STRATEGIC PLAN

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1 STRATEGIC PLAN

2 CONTENTS Contents Foreword... 5 The Hyde Group - About us... 6 Our vision and mission... 7 Managing our business... 9 Our achievements...11 The changing environment Objectives and initiatives What great looks like for Hyde in 2020 Four key drivers Our products and services

3 FOREWORD Foreword These are challenging times. But they are exciting times. I believe this four-year strategic plan will enable the Hyde Group to deliver quality landlord services and build even more new homes that the country so desperately needs. Hyde Housing Association was established in 1967 with one aim: to help people excluded from the mainstream housing market, by providing them with decent, affordable homes and managing them properly. Much has changed since then, politically, socially and economically, but as we approach our 50th birthday, our mission statement continues to reflect the same aims of half a century ago. Housing, or the lack of it, has never been so high profile. Since the election in May 2015, it has rarely been out of the news. The Government s priorities for the sector are to drive efficiency, promote home ownership and, not least, build more homes all within a backdrop of reducing the country s deficit. And we must rise to that challenge. We are a landlord that provides homes at a variety of price points, making them accessible to those unable to afford the open market, for as long as that need remains. But we are also a house builder and we develop open market products to subsidise the development of even more affordable homes. Every penny of the profit we make from house sales goes towards building more homes. We are also a responsible landlord. We recognise our residents are key stakeholders and resident satisfaction is one of our main drivers. To support this we are investing in new technology to improve our service delivery and understand our customers better. We are also streamlining our services to make sure they fit residents needs. We know that our customer base is diverse, with a range of aspirations and needs, and we will ensure that our product range and service offer reflects this. We need to attract and retain the best staff to be a responsible landlord, delivering quality services, and to build more homes. Passionate, motivated and committed people are vital if we are to meet our goals and fulfill our charitable objectives. Elaine Bailey, Group Chief Executive 5

4 THE HYDE GROUP ABOUT US OUR VISION AND MISSION The Hyde Group About us The Hyde Group is a landlord with 50,000 homes, serving 98,000 residents over 70 local authorities in London and the South East of England. We are committed to building more much-needed homes and plan to build 6,000 over the next four years. The Hyde Group was founded in 1967 to provide affordable housing to those in need and services that make a difference to the people and communities it serves. We provide shared ownership and affordable rented homes, plus those for sale and private rent, from the south coast of England to East Anglia. Hyde Housing Association is a not-forprofit organisation but our family of companies, which makes up the Hyde Group, includes charities and profit-making subsidiaries which gift profits back so that we can continue to build homes, invest in quality services for our customers and support our most vulnerable residents. Our vision and mission Our mission statement is the backbone of our success. As a charitable business we re-invest our surpluses into building more homes and providing quality services to our residents. Our vision To make a lasting difference to people s lives Our mission To be a responsible landlord We provide affordable, safe and well-managed homes We offer long-term security Our landlord services are accessible and easy to use We invest in our homes to make sure they are well-maintained and energy efficient We work in local partnerships to create successful communities where there is the greatest need We advise, and communicate clearly with, our residents on their obligations under their tenancy or lease agreement We seek to support our most vulnerable tenants and to sustain tenancies wherever possible. To operate as a successful business with charitable objectives We manage our business on sound commercial principles, driving efficiencies and maximising surpluses We reinvest all our surpluses into the business to create more capacity for growth We provide homes at a variety of price points, making them accessible to those unable to afford open market rates, for as long as that need remains Resident satisfaction is at the heart of everything we do. We ensure that residents can actively influence the services they receive through our engagement strategies We are an employer of choice and invest in the development and wellbeing of our staff. To build more new homes We build homes of all tenures to help ease housing pressures We are long-term stakeholders in local communities and significant contributors to the local economy House building contributes to our charitable objectives through job creation and apprenticeships, infrastructure contributions and local tax receipts. 6 7

5 MANAGING OUR BUSINESS MANAGING OUR BUSINESS Managing our business We are a landlord which builds, manages and maintains homes for people who are unable to afford market rates. At the Hyde Group we are committed to operating in an open and transparent way, accountable to our residents and stakeholders. Values We believe that how we work with customers and stakeholders is integral to what we do. Our core values help us to fulfil our business objectives by guiding us and these are integrated into our annual appraisal process and recruitment practice. Valuing people Taking responsibility Behaving with integrity Working together Being innovative Governance Our activities are regulated by the Homes and Communities Agency and Hyde enjoys the highest level of compliance rating. We also have a strong and well established governance structure that includes independent board members, together with a sector-leading resident scrutiny model. Alongside these structures, the Hyde Group has established risk, performance management and financial planning frameworks with specialist staff overseeing their delivery. Delivering Value for Money The Hyde Group is financially strong and we are committed to ensuring that our assets and money entrusted to us by Government and lenders are wellmanaged and used to gain maximum benefit for our current and future customers. Our commitment to this is outlined in our Financial Plan and our Value for Money Strategy. Open and Transparent We are open about how we spend our money and demonstrate that we deliver value for money for our residents. We make information available about our performance, our expenditure and our salaries to ensure our residents and the wider public have access to information about the services we provide and our effectiveness. Diversity and Inclusion The Hyde Group values diversity and our workforce is committed to making sure that our services are accessible to all. Our commitment to these values is enshrined in our Diversity and Inclusion Strategy. Social Responsibility Social responsibility is at the heart of how we work as individuals and as an organisation. We receive some public funding but increasingly we borrow money raised in capital markets to support our growth. We invest all our surpluses back into providing affordable homes as befits our charitable status. Efficiency is one of our core objectives, enabling us to deliver even more social good, particularly where this overlaps with business benefit. There are many examples across the business of how we work with partners to improve residents quality of life and help create successful communities. 8 9

