Housing Asset Management Framework Progress Report
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EAST AYRSHIRE COUNCIL CABINET REPORT – 21 NOVEMBER 2018 HOUSING ASSET MANAGEMENT FRAMEWORK PROGRESS REPORT Report by Depute Chief Executive (Safer Communities) INTRODUCTION 1. The purpose of this report is to provide an update on Housing Asset Management Framework activities and to make a number of recommendations to Cabinet. BACKGROUND 2. The development of the Housing Asset Management Framework will contribute to achieving the vision of East Ayrshire’s Local Housing Strategy: “Everyone in East Ayrshire can afford to access a quality home that meets their needs and aspirations, and is located within a safe and attractive neighbourhood in which they are proud to live.” 3. The purpose of the Housing Asset Management Framework (HAMF) approved by members of Cabinet on 24 February 2016 is to provide a framework for managing our property assets to ensure that they contribute efficiently and effectively to the achievement of the Council’s aims and objectives, both now and in the future, while ensuring that we retain vibrant communities with good quality homes. There was recognised to be a need to ‘future-proof’ the Council housing stock to enable us to respond to areas of declining population and the changing demographic by working closely with colleagues in the Health and Social Care Partnership (HSCP). 4. The HAMF was developed taking cognisance of the existing Housing Needs Demand Assessment, and Local Housing Strategy to ensure that East Ayrshire’s housing stock meet the present and future needs of our tenants, sustainability of tenancies is improved and that the best use of our resources is made. The key objectives of the framework are: Ensuring that the Council has a sustainable, quality housing stock within strong and vibrant communities. Using resources as efficiently and effectively as possible. Maximising resources for further investment in existing and new stock. 5. The Council’s approach to ensuring that there are vibrant, sustainable communities is concerned not just with environmentally friendly new homes but with the physical and social condition and stability of our neighbourhoods. 6. This is reflected in the Council’s approach to community regeneration by utilising the outcome of the HAMF review to fully inform our strategic approach towards both the Strategic Housing Investment Plan (SHIP) and the Housing Investment Programme (HIP). As a result these papers will follow this report. 7. The HAMF approach and associated matrix gives us an up-to-date comprehensive and reliable information base. This will inform a clear analysis on performance, value for money and highlight the value that properties are bringing to the Council. 8. The agreed matrix was developed utilising guidance from the Scottish Housing Regulator’s recommended practice on Strategic Asset Management. It assesses housing stock in terms of overall performance and from a housing management perspective using a range of qualitative and quantative data including property type, size, location, construction type, current and anticipated demand for the property, void levels, rent loss, refusal rates, management costs, energy efficiency ratings and major investment costs. 9. The HAMF approach and matrix identifies stock into 3 categories of red, amber and green. This information is then considered by a cross service review team with officers from Housing Services, Housing Asset Services, Finance, Estates, Legal Services, Vibrant Communities, Planning and Economic Development and the Health and Social Care Partnership (HSCP) for each of the housing management areas. Stock is then categorised with the following potential solutions: i. Housing Management Action; ii. Acquisition/Disposal of house or site; iii. Demolish and clear e.g. stock no longer suitable and cleared site not considered appropriate for new build Council housing; iv. Demolish and refresh linked to Strategic Housing Investment Plan e.g. stock no longer suitable and cleared site to be developed for new build housing; v. Stock transfer e.g. could a Registered Social Landlord be better placed to manage stock linked to their own stock holding; vi. Improvement e.g. could external or internal improvements be made to improve the demand for the stock and help sustain tenancies. 