River Clyde Homes

Sustainable Homes and Places Strategy

April 2014

Contents

1. Overview

2 Strategic and Policy Context

3 Understanding our Housing Market

4 Understanding Our Property, Places and People

5 Our Wider Assets and Responsibilities

6 Strategic Outcomes and Priorities: Improving Our Housing Offer

7 Investment Programmes

8 Involving Customers and Partners

9 Value for Money and Procurement

10 Action Plan

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1 Overview

1.1 River Clyde Homes is a registered social landlord, established in December 2007 following a whole stock transfer from Inverclyde Council. Currently owning over 6253 homes, River Clyde Homes is the third largest registered social landlord in Scotland. Turnover for 2013/14 was in excess of £22 million. As the largest developer of homes in Inverclyde, the company maintains a significant new build development programme and has completed the construction of 462 new homes to date.

1.2 The Sustainable Homes and Places Strategy recognises the importance of our assets, principally (but not exclusively) the homes that we own, and the need to ensure they remain popular with our current and future customers, that they comply with any legislative and regulatory requirements and are viable and ‘fit for purpose’.

1.3 Understanding our assets, the neighbourhoods in which they are located, the housing market in which we operate and the needs and aspirations of our current and future customers have been critical in developing this strategy.

1.4 Based upon this understanding, the strategy confirms a number of asset related outcomes and our priority actions, including our investment programmes over the next 5 years and beyond to achieve these outcomes.

1.5 An important feature of the strategy is recognition of the need to integrate our investment in homes with a need to invest in services, particularly at the neighbourhood level. The strategy accepts that improving our ‘housing offer’ has to be considered in a holistic way. Improving property often needs to go hand in hand with improving people and place focussed services, and that sometimes investment in property is not enough.

1.6 The Sustainable Homes and Places Strategy is not a stand alone document; it is a key ‘foundation stone’ of the company’s 2014 -19 Business Plan: ‘Excellence and Affordability’. It also seeks to build upon and compliment a range national and local strategies and plans.

1.7 The final part of this strategy is an action plan. This plan is not centred on delivering our investment programmes, but rather the actions we need to take to ensure we can improve our whole ‘housing offer’.

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2 Strategic and Policy Context

National

2.1 The Scottish Government’s Housing Strategy, Homes Fit for the 21st Century, published in 2011, recognises the importance of housing to the government’s objective for sustainable economic growth, and wider needs such as “achieving the country’s full potential through better educational and employment opportunities, healthier lives and a more prosperous and equal society.” The Strategy’s vision for 2020 “is for a housing system which provides an affordable home for all.” It outlines that, “to achieve this, we will need a strong recovery in the construction sector,” with both an increase in the quantity and quality of homes. 2.2 There are four major housing-related targets set by the Scottish Government. Especially relevant for this strategy is the aim that:

“…by April 2015, all social landlords must ensure that all their dwellings pass all elements of the Scottish Housing Quality Standard.”

2.3 The Scottish Government also emphasises the need for more affordable housing, especially for those who are “priced out of home ownership, struggling to afford market rents but unable to access social housing.”

2.4 Homes Fit for the 21st Century notes challenges for Scotland’s housing, such as economic difficulties and a large decline in the construction of housing; a reduction in public funds; and demographic changes, including an ageing population and a trend towards a larger number of smaller households.

Sub Regional: Greater Glasgow and Clyde Valley

2.5 The Housing Need and Demand Assessment (HNDA1), published in 2011 by the Glasgow and Clyde Valley Housing Market Partnership, confirms that: “…there is likely to be greater demand for private rental and affordable housing, including increased need for subsidised social rented and intermediate market housing”

2.6 By analysing housing sub-market areas and “mapping lower quartile house prices versus lower incomes,” the report finds that affordability is “lowest in parts of Inverclyde… where there are concentrations of low income in areas of relatively high house prices”

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2.7 HNDA1 further states that:

“…there are 3,536 households in Inverclyde unable to make their own arrangements for housing – households in need – and this need has to be viewed in the context of both quality and quantity of the housing stock”.

Local

2.8 Inverclyde’s Local Housing Strategy 2011-16, published by the Inverclyde Alliance, comprising the council and its community planning partners including River Clyde Homes, sets five strategic outcomes, namely that Inverclyde residents:  Have access to a range of suitable housing options;  Are able to make best use of their housing;  Can enjoy their neighbourhoods;  Receive appropriate support when they experience changes to their housing needs;  Take responsibility for their housing and their communities.

2.9 The Alliance’s vision for housing in Inverclyde is that:

“… working together in partnership, we will help to develop a confident, inclusive Inverclyde, with safe, sustainable, healthy, caring communities and a thriving prosperous economy, where everyone is encouraged to achieve their potential and can make a positive contribution to the area”

2.10 The local strategy confirms an excess of 1,000 largely poor quality and unpopular social houses within Inverclyde, mainly owned by River Clyde Homes.

2.11 The EKOSGEN Social and Mid Market Rental Demand Assessment, published in 2014 and jointly commissioned by Inverclyde Council and River Clyde Homes concludes:

‘The prominent issue emerging from this review is that of de- population and the need for more appropriate housing to both provide for existing residents within Inverclyde but also to attract new residents to the area, attracting inward investment and helping to catalyse the area’s regeneration’.

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3 Understanding Our Housing Market

Inverclyde and Depopulation

3.1 The population has been in decline in Inverclyde for some time. The local economy has also reduced in size considerably. Clearly demographic and employment changes have a bearing on the demand for housing in Inverclyde. It is important for this strategy therefore that we understand Inverclyde’s population changes, as well as income and deprivation change and variations within Inverclyde. Income is a key determinant of the ability to afford housing.

3.2 The population of Inverclyde has been declining for 70 years. Over the last 30 years alone, the population has fallen from 100,000 in 1981 to 80,000 in 2012 (as demonstrated in the left-hand vertical axis in the graph below). At the same time, the population in Scotland (the right-hand vertical axis) has increased:

3.3 Whilst the story of depopulation is a familiar one, the rate of decline has slowed in recent years. Since the late 1990’s, whilst continuing to fall, the rate of decline year-on-year has been more modest, a little over 0.5% per year on average. Nonetheless, from around 2002 there has been considerable population growth in Scotland as whole, something not experienced in Inverclyde.

3.4 2011 Census data confirms a greater population, at 81,000, in Inverclyde than was expected or forecast following the previous 2001 Census data. This provides some encouragement for Inverclyde.

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3.5 National Records of Scotland also confirms a slowdown of net out- migration, albeit a modest one. The average net outflow was 325 people from 2009 until 2011 (down from the net outflow of 340 per year 2001- 2008). Of these leaving, over a third (36%) are young people aged 16-29, with a further 26% people aged 30-44. Of those moving into Inverclyde, the largest age category (31%) was again 16-29 year olds, and a further 28% being those aged 30-44. In terms of the net outward migration of 325 people, the vast majority of those leaving (57%) were again 16-29 year olds.

An Ageing Population

3.6 The profile of Inverclyde’s population has aged over the last decade. As demonstrated in the table below, there are fewer young people in the area, with those aged 0-15 years old declining from more than 16,000 in 2001 to just above 13,000 in 2012. The working age group (16-64 year olds) also gradually declines from around 54,000 in 2001 to 52,000 in 2012, with a small upturn around 2011 where the population group rises to 52,700. The number in the oldest age group (65 years+) steadily increases over the last 10 years, increasing from 14,000 in 2001 to 15,200 in 2012.

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3.7 Whilst forward projections indicate that the population of Inverclyde will continue to age, with the number of young people (0-15 year olds) falling from around 14,000 presently to about 10,000 in 2035, a decline of nearly 27%, and the number of people aged 65 and over projected to rise from around 14,000 to over 20,000, an increase of over 40%. However these forward forecasts may overplay the ageing of the population. The 2011 Census data confirms within the 16-64 age group both those aged 25-34 and those aged 60-64 years saw an increase in population.

Economic Activity

3.8 Whilst Inverclyde has a larger proportion of its population who are unemployed when compared to Scotland as a whole, the economically active population at 76% of the working age (16-64 years old) population is not significantly lower than for Scotland as a whole (77%). Of the remaining 24% of the working age population, the largest group are the long-term sick (36%), followed by students, making up over one fifth (21%), and then those looking after the family/home, counting for almost one fifth (18%).

3.9 The percentage of people in employment in Inverclyde, whether this is full- time, part-time, or self-employed, has been consistently below the Scottish

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average. Despite a peak of over 70% in 2011, the amount of employed people in Inverclyde has fallen back to just over 66%, below the current Scottish average of 71%. As well as lower average employment, Inverclyde also has a greater proportion of those in part-time employment than the Scottish average (37% as opposed to 33%).

3.10 Levels of employment are the most reliable guide to levels of owner occupation and the private and social rented housing tenures. It is clear that there is a smaller proportion of the population in Inverclyde who are employed and, of these, a higher proportion are part-time workers.

