By Vivienne Russell
13 October 2010
Opening up social housing market to greater competition could save money and boost standards, according to the CBI.
A report from the business lobby, published yesterday, said councils and housing associations should be able to choose the best provider of services from either the private or third sectors. It has calculated that this approach could save £1.5bn in England alone.
Susan Anderson, CBI director of public services and skills,
said there was a ‘clear link’ between a greater role for private providers in
housing and improved health and education outcomes.
She said: ‘At present, only 1 in 80 homes is managed by the private sector. The government must create a competitive market for social housing management services and allow longer contracts to encourage more providers to enter the market.
‘With no requirement to go to the market to see if another
provider can deliver better services for the same or lower cost, many housing
managers simply opt for the status quo. Without competition, tenants and
taxpayers may be losing out.'
The CBI also said contracts should be designed to track the impact housing providers have on other parts of the public sector. An outcomes-based system should be used to reward good results, it added.
