What will services look like in 2026? Roy Irwin
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1 CIH South East 1 What will services look like in 2026? Roy Irwin CIH SE l 2016
2 2 Political Flux By UK Parliamentary elections 2 elections in Scotland, Wales and Northern Ireland 2/3 Combined Authority Mayoral elections 3 Mayoral elections in London Many local elections EU referendum 2 EU elections (?) 3 US Presidential elections CIH SE l 2016
3 3 Sectoral spread Pressure to Build will be greater Local Government less local more government Local Leadership local differentiation, but tied to delivery Growth of new housing by LAs but not through HRA Very small and very large HAs out of national regulation Numbers of homes built will be key currency CIH SE l 2016
4 4 Consumers Renting continuing to grow, but more slowly Renters will expect housing services to be on a par with other consumer experiences High turnover compete to keep loyalty schemes Less tolerance for failure to comply on both sides Switchablity CIH SE l 2016
5 5 Services Asset Management bespoke interventions Rent differentiation gives rise to Service differences Move through the tiers up and down From to app to Place time Better managed PRS both and opportunity and a challenge CIH SE l 2016
6 6 Land and property Far better knowledge management systems required Inter system, inter agency connectivity the norm Shorter tenancies allow speedier re-design opportunities Increased diversity of service supply options Mixed economy of suppliers Quality and financial predictability will be on-going drivers Greater inter-connectivity between services to the place CIH SE l 16
7 The Future of Social Housing What will services look like in 2026? Steve Tucker CIH Consult
8 A Future that reflects our core values Roots of social housing lay in the turmoil created by industrialisation and the determination of social reformers to address this Octavia Hill s main concern was the welfare of the inhabitants of cities, especially London Hill was the principal moving force behind the development of social housing. She believed in self-reliance, and made it a key part of her housing system that she and her assistants knew their tenants personally and encouraged them to better themselves. Combined the weekly rent collection with checking every detail of the premises and getting to know the tenants personally, acting as early social workers
9 Housing: A New Deal Huge unmet need for support for families and households persists; many are struggling to cope now with globalisation Financial constraints facing all public services are substantial and growing Key challenges facing social housing: How can we use and develop our role as a landlord to help residents achieve their potential? How can landlords offer an enabling platform for other public services that are under pressure? Digital strategy alone is not sufficient to shrink costs and change lives for the better
10 Housing New Deal Extending the contribution Housing makes to meeting wider strategic objectives given the backdrop of diminishing resources Housing Managers upskilled to cover all core housing issues: rents, ASB, tenant engagement, repairs and not just tenancy management plus employment, social care, public health, engaging young people Delivering advice and lower level prevention work to realise early intervention on a whole household basis One stop access to Housing and other services Sustaining tenancies and supporting household resilience Provide advice and support on finding employment, accessing education and training opportunities, healthy living
11 Housing New Deal Patch based approach helping households maintain their tenancy More contact with tenants in their own homes generating tenant trust and confidence that their Housing Manager can help and support them to live more independently Annual visit that looks at whole household needs Potential to remove duplication with other public services and offer robust referral routes where specialist professional input is needed Housing Managers are empowered to provide more help for tenants More varied workload and the capacity to change lives Enables households to independently manage their finances, health and housing circumstances Need to establish stronger local networks and active community involvement
12 What can repairs and maintenance contribute? Understanding and defining value in repairs and maintenance Global analysis of the sector shows there is a 40% difference in costs between the most economic providers and the most expensive Does not correspond neatly, if at all, with quality and customer satisfaction Important to understand why this is happening within R+M Data analysis, benchmarking costs and prices not a precise science e.g. right first time delivery Investment should be adding value to the asset rather than just meeting repairs demand
13 Drivers of Change for Housing Repairs Customer expectations are being reshaped by highly responsive and intuitive internet retail providers Move to a more generic role for housing professionals and potentially for repairs operatives; multiskilling becoming the norm Primary focus on sustaining the building asset rather than just meeting tenant demand Capacity to transform customer and property data into meaningful information Positive disruption: impact of innovations in IT and learning from other sectors on traditional housing markets 13
14 Reality Checks: What we have learned over the last five years The golden age of ready funding for social housing is over and Value for Money considerations now prevail Repairs and maintenance must deliver as stock investment as well as a service to tenants Must adopt a framework for repairs & maintenance services that encourages and supports tenants to look after their home as part of a rights and responsibilities agenda in landlord and tenant relations. Sustainable organisational culture and smart and efficient business processes - foundation for an engaging two way dialogue with residents characterised by fast problem solving with high productivity and user satisfaction. 14
15 The contemporary drivers of repairs and maintenance improvement: The need for a cultural change to prioritise genuine stock investment above reactive repairs failure demand which can feed a dependency culture amongst those tenants who are the heaviest users of repairs services. A compelling business case for reducing demand for responsive repairs by setting clear expectations for future tenants & meeting maintenance needs more scientifically through intelligent investment and lifecycle planning Providing support and guidance for all tenants to look after their own homes through rewards and sanctions that seek to change tenant expectations and behaviour The need for better IT that offers integrated access to and application of data and supports modern low cost self-service transactions and feedback The case for dispensing with traditional repairs categories and simplifying the offer to deliver a service that is also an investment 15
16 Repairs People: Housing repairs workforce of the future Craft skills the foundation: multiskilled and flexible Fully integrated members of the housing management team Emergence of coaching as key development avenue for repairs operatives to improve personal effectiveness Property induction guidance visit for new tenants Home ambassadors advising on energy efficiency Report on condition of property and main assets Feedback on how tenancy is being upheld by the household
17 Technology Access to landlord services will change online login to own account details Uber comes to Housing Repairs: contact centres and schedulers will probably disappear direct interface to repairs operative Use of photographs to specify repairs will become the norm Automated repairs progress reports sent to tenants Online rating of repairs with full visibility of user judgements made
18 Business Models ISO 9000, Charter Mark, TQM, Lean systems have each held some sway but are being swept away by new thinking Enhanced connectedness of the internet has changed everything Critical factor for repairs is designing the core business process to support prompt, accountable and consistent delivery Using enhanced communication to keep tenants informed throughout the repairs journey Clear understanding of costs to reduce nonproductive and transaction costs True Price per Property measure
19 Relationship with Residents Better management of resident expectations prior to becoming a tenant Rights and responsibilities agenda: obligation to make the right choices Looking after their home and neighbourhood Increased differentiation in service standards according to rent and behaviour Home and a job will become a mandatory couple
20 Procurement and Rated Contractors Claim that modern procurement holds the key to efficiency and cost reduction: cost to the sector exceeds 1billion annually Contractors have to invest heavily in their bid teams to win work - money that could be invested in operational delivery or innovation Substantial duplication and repetition despite huge commonality to the service Price competition has not always proven to be beneficial Previous clients may not be at liberty to provide a candid reference Procurement process flawed: crude test of ability to provide a method statement Does not test the most critical attributes of contractors: their track record and ability or inclination to work collaboratively with clients to reduce costs 20
21 Procurement and Rated Contractors Positive example of consumer power driving up standards and value in the commercial sector Rated Contractors the trip advisor for housing repairs Full acceptance of a wholly transparent client/service user rating system will be a precondition of contractor participation in the sector Those contractors that excel at the services which clients and customers value will come out on top Decide on and define the criteria that should be measured Establish a transparent and representative model of feedback from clients and from residents which generates a true score 21
22 Questions 1. In what year will the last functioning Repairs Contact Centre be closed? Transparent Trip Advisor style repairs feedback from tenants and customers: will contractors embrace or shun this? 3. What level of efficiency savings can repairs and maintenance contribute annually between now and 2026? Up to 2% 5% 10% or more
23
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