Skills and Incomes

3.11 The working age population of Inverclyde is less skilled than average Scotland levels in terms of National Vocational Qualifications (NVQs) or equivalent. Inverclyde has a smaller proportion of the working age population with each level of NVQ than the Scottish average, and has a greater proportion (13%) of the working age population with no qualifications, compared to Scotland (11%).

3.12 Income is a key determinant of housing affordability, and levels in Inverclyde are below the Scottish average. In 2012, the average weekly earnings of residents in Inverclyde (£451.50) were 9% lower than the Scottish average (£498.30). This translates into an average gross salary of £23,500 for the residents of Inverclyde compared to the Scottish equivalent of £26,000.

3.13 The income for RSL tenants is significantly below the all tenure average. SCORE data indicates the average weekly income for Inverclyde in 2012 was £203.77, implying an annual gross income of £10,596 (at 46%, less than half of the all tenure average). The Inverclyde RSL income level was slightly below the Scottish average of £207.15 (£10,771 annual gross income); however, it was above the average weekly income of surrounding areas, such as Renfrewshire (£166.60) and the City of Glasgow (£175.41).

Deprivation

3.14 The high relative deprivation in both income and employment in Inverclyde is evident in the 2012 Scottish Index of Multiple Deprivation (SIMD). In all, 16.4% of all Inverclyde wards are in the worst 5% most deprived for employment. The area’s poor health is also clear, with 12.7% of all wards in the worst 5% in Scotland, and one third of all Inverclyde wards in the worst 10%. The low levels of income in the area are also apparent, with 11.8% of wards in the worst 5% most income deprived, and almost a quarter of all Inverclyde wards in the worst 10%.

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3.15 The highest levels of deprivation in Inverclyde are concentrated mainly in Greenock and Port Glasgow, with parts of Gourock performing particularly poorly also. In comparison, areas such as Wemyss Bay, Inverkip, and Kilmacolm are among the least deprived national quintile, highlighting significant contrasts across Inverclyde as a whole.

Housing Dynamics in Inverclyde

3.16 There have been profound changes in Inverclyde’s housing market since HNDA1, notably the ongoing effects of the recession which has slowed private sector house-building and reduced mortgage availability. In addition there has been a dramatic level of demolition of social rented homes by River Clyde Homes. As at March 2014, demolitions undertaken by the company stood at 1914.

3.17 Within Inverclyde, there are marked variations of housing stock by tenure. Tenure distribution as at March 2011confirms that the social rented sector comprises more than half of all the stock in Greenock Central West, and more than a third of all stock in Greenock South West and in Port Glasgow. By contrast, levels of social rented accommodation are very low in Inverkip, Wemyss Bay and in Kilmacolm and Quarrier’s Village. There is a marked concentration of private rented sector accommodation in Greenock West.

Affordable Owner Private LHS Sub Area Housing Occupied Rented Total Stock Sector Sector Sector Port Glasgow 34.5% 55.7% 9.7% 7,614 Greenock Central East 51.5% 38.6% 10.9% 9,522 Greenock South West 33.9% 59.8% 7.8% 8,602 Greenock West 7.7% 75.0% 17.3% 3,686 Gourock 8.4% 83.5% 8.0% 5,291 Inverkip and Wemyss 1.4% 86.0% 12.5% 2,291 Bay Kilmacolm and Quarrier’s 3.0% 90.7% 6.3% 2,337 Village Total 11,277 24,333 3,942 39,343

3.18 Data from the Scottish Household Survey for 2012 confirms that Inverclyde consists of a lower proportion of owner-occupied dwellings (59%) than the Scottish average (63%). Nearly three in ten (29%) of households in Inverclyde were in socially rented, higher than the national average of 23%.

3.19 Since 2006, the private rented sector has risen from 3% of the total households in Inverclyde to 11% in 2012. By contrast, the social rented sector is smaller now than in 2000, as is the proportion of owner occupied

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properties. The availability of credit and the restricted ability to access mortgages since the “credit crunch” is an obvious factor since 2008, combined with associated uncertainties in the jobs market and job security and social housing demolitions.

Housing Need and Demand

3.20 HNDA1 identifies 3, 536 households in Inverclyde requiring affordable housing. However this figure pre-dated much of the economic downturn; demand for affordable housing is likely to have increased, not reduced. HNDA1 did not forecast a shortfall in private rented sector accommodation – although recent increases in the proportion of private renting will have taken up some of this surplus. The maximum potential demand for intermediate housing identified by HNDA1 in Inverclyde was 2,600 to 2025, yet take-up of intermediate market products (such as the Low Cost Initiative for First Time Buyers, LIFT) has been modest.

3.21 Evidence from the three other social housing providers in Inverclyde (Cloch, Oak Tree and Larkfield Housing Associations) suggests that demand for social housing is strong for 2 and 3 bed properties, and increasingly for 1-bed properties. Demand for houses is stronger than for flats, for both 2- and 3-bed houses. Demand is particularly strong for ‘cottage flats’, or ‘4-in-a-block flats’, especially those with ground-floor access.

3.22 In recent years, housing supply within Inverclyde has fluctuated greatly from the trends of the previous decade. Up until 2009, the majority of housing completions in Inverclyde consisted of new private builds, which accounted for 89% of completions in 2008. However, this trend reversed in 2009 with 390 RSL completions. This reflects both a reduction in private sector house building following the 2008 ‘credit crunch’ and the commencement of River Clyde Homes new build programme to offset demolitions. In 2012, 77% of new builds in Inverclyde were provided by RSL’s.

3.23 Whist the number of private sector new builds as a proportion of all builds has reduced, there has been a steady continuation of private sector new build. Although not at pre-2008 levels (of 200-250 units per annum), the post-2008 new build has been between 100 and 150 units, including the notable development at Kingston Quay providing larger family houses.

Lessons from understanding our housing market

3.24 The evidence and understanding of our housing market indicates the following:

 A continued shortfall in affordable housing in Inverclyde, demand for certain properties, types and sizes remains strong;

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 Incomes remain low and the economy of Inverclyde remains vulnerable and weak;  De-population has slowed, the picture is more complex;  There is an ageing population, but again changes in Inverclyde’s population profile are more complex;  The private rented sector is growing strongly;  There are signs of wider housing market recovery and agents report (modest) increases during 2013 in mortgage completions and first time buyer interest;  Some areas of Inverclyde have an unbalanced housing market;  There is a need to develop a strong ‘housing offer’ in Inverclyde.

4 Understanding Our Property, Places and People

Our Property

4.1 Our stock profile is indicated below:

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4.2 Compared with most other social housing providers River Clyde Homes has a disproportionate number of flats, larger flats and non traditional building types.

4.3 As of March 2014 30% of the stock had been surveyed by John Martin Partnership to determine its condition. Budget has been set aside to increase this to 100% over 2014 to 2016. This will deliver a comprehensive understanding of all of our stock’s condition, its state of modernisation, its compliance with SHQS and it allows us to plan for component renewal thereby avoiding elemental failure over the long term (30 year period).

4.4 Currently, 75% of our housing stock complies with the SHQS. This compares with only 5% in December 2007. All homes owned by River Clyde Homes must meet the SHQS no later than March 2016 and we are very confident that we will achieve this.

4.5 In order to get the best use of the stock condition survey information River Clyde Homes uses Asset Planning Expertise (APEX) software supplied by Innovation Group plc. This is a sophisticated Asset Management tool that facilitates strategic planning, programme modelling and recording of survey and analysis information.

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4.6 Apex also allows RCH staff to examine the relationship between the investments required in the property against expected rental income over a 30 year period and the cost of disposal if that is the recommended outcome.

4.7 Expected rental income is in turn influenced by the demand for and popularity of the property type and the neighbourhood in which it is located, together with the costs of potential demolition or disposal and re- provision. Voids and Re-let Times

4.8 River Clyde Homes is one of the largest of all large stock transfer RSLs, behind only Glasgow Housing Association and the Dumfries and Galloway Housing Partnership in terms of numbers of properties owned. However, due to a high proportion of void units, currently 357 at March 2014, River Clyde Homes suffers by far the largest gross rental income loss. The chart below displays the amount of rent lost due to voids in comparison to other large stock transfer RSLs:

4.9 As well as the high number of voids contributing to lost income, River Clyde Homes also has the longest re-let time of all large stock transfer RSLs, an average length of 94 days, almost 30% more than the second longest average re-let time for a social housing provider in Scotland at xx days.

4.10 The high number of voids and long re-let times are causing significant loss of income for the company. There are a number of factors affecting this

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loss of income such as previous administrative, policy and procedural constraints in allocating and letting homes, the poor quality of some of the homes, its location, size and type, the reputation of River Clyde Homes, or the neighbourhood concerned, or even Inverclyde generally. However, this last factor should be a least likely constraint given the demographics of the area and the need for affordable social rented housing confirmed in Section 3 above.

