April 2007/08
Good practice
Annual report
This report is for information
Performance in higher education estates
EMS annual report 2006
This publication reports on the progress and findings of estate management statistics (EMS) during 2006. EMS shares estates information among UK higher education institutions and empowers institutions to improve management of the physical infrastructure. The report highlights five different aspects of estates performance and comments on those of most concern.
| To: | Heads of HEFCE-funded higher education institutions Heads of SFC-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: | 2007/08 |
| Publication date: | April 2007 |
| Enquiries to: | Andrew Smith at HEFCE Gill Watson at SFC Chris Cowburn at HEFCW John McGuigan at DEL |
Contents and executive summary (read online)
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NB: There was an error in Table 1 of the printed copies of this document. The web versions were corrected on 27 April 2007.
Report
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Contents
- Executive summary
- Introduction
- The size of the sector
- Trend analysis 2002-03 to 2004-05
- How do UK countries and peer groups of HEIs compare?
- Making the estate more affordable
- Cost control
- Space management
- Environmental sustainability
- Condition and repair
- Annex A Summary statistics
- Annex B Glossary and abbreviations
Executive summary
Purpose
1. This publication reports on the progress and findings of the Estate Management Statistics (EMS) service during 2005-06 for the 2004-05 financial year. The 2006 data incorporated returns from 159 out of the 161 UK higher education institutions (HEIs). Most of the trend analysis in this report relates to the two years from 2002-03 to 2004-05. We recommend that senior management teams and estates committees consider this report and use EMS to develop their strategic and operational planning.
Key points
Making the estate more affordable
2. Property costs went up more slowly than income, with property efficiency outcomes worth about £45 million per year. The ratio of property cost to income is improving: the median ratio decreased by 0.25 per cent over the two years from 2002-03 to 2004-05. This achievement is linked to a 2.5 per cent median improvement in space per student. Where the cost to income ratio deteriorated, this was generally associated either with higher spending to repair and improve the estate or with increases in space per student.
3. Median income per m2 rose by 13 per cent over the two years, reflecting increased productivity of space as income rose substantially faster than space.
Cost control
4. Inflation, higher service levels, spending on repair, more expensive energy and the costs associated with more intensive use of space have all contributed to an 11 per cent increase in costs per m2 over the two years 2002-04. Nevertheless, a quarter of HEIs saw a reduction in costs. Encouragingly, the cost per student has gone up by a slightly lower figure, 9 per cent, as better space management has taken effect. Moreover, increased expenditure is often justified to deliver higher service levels and better quality space in order to meet business needs.
Space management
5. As overall student numbers rose faster than space, typical figures for overall space per student went down by 3 per cent between 2002-03 and 2004-05, with reductions achieved in nearly 60 per cent of HEIs, particularly in teaching space. Support space and office provision for academic and support staff hardly changed, with significant variations - and potential efficiency improvements - still evident between institutions.
Environmental sustainability
6. The sector has recorded significant environmental achievements but there is still a great deal further to go to improve performance to acceptable levels. Analysis of teaching-intensive HEIs reveals that there is still a high variation (60 per cent) between the upper and lower quartiles for consumption of energy, CO2 and water. The reasons for this variation need further exploration.
Condition and repair
7. The proportion of the estate in good condition for a typical university has grown by nearly 3 per cent over the two years. This is quite a large increase and it looks set to continue, with a 90 per cent increase in capital investment recorded over the same period. Nevertheless, the condition of the estate is still one of the most important challenges facing the sector, as 30 per cent of the total stock remains in an unsatisfactory condition.
8. 'Backlog affordability' is a simple ratio of HEI income divided by the funding required to bring the estate into good condition and compliance with legislation. The typical HEI has six times more income than backlog costs (that is, a ratio of six). However, 34 per cent of HEIs have a ratio of four or less, which represents a high level of risk for these institutions.
9. Most HEIs are improving the majority of their key ratios. The most significant areas of improvement over the two years have been:
- teaching and research income per m2
- backlog maintenance cost and affordability
- income per bed space for residential property.
10. Further performance improvements are still achievable at many institutions. The main priorities would appear to be:
- a higher quality estate in better condition
- significant space efficiencies, particularly in support space and offices
- a continuing drive to improve environmental performance.
11. The adoption of a limited number of key targets in well-drafted estates strategies will help HEIs to focus and make progress in a way that will often make a difference to their organisations.
12. A glossary of key terms and abbreviations used in the report is in Annex B.