R dge Credentia i l a s

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1 Maintaining and Exceeding Decent Homes. 12 July 2011 Richard Hand FRICS ACIH, Partner

2 Ridge Credentials Multi disciplinary practice including quantity surveying, building surveying, architecture, M&E, structural engineering, project management, sustainability, property consultancy and legal support 8 Offices across the UK Established in 1946 ISO 9001 (Quality), (Environmental), (Health and Safety) and Investors in People 250+ staff Property Consultancy Asset Management speciality Stock condition survey and Decent Homes expertise

3 Agenda Decent Homes Beyond Decent Homes Asset Management Private Sewer Reforms HHSRS Questions

4 Decent Homes

5 A Decent Home? a decent home is one that is wind and weather tight, warm and has modern facilities. CLG

6 A Decent Home Must Meet Four Criteria Decent Homes (CLG the revised definition and guidance for implementation June 2006) A decent home meets the following 4 criteria: a) It meets the current statutory minimum standard for housing (HHSRS) b) It is in a reasonable state of repair key building components non-key building components c) It has reasonably modern facilities and services d) It provides a reasonable degree of thermal comfort

7 Decent Homes Reminder A minimum standard that all social housing should have met by 31 December 2010 Intended to be a prompt to undertake work and as a catalyst for better asset management Most improvement to take place in the most deprived local authority areas (according to Indices of Deprivation) Inherent subjectivity in some areas Decent Homes should form part of a re-investment strategy that must also take account of other factors

8 Decent Homes Continues The Government has no plans to change the [Decent Homes] Standard which acts as a safety net to ensure no tenant is disadvantaged. As constructed the Standard allows landlords to complete work to the highest standard they can afford. This is consistent with the Government's localism agenda and we do not want to constrain local decision making by changing the Standard Grant Shapps, Minister for Housing, November 2010

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10 Problem Areas I don t want to know / The Board (probably) doesn t want to know Different interpretations of the Standard Inaccurate calculator rules Poor (or lack of) survey data: Format (survey form and database design) Cloned or extrapolated results Lack of updating Closed questions Condition codes 100% results need 100% accurate data (despite statistical accuracy)

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12 Beyond Decent Homes CLG Select Committee Report January 2010 Ridge contribution to Committee (written and oral) Quality Stock Data HHSRS Awareness Robust DHS Calculation (Refusals Separately Reported) Continued National Standard (TSA) - Updated Local Standards (TSA) Including Environment Audit Commission (HCA) Review at KLOE SAP target (not implemented) Private Sector - Focus to Improve

13 Reporting Decent Homes results arise from stock condition survey data Possible results (dwelling): Decent Currently non-decent Potentially non-decent Counts (%) Costs Minimum to meet the standard (partial works) not recommended No DHS permissible failures not recommended Sustainable full programme (all works) recommended

14 A Decent Kitchen?

15 Beyond Decent Homes (2011+) DHS extension for some TSA/HCA Local Offer and Reporting? 5 or 10 Year Programmes (agree with Board) RSR (and BVPIs) Goodbye NROSH Maintained for statistical purposes Refusals Awareness (report both to Board) Funding.. Green Deal and ECO (not Warm Homes)

16 Decent Homes Plus? Set a Local Standard Local Offer (ref. TSA Home Standard) derived through consultation Include other essential works Improvements such as smoke detectors No Permissible Failures Avoid partial heating Life limited kitchens and bathrooms?

17 Some Key Issues Economic Climate Low construction costs Risk of failure/unsustainable prices Reduced new development High VAT Job losses/cuts Affordable Rent Fixed Term Lease Contracts Testing of Need DLO or Outsourcing?

18 Some Key Issues Define strategic and organisational objectives Stock Awareness and Quality Information Robust 30 Year Business Plans HRA Reform (Council/ALMO) Viability Assessment Stock Rationalisation Related Assets (Garages Cash Cow or Site?) Sheltered Accommodation Non-Trad s and High-Rise

19 Joined-up Planning and Budgeting Longer term projections Component Accounting / whole life 30 year Business Plan annual updates Robust stock condition survey data Survey data added to desk-top cost assessments Alignment of 30 year cost tables with budget process

20 Joined-up Planning and Budgeting Agreement of what is optional / unaffordable Consultation Published programmes Low Risk, good value procurement Delivery of chosen option without undue interference

21 A Fair Board Member Question Have we spent our limited resources on the right things? Business approach, with a social conscience Value for money The right assets in the right locations Local standards and acceptable condition A sustainable Business Plan Opportunity Don t dig up the road twice

22 Additional Income? Should we keep the asset just because we own it? Appraise all of the existing dwellings for performance, including yield and value Recharges Service charges and correct s.20 processes Appraise all related assets and mitigate liabilities Consider garage sites and rent levels Alternative use for some related assets? Income producing technology (e.g. PV) Development at affordable rents

23 Asset Management

24 Modern Asset Management KLOE/Best Practice Equipped Relevant Stock Condition Data (100% in time) Robust Attributes (e.g. Relational UPRNs) Asset Management Strategy Procurement Strategy Modern Procurement (Value for Money) Fail to Plan, Plan to Fail Planning & Delivery Effective Programme Management Effective Project Management Inclusive Consultation (Strategic and Specific) Joined-up Approach Validation

25 Good Asset Management Strategy - Ethos Organisational priorities and context Advocates proper planning (Asset Manager) Stock condition data Data management essential Re-investment priorities and management Viability Model = Red/Amber/Green Maintained Decent Homes Standard Best use of funding and resources More planned work Less reactive work Basic void works Effective procurement A local Standard

26 Demolish or Renew?

27 Un-adopted Related Assets Water Industry Act 1991 / Regulations 2011 Private Sewer Reform (on 1 October 2011) 2011: 2016: Private Sewer Connecting to Public Sewer Private Lateral Mains to Public Sewer Pumping Stations to Public Sewer

28 Detached

29 Semi-Detached

30 Terraced

31 Flat Blocks

32 HHSRS

33 Fitness Standard has Changed to HHSRS Until 6 April 2006, the minimum standard was defined under section 604 of the Housing Act 1985 (as amended by the 1989 Local Government Housing Act) From 6 April 2006, s604 was replaced by the Housing Health and Safety Rating System (HHSRS) HHSRS is based on assessment of the risk of harm to persons using a dwelling Need to train all staff technical as well as housing managers

34 Philosophy Behind HHSRS Decent dwellings and all outer structures and spaces should provide a safe and healthy environment for the occupants and visitors. CLG

35 Why Do We Need To Know About This? CLG Report Beyond Decent Homes : 44. Although, on the whole, the HHSRS has been embedded successfully in the DHS, there is evidence of a lack of understanding of the system by some landlords. We recommend that the Government, in partnership with the TSA, take steps to improve the availability and take-up of training in use of the HHSRS.

36 Electrical Hazard

37 Damp and Mould Growth?

38 See it to believe it?

39 Questions? Thank you