many local suppliers • assist local SMEs to meet criteria to get onto panels • social contracts: e.g. take on apprentices • buying power to influence suppliers

  16. Composition of expenditure (1) • how organisations spend their money affects the size of the multiplier effect (indirect impact) • construction, major repairs, refurbishment = largereffect • financial and business services, transport/post/ telecommunications and labour costs = lower effect

  17. Composition of expenditure (2)

  18. Welfare Reforms: potential affects on economic impact

  19. Welfare Reforms: potential affects on economic impact • Removal of Spare Room Subsidy/Bedroom Tax • HB paid based on 'need' = reduced entitlement for c240k, who collectively faced £168 million shortfall • impact unclear: evidence increased arrears & collection costs, but not as bad as first thought... • Direct Payments • housing benefit paid directly to tenant within Universal Credit • impact unclear: increase in arrears for previously low risk tenants; DPDP DWP figures show 94 per cent rent collected (14 payments) • Benefit Cap • cap on total benefits • impact unclear: 'fewer' tenants affected, but those who are arguably least able to deal with a shortfall

  20. Welfare Reforms: potential affects on economic impact • Income: increased arrears = reduced income • Composition of expenditure: • increased rental collection, management, financial awareness ... associated with a smaller multiplier effect • how is this achieved?... less work on high multiplier activities such as construction and major repair works? • Procurement: likely impact limited; plus e.g. Public Services (Social Value) Act & Localism Act give more weight to local purchasing = less leakage

  21. Summary

  22. Summary • housing organisations are an important component of local economies • total impact (direct and indirect) on the North: • output: £10,269 million • GVA: £4,646 million • 116,900 FTE employees • housing organisations are faced with considerable 'challenges' which could diminish impact • important to consider how decisions affect: income, procurement and composition of expenditure

  23. Thank you Reports and video available at: http://www.northern-consortium.org.uk/economy Ian Wilson: • i.wilson@shu.ac.uk • 0114 225 3539

More Related