10. The approach and matrix has been utilised over the last two years with recommendations presented to Cabinet on 30 November 2016 and 29 November 2017 respectively. This approach is a long-term and far reaching approach to review our own stock initially and then applying a range of options to ensure delivery of the right houses in the right place at the right time. 11. There has been significant programme of works undertaken through buy-backs of former council housing and the requirement to re-house affected tenants to facilitate this. Over the past two years properties identified by HAMF and linked to SHIP, we have found suitable alternative accommodation for 369 tenants and bought back 46 properties. Work is also progressing with acquisitions or sales in mixed tenure blocks or to respond to specific housing needs. We have in the past two years in line with HIP paper brought back into Council ownership 5 properties which gives the Council full ownership of blocks with a further 11 under consideration and there are 13 properties being processed for sale. The strategic acquisition of new or good quality homes helps to build value to the asset base for the future of the Council as well as meeting the particular needs of residents and their families. The process of strategic disposal assists with Housing Improvement Programmes. HAMF MATRIX RESULTS 12. The results of the matrix for the lettable stock is summarised as follows: Table 1 RAG Definition Total % of Total % of Total % of status numbers stock numbers stock numbers stock 2016 2016 2017 2017 2018 2018 Properties that have been identified as core Green stock which 10358 81.8% 10337 86.2% 10207 86.4% performs well and has little or no concerns. Properties that have been identified as having Amber an element of 1620 12.8% 1223 10.2% 1238 10.5% concern but do not fall into the Red Status category. Properties that have been identified as being Red 680 5.4% 432 3.6% 370 3.1% “cause for concern” with regard to sustainability Total 12,658 100% 11,992 100% 11,815 100% 13. The numbers of stock categorised as red has fallen due to the recommendations implemented over the last two years and various Housing Service improvement measures that have been implemented with improvements in tenancy sustainment and the time taken to re-let void properties. 14. The Housing Service Improvement Group continues to identify ways in which we can implement further improvements. Management actions have included: Void plus – We have introduced an ‘estate agent’ approach to the allocation of long term voids. These properties have been brought up to a high standard including full decoration internally. We then promote the property within the local community through advertising in Council offices, the Council’s website and other social media platforms. As a result, a number of long term void properties have been brought back into the letting pool in Irvine Valley and Cumnock and Doon Valley. Neighbourhood Coaches –Neighbour Coaching as an ethos was piloted amongst Housing staff within the Doon Valley Area to promote self-reliance amongst customers, helping people to help themselves. Having a different conversation with customers to identify their needs and providing a supportive approach to removing dependency. In addition the Council is employing 7 Neighbourhood Coaches to work throughout East Ayrshire to help and support people through claiming UC working through the many obstacles to making and supporting claim. Developing customer skills so they can flourish in life and work through identifying needs and matching those needs to services. Tenancy start matrix has now been fully implemented across all allocation areas where key factors are looked at where tenancies may fail and/or putting in place additional support for as long as needed. Tenancy health check tenancies have a tenancy health check at 6, 9 and 12 months to ensure that suitable support is in place to allow our customers to sustain their tenancies. Our tenancy sustainment performance has shown improvement over the period of implementation. 15. When analysed, the majority of red status stock was found to be concentrated in 2 of the Housing Management Areas (HMA) as follows: Table 2 Housing Management Area Total % of red % of total red numbers stock in HMA stock across 2018 EA Cumnock and Doon Valley 210 5.5% 56.8% Irvine Valley and Ballochmyle 124 4.7% 33.5% Kilmarnock North 16 0.7% 4.3% Kilmarnock Central and South 20 0.7% 5.4% Total Reds 370 3.1% 100% 16. A series of meetings were held by the cross service review team for each of the housing management areas and stock categorised accordingly. The review ensured that where in place, the future recommendations were aligned with Community Action Plans and linked with tenants and residents groups. 17. In the Catrine, Newmilns, Auchinleck, Muirkirk areas, given the nature and impact of proposals it was considered appropriate to engage with residents through Information events to extend the Council’s reach beyond existing organisations and networks and to engage with communities in more flexible, responsive ways. All residents were invited to attend the events and given the opportunity to provide ideas and discuss different options for streets within the area, these consultation took place in November 2018. These were also attended by representatives from the East Ayrshire Federation, local Community Action Plan groups and Community Councils. An additional consultation with the East Ayrshire Federation took place in November 2018. 18. The feedback received from these events has been used to inform the outcomes recommended in this report and have led to housing management action being implemented.