6 OUR ACHIEVEMENTS OUR ACHIEVEMENTS Our achievements We are one of the UK s leading housing associations, both through our financial strength and our comprehensive stakeholder engagement programme, putting us at the top table in terms of influencing policy makers and shaping the sector s thinking. We enjoy the highest financial viability (V1) and governance (G1) ratings from our regulator, the Homes and Communities Agency. We also have an AA rating from our credit rating agency, Standard and Poor s. Our operating costs per home are some of the lowest in the sector. We have a programme of continuous improvement across our services while reducing costs across our business. In we made a surplus of 81m, of which 67m was from both our new build and existing asset sales, with the balance generated by our core operations. In the same year, our Procurement Team won the Best Public Sector Award at the 2015 Procurement Leaders Awards, recognising its efforts to deliver value for money. Hyde has hosted several debates at Westminster and political party conferences - with speakers including the Secretary of State for DCLG and the Housing and Shadow Housing Ministers, as well as leading local authority figures and academics. Members of our Executive Management Team regularly speak at conferences across the UK, sharing their expertise in housing management, finance, governance and in building more homes. Customer Focus We deliver quality services to customers, with more than 80% satisfaction for our repairs, lettings, stock investment, call handling and new homes services. Building Homes In we built 1,103 new homes, of which 954 were let or sold at below market rates. Over the past three years, on average, we have invested the cash equivalent of 2.6 times our annual surplus in building and acquiring homes. We have established a track record of delivering new homes in London and the south east, winning awards for design, innovation and our regeneration work. Investing in Our People Our Investors in People (lip) Gold Award is testament to the value we place on recruiting the right people and maintaining an engaged workforce. Since achieving this in 2014, we have gone on to launch our innovative Wellbeing strategy for staff, covering all aspects of wellbeing, from healthy eating to managing stress. In 2014, Hyde also achieved two Benefit Excellence Awards: the Best Evolution for Staff Benefits and Best Use to Drive Business Strategy. We continue to empower our residents and communities to influence Hyde s services through our use of customer insight and our awardwinning Resident Engagement Strategy

7 THE CHANGING ENVIRONMENT THE CHANGING ENVIRONMENT The changing environment Government policy has made a significant impact on the housing sector, which will fundamentally change how we operate as a business. We have a renewed focus to provide more low cost home ownership products, while recognising that many residents living in our sub-market rented homes will continue to be affected by welfare and tax reform. As such, it is likely that our core customer profile will evolve. We also seek to ensure affordability for our new customers, while increasing our efficiency and continuing to contribute to increasing housing supply, with an emphasis on charitable, low cost home ownership products. We believe that understanding our operating environment is crucial to making the right decisions about our future. Housing Market High land values and reduced levels of public funding make the delivery of affordable homes increasingly difficult. The requirement to provide Starter Homes as part of the affordable tenure element of developments, plus a cumulative 1% social housing rent cut over the next four years, will increase our exposure to fluctuations in the value of outright sales. Income Collection This rent cut also has the potential to reduce our income substantially and increase our debt. Equally, Welfare Reform changes such as Universal Credit and further benefit reductions will increase our income collection costs and reduce affordability for benefit-dependent tenants. The extension of Right to Buy to housing associations will affect Hyde in a variety of ways. Sales will increase our immediate cash. However, over the longer term, we could see a significant reduction in our rental stock, perhaps limiting options for future borrowing. Changes to our Operating Environment It is likely that the Government may place more pressure for change and efficiency improvements on the sector. London mayoral elections are also likely to bring a shift in focus. HCA in depth assessments place additional challenges on governance and reporting and certainly the sector s increasing exposure to outright sales looks set to create further pressure. The impact of the rent reduction and the introduction of Right to Buy is likely to result in an accelerated consolidation within the sector, leading to a reduction in the number of Registered Providers. Planning and Construction Introduction of Housing Zones and policies to speed up and simplify planning will make more land available and therefore increase the number of development opportunities. Increased construction activity has contributed to skills shortages and increased cost in materials and, as a result, we are already seeing innovation in new technologies such as modern methods of construction. London s investment into new transport infrastructure, such as CrossRail 2 and the extension of the Bakerloo Line, will make some areas of the capital more attractive for development. Recognising Future Demand and Changing Markets We recognise that our customers are likely to have changing expectations around the services we offer, such as increased use of online services. We are using customer insight information to ensure that we deliver an increased product range and fully aligned service offer designed to meet their needs. We will also review our products and services to meet the needs of an aging population. It is clear that home ownership is important for customers and the wider population