4.11 River Clyde Homes has developed a Long Term Void Programme and a Demolitions Programme based upon a detailed options appraisal of all our empty homes including the use of the APEX assessment tool to determine their economic viability :

a) Long term Void Programme

All of RCH’s long term voids have been assessed and a variety of actions decided upon.

There are a total of 171 properties listed as long term voids:

I. 29 properties have high-value repairs or alterations required. The works are now specified and packaged in single tender and they will be prioritised according to demand following an ongoing marketing campaign and in line with a targeted housing management project.

II. 70 properties are located within our established regeneration area of Broomhill, Greenock. A customer-led design group has been established in the area and provided with community and landscape architectural support. This area will benefit from an investment package worth around £20m. The investment is guided by the design group and it will; fully re-furbish all retained properties, provide an element of new- build to enhance the area, include the provision of an energy efficient district heating scheme, provide radical changes to the landscape incorporating Inverclyde Council investment in the area, establish suitable safety and security measures for residents and, using external wall insulation for the tenements and “rainscreen” for the 3 tower blocks in the area, it will dramatically improve the aesthetic appeal of the neighbourhood. The work is programmed to last over 36 months and will begin this year.

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III. 10 smaller properties have now benefited from enhanced investment works including upgrading of the local environment, drying greens, bin areas, communal leisure areas and the like. A marketing campaign and letting initiative relating to tenant downsizing planned.

IV. 10 large flatted properties are under review for disposal. A report with recommendations will be provided for our June 2014 Board.

V. 8 properties within a single block are being assessed for suitability for a project providing supported community living for some people moving from long-term hospital stay.

VI. 20 large flats are under review for a package including re- roofing, intensive housing management, external investment and a marketing campaign.

VII. 24 larger flats are in an area that has become stigmatised. A resident group has now been formed and the group has helped guide a marketing campaign for the area. Indications are that the area has now stabilised and the upgraded flats will be now be marketed.

b) Demolitions Programme

Insert details

4.12 Performance Clinic / need to identify intensive service provision to complement the re-letting etc.

4.13 In addition to the above programmes, River Clyde Homes will introduce a new choice based lettings scheme in June 2014. ‘Your Home’ will enable weekly marketing of all our empty homes, customer self selection of their preferred available home and easier allocation.

Energy Efficiency

4.14 Many of our properties are energy inefficient. Reasons for this are varied and include outdated and expensive heating and hot water systems, the need to provide a better standard of insulation either within or around the external fabric of homes, or the complexity arising from the need to encourage adjacent owners to agree to investment and improvement

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works. Confirmation of the energy performance of our properties is provided in the table below:

Insert table

4.15 River Clyde Homes has developed a Green Strategy and action plan. Our Green Strategy complements the Sustainable Homes and Places Strategy and confirms 4 ‘green’ outcomes as follows:

 Supporting our customers to reduce levels of fuel poverty;  Ensuring all our homes are energy efficient;  Making the company itself more energy efficient;  Providing benefits to the wider environment.

4.16 A number of interventions have been identified to achieve the above outcomes including:

 Prioritised investment over the next 5 years to replace inefficient heating and hot water systems;  Prioritised investment over the next 5 years to improve the external insulation of buildings;  Procuring additional funding support from Inverclyde Council to encourage owners to participate in energy improvement schemes including Support for Owners (SFO) grant and Home Energy Efficiency Programme (HEEP) grant;  Additional funding through the Energy Company Obligation (ECO) to provide a new district heating system for Broomhill, Greenock;  Partnership working with the council and others to improve energy advice and support for customers through the ‘IHeat’ initiative.

Mobility Standard, Adapted and Sheltered Homes

4.17 River Clyde Homes has a high percentage of mobility standard and adapted homes, xx% as at March 2014. In addition the company also provides xxx sheltered homes, a further xx% of our total housing stock.

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4.18 Given our customer profile, the population profile for Inverclyde as a whole and the extent of long term sickness and health inequalities in Inverclyde, demand for mobility standard, adapted and sheltered homes is high.

4.19 The need to ensure our customers can sustain their tenancy for as long as possible is a key priority for River Clyde Homes. We are also committed to promoting their health and wellbeing at all times. Consequently a number of actions and interventions have been prioritised in this strategy accordingly including:

 A review of our Equipment, Aids and Adaptations Policy to ensure a more customer centred approach to assessment and provision;  Prioritised investment over the next 5 years to ensure the availability of funding for equipment, aids and adaptations;  Ensuring our investment programme includes an assessment of the need for adaptations as part of any SHQS works related scheme;  Promotion of existing mobility standard and adapted homes through the ‘Your Home’ choice based lettings scheme;  Jointly commissioned research with the Community Health and Care Partnership to identify the longer term housing and service needs of older people in Inverclyde;  A review of all our sheltered housing schemes and an appraisal of options for their improvement and compliance with current and future housing support needs in Inverclyde.

4.20

Our Places

4.21 Demand for our properties in our various neighbourhoods can be summarised as follows (March 2014):

Neighbourhood No. of Total Voids No. on Turnover (%) Properties Waiting List

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Major Intervention Areas (MIA’s)

4.22 In addition to the demand information above consideration of a range of other relevant factors has contributed to the identification of our Major Interventions Areas (MIA’s).

4.23 These other factors include:

 Economic activity;  Lack of investment in homes and their environment;  Levels of anti social behaviour;  Deprivation;  Skills and income;  Health inequalities;  Fuel poverty;  Supply and demand of homes in the locality.

4.24 Our MIA’s will be a primary focus for investment over the next 5 years as well as an integrated, joined up approach to the provision of services and can be confirmed as follows:

 Broomhill, Greenock;  John Street area, Greenock;  Woodhall, Port Glasgow;  Belville Street area, Port Glasgow

The above areas are consistent with the investment and service delivery priorities confirmed in our 5 year Business Plan: ‘Excellence and Affordability’.

4.25 Each of our MIA’s will have a ‘neighbourhood blueprint’ confirming:

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 A vision for the neighbourhood supported by the local community and our customers;  Its priority for investment not just by River Clyde Homes, but also by key partners such as the council;  A detailed investment programme confirming what will be done and when;  The need for a an intensive approach to service delivery and how this will be provided;  Measures to promote community development and greater empowerment;  Anticipated outcomes from the investment and service delivery interventions including the need to reduce significant inequalities and deprivation.

4.26 ‘Neighbourhood blueprints’ are developed with customers and partners. They serve as action plans setting out the vision, key tasks and actions to deliver the vision, financial commitments, milestones and responsibilities. They are the ‘footprint’ for the successful regeneration of an area.

4.27 Specific members of staff will be identified within River Clyde Homes as ‘Neighbourhood Champion’. The role of the Neighbourhood Champion includes:

 Acting as a first point of contact for out customers, partners and staff;  Developing and delivering the ‘Neighbourhood Blueprints’;  Co-ordinating delivery across various River Clyde Homes teams;  Maximising investment including the procurement of resources additional to those confirmed by River Clyde Homes.

Neighbourhood Profiles

4.28 Each of the 4 MIA’s will require a different approach to monitoring the impact of the various interventions and progress toward achieving planned for investment and service provision outcomes. River Clyde Homes is developing Neighbourhood Profiles for each of the MIA’s, and for a number of other neighbourhoods. Neighbourhood Profiles contain a range of indicators and measures that confirm the relative ‘health’ of a neighbourhood. These include:

 Property condition and compliance with SHQS;

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 Energy rating and efficiency;  Void and re-let performance;  ‘Your Home’ bidding activity;  Property values;  Environmental assessment;  ASB and crime levels;  Household income and benefit dependency;  Economic activity;  Health indicators;  SIMD rating;  Customer satisfaction with services;  Customer satisfaction with area as a place to live.

4.29 Neighbourhood profiling will be extended to all our neighbourhoods and is key action within the strategy action plan. Neighbourhood profiles will enable a timely assessment of the health of our neighbourhoods, ensuring targeted interventions and actions are developed as appropriate to restoring or maintaining their sustainability and popularity.

4.30 Xxx

New Build and Development

4.31

Our People

4.32 Xxx

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5 Investment Programme

5.1

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2 Asset Management Overview

The Association’s Asset Management Strategy can be seen as:

“The Strategy that covers the range of activities that ensure that River Clyde Homes stock meets the needs and standards required now and in the future.”

River Clyde Homes needs to ensure that the properties it owns and manages are:

 In good condition  In the right location  Of a design that fits its modern purpose . At an affordable rent that provides the necessary long-term Income and is considered by residents as value for money.

2.1 Strategic Objectives

This Strategy is based on a number of strategic objectives including:

 Provision of good quality affordable homes to people in housing need and those requiring care and support  The addition of new homes for affordable rent using Housing Association Grant (HAG) subject to each scheme complying with RCH Development Policy.  Maintenance of the stock to a standard at least comparable with that of other well-managed Registered Social Landlords  Allocation of resources to tenants’ priorities  Maximisation of the use of existing and new stock  Maintenance of a balanced portfolio through as appropriate; new build, acquisitions, sales, remodelling, tenure diversification, demolition and redevelopment.  Facilitation of neighbourhood regeneration  Encouragement of a corporate approach to investment across all services within the Association  Ensuring the stock complies with relevant regulatory and good practice requirements such as SHQS.

