Annual Review 2007/8 - Hanover

Annual Review 2007/8

Hanover:
who we are
and where
we are going
Hanover’s vision is to be the number one
provider of housing and related support
services for older people by 2012. To make
this vision a reality, we will continue to
provide innovative housing solutions that
benefit older people and society as a whole;
we will actively listen to our residents and we
will purposefully engage with our partners.
We are well placed to achieve our vision as
one of the largest providers of affordable
retirement housing; with some 19,000
properties across 600 locations in over
175 local authority areas, providing quality
retirement and extra care housing for rent,
leasehold or shared ownership sale.
We also offer a comprehensive package of
support services for older people through
our home improvement service, helping over
5,000 home owners and tenants every year to
live independent lives; through our in-house
emergency alarm call and telecare monitoring
service, Hanover on Call, that gives its 25,500
service users consistently high standards
of response 24 hours a day, 365 days a
year; and through Hanover Helps, our unique
responsive information service that is provided
free to all our residents and staff, putting
customer care at the heart of what we do.
This Annual Review explains how we have
been working towards our vision over the last
12 months or so. We would like to thank all
of our residents and staff who are featured
within these pages. As you read, you will see
that we are not just about saying, but about
doing; that we work continually to fulfil our
commitments; and above everything, that we
continue to innovate, continue to adapt and
continue to strive for excellence.
2 Hanover Annual Review 2007/8
Hanover Annual Review 2007/8
1

Chair’s
introduction
This last year has seen Hanover drawing on
its inherent strengths – its ethos of respect
for those it serves, its reputation for quality,
its history of innovation, and its secure
finances – to reorder its affairs and prepare
for the future.
In concert with our residents, under the
clear sighted leadership of our Chief
Executive, Bruce Moore, the Hanover Board
has charted a new course: the different
parts of the Group are being brought
together with a consolidated Board and a
single Residents’ Council for all Hanover’s
tenants, leaseholders, and residents in Extra
Care properties. Staffing changes have
accompanied these structural reforms. I pay
tribute to the continuing commitment and
enthusiasm of those who have stayed the
course, while also heartedly welcoming the
talented new members of the Hanover team.
The whole enterprise is now ready and
able to tackle the challenges ahead, both
redefining and improving our service.
For existing residents, this includes being
clearer on the different categories of housing
we offer, with varying levels of additional
facilities and support, and also determining
new Hanover Quality Standards.
In terms of building new homes, we are on
the brink of a significant new programme
of activity. Over the last decade, Hanover
has pioneered the concept of Extra Care
housing. Today, while we remain the largest
provider of Extra Care developments, we
are delighted that many other housing
associations have entered this field.
Our next venture will be a programme
of new-style retirement housing.
In an age when older people – most of
whom are owner occupiers – cannot be
compelled to move into the ‘sheltered’
housing of yesteryear, we know we must
create the housing ‘offer’ that will attract
a new generation of retired people. The
Hanover research from the University of York
published in July 2008 shed light on what
older people require. Later this year we will
embark on our Hanover 1000 Homes plans,
recycling proceeds from selling existing
stock (and thereby achieving tenure-neutral,
mixed developments). The huge additional
benefit from this ambitious endeavour will
be the release of bigger homes – often
with gardens – which are so badly needed
by young families at this time of crippling
housing shortages.
So, against a backdrop of tightening public
finances and economic uncertainty, Hanover
is looking ahead with considerable optimism.
I place on record my huge appreciation to
Bruce Moore for the transformational role
he is playing at the helm; to the Hanover
Board who exemplify good governance at
the heart of our affairs, with special thanks to
Nina del Monte chair of Hanover in Hackney,
Jim Saunders from the Residents’ Council,
and John Steele, chair of Hanover Property
Management, all of whom retired this year
after giving us invaluable service; to our
brilliant Group Management Team and
all their staff, and, most significantly, to
the Hanover residents who guide us and
inspire us.
Richard Best
2 Hanover Annual Review 2007/8 Hanover Annual Review 2007/8 3

