Research and analysis
VFM 2023 glossary of terms
Glossary of the terms used in the 2023 value for money report
Applies to England
Documents
Details
| Metric | Subdivision-consolidated or social housing | Metric description | |
|---|---|---|---|
| 1 | Reinvestment % (in existing homes and new homes) | Consolidated | Scale of investment into existing housing and acquisition or development of new housing in relation to the size of the asset base |
| 2 | New supply delivered % | Consolidated and social housing | Units acquired or developed in-year as a proportion of existing stock* |
| 3 | Gearing % | Consolidated | Proportion of borrowing in relation to size of the asset base |
| 4 | Earnings before interest, tax, depreciation, amortisation, major repairs, included (EBITDA MRI) interest cover % | Consolidated | The regulator’s measure of interest cover - it measures the ability of registered providers to cover ongoing finance costs |
| 5 | Headline social housing cost per unit | Social housing only | HSHC includes the following social housing lettings items: planned and routine maintenance, major repairs including capitalised repairs plus ‘Other’ costs (Lease costs, Other (social housing letting) costs, Development services (Operating expenditure), Community/neighbourhood services (Operating expenditure), Other social housing activities: Other (Operating expenditure), Charges for support services (Operating expenditure). |
| 6 | Operating margin % | Consolidated and social housing | Operating surplus (deficit) divided by turnover (demonstrates the profitability of operating assets) |
| 7 | Return on capital employed % | Consolidated | Surplus/(deficit) plus disposal of fixed assets plus profit /(loss) of joint ventures compared to total assets |
*The VFM metrics are restricted to data derived from registered providers’ Annual Accounts regulatory returns – FVA – New supply developed by joint ventures is therefore excluded from the new supply (non-social) metric.