ALMOs performing better than direct-delivery councils on TSMs, analysis finds

The NFA commissioned Housemark to review the performance of its 19 members using the first six months of surveys from April to September 2023 and to compare results for the same period from 53 direct-delivery councils.

Value for money comparisons were made using data from the 2022-23 Housemark benchmarking submission. 

The analysis found that ALMOs outperform councils across all satisfaction measures at the median point.

Both types of landlords saw overall satisfaction drop when compared to 2019-20 – ALMOS by 11 percentage points and local authorities by 16.

All landlords have been grappling with increased staff turnover, skills shortages, an increase of more than 20% in labour and materials costs, as well as increasing rent arrears. These factors, among other significant cost pressures, have affected performance and satisfaction among tenants, according to the analysis. 

The study also compared frontline resourcing and delivery costs and performance outcomes. It concluded that ALMOs’ overall cost per property is, on average, £81 lower than councils. 

The study found that on average, ALMOs completed a higher proportion of non-emergency repairs within target timescale at 91%, compared with a local authority median of 85%.

ALMOs also carried out a higher percentage of emergency repairs within target timescale: 99% versus 95%.

Tenant satisfaction with ALMOs’ repairs services was 12 percentage points higher than councils. 

For ALMOs, on average 88% of stage one complaints and 97% of stage two complaints were completed within the Housing Ombudsman’s target timescales. For councils, this was 74% and 70% respectively.

The average cost per property for ALMO services is £2,537 compared with £2,618 for local authorities.

The data comes as more and more councils bring their housing services back under direct delivery. In December, Newcastle confirmed it planned to close its ALMO, following Lewisham, Nottingham, and Tower Hamlets, among others. 

Councils cited financial pressures and increased regulation in the sector. 

At their height, there were around 70 ALMOs managing half the council homes in England. Now there are only 19. They were set up in part to deliver the Decent Homes Standard, with councils offered funding to do so. 

According to the analysis, ALMO non-decency level is five percentage points lower than the local authority figure of 5.62%. 

Mike Ainsley, board chair at NFA and chair of Derby Homes, said the study’s value for money findings were particularly welcome.

“For some time we have questioned the view of some councils that ALMOs are expensive, often reaching this conclusion after taking confidential consultancy advice that is never made public,” he said.

He added: “We have never seen good empirical evidence for this perception.

“Now, for the first time, we have hard data that shows very much the reverse.

“ALMOs are delivering better performance at either the same cost or, in many instances, more cheaply.”

Eamon McGoldrick, managing director of the NFA, said: “There is always room for improvement, and we continue to encourage and support our members to use these results to see where their weaknesses lie and direct efforts towards improvement, because this is the spirit of the way the regulator has asked all social housing landlords to use the results from these new compulsory surveys.

“But it is hugely encouraging to see that our members are performing well on the whole. 

“We continue to believe that the ALMO model, when run well and in close co-operation with a supportive council, is the best way in which local authorities can be sure of delivering what is demanded of landlords by the new proactive regulatory regime for social housing.”