December 2003/56
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| To: | Heads of HEFCE-funded higher education institutions Heads of SHEFC-funded higher education institutions Heads of HEFCW-funded higher education institutions Heads of universities in Northern Ireland |
| Of interest to those responsible for: | Strategic planning, Finance, Estates |
| Reference: | 2003/56 |
| Publication date: | December 2003 |
| Enquiries to: |
Adrian Officer at HEFCE Andrew Quickfall at SHEFC John Harper at HEFCW John McGuigan at DEL |
Table of contents and executive summary (read on-line)
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Report
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Contents
Executive summary
Introduction
Headline sector level changes
Key performance ratios
Analysis of change
Estate management in higher education
Example: using EMS to improve space management
Consultation and development
Data review
Training
Institutional feedback
List of abbreviations
Executive summary
Purpose
1. This publication reports on the ongoing progress and findings of the estate management statistics (EMS) service during 2002-03. The report focuses on:
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an overview of the UK higher education estate
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results for key performance ratios and how they are changing
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results and wider implications of a recently completed data review programme
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an update on developments in EMS.
Key points
2. This report was produced by IPD Occupiers Property Databank, in association with GVA Grimley, and was endorsed by the EMS Steering Group.
3. The EMS service is the established primary source for estates information in higher education. It has now produced four years of results for almost 200 performance ratios. EMS represents an outstanding collaborative achievement.
4. The EMS service is used by higher education institutions (HEIs) to support the budgetary process. To facilitate this link the release of the main institution report has been brought forward from May to March, starting in 2003. The participation rate stands at 97 per cent of UK HEIs. These two facts represent significant achievements.
5. The annual total revenue property costs across the UK higher education estate stood at almost £1.45 billion for 2001-02, and annual running costs now average £85 per square metre (net) and 9.1 per cent of HEI income. The diversity of results within the sector supports the view that there is potential for change and improvement across a range of issues.
6. There remains significant further scope to improve the use of space through better management and systems. 2001-02 data demonstrate that institutions typically provide between seven and 13 square metres of non-residential space per student. Many institutions would benefit from assessing whether a significant reduction in space would help to finance improvements in both condition and suitability.
7. The average proportion of non-residential space in good condition has risen by around 4 per cent in the past three years; at an institutional level around 50 per cent of HEIs have raised the proportion of space that is in good condition (RICS condition A and B). Nonetheless, almost 9 million square metres of non-residential space remain classified in 'poor' condition, with associated backlog maintenance costs of £3.3 billion.
8. On balance, the following conclusions emerge concerning progress in estate management practice since 1999. The condition of non-residential space and non-residential property cost to income ratio are improving but there is still scope for improvement in academic office space and overall space efficiency.
9. A data review programme conducted this year has shown that the sector should feel increasingly confident in using EMS data but still needs to work further towards the effective use of performance measures in the following ways:
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Some HEIs lack the appropriate information not only to contribute fully to the EMS service but also to manage their estate. Where such weaknesses exist, HEIs should implement information system improvements that are cost-effective and achievable.
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HEIs should aim to produce a full set of key estate ratios to get full value from EMS and to demonstrate the added value the estates department brings to its institution.
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More HEIs could use EMS to contribute to a performance review of the estate, which would help the estates function drive forwards its strategy.
10. The annual EMS satisfaction survey of institutions has shown that:
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Ninety per cent of contributing HEIs consider the value of EMS to their institution to be good or excellent.
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Almost 70 per cent of participating HEIs consider that the quality of their own estates information has improved in the past year.
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Institutions extract value from EMS in different ways. Most noteworthy are their use of information to help justify bids for different resources, identifying information needs and the comparison of performance measures against peer institutions.
Further information
11. HEFCE 99/18 details much of the development work on the project. HEFCE 01/10, HEFCE 01/72 and HEFCE 2002/53 form the annual reports to the sector for 2000 to 2002. Further information may be found on the EMS web-site, www.opdems.ac.uk.