EUKN - European Urban Knowledge Network - Financial and social return in housing asset management: Theory and practice of Dutch housing associations

Financial and social return in housing asset management: Theory and practice of Dutch housing associations
Source
Delft University of Technology

Introduction

How can financial and social return be measured in relation to the asset management in Dutch housing associations? This question is discussed by the researchers.

Description

The research paper describes and assesses the concepts of financial and social return and the indicators that can be used to measure them, focussing on decision-making concerning the management of the housing stock. Moreover, the current practice on the basis of the results of an explorative survey among nine housing associations is discussed.
As far as the measurement of financial return is concerned, the research concludes that only a few associations act in accordance with the theoretical “ideal”. As far as social return is concerned, the survey indicates that associations collect a lot of data, but do not really evaluate their performance by comparing their output against preset targets or benchmarks.

Background information

Performance measurement has its origins in the private sector. More recently, attention has been given to performance measurement in the context of social or public housing management as well. This was done as part of a more general objective to improve public sector effectiveness and efficiency through the introduction of business-like management principles. The reforms in the Dutch housing system lead to an increased interest in performance measurement.

Methodology

The research focuses on the question how social landlords can measure social and financial return in support of their asset management in relation to the practice of Dutch housing associations. It starts with a theoretical discussion of the possibilities and limitations of performance measurement within social housing (asset) management. Then, the concepts financial and social return are defined and an inventory of the indicators that could be used to measure the financial and social return of the housing stock is made. Subsequently, the current practice of Dutch associations on the basis of the results of an explorative survey among nine housing associations is discussed.

Conclusions

The researchers concluded that:

Practice varies considerably between the investigated housing associations.
Only a single association’s practice is fully consistent with the theoretical ideal.
Many associations still use the book-keeping value.
Only a couple of the investigated associations carry out a risk analysis.
On estate level, only a few associations assess the economic loss.
The investigated associations measure a lot of indicators of the social output of their housing stock. But only a minority of the associations evaluates its output on the basis of preset targets and/or benchmarks.

Contact info

OTB Research Institute for Housing, Urban and Mobility Studies, Delft University of Technology
Mr. Nico Nieboer

Publication date

01/07/2004

Researcher

Nico Nieboer and Vincent Gruis

Links

website OTB Research Institute for Housing, Urban and Mobility Studies

Theory and practice of Dutch housing associations (PDF, 7.0KB, Eng)

Document type

research

Themes

Urban Policy > Housing

Keywords

Housing management, Housing policy