2.2 Purpose of the Asset Management Strategy

This asset management strategy has been drawn up to complement and inform the business plan of River Clyde Homes and to set out priorities for the physical care and improvement of the housing stock. The Asset Management Strategy also links with both the Association’s Development and its Procurement strategy.

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In common with every other RSL and indeed most organisations, River Clyde Homes has finite resources to expend on asset management. In line with the Strategic Objectives outlined above, the resources must therefore be managed and directed to derive maximum benefit to:

 Meet the Scottish Housing Quality standard  Keep dwellings in good condition in cost effective ways  Bring properties up-to-date and in line with current and projected customer expectations and demand  Achieve high standards of energy efficiency , reduce fuel poverty and reduce carbon emissions  Identify environmental improvements including suitable investment in security measures  Identify funding for alternatives to external thermal insulation for MSF thermal efficiency  Ensure works comply with current and prospective regulations  Design and implement strategies to ensure all health and safety legislation and good practice is adhered to, particularly in relation to issues affecting multi-storey blocks  Provide a balance between response and cyclical repairs/maintenance and targeted capital investment  Reflect local diversity in its approach  Complement the Association’s Marketing, Lettings, adapted and special needs provision and stock renewal and disposals strategies  Complement particular strategies such as the Wyndford Regeneration strategy  Modernise and/or remodel appropriate stock

2.3 Asset Management Components

The Association has a number of components within its strategy to ensure the housing stock meets the needs and standards required now and in the future.

 An economic and effective responsive maintenance service, to ensure that residents remain satisfied with their accommodation and to prevent unplanned deterioration in its condition.  Cyclical maintenance to prevent deterioration in the physical condition of the stock  A planned maintenance programme, achieving economies by replacing components just before they would otherwise require response repairs, anticipating changes in minimum acceptable standards, and reducing future requirements for cyclical maintenance.  An efficient and effective voids repair service, helping to speed the repairs process and protect the Association’s revenue.  Refurbishment and remodelling of dwellings to ensure they remain attractive, meet modern requirements and tenant expectations

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 Sales and or swap of property, to remove liabilities or to generate funds for future re-investment.  Acquisition of property, by purchase, development or transfer from other landlords to: . Maintain a balanced portfolio . Address newly emerging needs . Achieve economies in the management of Association

2.4 Asset Management Process Map

2.5 Inputs to the Association’s Business Plan

The Scottish Housing Regulator

The Scottish Housing Regulator (SHR) has a duty to protect the interests of tenants. They fulfil this function through an annual assessment of the Association’s Business Plan and consider its financial viability. The Strategy follows the SHR guidance on Business Planning and on Asset Management. Considering guidance on best practice; the Strategy is designed to

 contribute to corporate objectives  deal efficiently and effectively with sustainable/unsustainable stock?  assess trends in housing demand and need?  assess and deal with the cost of management and maintenance of the stock to achieve the SHQS?  take account of customer feedback within the Strategy?  include effective systems to collect current and on-going information SHQS compliance?

Funders

Two main sources of funding are the Scottish Govt and private lenders. Both of these invest millions of ponds with the Association each year and therefore require that their investment is protected adequately. The Scottish Government’s interests are served by the SHR. The private lenders interests are protected through the loan security arrangements as detailed in the “Loan Facility” agreement.

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 There are a range of issues that affect the Private Lenders input to the Business Plan  Most Stock Transfer Property Lacks Equity Value (the Association’s debt per house is relatively low for the sector at around £7k)  The predominantly non transfer stock however provides a substantial investment borrowing capacity

Borrowing substantial amounts of money creates a substantial commitment to meet the Loan Facility requirements and to maintain loan repayments.

Income and Expenditure

Income

Rental income accounts for 94% of the Association’s annual revenue. It is unlikely that this situation will alter during the term of the 30 year Business Plan.

The remaining 6% is accounted for by lease income from Granville Street office, lease income from mobile phone companies, Development and clerk of work allowances and management payments for Milton Community Hall.

Expenditure

The main expenditure items affecting the Business Plan are

• Repairs and improvements - 50% of Annual Expenditure • Management/ Services - 21% of Annual Expenditure • Loan Finance - 10% • Estate Costs – 8% • Overheads – 6% • Depreciation - 5%

4.2 Priorities for the Asset Management Strategy

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4.3 Asset Management Strategy – Outputs

Management and Investment Plan

The Management and Investment Plan deals with issues covering the statutory and good practice duties that the Association has as a landlord regarding improvement, maintenance and repair. For example:

• Safe, wind and watertight, routine maintenance (incl voids) – Partnering producing reduced costs and excellent performance • SHQS Compliance – Adequate facilities, primary and secondary failures • Procurement – Get the maximum for minimum (incl quality) • Adaptation to suit disability or special needs. • Minor Adaptation to internal layout in the unpopular bedsits • Environmental – basic maintenance very good but little upgrading and substantial hard landscape issues exist • Balancing new services with the Service re-charge (note impact on owners) • Homes for the Future - non-SHQS issues related to build-type: fabric repair, lifts, fire safety, water systems. • Energy efficiency measures.

Asset Planning

The other main output from the Asset Management Strategy is Asset Planning which relates mainly to strategic decisions concerning, for example, the acquisition of assets, adding value to existing assets, disposal of assets and business diversification. For example:

• Demolition options– note the effect on revenue and limited options for Re-provision • Energy production and local distribution- A major Strategic Issue. See separate reports. May require large capital expenditure but could provide a return and arguably necessary for the sustainability of the housing assets. • Multi-storey Strategy – See separate reports. Large capital expenditure arguably necessary for the sustainability of these housing assets. See separate report on Wyndford estate Strategy. • Right to Buy – Very few applications • Land Disposal – RCH has a reasonable land bank but transfer rules may make this an unattractive option. • Land Acquisition – Limited opportunity in the short to medium term • Property Disposal – See Options Appraisal

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• General Property Acquisition (note also options appraisal and strategic driver for limited acquisition) – May improve the profile of the stock but consider relationship to the Development Policy • New Build - May improve the profile of the stock but consider Development Policy. • Mid Market Rent - May provide Development or change of use opportunity but Government position still lacking in detail. • Re-modelling of property such as height reduction, consolidation, supported or special arrangements for particular client groups.

Health

5.3 The Inverclyde Alliance SOA in 2009 identifies Inverclyde as being thirtieth out of thirty-two local authorities in terms of life expectancy at birth and the area suffers from significantly higher than average ill-health rates in terms of cancer, heart disease and stroke.

5.4 Accordingly, many of River Clyde Homes’ tenants suffer from physical or mental ill-health which impacts on their capacity to sustain their tenancy. It also results in a demand for properties which are easily accessible for those with impaired mobility, a requirement that properties are adapted through Aids and Adaptations to meet the needs of the occupants and an imperative that housing is energy efficient in order that residents who are housebound or have limited mobility can afford to heat their homes.

Crime and anti-social behaviour

5.5 Reported crime rates for Inverclyde are comparable with those of our neighbouring local authorities (2008 - 09 – Inverclyde 6250 crimes: 80780 population; North Ayrshire 10630 crimes: 135920 population; Renfrewshire

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– 13095 crimes: 169800 population). The Inverclyde crimes break down as:

Violence 266 Indecency 50 Dishonesty 2074 Fireraising etc 1874 Other 1986

5.6 There appears to be a relatively high incidence of anti-social behaviour reported to River Clyde Homes, in the region of 300 new cases are recorded annually.

5.7 The pre-Transfer Tenants’ Survey showed that 43% of respondents ranked design measures to increase safety and reduce crime as being one of their top three priorities for their area. Anecdotally, there continues to be a perception that parts of Inverclyde are unsafe; this will be tested through a planned scheme of Customer Surveys and other evidence gathering schemes to be carried out by the Association. These factors are of course often cited as reasons for low demand for properties in certain areas across Inverclyde.

Fig 16 : Crime Patterns in the Inverclyde Area – deeper colour equals more reported crime

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Infrastructure and built environment

5.8 Although Inverclyde has some stunning views and scenery, this is blighted in many areas by post-industrial derelict land and buildings. The resultant urban image is poor and makes creating positive and sustainable neighbourhoods more challenging.

5.9 Transport links across the area are fairly good during the day, but are limited in the evenings. Car ownership is low – for example a survey of residents in relation to the East Greenock Regeneration revealed only 20% car ownership per household. These factors taken together very much mitigate against an active town-centre social scene.

5.10 Much has been done to improve the built environment in Inverclyde through regenerating the area, most especially along the waterfront of the River Clyde, under the auspices of Riverside Inverclyde, the local Urban Regeneration Company. This has resulted in significant new-build housing which was designed to bring occupiers from outwith Inverclyde. However, research has shown that 86.7% of those who occupy the Waterfront new- build moved from within Inverclyde. This has resulted in the housing market being largely internalised to Inverclyde, with resultant negative implications for River Clyde Homes.

