Opinion: Investment Property Databank
Published by Max Salsbury for 24dash.com in Housing and also in Finance
Liverpool Mutual Homes receives TSA thumbs-up
By Steve Coffey, CEO, Liverpool Mutual Homes
The launch of a sector-wide index by the Investment Property Databank may go down as a key milestone in social housing’s history and earlier this week delegates at the National Housing Federation’s finance conference heard about it first-hand.
It is a crucial tool in the ever-increasing commercial and value for money landscape of the sector.
The aim of IPD is to demonstrate the economic performance of landlords’ property assets by creating a return-based performance-benchmarking index.
This will allow landlords to take a comprehensive view of their assets to optimise value and take a more strategic approach to asset management to ensure portfolios best meet the various demands placed upon landlords. It will also help position organisations to attract new investors.
Our sector talks a different language to the capital markets and this is partly due to the lack of economic understanding of our assets.
The index lets us communicate in their terms; it allows them to read the sector better and understand our values more.
Not only does it allow us to understand our costs and returns but it will also aid us should we want to raise funds on the market.
Genesis, Helena Partnerships, LMH, Spectrum, Gallions, Circle and Orbit have come together to carry out a three-year pilot with IPD to gain a better financial understanding of our stock.
It has allowed us to identify poor performing properties and understand why high performing assets are doing well.
This means we can replicate success or use it to plan specific interventions where stock is performing poorly, while simultaneously improving management and operational efficiency.
By leveraging assets strategically we can also maximise high value areas to invest in core functions.
Ultimately the index improves decision-making resulting in us being able to better fulfil our social purpose.
Crucially, it is also a key tool for landlords in responding to the clear value for money agenda set out by the regulator.
The benefits for the sector are significant and the more landlords that take part, the greater the opportunities for all.