Jill Preston, Lord Richard Best, Angela Gillibrand, Robert Banner,
Pat Corless, Tony Edwards, Arvinda Gohil, David Priestnall.
Clockwise from top left: Barbara Matthews, Barry Hindson, Gavin Cansfield, Tony Tench, Norrie Courts,
Penny Bennett, Vera Brearey, Bruce Moore.
Board, Executives
& Secretary
Group Management Team
Name
Position & responsibilities
Name
Position & responsibilities
Lord Richard Best
Group Chair
Bruce Moore
Group Chief Executive
Robert Banner
Chair, Hanover Heritage
Gavin Cansfield
Strategy and Improvement Director
Penny Bennett
Chair, Group Audit Committee
Norrie Courts
Property and Development Director
Pat Corless
Chair, Group Remuneration Committee
Barbara Matthews
Director of Finance and Resources
Tony Edwards
Board Member & Resident
Barry Hindson
Strategic Projects Director
Angela Gillibrand
Chair, Hanover Property Management Limited
Vera Brearey
Retirement Housing Director
Arvinda Gohil
Board Champion for Diversity
Tony Tench
Extra Care and Services Director
David Priestnall
Deputy Group Chair
Jill Preston
Board Champion for Residents’ Engagement
Michael Fuller
Company Secretary
4 Hanover Annual Review 2007/8
Hanover Annual Review 2007/8 5

More than the
sum of our parts
As older people’s expectations and
aspirations about where and how they
live are changing; we are listening and
responding. Now, more than ever, we need
to be innovative and ambitious to achieve
our aims – to be the number one provider of
housing and related services for older people.
Our challenge is that we are a far flung
family; living in many neighbourhoods, but
unconnected. Half of our staff work alone;
they, like many older people, face daily
isolation. We are therefore re-connecting
our family by integrating the management
of our seperate businesses into one system,
giving us a greater capability to serve our
residents’ needs, regardless of where they
live or where our staff work. We have created
more intelligent ways of working, streamlined
processes and consolidated expertise within
specialist teams:
• Our new Service Centre in St Neots
combines lettings, payment advice,
Supporting People and customer
service, making it easier for residents
to get help from us, as well as
delivering a more consistent service
across Hanover.
• Our team of Environmental Champions
has pioneered internal awareness about
the resources we use and changing
behaviour to reduce our carbon footprint.
• Our current review of the delivery
of 60,000 annual repairs seeks to
combine the assurance and reliability
of a national contract whilst still using
trusted local labour in accordance with
residents’ wishes.
Together, we are more than the sum of our
parts. As one, we can empower older people
to choose the housing and services that are
right for them.
Connecting all our activities and functions is
our performance management framework that
evaluates the efficiency and effectiveness of
our services. Through this continuous cycle
of learning, we seek to attain standards of
excellence. Underlying this is our universal
concern to ‘be there’ for all our residents and
exceed expectations whenever possible.
HANOVER WORLD
Using the latest social networking
technology, Hanover World is the
first online community created
specifically for residents, offering them
unprecedented opportunities to create
personal profiles; share information,
stories, photos and interests in online
forums and groups and; keep in touch
with family and friends or make
new ones.
John Pallister is an active Hanover
World blogger: ‘It’s so forward thinking
getting all residents together at a touch
of a button. I use it to share information,
and it’s also great to read other people’s
blogs and see what their life is like in
other parts of the country.’
6 Hanover Annual Review 2007/8 Hanover Annual Review 2007/8 7