6 Housing by Tenure in Inverclyde

6.1 The nature of the housing market is an important determinant of housing affordability. There have been significant changes in the market in Inverclyde in recent years, notably the ongoing effects of the recession which has slowed private sector house-building and mortgage availability, with social housing stock demolition already in train.

6.2 At the Scotland level, six out of ten (60%) dwellings (stock) are currently privately owned owner-occupied households, translating to a figure of just over 1.5 million households.

6.3 There are now similar numbers of households in rented dwellings; local authorities (13% - 319,000), privately owned private rents (12% - 305,000) and socially rented dwellings from housing associations (11% - 277,000). Combined, at the Scotland level, the rented sector comprises 24% of the total. The remaining 100,000 or so are privately owned vacant households (4%).

Source: Scottish Government Housing Statistics, estimates based on the 2001 Census, GROS dwelling counts and Scottish Household Survey (SHS) tenure splits

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6.4 In terms of changes in tenure over time in Scotland, the prominent trend is the decline of socially renting from local authorities, mainly due to Right to Buy sales but also as local authorities have transferred stock to Housing Associations. This has been the case in Inverclyde. In Scotland then Social renting from local authorities has fallen from 750,000 dwellings in 1993 (34% of all tenures) to almost 320,000 in 2012 (13% of all tenures).

6.5 At the same time, there has been an increase in social renting from Housing Associations, from 70,000 to 180,000 dwellings (3% to 11% of total dwellings). Despite this trend, the proportion of social rented dwellings has fallen from 37% in 1993 to 24% in 2012 – a loss of 320,000 dwellings.

6.6 Since the early 1990s, there has been a rise in owner-occupied households from 1.2m to 1.5m (55% to 60% of total number of dwellings over the period), although there has been a modest decline since 2005- 2006.

6.7 Private rented dwellings have risen significantly, from 150,000 to 300,000 (7% to 12% of total dwellings), with the rate increasing since the mid- 2000’s.

Fig 17: Source: Scottish Government Housing Statistics, estimates based on the 1991 and 2001 Census, GROS dwelling counts and Scottish Household Survey (SHS) tenure splits

Inverclyde Housing Stock by Tenure

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6.8 There were a total of 38,811 properties in Inverclyde, as of 14/10/2013, according to the Scottish Assessors Association. Of these, 10,616 properties, or 27%, are estimated as being in the social (or affordable) rented sector, 4 percentage points above the Scottish average. The private rented sector is marginally less represented; however, data is drawn from the 2011 Census and is therefore not quite as recent. Trends at the Scotland level are showing a marked increase in the private rented sector in the last few years, and available evidence (see later) suggests that this is also the case in Inverclyde.

Table 1: Properties by Tenure, Inverclyde and Scotland, 2012/13

Affordable Owner Private Total Area Housing Occupied Rented Stock Sector Sector Sector

Inverclyde (%) 27% 62% 11% 100%

Inverclyde (number) 10,616 23,926 4,269 38,811

Scotland (%) 23% 63% 13% 100%

6.9 Although the social rented (or affordable) housing sector in Inverclyde remains above the Scottish average, it has been falling over recent years. The Annual Performance and Statistical Return (ASPR) 2012/13 shows a loss of 822 units through the RCH demolition programme. Overall, this is a net loss of 772 units from the previous year, 2011/12, and is largely made up of units lost through demolition, as well as units lost to owner occupation through the Right to Buy. At the same time, there have been new units provided through development.

RCH has continued to provide new units to partially offset those lost to demolition.

6.10 The projections of stock owned by RCH over the coming years sees the stock numbers fall even further. By the end of 2013/14 there is projected to be 5,948 properties owned by RCH, down from 6,417 from the previous year and, by the end of 2014/15, this number is expected to fall again to 5,871.

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. 6.11 Within Inverclyde, there are marked variations of the stock by tenure. Work carried out by IC indicates the following distribution (as of March 2011), the social rented sector comprises more than half of all the stock in Greenock Central East, and more than a third of all stock in Greenock South West and in Port Glasgow. By contrast, levels of social rented accommodation are very low in Inverkip/Wemyss Bay and in Kilmacolm/Quarrier’s Village. There is a marked concentration of private rented sector accommodation in Greenock West.

Table 2: Properties by Tenure, Inverclyde and Scotland, 2012/13 Owner Affordable Occ Private Hou Total upie Ren Area sing Sto d ted Sect ck Sect Sector or or Inverclyde (%) 27% 62% 11% 100% Inverclyde (number) 10,616 23,926 4,269 38,811 Scotland (%) 23% 63% 13% 100%

6.12 The following graph shows the rise of private rented sector accommodation as a proportion of the total, illustrating the increase in Inverclyde and its narrowing with the Scotland average. Since 2006, the sector has risen from 3% of total households in Inverclyde to 11% in 2012. By contrast, the social rented sector is smaller now than in 2000, as is the proportion of owner occupied properties. The availability of credit and the restricted ability to access mortgages since the “credit crunch” is an obvious factor since 2008, combined with associated uncertainties in the jobs market and job security.

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Fig 18

Implications Sustainable Homes and Places: . Despite recent reductions, Inverclyde has a significantly higher proportion of socially rented accommodation compared to the national average; . In some areas, the sector accounts for more than a third, or even half, of all properties; . There is continuing trend of growth in the private rented sector, for Inverclyde and nationally. . Owner occupied sector in Inverclyde has fallen since 2008 at a greater rate than nationally.

7 Private Rented Sector – An Opportunity?

7.1 The cost of renting privately in Inverclyde varies significantly between sub- areas. For example, the following chart shows Kilmacolm to have the highest prices for privately rented 1 bedroom and 2 bedroom flats compared with other major areas within Inverclyde. On average, Port Glasgow has the cheapest 1 bedroom accommodation to rent, at £76 a week, with Greenock and Gourock slightly more expensive. However, in terms of 2 bedroom flats, rents in Greenock (£102) are, on average,

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significantly lower than other sub-areas, 15% lower than average Port Glasgow prices and 11% lower than average Gourock prices.

7.2 The private rented sector prices in Paisley is comparable to that in Greenock and Gourock for a 1 bed apartment, and 1 bed apartments are cheaper in Port Glasgow. However, for 2 bed apartments, Paisley is significantly cheaper than Port Glasgow or Gourock, and likely to be cheaper than the costs of commuting from Paisley into these parts of Inverclyde. All parts of Inverclyde are less expensive that Glasgow, except for Kilmacolm (and potentially Inverkip/Wemyss Bay not covered by the analysis below).

7.3 It is worth noting that the high average 2-bed rental prices in Port Glasgow are pushed up by executive apartments located there, such as a number of 2-bed apartments available for rent at the Ropeworks on Bay Street and one on King Street, and by the limited supply which means the available executive apartments help raise average prices. Excluding these apartments, average rental levels are £102 per week, on a par with Greenock and Paisley.

Fig 19 Source: data based on web search of 86 properties available for private rent (16/10/2013) and 288 properties for Paisley and Glasgow.

7.4 Feedback from seven private sector landlords covering 154 Inverclyde properties suggests that they consider the rent levels they charge to be the market rents; and that this is typically £400-£500 per month for an average 2 bed apartment (£95-£115 per week). The rental levels are “set just above the social rented sector rents but not so high that this will price potential tenants out of the market”. There appears to be little problem in letting accommodation, particularly one bedroom apartments, where landlords cite the significant effects of the bedroom tax, and the shortage of 1-bed apartments in the Inverclyde area. Appendix C provides more detail.

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7.5 When comparing the average RCH social rent prices with the average private rent prices, we can see that, as expected, private accommodation is dearer than social housing. However, despite the feedback from private sector landlords above, this is quite considerable, particularly for two bed apartments. Translated to calendar months, the monthly rent in the private sector for a 2 bed apartment is £462 per month, compared to £298 per month for RCH properties. Even for 1 bed apartments, the cost is £356 per month in the private sector compared to £296 per month from RCH. .

Fig 20 Source: data based on web search of 86 properties available for private rent (16/10/2013).

7.6 It should be noted that although private sector rents are considerably higher than those of RCH and this will present social business opportunity, the Association’s rents also tend to be higher than comparable areas in Scotland.

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Implications for the study: . The proportion of income spent on accommodation is a key determinant of affordability. . The average price of owner occupied property is still £115,000, although this is down from its 2007/8 peak. . Social renting costs are higher than in other comparator areas. . Private renting costs are considerably higher than social renting costs, particularly for 2-bed properties. . Private renting costs vary within Inverclyde, yet all rental levels are above social rent comparators.

8 The River Clyde Homes context

8.1 All of the factors outlined above have a major bearing on the tenant base that River Clyde Homes serves. In terms of issues such as age demographic and the low income / benefits reliance as well as the growth of single person households generally, it has long been recognised that River Clyde Homes will have a proportionally larger representation of these groups in its tenant base due to the service offered and of course as a Regulated Association using substantial public funds, RCH has a

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responsibility to abide by Scottish Government Regulatory policies and of course legal requirements.

In March 2010, River Clyde Homes undertook a “Customer Satisfaction Survey” to test the opinions of our tenants across a broad range of issues and indicators of our service to them. The Survey will be followed up with a series of consultation and the development of a range of customer feedback mechanisms.

The 2010 Survey produced a range of useful information:

8.2 Age Range of RCH Tenants

 16 – 24 = 4%  25 – 34 = 6%  35 – 44 = 10%  45 – 54 = 15%  55 – 64 = 16%  65 – 74 = 21%  75 + = 28%

The figures above support the conclusions in terms of our tenant base age range at the moment and confirms the trends noted earlier – 49% of our tenants are over 65 years old and 65% of our tenants are aged 55 years or above.

8.3 Household Composition

 One adult under 60 = 19%  One adult aged 60 or over = 46%  Two adults both under 60 = 7%  Two adults both over 60 = 8%  Two adults, at least one 60 or over = 3%  Three or more adults, 16 or over = 3%  1 Parent family, 1 child under 16 = 5%  1 Parent family, 2 children under 16 = 3%  1 Parent family, 3 or more children under 16 = 2%  2 Parent family, 1 child under 16 = 1%  2 Parent family, 2 children under 16 = 1%  2 Parent family, 3 or more children under 16 = 1%  Other = 1%

The figures above go some way towards supporting the trends shown earlier in this section. Our aging population as noted above and earlier is driving the picture of one person households in the area with other trends to single person households strong too. In all, 65% of our tenants live alone. There is a marked decline (as borne out by the household

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predictions at 2.2.2.1 above) in the traditional family unit with a very low percentage of two parent households with children.

The profile of our tenant base is further revealed under the next category which follows.

8.4 Occupation of Head of the Household

 Full time paid work (35 or more hrs per week) = 7%  Part time paid work (16 – 34 hrs per week) = 4%  Part time paid work (less than 16 hrs per week) = 1%  Full time education = 1%  (Unemployed = 15%  Long term sick/disabled = 19%  Looking after family = 4%  Retired = 48%  Other = 1%

8.5 A majority of tenants have issues either with mobility (51%) or chronic disease that will have an impact on the type of environment that they will require to live in.

9 DEMAND FOR RCH PROPERTIES BY AREA

9.1 The Association operates across Inverclyde and offers properties in areas with significantly different levels of demand across the various tenures. The demand varies with size, type, age and location.

9.2 To date RCH has tended to consider various “neighbourhood” areas.

These have been listed as follows:

 Upper Port Glasgow and Kilmalcom  Lower Port Glasgow  Greenock East  Greenock Town Centre  Greenock West  Greenock South West  Gourock and Inverkip

9.3 Kilmalcolm and Upper Port Glasgow

Kilmacolm Broadfield Slaemuir Mid Auchinleck

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Bardrainney Devol Oronsay Boglestone Park Farm Whitecroft High Carnegie

Fig: River Clyde Homes Key Facts 2010 Kilm Slae Bard Oron Park Broad No of House 46 224 134 179 86 173 Size and type info available but not documented No of voids demo 0 0 0 28 0 6 - to let 1 6 0 5 2 5 and other Arrears case no. 9 88 30 53 21 37 Neighbour complaints 8 27 1 3 4 0 No on waiting list 462 575 460 176 339 88 (2009) Turnover (%) 10 4 13 4 5.5

Mid Dev Bogle High White Castl e No of House - total 255 17 47 73 124 173 Size and type info available but not documented No of voids - demo 0 0 0 0 52 6 - to let 4 1 0 2 2 5 and other Arrears case no. 64 9 19 21 30 18 Neighbour complaints 17 0 0 2 8 3 No on waiting list 498 372 382 338 145 115 (2009) Turnover (%) 8 7 4 7 8 6.5

9.4 What the statistics tell us

The key statistics show that some neighbourhoods in this area are in high demand, this is combined with low stock numbers and a low turnover. This means, from a practical perspective, to get a house in these areas can take a long time for example Devol and Bardrainney.

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In other areas where the turnover is higher and RCH still has a reasonable number of houses the demand is lower but generally healthy. For example Oronsay and Mid Auchinleck.

9.5 Kitchens and Bathrooms now meet SHQS: we have completed 230 houses in Mid Auchinleck (e.g. Methil Rd, Milton Rd, Minard Rd, Moidart Rd Auchenbothie Rd, Dubbs Rd, Leperstone Ave, Monkton Place.

Demolitions: 42 houses have been cleared and demolished to facilitate new build and to clear blighted or low demand houses

Newbuild: There are 2 newbuild programmes completed at Oronsay Avenue and Moray Road, Port Glasgow.

Oronsay

There are 61 new houses built at Oronsay in a mix from two bedroom, 3 person terraced houses to 5 bedroom, 7 person detached houses. These houses are to re-provide for tenants and owners who currently live in properties in the vicinity which are being demolished. The affected residents were consulted on the site layout, specifications and design of the houses.

Moray

There are 32 new houses built at Moray Road in a mix from one bedroom, 2 person own door flat to 4 bedroom, 6 person semi-detached houses. There are four own door flats in Moray Road and there are three wheelchair houses being built to meet particular housing needs. Again, these properties were being built for residents who have are living in properties being demolished in the area. The residents will mainly be those who decanted from Moray Road to enable demolition to take place and residents from Selkirk Road tenements.

The new build contract in Port Glasgow which includes Oronsay, Moray and Phase 1 of Woodhall was undertaken by Lovell Partnerships Limited. The £23 million contract produced employment benefits for local people as the contract specified that Lovell create apprenticeships and take on unemployed people.

9.6 Kitchens and Bathroom were modernised to meet SHQS: Boglestone and Glebe Ct (and Bardrainney)

External Fabric improvements to meet SHQS: Mid Auchenleck

Demolitions: approximately 116 select or targeted demolitions in Oronsay and Slaemuir. These included the maisonette blocks in Grampian Rd (8-

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26,28-48), Cromdale Rd (21-39), Oronsay Ave (119-189), Westray Ave (27-45), Stroma Ave (16-34)

9.7 Lower Port Glasgow

The Lower Port Glasgow plan includes the following areas:- Woodhall Kelburn Fyfepark Terr Robert St Bouverie St Glenhuntly Port Glasgow Town Centre (inc. Heather, Rowan, Thistle Cts) Highholm Chapleton

River Clyde Homes Key Facts

Woodhall Kelburn Fyfe Robert Bouverie Park St No of Houses 218 105 11 63 128 size/type info available but not documented No of voids - demo 70 0 0 0 (70) - to let 0 10 0 7 3 and other Arrears case no. 43 40 1 8 14 Neighbour complaints 12 5 0 12 16 No on waiting list Regen 32 76 28 33 (2009) Turnover (%) Area 13 ? 14 Feas St

Port HRT Glenhunt Highhol Chapl Town elt No of House - total 132 160 10 71 106 size/type info available but not documented

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No of voids - demo 0 0 0 0 0 - to let 3 9 0 7 7 and other Arrears - 18 10 0 15 19 Neighbour complaints 2 0 3 0 0 No on waiting list 352 33 266 99 153 (2009) Turnover (%) 11 9 4 12.5 8

9.8 What the statistics tell us The key statistics show that some neighbourhoods in this area are in high demand. This combined with low stock numbers and a low turnover (few houses are given up), means in these areas it can be difficult to access housing e.g. Glenhuntly , Fyfe park Terrace and the Town Centre. In other areas where the turnover is higher and RCH still has a reasonable number of houses then the prospects for getting a house are better for example Chapleton and Heather, Thistle and Rowan Courts.

There are three areas where there demand is low or very low and turnover fairly high: Kelburn, Highholm St and Robert St.

9.9 Kitchens and Bathrooms: Heather, Rowan and Thistle Courts. Port Glasgow Town Centre and Broadstone Gardens.

External Fabric Improvement works to meet SHQS: Reroofing, new doors and entry systems to Heather Rowan and Thistle Courts

Demolitions: 42 houses have been cleared and demolished to facilitate new build and to clear blighted or low demand houses in Woodhall

New build of 102 houses in Woodhall complete. The Masterplan envisaged a further 82 houses for rent and 162 houses for open market sale together with the provision of community facilities and the re- provision of the retail unit. Various political and macro-economic changes means that this plan is no longer viable in the foreseeable future. Commitment has however been given to providing a further 35 houses on the site and a revised Masterplan requires to be formulated.

