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Optimisation of sinking funds for major repairs in a housing association

Author

Listed:
  • G Bowles

    (Heriot-Watt University)

  • J S Dagpunar

    (Edinburgh University)

Abstract

Changes to the financial framework regulating housing associations require them to create a sinking fund that will accrue the necessary cash for future maintenance work to their stock. This paper presents an alternative to the conventional methods by using a Linear Programming model to obtain sinking fund strategies. The relevance of such modelling is discussed with reference to the evolving Sinking Fund system in the UK and European Housing Association movements. The methodology is applied to data from a Housing Association in Scotland. The paper concludes that the LP model offers a degree of flexibility not found in existing practice. The work has relevance to the long-term maintenance management of any built asset.

Suggested Citation

  • G Bowles & J S Dagpunar, 2000. "Optimisation of sinking funds for major repairs in a housing association," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(2), pages 156-161, February.
    • Handle: RePEc:pal:jorsoc:v:51:y:2000:i:2:d:10.1057_palgrave.jors.2600848
    DOI: 10.1057/palgrave.jors.2600848
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