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Delivering value for money

Achieving value for money and continuous improvement remains a fundamental business strategy for L&Q and we have strengthened and deepened our approach since last year.

In 2014/15 we generated a surplus of £209 million, up from £174 million in the previous year. It is key to L&Q's aims that we continue to generate significant surpluses for reinvestment. We can now use our expertise in housing to maximise our business and find ways to fund our social mission ourselves. We acknowledge that we need to continue working hard to improve resident satisfaction and innovate so that we can achieve more for our customers.

How we deliver value for money

We have integrated our approach to achieving value for money into all that we do.

  • Governance - Our board members review the efficiency of our work and make sure that we comply with industry standards on value for money. We also encourage staff to question how we operate to find ways of providing a better and more efficient service
  • Financial - Our budget and business plans include targets for making efficiency gains and improvements to services each year. Each department also works to improve how it buys goods and services and looks for new ways to work with partners so that we provide real value for money
  • Our assets - Increasing our understanding of the performance of our assets and taking steps to improve their performance
  • Managing performance - We review our performance continuously and check how we compare to other large housing associations. We aim to remain among the best for financial strength and quality of services. To do this, our senior staff review the costs of our activities and identify how we can improve services
  • Resident focus - We are committed to making sure that residents receive value for money from their rent and service charges. We involve residents in our decision making and our board and senior staff monitor resident satisfaction levels regularly
  • Planning process - Our yearly business planning process aims to achieve the best service to residents at the most efficient cost, and to generate enough surplus to enable us to invest in improving services and growing responsibly
  • Our people - We are committed to investing in our staff and rewarding outstanding performance to improve resident satisfaction and financial strength

Our success in 2014/15

  • Delivered more than 2,000 new homes, half of which are for sub-market rent or affordable home ownership
  • Exceeded our sales surplus targets, selling more than 900 homes, including nearly 300 for shared ownership
  • We spent more than £500 million on land and building new homes and have a development pipeline of 13,500 homes
  • Achieved financial and wellbeing gains for our residents worth £14 million through our community investment work
  • Achieved 78% overall resident satisfaction in 2014/15, with low management cost
  • Cut our rent arrears to 3.4% - our lowest-ever level and down from 3.9% last year
  • Expanded the use of our in-house building service, Quadrant Construction, which has saved us around £2.7 million in VAT
  • We helped almost 300 people into paid work and directly helped residents to boost their incomes by £6 million

Increasing value for money in the future

We have firm plans to improve value for money in the future. This year, we launched a five-year plan, L&Q 2020, which includes a range of ambitious targets, including to:

  • Double our output, so that we are building 5,000 homes a year by 2020
  • Expand our development pipeline from 15,000 to 50,000 homes
  • Continue to drive up service quality to rank among the best of our peers
  • Deliver efficiency and quality in our homes and services by rolling out our Direct Maintenance division and expanding Quadrant Construction
  • Continue to be self-reliant and guided by our social mission in achieving our aims

Related documents

You can find further information on how we provide value for money in the following documents: