Our vision is “Delivering excellent Housing Services”
NSDC Housing Asset Management Strategy
Newark and Sherwood Homes Limited
Version 4 September 2016 Created by Asset and Development Services
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Contents Page
1. Introduction 3 2. What is Asset Management 4 3. Aims of the Asset Management Strategy 5 4. Meeting the needs of the Council and other key stakeholders 6 5. Resident Involvement and Empowerment 8 6. Government Regulation 9 7. Local Partnerships 9 8. Housing Assets and Need at 31 July 2016 10 9. Stock Condition 12 10. The 2016-2026 Asset Management Strategy 15 11. Delivery of the 2016-2026 Asset Management Strategy 18 Major Works 19 Environmental Improvements 20 Parking 22 Responsive Repairs 22 Planned Maintenance 23 Energy Efficiency and Affordable Warmth 24 Void Property Repairs 25 12. Regeneration 27 13. Leaseholders 30 14. Procurement and Value for Money 30 15. Equality and Diversity 31 16. Performance Management 32 17. Monitoring and Review 32 18. Comments on the Strategy 32
Appendix 1 Summary of Housing Need Shortfalls/Surpluses by area 34 Appendix 2 Housing Stock by Location – as at July 2016 35 Appendix 3a Identified 5 year priority need investment programme summary - from April 2016 37 Appendix 3b Identified priority need 30 year investment programme summary - from April 2016 38 Appendix 3c Identified major investment priority need costs 30 year programme by elements - from April 2016 39 Appendix 4 Housing Stock Profile by Archetype as at July 2016 40 Appendix 5 Delivery of the Asset Management Strategy 42 Appendix 6 Planned Maintenance 43 Appendix 7 Energy Efficiency 50
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1 Introduction
1.1 Newark and Sherwood Homes (NSH) manages the District Council’s housing stock of just under 5,500 properties and related housing asset base.
1.2 The Company successfully achieved the Decent Home Standard to all Council owned homes by March 2010 on time, on budget and to very high levels of customer satisfaction. In October 2013 the Council and Company signed a new 30 year management agreement which provides enhanced long term planning of the Housing Revenue Account business plan (HRABP) and associated opportunities for maximising growth to support the long term viability of the HRABP.
1.3 This document sets out the actions being taken to ensure that the Asset Management Strategy continues to meet the aims and expectations of Tenants, the Newark and Sherwood Homes Board and Newark and Sherwood District Council. With the new 30 year management agreement in place new challenges lie ahead for the Company in maintaining the existing housing stock at a sustainable and viable level whilst delivering new growth.
1.4 In April 2012, the way Council housing was funded changed following the implementation of Self-Financing. This strategy has been developed based upon the latest self-financing projections and known financial position in conjunction with the 30 year HRABP which is detailed in Appendices 3a & 3b.
1.5 The new management agreement states the Council’s Strategic Housing Vision and its 5 outcomes. The Council’s outcomes guide the strategic direction of the Company and support the delivery of standard outlined by the Council’s Strategic Housing Vision:
"To maintain the Council’s housing stock to a decent standard, ensuring that it is fit for purpose to meet the needs of current and future tenants, delivering excellent housing services that offer good value for money, inclusive involvement and achieve tenant satisfaction, set against sustaining a viable Housing Revenue Account Business Plan that can deliver the Council’s Strategic Housing Vision outcomes”
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Outcome 1: Standards Delivery of the core business to manage and maintain the Council’s housing stock to the required standards, within the Management Fee set, ensuring the stock remains fit for purpose.
Outcome 2: Involvement Tenant involvement and satisfaction drive the operations of the Company and maintain the delivery of excellent housing services.
Outcome 3: Income Income collection is maximised and efficiencies are generated to ensure the sustained viability of the Housing Revenue Account Business Plan.
Outcome 4: Housing Need Support the Council to meet the housing needs of the district’s residents set against the area’s demographic and socio-economic profile through housing growth and regeneration.
Outcome 5: Growth Expansion into other business areas through innovation and entrepreneurialism to attract inward investment to enhance services to tenants, the properties and neighbourhoods they live in, deliver the Council’s strategic priorities and sustain a viable Housing Revenue Account Business Plan
1.6 The Asset Management Strategy has been developed to deliver and support both the Council’s and Company’s vision, outcomes and objectives outlined above.
1.7 The strategy also focuses upon contributing towards the requirements of Company’s new 30 year Management Agreement with the Council and to meet the requirements of the Company’s Delivery Plan.
2 What is Asset Management?
2.1 Asset Management is the range of activities undertaken to ensure the housing stock and related asset base meets the needs and standards both now and in the future. Although this includes the investment in repairs and improvements, it also goes beyond that. Asset Management includes reviewing the viability of assets and where necessary changing the asset base to ensure we have the right accommodation and assets in the right place to ensure long term sustainability.
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2.2 In achieving the above, it is essential to adopt a proactive approach to consider a range of solutions to ensure assets are long term viable. This will include maintenance, acquisition, growth, regeneration, redesign and disposal.
3 Aims of the Asset Management Strategy
3.1 A range of specific asset management aims have been developed to complement and support the Vision and Objectives of Newark and Sherwood Homes which will enable the Company to meet the requirements of the Delivery Plan and Management Agreement with the Council.
3.2 To guide the formulation of the Asset Management Strategy the core aims and priorities of the Council have also been taken account of to ensure it fits within their broader priorities.
3.3 The resultant aims of this Asset Management Strategy are:
i. To deliver the Council’s housing vision and requirements of the Delivery Plan and Management agreement
ii. To support delivery of the Councils wider strategic objectives
iii. To deliver a programme of home improvement works which continue to ensure that the agreed Decent Homes standard is maintained throughout the housing stock in support of a viable HRABP.
iv. To direct available investment resources into the provision, development and maintenance of high quality housing stock to meet the needs and demands of existing and future customers to sustain a long term viable HRABP.
v. The assets be maintained to appropriately meet wider community and environmental agendas that impact directly on tenants.
vi. To effectively involve tenants and other stakeholders in the formulation, implementation, monitoring and review of the strategy.
vii. To maintain high levels of customer satisfaction and continue to meet the changing needs of customer over time.
viii. Robust and up to date stock and asset condition data is maintained to inform efficient and effective investment plans to meet locally agreed standards. 5
ix. The asset base and surrounding environment be maintained and improved through appropriate investment, remodelling, redevelopment, regeneration, acquisition and disposal to meet the changing demands and needs of customers over the lifetime of the strategy and provide a sustainable income to support the long term viability of the HRABP.
x. To maintain properties through programmes of responsive maintenance, void repairs, planned maintenance and cyclical maintenance.
xi. To improve the energy efficiency of homes in order to reduce fuel poverty and contribute to the wider environmental sustainability agenda. This includes where possible the identification of opportunities to utilise renewable energy sources and associated technology to reduce carbon emissions.
xii. To deliver Value for Money (VFM) into asset management functions and identify efficiency savings.
xiii. Integration of the Asset Management Strategy into the Company’s Risk Management Framework and ensure compliance with relevant legislative requirements where applicable.
4 Meeting the needs of the Council and other key stakeholders
4.1 This document is a 10 year strategy valid for the period from 2016- 2026, that seeks to take into account a variety of objectives from a range of stakeholders.
4.2 In line with the requirements of the Management Agreement, the Strategy will be reviewed annually to ensure it remains fit for purpose
4.3 The Asset Management Strategy identifies how we will maintain housing related assets over the 10 years of the strategy linked to delivering the key objectives of the overarching 30 year HRABP and 30 year Management Agreement, to ensure that we continue to meet the needs and aspirations of our main stakeholder the Council who own the housing stock. In addition to this it takes account of the other key stakeholders which include; the Government, including its regulators and most importantly of all, our residents who live in the homes and neighbourhoods we manage and maintain.
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4.4 The Asset Management Strategy also identifies the need for a move from the traditional housing sector’s approach to asset management towards an approach that allows Newark and Sherwood Homes to respond to the changing environment and customers’ needs. This will ensure that we sustain a long viable HRABP and are able to support the long term aims of the Council’s growth strategy.
4.5 This approach to asset management will allow careful targeting of resources, informed investment decisions and identify areas for potential remodeling or growth that will maximize value for money and enable Newark and Sherwood Homes to offer the highest quality property and customer services.
4.6 The diagram below shows how we take all these factors into account when developing our 10 year strategy, annual asset management delivery plans and opportunities for future development and growth.
4.7 This is known as the ‘Golden Thread’ and it is fundamental as it ensures that the Asset Management Strategy takes account of national and local strategic objectives in additional to the needs of our customers.
Council’s HRABP & Tenant and Resident Government Policies Policies on Housing, needs and on Housing, Growth, Environment aspirations Environment and and Communities Communities
Newark and NSDC HRABP Newark and Sherwood Homes Delivery Plan Sherwood Homes Financial Modelling & Asset Management Growth Strategy Strategy
National Energy Newark and Newark and efficiency policy Sherwood Homes Sherwood Homes Procurement Strategy Business Plan & Delivery Plan
Newark and Responsive Repairs Sherwood Homes Stock Condition Maintenance trends Service Improvement Surveys Plan
4.8 The approach to asset management is a continuous cycle that as identified above takes account of a range of internal and external factors before any investment decisions and operational targets are set. 7
4.9 The Asset Management Strategy underpins the investment planning element of the Company’s Strategic Business Plan and reflects any strategic growth and investment targets set by Newark and Sherwood Homes.
5 Resident Involvement and Empowerment
5.1 We will consult regularly with residents to identify their needs and aspirations.
5.2 Following the successful delivery of the decent homes programme in 2010 Newark and Sherwood Homes continues to consult with its customers to determine what their priorities are in terms of future improvements within their homes to ensure we continue to deliver a standard that is in line with tenant expectations.
5.3 It has been agreed that we continue to maintain the decency of the homes managed by NSH to the agreed current local housing standards.
5.4 The standard agreed for continuing to maintain homes has been incorporated into the 30 year HRABP to ensure that the asset base remains viable and sustainable.
5.5 In addition to the above, we have agreed with Tenants a choice of colours and products for Kitchens and Bathrooms.
5.6 We will undertake regular tenant surveys from which we are able to identify investment priorities and ensure that we are meeting the aspirations of tenants wherever possible towards sustaining a long term viable HRABP.
5.7 We undertake regular tenant surveys. These are used to identify issues and priorities for future investment and also provide valuable feedback for products that have been installed.
5.8 Newark and Sherwood homes have developed with tenants a suite of Local Offers across our services including asset management. The locally agreed standards are reviewed on a regular basis to ensure they continue to be what the tenants of Newark and Sherwood District Council expect to be delivered. We will ensure the asset management services are tailored to meet these.
5.9 We will continue to encourage Tenant and Resident Associations (TRA’s) to consult within their local area and guide us locally on what improvements they would like to see within their neighbourhoods. 8
5.10 We will involve tenants in the procurement of partners and selection of key materials. Tenants are involved in the procurement and selection process of key contracts.
5.11 As part of our comprehensive consultation and participation process, we also involve tenants in deciding how we repair, maintain, improve and adapt homes and neighbourhoods including monitoring the delivery of our asset management services and programmes
5.12 At the highest level we have residents that are Directors of the Board and oversee strategic decision making and review corporate investment targets. Additionally a Tenant’s Panel is in place with the remit of scrutinising service delivery across the Company and reporting directly to the Board.
6 Government Regulation
6.1 We will comply will the Government’s legislation, regulations and best practice throughout the life of the Asset Management Strategy and will assist where possible in achieving national aims and objectives.
6.2 The Governments regulator for Housing is the Homes and Communities Agency (HCA). We will monitor the future strategic direction set by the HCA to ensure that asset management decision making process take account of emergent issues and legislation.
6.3 Current strategic requirements linked specifically to asset management from Government legislation include;
i. Maintaining all homes at a minimum of the Decent Homes Standard. ii. Improving the energy efficiency of homes to reduce fuel poverty and the carbon emissions. iii. Compliance with Health and Safety legislation linked to specific issues such as Asbestos, fire and legionella. iv. Compliance with Financial Reporting Standards and Statements of Recommended Practice v. The Housing and Planning Act (2016)
7 Local Partnerships
7.1 We will take into account and support the delivery of the local aims and objectives of our key partners.
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7.2 Our main partners include;
i. Nottinghamshire Social Services with who we work closely in the delivery of effective adaptation solutions to ensure where possible our tenants can live independently and make their homes more accessible
ii. Nottinghamshire Constabulary with whom we work to reduce crime and disorder and where possible through the investment programme reduce these risks. Examples of this include the ‘Secured by Design’ standard which we implement through our home improvement programmes.
7.3 The Asset Management Strategy has taken into account the relevant key aims of our partners which include maintaining homes at a decent standard and developing healthy and sustainable communities.
8 Housing Assets and Need at 31 July 2016
Asset Base
8.1 Newark and Sherwood Homes manage and maintain the whole of Newark and Sherwood District Council’s housing stock and related assets. As at 31st July 2016 the assets managed are as per the table below;
Asset Quantity NSDC Rented properties 5446 NSH rented properties 17 Leasehold Flats 149 Garages 855 Community Centres 30 Extra Care Scheme 1 Sewage Works 4 Pail Closets/Cess Pits 5 Offices 3 Works Depot 1 Flats over Shops 9 Pumping Stations 4 Play Areas 15
8.2 In addition to the above Newark and Sherwood Homes manage a significant portfolio of Housing Revenue Account (HRA) designated land and garage sites which includes un-adopted footpaths and roads and trees that are situated on HRA land that are not attached to a specific properties.
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8.3 As of July 2016 there were 4157 applicants registered for re-housing in the Newark and Sherwood District. This includes demand for all of the current stock of different homes and some applicants may have expressed an interest in more than one type of house type.
8.4 From the identified demand, there are minimal problems with re- letting homes. However during the course of the strategy we will monitor factors linked to demands such as property refusals to ensure that we can make appropriate changes to meet potential future tenant needs and aspirations and maintain a viable HRABP.
8.5 Should trends be identified that are related to the demand of any particular property type or location we will undertake a timely option appraisal on homes that are no longer in demand or considered fit for purpose.
8.6 In 2014 Newark and Sherwood District Council undertook a Housing Needs Market and Affordability Study and the social re-lets data to provide detailed information on:
i) Balancing the Housing Market ii) Affordable Housing Targets & Tenure Mix iii) Property Size Targets iv) Housing Strategy v) Older Persons’ Housing Needs
8.7 The findings and recommendations of the study form a core housing evidence base. This data can now be considered against the Council’s wider strategic priorities and objectives and including housing, planning, growth and the economy.
8.8 The study identifies strong projected population growth of around 13% within the District by 2037 and this includes a significant increase in the population of elderly residents.
8.9 The results of the housing needs analysis are shown in Appendix 1 and may be used as an information base to assist in the wider policy and strategy development process, especially in addressing low demand and in stock option appraisal.
8.10 The impact of the Government’s Welfare Reform Act has and will continue to increase the need for 1 and 2 bedroom accommodation. It is important for the long term viability of the HRABP and asset base that the accommodation available is suitable for the customer base. We will continue to monitor the ongoing demand and seek as far as is possible to provide appropriate accommodation to meet the needs of the customer base and ensure that the impact of the Welfare Reform Act upon the HRABP is minimised.
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Housing Stock Portfolio
8.11 The table at Appendix 4 identifies the current Newark and Sherwood Council housing stock portfolio by type, age, floor and number of bedrooms as at July 2016.
Homes by Neighbourhood
8.12 Newark and Sherwood is a large and mainly rural district. The housing stock is located in 10 key areas with the remainder being dispersed in small number in what have been collectively identified as Villages East and Villages West as shown in the chart below.
Housing Stock Location
40% 38% 35% 30% 25% 20% 15% % of Stock 9.60% 8% 6.50% 6.20% 10% 7% 4.90% 4.60% 4.30% 3.90% 3.60% 3.40% 5% 0%
Newark Ollerton Balderton Boughton Clipstone Southwell Rainworth Bilsthorpe Blidworth Edwinstowe Villages West Villages East Location
8.13 The stock location chart identifies that around 53% of the stock is located in what is classified as the East of the District and approximately 47% in the West. The East of the District is not designated from an exact geographical split, it is classified as East of the river Trent. In the East almost 46% of the housing stock is located in either Newark or Balderton. In the West of the district the housing stock is far more dispersed in a greater number of smaller concentrations. More detail of specific numbers by location is shown in Appendix 2.
9 Stock Condition
9.1 In late 2009 a major stock condition survey was undertaken by Savills. As a result of this survey full stock condition information to 1087 properties (20%) which includes a representation of all archetypes present in all postcodes across the district.
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9.2 In addition to the Savills survey, Newark and Sherwood Homes have over recent years been undertaking in-house full stock condition surveys of around 600 properties per annum.
9.3 As a result of the above surveys, as at July 2016 we have full stock condition information on almost 3498 properties (64%) which includes a representation of all archetypes present in all postcodes across the district.
9.4 In addition to the above, from the major works programme completions data we also have partial stock condition information relating to over 10,000 individual elements which contributes towards the overall information held for the rest of the housing stock managed by Newark and Sherwood Homes.
9.5 The above data is held in an electronic Asset Management Database System and is accessible by all key staff.
9.6 For properties with only partial information the Asset Management system extrapolates existing data from a similar property archetype in the same postcode area as a representation of the likely stock condition for the purposes of business and investment planning.
9.7 During the life of this strategy we will continue to undertake annually a number of stock condition surveys with the aim of achieving a full stock survey within the next 4 years. After a full survey has been achieved we will continue with an ongoing rolling stock condition survey to maintain accuracy of data.
9.8 The information gathered from both previous surveys and other sources has been inputted into our Asset Management Database. We will continually use this data to develop investment programmes, financial planning and plan work programmes.
9.9 An energy efficiency module within the asset management system is used to identify the energy efficiency of the housing stock and to plan future investment into energy improvement programmes.
9.10 The asset management system is annually externally validated by a specialist as it is fundamental to the 30 year HRABP.
9.11 The annual validation exercise ensures that the asset management system is correctly configured, the cost rates used are appropriate, the data is robust and that the financial cost plans are reflective of the business need.
9.12 The outcome of the most recent validation process from 2016 confirms the asset management system to be robust and fit for purpose, it concluded that;
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i. The database is judged to be of above average quality.
ii. There is very little evidence of inconsistent or missing data. Works data is being added and new surveys are being undertaken. In essence the fundamentals are sound, and the database can be relied upon as the basis of investment plan forecasts and delivery of planned programmes
iii. There is little by way of potential improvements.
iv. The database has been maintained through the addition of new data.
v. NSH have correctly recognised the importance of managing their Keystone database and have committed to a continuing programme of surveys.
Traditional Housing Stock
9.13 4800 homes within the housing stock are of a traditional construction and historically have been reasonably well maintained on a day-to-day basis, but lacked major capital investment for a number of years. However, the decent homes programme addressed the majority of the backlog of works identified and ongoing major repairs programmes have been developed to continue maintaining the housing stock at a minimum of the decent homes standard for the lifetime of this strategy.
Non-Traditional Housing Stock
9.14 611 homes are of a non-traditional construction including Wimpey No Fines, Caledonian and Cornish.
9.15 All non-traditional housing stock suffer from the same non-decency issues identified within the stock as a whole and these were addressed through the decent homes programme with further works planned in the future to maintain the current decent homes standard.
9.16 As part of the decent homes programme, Newark and Sherwood Homes completed full structural repairs including a new masonry envelope to all of the Cornish properties within the housing stock.
9.17 Over cladding of the external envelope of over 500 Wimpey no fine properties has been undertaken as part of a number of Government incentivised schemes the latest being over 400 properties fully funded through the Green Deal ECO.
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9.18 Over the lifetime of this strategy we will continue to monitor the ongoing structural condition of the non-traditional housing stock to ensure they remain fit for purpose.
9.19 In addition to the above we will make improvements to the remaining non-traditional solid wall properties to enhance the energy efficiency of these properties. Funding is included in the 2015/16 property investment programmes to complete this work.
10 The 2016-2026 Asset Management Strategy
Overview
10.1 The Asset Management Strategy looks ahead to future asset and property investment requirements including the resources needed to fund them. Since the introduction of self-financing in 2012 this has placed a greater emphasis on the need for robust asset planning to ensure assets are well maintained and viable in support of the 30 year HRABP.
10.2 The Asset Management Strategy is based upon maintaining homes to the Council’s approved standard and also includes making homes more energy efficient and secure. We will carry out regular and recurring maintenance to ensure that the homes we manage remain healthy and safe with effective and timely planned maintenance to required components. Additionally we will deliver an effective and efficient responsive repairs service that deals with unexpected failures.
10.3 Whilst the decent homes programme was successfully completed, there is an ongoing requirement to continue investing heavily. This is primarily due to the fact that the decent homes programme tackled only decency failures at that time. We are now over 10 years on from the commencement of the decent homes programme and maintaining the agreed standard is a continuous cycle. The challenge that lies ahead is ensuring sufficient investment resources are allocated to maintain the current position to ensure the asset base remains sustainable and viable to support the 30 year HRABP.
10.4 We will also aim to improve the suitability of communities by maintaining the environment of our neighbourhoods such that it ensure that the homes we manage are in demand and located in a place where people would choose to live.
10.5 The Asset Management Strategy will take into account the aims and objectives of other strategies that compliment this document. This includes customer care, equality and diversity, value for money, resident involvement and also the procurement strategy. 15
10.6 Over the lifetime of this strategy we will aim to ensure that we procure partners to deliver our services in a fair and equitable way that delivers a quality service and materials required to maintain, improve and adapt the asset base and progressively increase value for money.
10.7 We will make sound investment decisions based upon comprehensive and up to date information.
10.8 Where applicable, we will also aim to identify more efficient and sustainable ways to improve the energy efficiency of the asset base, including heating, insulation, power and water.
10.9 To assist in tackling issues relating to fuel poverty we will use Government policies to provide guidance and set targets for reducing this risk.
10.10 Additionally we will meet the requirements of the Government’s Fuel Poverty Strategy for England to ensure that any long term targets are delivered by the Asset Management Strategy.
10.11 We will continue to review the asset base and where necessary, identify less sustainable properties which may require fundamental change such as remodelling, redevelopment or disposal, in consultation with our key customers and key strategic partners, rather than continuing to undertake expenditure which may not provide effective value for money.
10.12 We will undertake regular analysis of the repairs and cyclical maintenance costs to identify ‘maintenance hungry’ housing stock components. Where appropriate investment resources will be targeted into these areas to reduce the expense of ongoing maintenance and improve the customer experience through reducing the need to accessing day-to-day repairs on a regular basis.
10.13 Asset Management is a dynamic environment, we will ensure that any key objectives for delivery in any given year are included within the Company’s service improvement plan.
10.14 We will ensure that investment needs and priorities are identified to deliver the key objectives of the Asset Management Strategy The investment needs are included within the latest 30 year HRABP and are based upon robust stock condition surveys undertaken and the data included from the decent homes completions. The asset management database that has been primarily used to develop the investment priorities and needs assessment is externally validated annually.
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Financial Position
10.15 Following the introduction of Self-Financing development we can demonstrate that the HRABP is sustainable over the 30 year period, resources are available to maintain the homes to the locally agreed standard. We have identified that headroom for additional borrowing is also generated within the HRA which can be used to deliver growth in support of the Council’s long term growth strategy, which in turn will enhance the future long term financial position of the HRABP. This position is based on known facts and assumption that future decisions support the priorities of the HRABP.
10.16 Self-Financing provided the opportunity for the Company to set a long term asset management and investment strategy, which reflects investment requirements to maintain the assets and deliver tenant priorities. Self-Financing has also provided the opportunity for additional investment towards growth through increased borrowing capacity.
10.17 The property investment programme is a major element of the HRABP. The property investment programme is based upon the likely needs of the asset base including tenant priorities taking into account factor such as the local housing standard agreed by the SHLP in March 2014. It has been developed using the professional and technical skills that exist within the Company and the key principles identified within this strategy. The aim is to ensure that we continue to maintain a sustainable and viable asset base that supports the long term HRABP.
10.18 The total investment required is £188m over the 30 years, which equates to approximately £35k per property (based on current price and current stock).
10.19 There has been considerable work progressed to ensure that the stock data and investment needs forecasts are robust, deliverable and meet the expectations of tenants. The HRABP includes some resources for anticipated future developments in terms of legislation and energy initiatives to ensure it remains future proof.
10.20 In considering risks associated with the HRABP, it is important to recognise that the housing assets are long term income generating assets of the Council. Therefore maintenance and maintaining standards are essential to sustaining the long term rental yield which in turn supports the borrowing against the housing stock and subsequently the delivery of growth related activities linked to the Council’s wider priorities.
10.21 We recognise the strategic importance of financial investment decisions in terms of future management, regeneration and 17
development opportunities when balanced against the investment needs to the existing agreed standards. To support this decision making process, the revised Asset Management Strategy sets clear and evidence based strategic investment principles to support the long term financial viability of the HRABP.
10.22 We also recognise the need to ensure the asset base is utilised effectively to support the HRABP. This may involve development that includes cross subsidy to ensure schemes are viable or to contribute towards additional growth opportunities. Additionally it may include the sale of land or assets to contribute towards the wider growth agenda.
10.23 A review of the viability of the housing stock based upon investment and demand has been undertaken during earl 2016 supported by Savills. A piece of software developed by Savills has been utilised to carry out a viability assessment of all housing stock managed by the Company taking into account the demand, rental income, void periods and other key factors.
10.24 The above asset performance evaluation has provided a 30 year projection for the viability of all properties managed by the Company. The outcome of this evaluation is that all assets managed by the Company are performing effectively in terms of their financial yield. However, with the software and data we now have, we will continue to analyse asset performance and periodically re-run the exercise to ensure they continue to perform at the required levels and take appropriate action to identify any actions required where an asset is identified as poor performing.
10.25 Through the asset management database we will continue to produce both 5-year and 30-year investment need assessments for inclusion in NSH’s financial projections for all existing stock. The 5 year programmes once agreed by the Council will be updated on an annual basis.
10.26 Attached at Appendices 3a & 3b are details of the proposed 5 yr and 30 year investment need assessments for April 2016 onwards.
10.27 Appendix 3c provides a more detailed breakdown of the identified 30 year investment needs for the HRA asset base. The first 10 years of the programme are broken down into specific investment need. Beyond this the figure are an overview of predicted elemental replacement demand to maintain the housing stock at the current level of decency together with a figure that represents anticipated other capital investment.
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11 Delivery of the 2016-2026 Asset Management Strategy
11.1 To successfully deliver the aims of the asset management strategy and make informed decisions, we have a range of information and resources at our disposal. These are described in more detail at Appendix 5.
11.2 The asset management strategy is delivered across the Company through a number of mechanisms to ensure that the key aims identified within this strategy are successfully achieved. The following sections provide further detail relating to how the key aims of the strategy for specific asset management functions will be met.
11.3 Major Works
i. We will continue to identify the investment needs of the housing stock at the Decent Homes standard in line with what was delivered for Newark and Sherwood District Council tenants during the Decent Homes programme.
ii. In achieving the decent homes standard for the housing stock by March 2010, significant progress was made towards bringing the existing housing stock up to modern standards. The diagram below identifies how failing properties were addressed during the decent homes programme and have been maintained at that level since.
2500 2207 2000
1432 1500 No of Failing 1000 Properties 592 500 0 0 0 0 0 0 0
iii. It is important to recognise that achieving a ‘Decent Homes Standard’ is a snapshot in time and many properties which are currently classed as decent are yet to receive modernisation work. Without significant and ongoing investment the housing stock will start to fall out of decency and this will again create a backlog for the future.
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iv. Through proactive management of the Decent homes programme and subsequent improvement works, the number of refused access to undertake works is currently close to 1%. We will periodically contact the tenants of each of these homes to offer them the opportunity to reconsider their position. We check to ensure that when properties become void, any previous refusals and any outstanding decent homes improvement works are undertaken whilst void.
v. We will undertake regular surveys of all tenants and from time to time use wider consultation to engage with a larger sample of the customer base regarding their investment priorities.
vi. The table below represents the tenant priorities from a sample survey undertaken between November 2013 and January 2014.
Type of improvement Priority Energy Efficiency Improvements to your home 1 Increase the number of low cost homes made 3 available to local people Improvements for the Disabled / elderly 2 New Bathroom 4 New Kitchen 5 New External Doors 7 Off Street Car Parking 9 Children’s Play areas 8 Landscaping to communal area around your 11 home Fencing and Gates 6 Providing and maintaining community centres 10 vii. The majority of the above works are included in the ongoing major works programme and will continue to be addressed as part of the investment programme during the lifetime of this strategy. viii. Data is available at a more detailed level than the above table to highlight local acute issues.
ix. We will continue to consult with tenants relating to material selection and choice where appropriate on major works contracts.
x. When establishing the major works investment needs and priorities we will continue to consult with tenant representatives to agree relevant priorities including taking account of any information provided through tenant surveys that are undertaken.
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xi. We will ensure tenant satisfaction for major works is maintained in line with the Company’s objectives.
11.4 Environmental Improvements
i. Newark and Sherwood Homes recognise that investing in the fabric of dwellings alone is not enough to create long term sustainable communities. Sustainable communities are attained by providing the elements that compliment housing and ensure that a community is a place where people would choose to live.
ii. We understand that a well-managed and attractive external environment encourages people to remain where they are and improves their quality of life. In addition to this it attracts people to the community and this contributes towards its sustainability which in turn has a long term positive effect upon the HRABP.
iii. Safety has been highlighted by tenants as a priority in the past. Through environmental improvements we have been able to introduce improved lighting and security doors etc that has both reduced the instance of Anti-social behaviour and improved tenant satisfaction with their home.
iv. In addition to the above well maintained estates also contribute towards the generally health and wellbeing of residents as the risk of accidents and injuries are reduced.
v. Flooding has been identified as a potential risk to the asset base in certain locations. This is likely to be an increasing risk over time due to the effects of climate change. In order to protect tenants and the asset base against any ongoing risk of flooding funding has been identified in the 30 year capital investment programme year on year to address any planned or emergent flood related issues.
vi. Over recent years as part of the decent homes programme Newark and Sherwood Homes has delivered many successful environmental improvement schemes ranging from aesthetic improvements to existing buildings to buggy storage facilities. This has been done in consultation with local tenants and resident groups.
vii. We will continue to regularly consult with tenants via a variety of mechanisms to identify areas where environmental improvements are necessary.
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viii. The identified future investment needs programme within the HRABP includes appropriate resources to make environmental improvements, undertake estate remodelling and improve the street scene.
ix. In addition to the above we will work will local tenants and tenant representatives to identify future priorities across the whole of the district and prioritise this according to the identified need and available resources.
11.5 Parking
i. Parking has been highlighted by tenants as an acute problem in localised areas across the district. Many roads and footpaths are adopted land under the management of Nottinghamshire County Council and therefore the solution to these issues involves a collaborative approach.
ii. As lifestyles have changed the increase in vehicles has made some areas difficult to park in due to the road layout and/or narrow construction. Additionally many properties do not have any off street parking provision. Where parking problems are acute, we will look to identify possible solutions to improve the quality of life for tenants and maintain an asset base that is attractive to future tenants which will support the long term viability of the HRABP.
iii. Options are currently under review for the long term delivery of parking solutions. This will include reviewing the potential option for payment by tenants.
11.6 Responsive Repairs
i. The responsive repairs service is predominantly delivered by the in house repairs team, and the work provided by external contractors provides a benchmark on service delivery and cost.
ii. We have aligned specifications where possible with investment activity to ensure that materials used are standardised for greater efficiency.
iii. We consult with customers of the responsive repairs service on a regular basis to improve the level of service provided. Over time this has led to the introduction of a number of improvements including extended working hours of 8am until 6pm and early evening / Saturday morning appointments. Repair reminders are also sent to customers who are awaiting a repair. Newark and Sherwood Homes has also introduced 22
multi-skilling of operatives to increase efficiency and improve the customer experience.
iv. The Company has invested in a leading works scheduling system and PDA technology for the workforce to optimise the use of the repairs operatives and maximise their efficiency.
v. We will continue to ensure that the responsive repairs information assists in identifying maintenance hungry stock where work can be grouped into larger planned maintenance programmes and deliver efficiency savings.
vi. We are achieving upper quartile performance or above in all key repair related activities when compared with similar service providers and will continue to set challenging targets to ensure this is maintained.
vii. We will post inspect a proportion of repairs undertaken to ensure expected levels of quality and customer satisfaction has been achieved. We will set performance indicators to ensure that we meet this target.
viii. We will ensure that external support to the responsive repairs service is procured effectively by either the batching of repairs where possible or the use of procurement frameworks that have been collaboratively procured to maximise the value for money of services delivered.
ix. We will ensure tenant satisfaction for the responsive repairs service is maintained in line with the Company’s objectives.
11.7 Planned Maintenance
i) The Company undertakes a range of planned maintenance to ensure that the housing stock and related assets are maintained effectively and to relevant legislative guidance.
ii) Effective planned maintenance will ensure that the assets managed by the Company are well maintained to meet their expected lifecycles and this does not have a negative financial impact upon the Council’s HRABP.
iii) Specific information related to the approach to management of planned maintenance items can be found at Appendix 6 of this document.
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11.8 Energy Efficiency and Affordable Warmth
i. Providing Energy efficient homes that are affordable for tenants to run is a key priority that has been identified through tenant investment surveys.
ii. Newark and Sherwood Homes recognises our key role in ensuring affordable warmth and reducing fuel poverty for the tenants of Newark and Sherwood District Council. The has a direct impact upon the health and wellbeing of tenants and their families by ensuring their homes are heated to an adequate level and increasing disposable income.
iii. Affordable warmth is generally defined as “to heat your home to an adequate level for household comfort and health without developing debt as a result”
iv. Fuel Poverty results from the lack of affordable warmth and its measured by a Low Income High Costs definition.
Under the Low Income High Costs definition, a household is considered to be fuel poor if;
a. they have required fuel costs that are above average (the national median level) b. were they to spend that amount, they would be left with a residual income below the official poverty line.
v. Low Income High Costs definition compares households to the national median bill and income to ensuring the contemporary trends are reflected in both these measures
vi. Supporting the maximisation of household income of tenants by reducing fuel costs will positively impact upon sustaining tenancies and underpin rental income to the Company. This will assist in maintaining a viable HRABP and maximising future investment and growth.
vii. The government measures the energy efficiency rating of homes using the Standard Assessment Procedure (SAP) rating. This was introduced in 2001 and was subsequently updated in 2005 and 2009 which came into effect in 2012. A recent further revision SAP 2012 came into effect in April 2014 but is yet to be measured against. Over recent years Newark and Sherwood Homes has delivering continuous improvement year on year.
viii. The table below is an example of the home energy rating bands with the SAP figures in brackets. From the table above 24
we can identify that the Council’s housing stock SAP 2009 rating sits in band C at 69.25. This is significantly higher than the SAP 2009 national Social housing average which in 2014 was 58.6.
ix. The Company undertakes a range of measures to deliver improvements in energy efficiency. See Appendix 7 for further information relating to these.
11.9 Void Property Repairs
i. Newark and Sherwood Homes completes approximately 400 voids per year. In addition to our staff, we also utilise tenant inspections to ensure that the standard of re-let is being delivered.
ii. The standard of re-let has been agreed in consultation with our tenants. This aims to ensure that the quality of the re-let property on offer is in line with our tenant expectations.
iii. The prompt re-letting of void properties has a key impact upon the income stream to the HRABP. Following the introduction of self-financing this impact is even more prevalent. Loss of potential revenue through void properties not being let reduced the amount of potential income available to invest into the services offered by NSH.
iv. NSH have a target to re-let void properties within upper quartile performance when compared with similar housing providers.
v. Market testing has been undertaken to ensure that the voids service delivered represents value for money.
vi. Void property repairs to the western area of the district were under taken for a period of time until 2010 by an external contractor on a long term partnership contract. The in-house team continued to deliver the void repairs to the eastern area of the district.
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vii. Following the end of the external contract, Newark and Sherwood Homes undertook a benchmarking exercise which identified that the in-house service delivery was the most efficient and cost effective method and void repairs for both the East and West of the district are now undertaken by the in-house repairs team.
viii. Throughout the life of the strategy, we will ensure that the Company continues to target upper quartile delivery of void property turnaround to maximise potential investment income.
ix. We will ensure that we continue to work with tenants in reviewing the standard of void properties when re-let to ensure that customer satisfaction is maintained alongside a prompt turnaround period.
11.10 Housing Land and Miscellaneous properties
i. Newark and Sherwood Homes currently manage a significant number of communal areas and pieces of land within the HRA portfolio.
ii. In accordance with legislative requirements, we will ensure that these are inspected and that any urgent repairs necessary are undertaken promptly.
iii. We will ensure records of such inspections are in place to demonstrate when they were undertaken and the findings at that time.
iv. An investment need has been identified and included in the HRABP (see appendix 3c) to ensure that via the environmental improvements schemes such pieces of land can be improved when required.
v. We recognise the importance of housing assets and in particular land to the HRABP and that there can be a whole range of competing factors and priorities which can influence investment decisions. The main risk relating to assets is that decisions for acquisition and disposal are progressed, without first prioritising the financial needs of the HRABP.
vi. The potential income generating ability of housing assets into the business plan must always be considered when looking at asset choices which include disposal.
vii. We have appraised all pieces of housing land for any potential development opportunity and are working in consultation with the Council to support the Council’s Housing Growth strategy 26
to maximise the headroom opportunity within the HRABP and to sustain its viability.
viii. We have identified pieces of land to the Council that have development potential and would otherwise be costing the Company money through ongoing maintenance.
ix. We have an agreed 5 year development programme to construct additional 334 units utilising HRA land and the financial capacity of the HRABP up to the headroom cap.
x. We will continue to identify opportunities to the Council to segregate land with future development potential from oversized gardens when properties become void.
xi. We will identify to the Council pieces of land for possible disposal that have little residual value or development potential but have significant and ongoing maintenance cost.
xii. We currently manage a number of bespoke miscellaneous properties across the district. We will from time to time review the viability of these assets to ensure that we maximise the potential return to the HRABP in consultation with the Council.
12 Regeneration
12.1 It is important that the Council’s housing related assets remain fit for purpose, meet future demand and provide housing that is sustainable and people want to live in.
12.2 Maintaining decent homes standard does not meet all of the above requirements alone, some of the housing stock may need changing over time and some neighbourhoods will require improvement.
12.3 Studies have shown that mixed communities are key to their long term sustainability. Where there are social issues and the community is not mixed, often re-modelling or regeneration is the only solution, but it takes careful planning and sometimes innovative thinking to achieve effective solutions.
12.4 It is common to find that within a typical cross section of social housing stock, the non-traditional housing archetypes will suffer from structural problems that require rectification over time.
12.5 Through the delivery of previous work programmes, structural problems commonly associated with the non-traditional housing archetypes within the Council’s stock have been rectified. Therefore,
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no further large scale re-modelling works are required to address this issue.
12.6 All properties requiring solid wall insulation have been completed to improve the long term viability of these homes.
12.7 We have identified that currently the housing stock has a large demand and there are no particular house types or areas which are classed as difficult to let, although some areas are more popular than others.
12.8 Newark and Sherwood Homes will continue to monitor demand over time as it should not be assumed it will not change. It is important to ensure that any investment delivers value for money or the long term sustainability of the neighbourhood.
12.9 In support of the above, from time to time we will undertake an asset performance evaluation of the housing stock as a whole to identify whether we should in future refurbish, remodel, redevelop or dispose of assets. A stock appraisal was last carried out in early 2016.
12.10 The option appraisal methodology includes both financial and non- financial factors.
12.11 Financial factors include the use of Net Present Value (NPV) and whole life costing models that will identify likely costs over 30 years and the maintenance hungry housing stock where alternative solutions to simple investment may be necessary.
12.12 The non-financial factors include;
i. Current demand ii. Future demand iii. Turnover of properties iv. Mix of dwelling type v. Mix of tenure vi. Social issues in certain areas of the community
12.13 In combining both financial and non-financial factors an accurate picture of the sustainability of the housing stock can be gathered which will inform the Company as to how best invest in the housing stock for the future and make sure they are in places where people choose to live and can prosper.
12.14 The diagram below identifies how the process of considering the asset, making informed choices links into the Company business plan and shows how closely the business planning process may inform that a preferred choice is not viable once a detailed study has been undertaken. 28
ASSETS CHOICES BUSINESS PLANNING Demand Invest Cost Repair Costs Adapt Viability Turnover Redevelop Benefit Social issues Acquire Consultation NPV Dispose Opportunity
12.15 As the management company for the Council’s Housing stock, Newark and Sherwood Homes have an integral role in providing the Council with support and advice relating to stock appraisal and master planning exercises leading to potential re-modelling or regeneration proposals. This is a core part of the Company’s business activities and is such proposals potentially have a significant effect upon the HRABP.
12.16 The Council has implemented a programme of Neighbourhood Studies to undertake a comprehensive analysis of neighbourhoods within the district focusing on both the socio-economic and physical attributes and opportunities, with community involvement at the heart of this work. This will create a locally driven document that provides the Council and its partners with a strategic and long-term plan to guide future decision making and investment requirements for a defined area.
12.17 The Neighbourhood Study approach will, and has, included HRA assets (housing and land) such as the recently completed Bridge Ward Study in Newark, which includes the Yorke Drive estate, and the live Hawtonville estate study. These two studies have identified potential HRA area based regeneration programmes and activities for these localities that will need to be considered for implementation set against delivering the aims of this strategy and maintaining a viable HRABP over the long term.
12.18 A further study is planned for the Retford Road Estate at Boughton which also includes significant areas of HRA land for potential development.
12.19 In delivering this responsibility and providing the relevant support and advice to the Council we will avoid potential duplication of resources and additional costs in research and data collection.
12.20 We will ensure that when Newark and Sherwood Homes play a key role in supporting or leading any re-modelling, regeneration or redevelopment proposals that we will work with tenants and the wider community to tackle these issues and deliver the most appropriate solution in consultation with the Council.
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13 Leaseholders
13.1 As at 31st July 2016 there were 149 leaseholder properties within the Council’s housing stock.
13.2 Regular meetings are in place with leaseholders to provide an opportunity to share information.
13.3 We undertake essential external and common area repairs and renewal works in multi tenure buildings.
13.4 We adopt a clear strategy for prioritising and programming these works that includes the process from pre-planning through to recovery of costs.
13.5 Well ahead of the works being undertaken we will identify leaseholder occupants and examine the leases, in particular the right to reclaim costs.
13.6 Where costs are identified we will begin early consultation with the leaseholder in line with Company procedure and statutory guidance. This will establish the leaseholders view on the necessity of the work and their ability to pay.
13.7 Following consultation and the agreement for works to be undertaken the Company will pursue payment and where appropriate seek legal advice on non-payment.
14 Procurement and Value for Money
14.1 The objectives of the Asset Management Strategy link with the key objectives of the Company’s Procurement Strategy, Value for Money Strategy and with the overarching Management Agreement.
14.2 We will ensure that the asset management services are being delivered in a cost effective approach and the value for money is a key driver in service delivery.
14.3 Newark and Sherwood Homes have been instrumental in the development of a procurement consortium for the East Midlands called Efficiency East Midlands (EEM) and are one of five founder member organisations all ALMO’s.
14.4 As of July 2016 EEM has 60 members including Registered Social Landlords, Councils and ALMO’s managing in excess of 200,000 properties.
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14.5 Through EEM we are able to work collaboratively with other similar housing services providers in developing contracts that deliver to our specific requirements but maximise buying power through economies of scale. We have already realised significant financial savings through a wide range of framework contracts.
14.6 The Company’s procurement strategy sets out how we will look at all procurement options and as such we are members of a number of other procurement consortia including Procurement for Housing (PfH) and the Northern Housing Consortia (NHC).
14.7 We will identify the most advantageous solution for both Newark and Sherwood Homes and its customers when procuring services which may include our own bespoke tender for services if this is considered the most cost effective solution.
14.8 Through the NHC we have realised significant savings and service improvements through the adaptations framework and have re- procured the gas servicing contract through the NHC.
14.9 Through EEM we will develop improved benchmarking of the cost and level of service provided with our peers.
14.10 We will also look at opportunities to share services with other service providers including the District Council and other housing service providers, where it is considered advantageous and other providers wish to explore this option.
15 Equality and Diversity
15.1 The Asset Management Strategy links into the Equalities and Diversity Strategy and more widely the Code for Racial Equality.
15.2 We will seek to ensure that the accommodation provided takes into account the needs of those with disabilities, black and minority ethnic and other disadvantaged groups. Equality and Diversity will form a key part of any future tender and our strategy on Equality and Diversity will be sent to contracting partners and other stakeholders.
15.3 We will ensure, through the procurement process, that our contractors meet basic standards on equal opportunities and equality and diversity. An equality impact assessment on the strategy will be undertaken prior to implementation and approval.
15.4 We have assessed our tenant profile and as at the update of the strategy we have approximately 65% tenants who are over the age of 60 and a total of 60% who have a declared disability. As part of 31
the implementation and delivery of the objectives of the Asset Management Strategy, we must ensure that the services we deliver meet the needs of our customer base.
15.5 Newark and Sherwood Homes has also delivered required improvements to communal facilities to meet the requirements of the Disability Discrimination Act which has improved access for customers who have a disability. We will continue with making reasonable adjustments to communal facilities as part of the investment programme when elements come to the end of their economic lifecycle.
16 Performance Management
16.1 Performance is measured utilising a broad spectrum of indicators to monitor and manage the delivery of key target and outcomes in line with the requirements of the Company’s Management agreement and Delivery plan.
16.2 Performance will be monitored through the Company’s existing Performance Management Framework mechanism set up by the Board and may be changed from time to time to reflect the business environment as approved by the Board.
17 Monitoring and Review
17.1 A full revision of the Asset Management strategy will be undertaken every 10 years.
17.2 In accordance with the requirements of the Company’s Management agreement, an annual review will be undertaken to ensure it remains fit for purpose. Updates to include minor non-substantive changes will be made, however, should significant changes be required then the document will be brought before the Board for approval and subsequently the Council.
18 Comments on the Strategy
18.1 If you wish to comment on this Strategy you can use the following methods: Telephone: 0845 258 5550
Email: [email protected]
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In writing to: Newark and Sherwood Homes Kelham Hall Newark on Trent Nottinghamshire NG23 5QX
Or by making any comments/complaints through the ‘Housing Matters Complaints Matter’ procedure, you can do this by completing the necessary form, emailing us at [email protected] or visiting our website at www.nshomes.co.uk. The issues raised will then be investigated and a reply sent via the method you request.
19 Privacy Statement
19.1 All information provided will be treated in compliance with the Data Protection Act 1998, the Freedom of Information Act 2000, the Privacy and Electronic Communications Regulations 2003 and other relevant legislation. We will keep your information for the minimum time necessary.
19.2 Newark and Sherwood Homes Ltd may wish to share the information you supply with local or national Government Departments and other organisations. If you do not wish Newark and Sherwood Homes Ltd to share your information, you should decline to provide the personal information requested. We will only share your information with other organisations if we are required to by law. We will not use your information for marketing purposes without your consent. Your personal data will be stored securely.
