INVESTING IN EXISTING HOMES
At merger, the Board resolved to prioritise investment in existing homes. Since then, we’ve increased investment in repairs and maintenance by 31%. Whilst this has been necessary, it does mean less capacity for developing new homes. We’re building-out our committed pipeline of 3,700 homes, but additional development is restricted until we recover 100% EBITDA-MRI cash interest cover in 2029/30.
By amalgamating our legacy businesses at the point of merger we were able to commence integration immediately – and great progress has been made – with integration now largely completed this summer. This has enabled our focus to shift from integration to the transformation of processes, systems and services.
OUR PROGRESS AND GOALS
Eighteen months from merger we had our first regulatory inspection as a new organisation. We were delighted to recover the highest G1 grading for governance and maintained our V2 rating for financial
viability. Southern Housing was one of the first registered providers to be given a consumer grading.
Our C2 grading was a fair reflection of progress in summer 2024. However, we’re ambitious to achieve the highest C1 grading by our next regulatory inspection in 2028.
Given our constrained financial capacity and our focus on what matters most to residents, the Board have set three ambitious goals for the next three years:
- Firstly, we aim to be the best large landlord for repairs and maintenance by 2027. Our regulatory inspection confirmed what we already knew – that we need to improve our repairs service. Repairs and maintenance are the biggest drivers of resident satisfaction, the biggest source of complaints, the biggest area of failure demand and our biggest budget. We’re therefore focusing our transformation resources on improving repairs and maintenance.
- Secondly, we’re ambitious to achieve a C1 consumer grading by our next regulatory inspection. We know improving repairs and
maintenance is one of the main drivers of the C rating. It will also improve complaint handling – which is the other major service area that needs to be improved. We’re regarded as a leader for
resident governance and engagement and we’re confident by listening to and co-creating with residents, we will improve our Tenant Satisfaction Measures and be worthy of a C1 grading by 2028. - Our third goal is to improve our financial strength. We’ll drive more than £33 million of efficiencies out of our cost base by 2029. We’ll do this by streamlining our business, focusing on the things that matter most to residents, and transforming our systems and processes to remove waste and improve resident satisfaction. Our goal is to achieve 100% EBITDA-MRI cash interest cover by 2029/30.
THE FUTURE
This is a challenging but exciting time for Southern Housing.
With our three goals clearly established, we’re consulting with colleagues and residents on how to achieve the outcomes we want. This will shape our strategic plan 2026-30.
If we maintain a relentless focus on our goals, continue to co-create with residents and colleagues, and ensure our transformation work is laser focused on the things that matter most, we will build the foundations for a new era of growth and opportunity from 2029 onwards.
Want to find out more?
Watch our video below and hear from Trudi Elliot, our Chair Designate, on why she chose to join the Southern Housing Board, what qualities we look for in our members and what an effective Board looks like.
Want to make a difference?
Find out more about the Board roles currently available and the application process for those keen to make a difference here at Southern Housing.
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