Setting the agenda
We are witnessing a rapid change in how
retirement housing and support services are
conceived and developed.
Over the last year, we have welcomed
the government’s first national housing
strategy for older people that sets out the
challenges and opportunities to support
this demographic’s aspirations; we
approve of the focus that the new Homes
and Communities Agency and the Tenant
Services Authority will bring to the sector;
and we are in favour of the move to hand
power to the consumer through pilots for
Individual Budgets. We anticipate greater
opportunities to work with local authorities,
helping to identify their priorities as
Supporting People funding shifts into
Local Area Agreements.
These are positive moves but there is a
danger that older people are still seen as
‘problems’; recipients of welfare not active
citizens. The debate still focuses on better
bus passes rather than better cycle lanes;
and older people as infantilised citizens,
rather than as people who have real options
about their lives. The personalisation agenda
is transforming how we all do business and
we hope it springboards older people to
become respected citizens in society, rather
than passive recipients of services.
This means giving help when people are
looking for it; being there when we are
needed, and not because we need to be.
People want services built around ‘me’: my
home, my service, my way. As one resident
has told us, ‘I didn’t work all my life to watch
daytime TV’.
We are at the forefront of setting this change
agenda. By engaging residents and service
users as active partners and participants in
our ‘action research’ studies examining their
reasons for choosing our properties, our
vision is to shape policy directions through
knowledgeable and persuasive argument that
highlights retirement housing’s contribution
to meeting older people’s aspirations, today
and tomorrow.
AN APPETITE FOR RETIREMENT HOUSING
High proportions of people (42%) choose our properties
because they wish to downsize*, alongside an increasing
demand to buy affordably. DeLacy Gardens in Pontefract
is one of a growing number of our developments offering
apartments for shared ownership. Mrs Edna Noble lives
there and is delighted with her new home: ‘I am a widow
and my daughter lives abroad, so I was completely alone.
I heard about this place, had a look and I knew straight
away I’d be happy here. And it gives me peace of mind that
there’ll be something to leave for my daughter.’
*source: University of York, Centre for Policy Studies’
survey of Hanover residents (2008)
8 Hanover Annual Review 2007/8 Hanover Annual Review 2007/8 9

Ahead of the curve
We are raising the bar for quality standards
in our properties; driven by pride in what
we do. Our new properties are built to
the very best modern standards and our
existing properties already meet the Decent
Homes Standard; though we cannot be
complacent and are taking action to drive up
standards further to meet the expectations of
tomorrow’s residents.
We are planning for the future now. Nowhere
is this more evident than in our commitment
to sustainable properties. Our new design,
environmental and maintenance guidelines,
Hanover Quality Standard, is tomorrow’s
benchmark introduced today. Formulated
with input from residents and created to
meet the aspirations and ambitions of future
generations of older people, the standard
forms part of our approach to managing all
of Hanover’s properties.
We are learning more about renewable
technologies. In most of our new
developments, we already meet or
exceed Level 3 equivalent of the Code for
Sustainable Homes; meaning our properties
are a good way on the scale towards being
more energy and water efficient, producing
fewer carbon emissions and are better for
the environment.
We are the leading provider of Extra Care
housing and continuously look to improve
the exceptional living environments that
this form of housing can offer older people.
Over the last year we have built 13 new
developments across the breadth of England
creating an additional 516 homes for people
to rent or buy. This means that in total,
we now manage 2,083 properties across
53 locations.
A BLUEPRINT FOR GREENER LIVING
Darcy House in Dagenham, Essex, is a stunning
example of how first class retirement properties
can be designed and maintained sustainably.
It adheres to exacting standards such as
EcoHomes ‘Very Good’ standard, The Housing
Corporation’s scheme development standards
and ‘Lifetime Homes’ standards.
Designed to respect the environment, it has
superb green credentials that complement the
art deco exterior, including roof mounted solar
panels and wind turbines providing hot water,
heating and power. The roof of the main building
and bungalows are also planted with natural
vegetation which helps improve insulation,
reduces water loss and creates a natural
environment for biodiversity.
10 Hanover Annual Review 2007/8 Hanover Annual Review 2007/8 11 13