19.3 Your rights under the Data Protection Act will be respected when we access information held about you.
19.4 If you require any further information please contact Newark and Sherwood Homes on 0845 258 5550.
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Newark and Sherwood Homes Limited Kelham Hall Kelham NEWARK ON TRENT Nottinghamshire NG23 5QX
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Appendix 1
Summary of Housing Need*
5 Years 12 Years
Total Net Current Need 677 677
Backlog rate 20% 135 8.33% 56
Newly arising Need 602 602
Annual Affordable Need 737 658
Less Annual Supply 585 585
Net annual need 152 73
Plus Assumed new units of supply 69 69
Total Need after existing stock turnover 221 142
* Source – NSDC Housing Market and Needs Assessment 2014
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Appendix 2
Housing Stock by Location – as at July 2016
Number of Percentage Area Village Properies % Balderton 448 8.23% Barnby in 5 0.09% the Willows Besthorpe 3 0.06% Coddington 62 1.14% Collingham 120 2.20% East Stoke 8 0.15% Elston 20 0.37% Farndon 134 2.46% Fosse Road 413 7.58% Harby 28 0.51% East Hawtonville 1214 22.29% Holme 5 0.09% Kelham 1 0.02% Kilvington 1 0.02% North Clifton 1 0.02% South Clifton 1 0.02% South Scarle 1 0.02% Thorney 3 0.06% Town Centre 401 7.36% Newark Winthorpe 6 0.11% Total 2875 52.80%
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Number of Percentage Area Village Properties % Bilsthorpe 218 4.03% Bleasby 22 0.40% Blidworth 181 3.30% Boughton 335 6.15% Carlton on Trent 18 0.33% Caunton 13 0.24% Clipstone 264 4.85% Cromwell 1 0.02% Eakring 16 0.29% Edingley 4 0.07% Edwinstowe 256 4.70% Egmanton 1 0.02% Epperstone 2 0.04% Farnsfield 99 1.82% Fiskerton 1 0.02% Gunthorpe 26 0.48% Halam 5 0.09% Hoveringham 3 0.06% Kirklington 1 0.02% West Kirton 5 0.09% Kneesall 8 0.15% Laxton 8 0.15% Lowdham 78 1.43% North Muskham 5 0.09% Norwell 14 0.26% Ollerton 354 6.51% Oxton 10 0.18% Rainworth 212 3.89% Rolleston 3 0.06% South Muskham 20 0.37% Southwell 236 4.33% Sutton on Trent 66 1.21% Thurgarton 6 0.11% Upton 1 0.02% Walesby 33 0.60% Wellow 37 0.68% Weston 8 0.15% Winkburn 1 0.02% Total 2571 47.35%
Total East and 5446 100.00% West
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Appendix 3a - Identified 5 year priority need investment programme summary - from April 2016
Planned programme / Stock Condition Survey Catch Up Future Major Related Responsive & Disabled Exceptional Environmental Repairs Repairs Improvements Assets Cyclical Contingencies Adaptations Extensive Improvements Totals
Survey Years £ £ £ £ £ £ £ £ £ £ 1 to 1 4,785,000 3,248,500 50,000 400,000 300,000 8,783,500 2 to 2 4,125,000 3,248,500 50,000 400,000 210,000 8,033,500 3 to 3 4,325,000 3,248,500 50,000 400,000 210,000 8,233,500 4 to 4 4,325,000 3,248,500 50,000 400,000 210,000 8,233,500 5 to 5 4,325,000 3,248,500 50,000 400,000 210,000 7,983,500
Total 0 21,635,000 0 0 16,242,500 250,000 2,000,000 0 1,140,000 41,267,500
Appendix 3a
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Appendix 3b - Identified priority need 30 year investment programme summary - from April 2016
Planned programme / Stock Condition Survey
Catch Up Future Major Related Responsive & Disabled Exceptional Environmental Repairs Repairs Improvements Assets Cyclical Contingencies Adaptations Extensive Improvements Totals
Appendix 3b
Survey Years £ £ £ £ £ £ £ £ £ £ 1 to 1 4,785,000 3,248,500 50,000 400,000 300,000 8,783,500 2 to 2 4,125,000 3,248,500 50,000 400,000 210,000 8,033,500 3 to 3 4,325,000 3,248,500 50,000 400,000 210,000 8,233,500
4 to 4 4,325,000 3,248,500 50,000 400,000 210,000 8,233,500 5 to 5 4,075,000 3,248,500 50,000 400,000 210,000 8,233,500 6 to 6 4,075,000 3,248,500 50,000 400,000 210,000 7,983,500 7 to 7 4,045,000 3,248,500 50,000 400,000 210,000 7,983,500 8 to 8 4,045,000 3,248,500 50,000 400,000 210,000 7,953,500 9 to 9 4,045,000 3,248,500 50,000 400,000 210,000 7,953,500 10 to 10 4,045,000 3,248,500 50,000 400,000 210,000 7,953,500 11 to 15 30,585,000 16,242,500 250,000 2,000,000 1,050,000 50,127,500 16 to 20 30,585,000 16,242,500 250,000 2,000,000 1,050,000 50,127,500 21 to 25 30,585,000 16,242,500 250,000 2,000,000 1,050,000 50,127,500 26 to 30 30,585,000 16,242,500 250,000 2,000,000 1,050,000 50,127,500
Total 0 164,230,000 0 0 97,455,000 1,500,000 12,000,000 0 6,390,000 281,575,000
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Appendix 3c - Identified major investment priority need costs 30 year programme by elements – from April 2016
Appendix 3c
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Appendix 4 - Housing Stock Profile by Archetype
Traditional Houses & Bungalows V
Percentage of stock Year Built Pre 1945 1945-1964 1965-1974 Post 1974 All % 1-2 Bed house 43 25 3 45 116 2.13% 1-2 Bed Bungalow 17 762 493 417 1689 31.01% Sub Total 60 787 496 462 1805 33.14%
Percentage of stock Year Built Pre 1945 1945-1964 1965-1974 Post 1974 All % 3+ Bed Houses 394 862 184 155 1595 29.18% 3+ Bed Bungalow 0 89 1 3 93 1.70% Sub Total 394 951 185 158 1688 30.99%
Non Traditional Houses & Bungalows
Percentage of stock Year Built Pre 1945 1945-1964 1965-1974 Post 1974 All % 1-2 Bed House 0 3 1 22 26 0.48% 1-2 Bed Bungalow 0 0 0 7 7 0.13% Sub Total 0 3 1 29 33 0.61%
Percentage of stock
Year Built Pre 1945 1945-1964 1965-1974 Post 1974 All Appendix 4 % 3+ Bed House 0 260 98 1 359 6.59% 3+ Bed Bungalow 0 0 0 0 0 0.00% Sub Total 0 260 98 1 359 6.59%
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Flats
Percentage of stock Year Built Pre 1945 1945-1964 1965-1974 Post 1974 All % Low Rise 1-2 Storey 21 593 350 242 1206 22.14% Med Rise 3-5 Storey 6 71 28 38 143 2.62% High Rise 6+ Storey 0 0 0 0 0 0.00% Sub Total 27 664 378 280 1349 24.76%
Maisonettes
Percentage of stock Year Built Pre 1945 1945-1964 1965-1974 Post 1974 All % 1+2 Bed 0 89 32 0 123 2.26% 3+ Bed 0 30 38 0 68 1.25% Sub Total 0 119 70 0 189 3.51%
Bed Sits
Percentage of stock Year Built Pre 1945 1945-1964 1965-1974 Post 1974 All % 1 Bed 6 2 3 32 43 0.79% Sub Total 6 2 3 32 43 0.79%
Total 487 2786 1231 962 5466 100%
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Appendix 5 Delivery of the Asset Management Strategy
We have a range of information and resources at our disposal. These include:
i. Well embedded mechanisms for tenant consultation that provides valuable and support in both strategic and operation decision making processes. ii. The Company has a successful track record in meeting targets and high levels of service delivery. iii. An experienced Board of Directors is in place to guide the Company and make informed decisions relating to the Asset Management functions. iv. An experienced asset management team. v. A positive working relationship with Council which includes regular capital monitoring meetings and an annual approval of the asset management plan through the committee process. vi. Robust stock condition survey data to over 50% of properties vii. We have invested in a market leading and comprehensive stock condition database which has been independently externally validated and is regularly updated to reflect current information. viii. A 30 year HRABP that has been externally validated. This is targeted at achieving economies by replacing major components and other assets just before they would otherwise be likely to fail thus reducing the demand upon the responsive repairs budget. ix. Membership of Efficiency East Midlands (EEM) and other procurement consortia that assist in providing value for money procurement solutions by working collaboratively with similar providers. x. An efficient upper quartile responsive maintenance service to ensure that housing assets are well maintained during their expected lifecycles. xi. An upper quartile void property service to minimise the time that homes remain empty. xii. Regular reviews of non-housing related assets e.g. Community Centres, Land and offices to assess their continuing viability and consider suitable alternative options where appropriate. xiii. Challenging KPI’s to monitor and effectively manages service areas.
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Appendix 6 Planned Maintenance
We will undertake a range of planned maintenance activities as follows;
Painting and Redecoration
i. In order to protect the external timber elements if properties we will ensure that all Council owned domestic properties that NSH manages are externally redecorated on a 6-year cycle as required.
ii. This programme of works will include any necessary repairs prior to painting and offers tenants colour choices where appropriate.
iii. Internal painting will also be undertaken to all communal areas of schemes. Due to these being internal and not exposed to the elements, these works will be undertaken on a cyclical basis led by the need / usage of the areas which does vary significantly across different sites. This ensures any investment is value for money.
iv. We will ensure tenant satisfaction for planned maintenance works is maintained in line with the Company’s objectives.
