A trio of North East housing associations have grouped together to deliver savings for their residents through implementing a joint approach to procuring maintenance services.
Four Housing, North Star Housing Group and Two Castles Housing Association have joined forces to procure day-to-day and void maintenance repairs worth more than £13m over a four-year partnership. Believed to be the first of its kind to be set up in the North East, the arrangement to jointly procure maintenance contractors will see repair prices for each association fixed for four years.
It is expected to deliver an 18% reduction in overall responsive repair costs, helping each housing association to deliver greater efficiency and value for money for their residents elsewhere within their organisations.
Managing more than 11,000 properties between them, the associations will now work with three dedicated contractors in the North East, including PFBurridge &Sons from Newcastle, Sunter Limited in Houghton-le-Spring and Esh Group, which has bases in Cramlington andDurham.
The joint procurement exercise, managed by asset management consultancy Elliot Johnson, will not only limit price increases for each, but will also help them to monitor the performance of their services.
Rob Brittain, property services director at Two Castles Housing Association, said: “As an industry, we are always under pressure to deliver the highest standards of services for our residents for the same or less cost.
“Achieving value for money is embedded in everything that we do and we work as hard as possible to ensure that every pound spent as an association is invested wisely to maximise return for our residents.”