9.10 Greenock East

The Greenock East plan includes the following areas:-

Gibshill Sinclair St area Carstdyke Ct Grosvenor St area Craigieknowes Bridgend North Maukinhill South Maukinhill

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Strone+ Belville St area John St

Fig: River Clyde Homes Key Facts Gibshill Sinclai Cartsd Grosve Craigie Bridge r yk n kn nd No of House 66 221 49 60 116 63 size/type info available but not documented No of voids - demo 0 27 0 3 47 8 - to let 0 6 0 0 0 0 and other Arrears case no. 12 33 8 16 19 9 Neighbour complaints 1 13 8 2 3 0 No on waiting list 397 157 64 153 159 317 (2009) Turnover (%) 6 17.5 4.5 regen regen 7

Strone Belville John Bel/Oct NMauki SMauki St n n No of House - total 79 114 19 218 73 504 size/type info available but not documented No of voids - demo 0 0 0 18 294 - to let 4 0 0 9 6 and other Arrears case no 27 31 9 60 34 14 Neighbour complaints 6 0 0 8 11 10 No on waiting list 221 224 205 215 81 demo (2009) Turnover (%) 13 2 4 11 12 demo

What the statistics tell us

9.11 The key statistics show that some neighbourhoods in this area are in high demand this combined with low stock numbers and a low turnover (few

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houses are given up), which means from a practical perspective, in these areas it can be difficult to access housing eg Gibshill, Bridgend North and South Maukinhill and Strone.

In other areas the turnover is higher and demand is low or very low for example; Sinclair St area, Belville St and John St.

Regeneration in Bridgend and Craigieknowes recognises that demand for housing in this area is generally good, but this combined with the need to introduce a wider range of house sizes means that there is re-provisioning and demolition of low demand houses.

In areas like Belville St where the demand for flatted properties has fallen over the years there is ongoing clearance and demolition of unpopular housing.

9.12 External Fabric Improvements to meet SHQS The BISF houses in South Maukinhill have been clad and reroofed, with new doors and windows fitted.

Kitchens and Bathrooms to meet SHQS BISF houses South Maukinhill

Demolitions 259 houses have been cleared to facilitate demolition of blighted or low demand houses or to facilitate the re-provisioning of new houses.

New Build The re-provisioning of 141 new own door houses in Gilmour/Fairrie/MacPhail Street (90 units), 43 units at Grosvenor Road/Carwood Street/Sinclair Street and 8 units at East Crawford Street.

The houses vary from 2 bedroom, 4 person terraced houses to five bedroom, 7 person units.

9.13 Greenock Town Centre

Well Park Regent Ct Central east Greenock Central Kilblain Ct Royal Ct Sheltered (John Gault House, Stewart House, Seafield, Bagatelle Ct) Holmscroft

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Fig: River Clyde Homes Key Facts Wellpark Regent Centre Town Kilblain Royal Ct E C No of House 159 71 44 248 60 84 size/type info available but not documented No of voids - demo 26 0 0 0 0 0 - To let 3 10 2 10 3 6 and other Arrears case no. 24 9 12 49 2 1 Neighbour complaints 11 1 0 4 0 0 No on waiting list 589 14 574 1278 42 35 (2009) Turnover (%) 16 10 9 23 10 12

John Seafiel Bagate Holms Glt Stewar d lle cr t No of House - total 64 26 26 28 84 size/type info available but not documented No of voids - demo 0 0 0 0 0 - other 6 1 0 1 0 Arrears case no. 5 0 1 2 13 Neighbour complaints 0 0 0 0 1 No on waiting list 72 85 93 62 820 (2009) Turnover (%) 22.5 17 14 16 9

What the statistics tell us

9.14 The key statistics show that most neighbourhoods in this area are in high demand and this combined with low stock numbers and a low turnover (few houses are given up), means from a practical perspective, it can be difficult to access housing in these areas. The Wellpark development has suffered from recent low demand but substantial investment including environmental works and a local lettings initiative should remedy this.

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9.15 Kitchens and Bathrooms now complete.

External Works to meet the SHQS: Cladding, roof works new doors and door entry systems to Regent, Kilblain and Royal Courts, windows fitted to Regent Court..

Kitchens and Bathroom to meet SHQS: In 2010-2011 Regent and Royal Courts and West burn Buildings, John Gault House, Stewart House, Bagatelle Ct, Seafield House and Charles Place External Fabric improvements to meet SHQS: Westburn Buildings and Charles Pl, John Gault House, Seafield House, Bagatelle

Lift replacement: Charles Pl

Central Heating Replacement: John Gault House

9.16 Greenock West

Drumfrochar Broomhill, Prospecthill Whinhill Cts Cornhaddock Peat Rd Cowdenknowes Rankin Ct Upper Bow Farm Lower Bow Farm

Fig: River Clyde Homes Key Facts Drumfr PBW Cornha Peat Cowde oc cts d Rd n No of House 371 268 72 140 52 size/type info available but not documented No of voids - demo (21?) 0 0 51 1 - To let 41 12 4 16 3 and other Arrears case no. 104 40 13 18 9 Neighbour complaints 91 14 15 1 No on waiting list 332 163 634 67 438 (2009) Turnover (%) 18 9 6 regen 6

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Rankin Bow L Bow Fm No of House - total 33 12 164 size/type info available but not documented No of voids - demo 0 0 0 - To let 0 0 4 and other Arrears case no. ? 5 43 Neighbour complaints 2 0 14 No on waiting list 167 122 316 (2009) Turnover (%) 2 7 1.5

What the statistics tell us

The key statistics show that most of the neighbourhoods in this area are in high demand. This combined with low stock numbers and a low turnover (few houses are given up), means in these areas it can be difficult to access housing.

In other areas where demand is low or very low the turnover is higher for example; Drumfrochar Rd area and Broomhill Prospecthill and Whinhill Courts

9.17 River Clyde Homes progress in this area since Dec 2007

Kitchens and Bathrooms completed 140 in Lower Bow Farm Externals to meet SHQS: Cladding, roofworks and common areas and facilities at Rankin Ct.

Kitchens and Bathroom to meet SHQS: in 2010- 2011Rankin Court

Demolitions: 83 houses cleared to facilitate the demolition of low demand houses In the Trafalgar St area

9.18 Masterplanning

There are two areas in Greenock West that require substantial masterplanning:

Peat Road

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Previous study shows that the Peat Road area of Greenock is suitable for building new housing. Given the economic changes referred to above further study is needed to look at the types of housing which would be suitable and costs of this given ground conditions. Viability and cost effectiveness of the site will then be considered if new housing is to be developed..

Drumfrochar Road Area – including the wider Broomhill Area

This area will be RCH’s biggest development project to date and possibly the most ambitious for some time to come.

The regeneration of the area over the next 3 years is a prime objective for both Inverclyde Council and RCH. RCH Board agreed in March 2014 to devote very substantial resources towards renewing the obsolete and expensive blown hot-air and electric night-storage heating systems in the area with a modern district-heating system aimed at cutting carbon emissions and reducing fuel poverty. RCH also plans to install external wall insulation which will greatly enhance the energy efficiency of the low-rise buildings along with substantially improving their aesthetic appeal.

Resources have also been set aside to provide a “rain screen” finish for the 3 multi-storey towers which will transform these properties and greatly increase the comfort and appeal for customers living there.

All of the properties will benefit from full internal refurbishment and enhanced safety and security measures in the area together with a radical redesign of the landscape in the area. Some selective demolition and new build is also envisaged. A design group involving local residents has been working with a community architect and a landscape architect to produce a coherent plan for the area. The Group’s findings and proposals will be presented to RCH Committees and Board in May 2014.

9.19 Greenock South West

The Greenock South West plan includes the following areas:-

Grieve Rd Mallard Cres Fancy Farm Ravenscraig Ct Branchton Larkfield East Upper Larkfield Lower Larkfield Braeside (Greenock West End)

Fig: River Clyde Homes Key Facts Grieve Mallard Fancy Ravens Branch Rd Fm c tn No of House 153 95 102 55 34 size/type info

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available but not documented No of voids - demo 0 (17?) 0 0 0 - to let 8 4 2 1 0 and other Arrears case no. 54 29 26 13 14 Neighbour complaints 25 10 16 5 1 No on waiting list 318 157 458 128 293 (2009) Turnover (%) 10 10.5 13 ? 3.5

Lark Up Low Green East Lark Lark Braesi W de No of House - total 137 152 120 133 17 size/type info available but not documented No of voids - demo 22 (12?) 37 0 0 - to let 2 8 11 2 2 and other Arrears - 52 59 15 38 6 Neighbour complaints 17 26 25 3 0 No on waiting list 133 135 135 367 429 (2009) Turnover (%) 6 18 22 3 6

What the statistics tell us

The key statistics show that some of the neighbourhoods in this area are in high demand. This combined with low stock numbers and a low turnover (few houses are given up), means it can be difficult to access housing in these areas for example Branchton, Braeside and Greenock West end.

In other areas where the turnover is higher, there is a low or very low demand for example Larkfield and Neal street

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9.20 Kitchens and Bathrooms to meet SHQS: we have completed the Grieve Rd area, Larkfield East, Braeside and Ravenscraig Ct

External works to meet SHQS: Cladding, roof works, new doors and common entry to Ravenscraig Court

Demolitions: 101 houses have or are being cleared in preparation to demolish blighted or low demand houses

New Build including Shared equity Units (126 new build of which 12 shared equity.

