Shoreline have annouced they are to lay off 1/5th of their staff.
They join others inclusing 24 staff of the 250 workforce in Cheshire Peaks and Plains (almost 10%)
In a survey by Inside Housing, 58.9% of CEOs said they would be making redundancies and 52% said they will be freezing recruitment
Inside Housing have reported today:
” Shoreline Housing Partnership has become the latest social landlord to announce redundancies due to the rent cut, with nearly a fifth of its workforce at risk.
The 8,000-home landlord estimates it needs to make savings of around £4m a year to cope with the four-year, 1% annual cut.
It has begun consulting with employees and says it could make 43 positions redundant. It will first look to voluntary redundancies.
Shoreline chief executive Tony Bramley said: “We have to rethink how we operate, reduce the number of services we provide and I’m sorry to say lose some very dedicated and professional individuals.”
Weaver Vale Housing Trust yesterday announced it too would have to make an unspecified number of redundancies. The Cheshire-based landlord estimates the policy will be hitting its rental income by £4.2m a year by 2020.
Inside Housing reported earlier today that some landlords are looking to reduce their operating costs by as much as 25% to cope with government cuts.
Organisation Cost-reducing measures announced
– Plus Dane Modelling for cuts of 25% to operating costs
– Circle Looking for savings of £50m a year
– Gentoo Cutting 330 jobs – nearly a fifth of its workforce
– New Charter Cutting 150 jobs
– Hyde Cutting expenditure by £32m
– Aspire Looking at up to 70 job cuts
– Weaver Vale Announced it would have to make job cuts
– Shoreline 43 redundancies – 17% of workforce”
Some housing associations are eyeing cuts to operating costs of up to 25% a year to cope with government cuts.
Several landlords revealed the extent of expenditure reduction they feel may be needed to ensure their business can deal with the four-year, 1% annual social housing rent cut and expected future reductions.
Plus Dane has asked its leadership team to model cuts of up to 25% of the organisation’s annual operating costs in year one of the rent cut.
Inside Housing said of Plus Dane:
“The Liverpool-based landlord reported operating costs of £49.7m in 2014/15, meaning a 25% cut would represent £12m of savings. Barbara Spicer, chief executive of Plus Dane, said 25% is higher than the 10% it needs to balance the books but the landlord, which has recently come out of regulatory trouble, would be left with lower surpluses, less headroom and higher operating costs than others unless it went further.
Ms Spicer also said she expects further government cuts. She said: “If government departments are facing a potential 40% cut, then looking at 25% as a real possibility at some point in the future seemed sensible.” It will decide whether to implement the full 25% in January.”