8 OBJECTIVES AND INITIATIVES OBJECTIVES AND INITIATIVES Objectives and initiatives We have developed four objectives that will shape our work in order to achieve our vision and mission statements. Be Efficient Maximise value, embrace digital solutions and streamline our systems and processes. Continue to modernise our service to meet customer expectations. Core service areas will be reviewed to create confident, expert teams who know how to deliver good outcomes Consolidate operating geography and markets through swaps, disposals and proactive mergers and acquisitions Maximise the asset value of both new and existing homes Sustain income collection given the current environment but actively seek out opportunities to increase this across the business Recognise the environmental impact of our business and continue to reduce waste and other undesirable impacts Deliver Quality Services Cultivate a culture of responsibility to deliver straightforward accessible services. Utilise new technology and the delivery of existing major projects to help us re-shape our service model to better deliver easy to use and digital services to a good standard Review our product range and customer segments to address future changes in market demand and the aspirations of home ownership for our customers Help our most vulnerable residents to sustain their tenancies Build More Homes Increase the number of homes we own and build to increase the housing supply and maximise our financial strength. Maximise the number of homes we build across all tenures Work collaboratively with partners to deliver increased supply Explore innovative funding structures to support mechanisms for new supply Maintain the confidence of our regulator and investors Enhance Hyde s reputation as a thought leader to shape thinking and increase influence on policy makers Value our People Support our people to deliver organisational objectives and improve our employees working lives. Have the right people in place, with the right capabilities, who are innovative and passionate about what we do Embed a culture of working together and individual responsibility to deliver excellent customer service Invest in effective staff engagement strategies so our people feel empowered, valued and ready to give their best Ensure Hyde remains an attractive and competitive employer and good staff are retained, developed and promoted 14 15

9 WHAT GREAT LOOKS LIKE FOR HYDE IN 2020 FOUR KEY DRIVERS WHAT GREAT LOOKS LIKE FOR HYDE IN 2020 FOUR KEY DRIVERS What great looks like for Hyde in 2020 Four key drivers Focus on our core objectives to achieve success: EFFICIENCY Our transactional cost per home will be among the best within G15. EFFORTLESS In the top quartile of our peers, customer satisfaction will be at 80%. GROWTH We will have built over 6,000 homes of varying tenures. PEOPLE Our staff engagement, development and retention will be within the upper quartile of our peer group. We will ensure that our internal costs deliver even better value for money, allowing us to maximise our surplus to re-invest into providing quality services for our residents and building more homes. Our customers are our most important stakeholders and so we will give them the best service we can. This will start by ensuring our services are simple and easy to use and our customers can achieve the outcome they want, with the least amount of effort. We are passionate about building more homes to ease housing pressures. We will grow in our core areas, through development and stock acquisition, so we become more efficient and improve our service offer to our residents and other stakeholders. We believe that a highly engaged, innovative and skilled workforce is the key building block to achieving our objectives. We will embed a culture of working together and individual responsibility and maintain our programme of staff wellbeing initiatives

10 OUR CURRENT PRODUCTS AND SERVICES OUR CURRENT PRODUCTS AND SERVICES Our products and services We currently offer a range of housing and services to our residents. We recognise the increased drive for efficiency and home ownership and how this may change the types of products we offer in the future. 40 % 50 % 80 % Social rent A rented product set at around 40% of open market rents with long term security. All re-lets are offered with five year fixed term tenancies. This is no longer funded through Government although it is sometimes provided as part of estate regeneration schemes. Discounted rent A rented product set at around 50% of the open market, usually with a five year fixed tenancy. This is funded in London only through the GLA and is likely to be limited in the future. Affordable rent A rented product set at around 80% of open market rent, often with a five year fixed term tenancy. Funding for this product is unlikely to continue as emphasis is now on low cost home ownership products. 100 % Private rental An open market rented product. Any surpluses are re-invested into the provision of sub-market homes and this is a useful contingency for us in a turbulent housing market. New homes for sale An open market sale product. The sales surpluses are re-invested into the provision of sub-market homes, most likely to be low cost home ownership. Shared ownership homes A part buy, part rent low cost home ownership product. There is a renewed focus on this tenure and similar home ownership products going forward. Tenancy management service Management and maintenance of our rented homes. With an increase in home ownership products, including the extension of Right to Buy, there will be increased focus on leasehold management and services. Regeneration services This includes the masterplanning and re-development of existing estates. More partnerships with local authorities and joint ventures between private and public sectors look set to continue as a way to increase new supply. Community and 1:1 support services Investment in our most challenging communities and support for our most vulnerable residents. Increased partnership working between both public and private organisations and communities is likely to increase, enabling delivery of services to help ensure neighbourhoods continue to be quiet and enjoyable places to live

11 The Hyde Group The Hyde Group, 30 Park Street, London SE1 9EQ facebook.com/hydegroup twitter.com/hydehousing If you would like this document in one of Hyde s community languages or another format please contact us.