External fabric Improvements to meet SHQS: Braeside and Larkfield East and Grieve Rd (tenant blocks only);

Demolitions at Angus Road, Berwick Road, Burns Road, Cumberland Road, Westmorland Road. Cumberland Walk will be demolished as part of a joint venture agreement with the Council.

10 Future Demand for a Wider Range of Housing Products

10.1 Taking account of the Association’s stock profile, it remains an objective to develop a more balanced portfolio of properties, not least of all so that future borrowing and investment can be facilitated. RCH is a registered charity however it has a commercial subsidiary that could facilitate the development and management of alternative forms of tenure and more commercial housing products.

10.2 To date the Association has not completed any houses for direct sale. The Association has however completed a small number of high-quality houses for sale utilising the Government’s new-build shared equity scheme. This scheme has proved problematic in terms of demand for the product set against the Inverclyde context and the prevailing very difficult economic conditions. Perhaps more importantly the houses are located in areas that have suffered from social deprivation.

10.3 It should be noted that shared equity tends not provide the Association with income and of course no asset is acquired. The objective therefore should be that the exercise should provide tenure diversification in defined areas.

10.4 As noted above, The Association has never built properties for sale in the manner of a private developer. RCH does have a reasonable land bank however, considering the current housing market conditions, the business risk associated with this activity indicates that the Association does not enter in to such activity in the short to medium term.

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10.5 The Ekosgen Study and the evidence it produced suggests a continued demand for affordable housing in Inverclyde. Real incomes for those in and out of employment have fallen and the availability of credit has reduced and, although overall house prices have fallen back from peak prices, owner occupation remains beyond a large proportion of Inverclyde households. Real incomes may take some considerable time to reach 2008 levels (wage growth remains below inflation), although the severe restrictions on the availability of credit may ease (which in turn will increase affordability levels and demand for owner occupied housing).

10.6 Further, the strength of the private rented sector is likely to be a function of frustrated demand for owner occupation. Whilst this demand for owner occupation may be met when credit becomes more freely available and new build rates pick up, this is likely to take some time. Income trends over the last five years suggest many will continue to require, or would benefit from, intermediate market support as a route into owner occupation, particularly whilst the wider economy and jobs market in Inverclyde remains relatively weak. It may be possible in any case to develop a product that can give customers steps to owner occupation if that is their longer-term objective.

10.7 The look at potential markets via the developed typologies suggests that demand could be greatest from those currently resident within Inverclyde as the needs of reluctant leavers are better met. If 10% of the younger reluctant leavers could be encouraged to say, this is 8-10 households per year. Approaches such as the IC scheme to help employers recruit local graduates will play a small but important role in helping improve the job market offer.

10.8 The other prominent group are those who currently work in Inverclyde, but who live outside the area. Attracting 3% of this group to live in Inverclyde would add 170 households. The group is likely to include at least 50% in higher level occupations who may have higher end housing needs than those lesser skilled, with the exception of younger professionals who are more likely to be first time buyers. The remaining 50% will be in- commuters in lesser skilled occupations, and this may be an appropriate group to target with MMR products.

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10.9 Demand (in relation to supply) for property is highest for 1-bed apartments (increasingly so amongst young couples), for 2-3 bed houses with front- door access, for larger family homes, lower floor conversions and 4-in-a- block flats. However, quality property of all types is in demand. Similarly, whilst demand is highest in some localities (Greenock West and Central Gourock), feedback suggests demand is good for quality accommodation across the Inverclyde area.

10.10 RCH, as the largest RSL, has a number of sites with the potential for new build, some of which are in discussions regarding being developed, with others having longer-term potential. Some of those being discussed and those with longer-term potential may be suitable for MMR. These are in Greenock and Port Glasgow and total more than 600 units. Feedback suggests demand would exist for new build quality products (or existing stock remodelled to high quality standards), with location potentially not a strong barrier (although care would need to be taken over the choice of actual development sites). Further, the LDP identifies a total supply of 1,410 units in the affordable sector, and effective supply of 960 private sector units over the period to 2019 and across the Inverclyde area. Signs of some interest in new private sector build may help to contribute some affordable housing units.

10.11 Aside from new build RSL accommodation or remodelling of existing RSL stock, the implementation of planned improvements to letting processes and stock by RCH will help increase the ability of the supply side to meet levels of demand.

Conclusions

10.12 Overall there appears to be a continuing and significant need to increase the range and quality of affordable housing, both to meet identified need and to improve the quality of supply. Within this, there appears to be potential for an intermediate rental market. Demand for private rented sector accommodation is strong, and there are few problems for private sector landlords in letting their properties. Private rented sector rental rates are relatively high, and higher than some comparator areas. For a proportion of those in the private rented sector, the ambition for owner occupation – given credit availability – cannot be realised. Even with

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some indications that credit restrictions are easing, there are groups who will find accessing the funding required for owner occupation problematic

10.13 Greater availability of intermediate or MMR accommodation (and take-up of schemes such as LIFT) may help many Inverclyde households make the transition to owner occupation. The evidence suggests demand for quality properties is good and the timing may be right for investing in MMR given some wider signs of economic and market improvements (including Inverclyde) and, with it, some renewed confidence and willingness to spend more income on accommodation. Care will need to be taken on the location of MMR, although in all geographic areas there is a significant differential between current private sector rental costs and social rents, including ‘unpopular’ areas such as Port Glasgow. Improving the housing offer (including MMR) may help to increase the attractiveness of the area for in-commuters, migrants and those with a former connection to the area and to retain reluctant leavers (e.g. young graduates).

11 River Clyde Homes Investment Programme

11.1 Investment Programme 2014/2015 will focus on SHQS compliance and Energy Efficiency measures.

Investment Programme

2014/15

Internal Works

Unit Numbers

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Address RCH O/O £

Works Required: Kitchens , Bathrooms and Re-Wire.

Kelburn (VOID 27 NA Reconciliation) 140,400

Montgomerie St & Wilson 58 NA St 301,600

North Maukinhill 78 NA 405,600

South Maukinhill (ex BISF) 19 NA 98,800

Gibshill 63 NA 327,600

Glenhuntly/Ardenclutha 9 NA 46,800

Central East 42 NA 218,400

Darroch Park -

George Rd, Mathie Cr, Stevens Pl -

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Drumshantie Rd, Rodney 29 NA Rd. 150,800

Total for Internal work 325 1,690,000

Energy Efficiency

Unit Numbers

Address RCH O/O £

Work Required: Minor gas infrastructure work.Boiler and Heating replacement.

Belville Street Area 8 N/A

Darroch Park Area 55 N/A

Fancy Farm Area 1 N/A

Glenhuntly / Ardenclutha 2 N/A

Lower Bow Farm 1 N/A

Lower Clune Brae 12 N/A

Midton Areas 37 N/A

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North Mauchinhill 14 N/A

South Mauchinhill 16 N/A

Total for energy 146 efficiency 1,490,000

External Works: General Projects

Unit Numbers

Address RCH O/O £

Work Required: New Roofs, roof repairs, EWI , render works, gutters down pipes, lighting, close painting.

Bardrainney Flats 16 10 105,600

Bardrainney (Moss Rd) 6 0 39,600

Greenock Central (Ex 372 381 Charles Pl) 2,039,830

Holmscroft 73 126 480,970

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Lower Larkfield 15 0 99,000

Cartsdyke Court 49 0 26,400

Ardmore/Benview 28 25 184,800

Highholm 70 41 462,000

Branchton 34 8 224,400

Midton 80 113 285,270

Fancy Farm 32 44 8,500

Gibshill 1 6,600

Park Farm 1 6,600

Oronsay 5 33,000

Larkfield East 1 6,600

Bardrainney

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6,600

Slaemuir 106 24 750,000

Angus Road 16 0 650,000

Neil Street 60 20 396,600

External Works: Specific Projects

Unit Numbers

Address Description of Works RCH O/O £

WellPark Buildings Environmental works to the 39 0 back Courtyard 78,000

Mid Auchenleck Minor Environmental works , 206 Environmentals slips and to front and back 304,000 courtyards.

Monkton Place 2 community ward units 24 0 converted to tenanted flats. 158,400

Greenock West End Remaining Environmental 7 7 works to paths and bin store 46,200 areas. Slips and trips etc.

Lower Gourock Remaining Environmental 130 159 works to paths and bin store 80,000

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areas. Slips and Trips etc.

John Street Regen area, New roofs, 73 11 render, rain water goods, 680,000 drainage works, full environmental works

Waverley Street Minor floor levelling works. 2 3,600

Grieve Rd shops (4 units) External render and roof 4 repairs with some 26,400 environmental improvement works.

Total for External Works 1450 969 7,188,970

Grand Total 1,921 969 10,368,970

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