Commercialisation 'creating a new affordable housing economy'

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

The housing association landscape is changing at an unprecedented rate, says Paul Patterson, managing director at placesrp ltd.

According to the findings of his MBA research, the transformation will require organisations to develop their businesses and leadership around the practices of private sector corporates such as, Virgin or Marks and Spencer, with the consumer at the centre of all business decisions.

Unfolding risks of the social housing sector

All aspects of the traditional business model of social housing are under attack from Government spending cuts, welfare reform and development shifting into tenures which requires a market and consumer needs-based understanding to manage risk.

Business models and executives must now have greater emphasis on creating financial efficiency and new working practices to create robust surpluses and to manage the new risks of a housing business. At a time when the new Homes and Communities Agency’s economic regulation is directing the sector to think more commercially, we are in a phase that requires the business thinking of a commercial sector, in a way that retains the values of social housing.

Commercialisation of the sector is creating a new business and operational environment that is seeing the emergence of a new affordable housing economy – an economy that will trade and devise new innovation and efficiencies to secure surplus projections as a buffer against risk.

Driven by economic regulation and more market activity, the sector is being led into a highly competitive environment.

Commercialisation and business acumen

This transformation requires organisations to develop their business and leadership around practices of commercial business acumen – set in the context of strategic market and financial operational planning. These are the practices of private sector corporates such as, Virgin or Marks and Spencer, with the consumer at the centre of all business decisions. This was the finding of my research which developed new business tools in strategic structuring and operational business planning.

Business acumen and the future

The sector needs to business plan with an eye for understanding how the affordable housing economy is going to respond in the future against economic, political and social change.

Executive leaders will have to understand how their strategic thinking translates into competitive, operational moneymaking products and services. An organisation’s growth will be based on understanding the medium to longer term impact of its actions within an affordable housing economy.