Hanover Helps
We are changing the way our residents
experience our services. By making the
advice and information they need much
easier to access; by taking their views on
board; and by combining our expertise and
services, we are creating choices so they can
make the most of this time in their life.
Giving them that little bit of help means they
can be more independent and do things for
themselves:
• Launched in March, Hanover Helps,
our multi-channel information service
for residents and staff, is proving
indispensable, handling a monthly
average of 6,000 enquiries through our
website alone.
• Our pioneering EverGreen project
has marked a fruitful second year by
continuing to nurture locally based ecoteams
that encourage residents to live
a ‘greener’ life.
• A tropical ‘coming together’ area,
cinema, sensory garden, fish tank
and IT lessons are just some of the 75
residents’ projects that our £60,000
small grants programme Green Shoots
has brought to life in its first year.
Residents tell us how we have helped to
improve their quality of life by providing
the means – support, advice or finance
– to improve where they live. Our residents’
newsletter, Hanover News, provides
information about our plans and how
residents can be more involved through
Forums or InTouch, our volunteer residents’
panel that is instrumental in identifying
where we can improve services.
This is a snapshot of our work achieved
through dedicated and well informed staff to
address residents’ choices and requests for
help. For our approach to staff management,
we have retained Investors in People.
Recognising that residents’ and staff’s
views are equally important to delivering
excellence, our re-launched Staff Council
and our Residents’ Council are planning to
hold combined events in the future.
Building on this philosophy whilst continuing
to listen and respond, Hanover is on a journey
to achieve Customer Service Excellence.
HANOVER HELPS
We know that for some residents accessing the Disabled Facilities
Grant (DFG), which can pay for things like installing ramps or widening
doors could be made easier and more straightforward.
Steve Brightwell explains: “Our home improvement agencies are
already experts in the DFG process, but through Hanover Helps we will
have a dedicated specialist who will use specially-designed software
to assess contributions, to kick start the process more quickly. The
whole service will be quicker leaving a satisfied customer with their
independence restored.”
12 Hanover Annual Review 2007/8 Hanover Annual Review 2007/8 13

Reinventing
retirement housing
We are responding to the growing demand
for decent affordable homes from older
people in both rural and urban areas. In
responding we have to face the challenge
of changing expectations and aspirations
amongst older people. Simply put the
products of yesterday are not going to meet
the challenge of tomorrow. More than ever,
barriers must be broken, accountability
increased and real choice offered – one
size won’t fit anyone and it simply is not
acceptable. Our aim has created a greater
sense of ambition at Hanover; in terms of
we manage our properties and created
positive choices.
There is a pent up demand for affordable
home ownership amongst older people;
people who are looking to downsize or
protect their equity or families’ inheritance.
We believe that we can help – part of the
solution is to generate mixed tenure housing
by selling up to half of our properties on
existing sites. We are starting this by working
with residents and local authorities in 38
locations. We will use the capital receipts
to build new homes, homes that meet the
expectations of the ‘new old’; properties
that are well designed, attractive, with two
bedrooms and storage space creating places
older people will aspire to live.
We are also strengthening our existing
properties’ appeal by adding services that
people really value. Club 55 in Hackney has
transformed communal spaces to provide a
package of benefits, including a cyber café
and cinema, which offer tenants and others
in the community greater opportunities to
socialise with neighbours and an improved
quality of life.
CREATING CHOICES, CREATING HOMES
To augment our goal of creating new homes,
we are preparing for ‘Hanover One Thousand’
(H1K), a programme to build 1,000 new properties
for sale and rent over the next five years, using
recycled grant and proceeds from our property
sales. “According to Hanover’s latest research
from York University, 36% of people aged over
60 moving into social housing were previously
home owners,” explains Property and
Development Director, Norrie Courts. “If the
‘product’ is right, more older people would move
into retirement housing, affording them peace
of mind, security, and if they want, the option to
remain a home owner.”
14 Hanover Annual Review 2007/8 Hanover Annual Review 2007/8 15

