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UK FM Outsourcing Market within the Social
Housing Sector by Expenditure 2008 – 2013
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The
facilities management market has shown good growth since the early
1990’s, influenced by the desire to control operational efficiencies and
costs, as well as more recently a trend within the private sector for
companies to refocus their business in order to concentrate on core
competencies. Further growth since the turn of the millennium was
influenced by the buoyant state of the economy, as well as public sector
developments funded. This has contributed to an overall market value for
outsourced ‘bundled’ services and TFM of almost £14.5bn in 2008. The
social housing sector is currently one of the least mature in terms of FM
outsourcing providing considerable opportunities for suppliers.
The two
new reports specifically focus on the Local Authority owned and Housing
Association owned property sectors respectively:-
“Facilities Management Outsourcing – Local Authority Housing Market: UK
2009-2013”
“Facilities Management Outsourcing – Housing Association Market: UK
2009-2013”
The
changing structure of the social housing market and pressures to achieve
‘best value for money’ is impacting on the facilities services provision
within the social housing sector. A wide range of approaches are
currently being adopted by the Local Authorities (LAs) and Housing
Associations (Has).
The
vast majority of LAs and HAs retain the overall management of the housing
stocks but sub-contract out at least some of the work to external
contractors. Despite the positive underlying shift towards outsourcing
‘bundled’ work activities, currently many LAs and HAs are not outsourcing
the overall facilities management of the social housing stock.
Work
activities that are often bundled include responsive repairs and planned
maintenance; in contrast home improvement contracts are generally placed
as individual contracts (within our definitions) as are speciality work
activities such as gas servicing and lift.
The
level of ‘bundled’ contracts and total facilities management is expected
to increase in the medium to long term with a corresponding decline
in-house work and individual contract placement (as shown in the above
chart).
The
individual reports focus within their specific social housing sector and
provide detailed analysis of expenditure and facilities provision within
the sector. | 