Financial performance
Independent auditors’ statement
to Hanover Housing Association
Consolidated income and expenditure accounts
for the year ended 31 March 2008
2008 2007
£’000 £’000
Turnover 78,951 70,885
Operating costs ( 68,025) ( 59,088)
We have examined the summary financial
statement which comprises the Summary
consolidated income and expenditure
account and Summary consolidated balance
sheet, set out on page 17.
This statement is made solely to the
association, as a body, in accordance with
the terms of our engagement letter dated 7
January 2008. Our work has been undertaken
so that we might state to the association,
those matters we are required to state to it in
such a statement and for no other purpose.
To the fullest extent permitted by law, we
do not accept or assume responsibility to
anyone other than the association, as a
body, for our work, for this statement, or
for the opinions we have formed.
Respective responsibilities
of the Board and auditors
The Board have accepted responsibility for
preparing the annual review in accordance
with applicable United Kingdom law.
Our responsibility is to report to you our
opinion on the consistency of the summary
financial statement within the annual review
with the full annual financial statements.
We also read the other information contained
in the annual review and consider the
implications for our report if we become
aware of any apparent misstatements or
material inconsistencies with the summary
financial statement.
Basis of opinion
We conducted our work having regard to
Bulletin 1999/6. The auditor’s statement on
the summary financial statement issued by
the Auditing Practices Board. Our report
on the association’s full annual financial
statements describes the basis of our audit
opinion on those financial statements.
Opinion
In our opinion the summary financial
statement is consistent with the full annual
financial statements of the association for
the year ended 31st March 2008.
KPMG LLP
Chartered Accountants
Arlington Business Park
Theale
Reading RG7 4SD
Date: 11 August 2008
Operating surplus 10,926 11,797
Surplus/(deficit) on disposal of fixed assets 2,792 933
Interest receivable and other income 562 414
Interest payable and similar charges ( 10,423) ( 10,023)
Other finance cost 11 ( 51)
Surplus on ordinary activities before tax 3,868 3,070
Tax on surplus on ordinary activities ( 6) ( 2)
Surplus on ordinary activities after tax 3,8 62 3,0 68
Consolidated balance sheets as at 31 March 2008
2008 2007
£’000 £’000
Tangible fixed assets
Housing properties (net of grants) 254,069 219,283
Other fixed assets 5,127 5,466
Long term investments 5,052 4,034
Total fixed assets 264,248 228,783
Current assets
Stock 5,003 3,155
Debtors 11,312 8,729
Investments - 184
Cash at bank and in hand 5,488 3,312
21,803 15,380
Creditors: Amounts falling due within one year ( 31,976) ( 27,099)
Net current liabilities ( 10,173) ( 11,719)
Total assets less current liabilities 254,075 217,064
Creditors: Amounts failing due
after more than one year 186,720 153,460
Provision for liabilities and charges 4,160 8,634
Capital and reserves 63,195 54,970
254,075 217,064
16 Hanover Annual Review 2007/8 Hanover Annual Review 2007/8 17

Hanover Group Profitability
Group highlights – five year summary
For the year ended
31 March 2008 2007 2006 2005 2004
£m £m £m £m £m
Group income & expenditure account
Total turnover 78.9 70.9 66.0 60.3 55.1
Operating surplus 10.9 11.8 10.2 6.7 7.0
Interest payable 10.4 10.0 10.0 9.7 7.1
Surplus after interest and tax 3.9 3.0 3.5 2.6 1.4
Group balance sheet
Tangible fixed assets,
net of depreciation 529.8 476.1 435.7 417.4 396.4
SHG and other capital grants 270.7 251.3 217.4 204.3 199.5
Net current liabilities 10.1 11.7 20.4 25.7 4.9
Net debt 186.7 154.0 139.8 145.2 135.1
Total reserves 63.2 55.0 49.7 47.1 52.7
Statistics % % % % %
Operating margin 13.8% 16.6% 15.4% 11.1% 12.7%
Surplus for the year as % of
turnover 4.9% 4.3% 5.3% 4.4% 2.6%
Gearing (net debt as % of reserves
plus grants plus housing depreciation) 49.0% 44.0% 46.0% 52.0% 49.0%
Accommodation managed
at the year end Dwellings Dwellings Dwellings Dwellings Dwellings
Total housing stock owned 16,908 15,977 16,110 16,199 16,341
Total housing stock managed 18,947 18,156 17,888 17,925 17,907
18 Hanover Annual Review 2007/8
Hanover Annual Review 2007/8 19

Contact Hanover
Head office:
Hanover House
1 Bridge Close
Staines
TW18 4TB
Telephone: 01784 446 000
Fax: 01784 446 060
Web: www.hanover.org.uk
De Lacy Gardens, Pontefract
20 Hanover Annual Review 2007/8 Hanover Annual Review 2007/8
21

Hanover House
1 Bridge Close
Staines TW18 4TB
01784 446 000 Printed on 100% recycled paper
Wind turbine at Darcy House