Adaptations i. To meet the changing needs of customers, the provision of an adaptations service is a key for Newark and Sherwood Homes particularly given their age profile. ii. A significant need has been identified within the HRABP (see appendix 3c) based upon current demand and likely future demand. iii. A fast track system has been developed to expedite the delivery of minor adaptations in a timescale of around 8 days. iv. Performance in the turnaround of major adaptations is achieved in an average timescale of around 30 days from receipt of referral. v. Newark and Sherwood Homes will continue to work with the local Social Services adaptations team to improve the service delivery and customer experience where possible. vi. Newark and Sherwood Homes has procured a partner to deliver adaptations that has seen a reduction in the turnaround times, significant cost savings and customer satisfaction levels maintained at a high level.
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vii. We will ensure tenant satisfaction for adaptation works is maintained in line with the Company’s objectives. viii. We will ensure that we continue to promote the adaptations service to all customers on a regular basis to ensure that the service can be accessed by all. ix. An adaptations policy is in place to clearly define the service we offer. As part of this strategy we will aim to provide solutions that include the re-housing of customers into properties that are more suitable for their needs, where possible.
Communal Cleaning i. A contract is in place to deliver a cleaning service to communal areas and our aim is to deliver this service within budget and to the satisfaction of tenants and residents. ii. When the existing contract expires we will work with tenants to undertake a procurement process to appoint a new cleaning partner. iii. We will maintain the existing tenant monitoring group that exists to ensure that the cleaning contractor delivers to agreed expectations. Regular meetings are in place with tenant representatives, Newark and Sherwood Homes employees and the contractor to ensure service levels and agreed standards are maintained. iv. We will also continue to work with local residents to ensure they understand the extent and timing of the cleaning contract and they support the Company in ensuring communal areas are kept free from obstructions that may cause a health and safety risk.
Grounds Maintenance i. A contract is in place to deliver effective grounds maintenance services to land designated as being within the HRA. ii. The Company has a legal requirement to maintain areas of communal land in a safe condition as far as reasonably practicable. iii. The grounds maintenance contract includes litter picking, removal of fly tipping, grass cutting and shrub bed maintenance. iv. We will continue to ensure that regular monitoring is in place with resident involvement, to ensure that the service is being delivered effectively and that pieces of land that are being managed effectively.
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v. The existing contract expires at the end of the 2017/18 financial year. We will ensure that an effective procurement process is undertaken that includes resident involvement and delivers a value for money solution.
Tree Maintenance
12 Newark and Sherwood Homes have a legal responsibility to manage and maintain trees that are on communal land designated as within the HRA.
13 A survey has been conducted and all trees managed by Newark and Sherwood Homes have been identified and tagged with a unique reference number.
14 Financial resources are made available annually to undertake essential tree maintenance works.
15 We will not remove trees unless they are in a dangerous condition or pose a risk to the structural integrity of a property.
16 We will work with the Council to ensure all works to trees that are protected or in a conservation area have the relevant approval prior to works commencing.
17 We will continue to maintain the tree database and update the survey information on a regular basis.
Play Areas
i. Newark and Sherwood Homes currently manage and maintain 15 play areas on behalf of the Council.
ii. Regular inspections are in place to monitor the condition of the play equipment in accordance with legislative requirements and we will keep accurate record of these.
iii. Any maintenance work identified through the inspections will be undertaken promptly and if necessary equipment will be withdrawn from service until works have been completed.
iv. An investment need has been identified and included in the HRABP (see appendix 3c) to ensure that play equipment can be replaced at the end of its useful life.
v. We will ensure that prior to any equipment being replaced, local residents are consulted regarding the replacement options.
vi. We will ensure play areas are tidy, litter picked and maintained as part of the current grounds maintenance programme.
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Unadopted Footpaths and Roads i. Newark and Sherwood Homes manage a significant number of footpaths and roads. These are not adopted by the County Council and therefore the maintenance remains the responsibility of Newark and Sherwood Homes. ii. We will ensure that these are regularly inspected in accordance with legislative requirements. iii. We will ensure records of such inspections are in place to demonstrate when they were undertaken and the findings at that time. iv. An investment need has been identified and included in the HRABP (see appendix 3c) to ensure that these assets can be maintained in a safe condition.
Garages and Garage Sites i. Newark and Sherwood Homes currently manage over 900 garages and a large number of garage sites. ii. In accordance with legislative requirements, we will ensure that these are inspected and that any urgent repairs necessary are undertaken promptly. iii. We will ensure records of such inspections are in place to demonstrate when they were undertaken and the findings at that time. iv. An investment need has been identified and included in the HRABP (see appendix 3c) to ensure that the garage sites can be maintained in a safe and tidy condition and that garage components are repaired or replaced when they reach the end of their economic lifecycle.
Home Safety Checks
i. We have procured specialist contractors to undertake home safety checks to Gas, Solid Fuel, Oil, Ground Source heat pumps, Air Source heat pump and LPG appliances annually. In additional to this we will undertake a service of smoke alarms that are installed.
ii. Our home safety check contractors will also undertake repairs that are identified at the time of servicing at the time of service or a soon as possible afterward to improve the customer experience and increase value for money.
iii. All commercial gas boilers will also be annually serviced.
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iv. We will ensure tenant satisfaction for gas servicing work is maintained in line with the Company’s targets.
v. To comply with relevant legislative requirements, we aim to ensure that 100% access is achieved annually for the servicing of all appliances and once again performance indictors will be maintained to ensure we monitor this closely.
vi. A robust procedure is in place to ensure that where access is not obtained the Company takes decisive action that will protect us against litigation and where necessary in acute cases, act as evidence should the matter be progressed to court. vii. We will apply to the courts for an injunction to gain access to properties that fail to respond to our servicing request. Additionally, where there is an ongoing annual problem gaining access we will apply for injunctions for the lifetime of the tenancy to expedite future access to these properties.
Water Safety checks
17.7.1 We have previously identified and surveyed all water tanks and systems that provide water to more than one household, including those serving community centres and some blocks of flats.
17.7.2 A contract is in place to carry out regular water safety checks for legionella to ensure safety is maintained.
17.7.3 A regular surveys of all systems at risk of legionella is also in place to check temperature checks and provide any recommendations for improvement in line with legislative requirements.
17.7.4 We have installed thermostatic valves to all communal hot water systems to reduce the risk of scalding. We will periodically undertake water temperature tests to ensure these are working effectively.
17.7.5 We have completed a programme of works that ensured that all immersion heaters have a thermostatic sensor fitted to avoid the risk of hot water systems overheating. We will ensure that all future immersion heaters that are installed include a thermostatic control.
17.7.6 We will continue to ensure that all legislative requirements relating to managing legionella within the housing stock are adhered to.
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17.7.7 We have commenced a programme of legionella surveys and remedial works to all domestic properties to comply with new legislation introduced in 2014. This will be completed as part of a 6 year programme to all properties with periodic reviews scheduled thereafter in line with legislative requirements.
Fire Safety checks
i. We have identified and surveyed all communal areas to ensure that suitable fire safety systems are in place along with an up to date fire risk assessment (FRA).
ii. We will continue to review the FRA’s regularly and undertake any necessary fire safety works identified through this process.
iii. An investment need has been identified and included in the HRABP (see appendix 3c) to undertake fire safety work necessary and will prioritise such works due to the safety risk.
iv. We undertake weekly fire alarm tests to community centres with residential properties attached and monthly where they are stand- alone buildings.
v. An annual inspection of firefighting equipment is undertaken by a specialist contractor, we will ensure any remedial works identified are promptly rectified.
Electrical Safety
i. In line with legislative requirements, we undertake and electrical safety check of all domestic properties and all communal electrics including NSH managed streetlights every 5 years as a minimum.
ii. The information from these tests informs the asset management system and will be used to programme future electrical re-wire programmes.
iii. Where these safety tests identify issues they will be prioritised in accordance with legislation and improvement works completed within statutory guidelines.
Asbestos
i. Newark and Sherwood Homes has a legal duty to manage any Asbestos Containing Material (ACM) with the asset portfolio.
ii. To ensure the Company complies with relevant legislation and Asbestos Policy and an Asbestos Plan has been developed that sets out the measures to be taken to control and manage the risk from ACM’s. 49
iii. Asbestos management surveys have been undertaken to over 3500 properties plus all communal areas and community centres.
iv. The survey information is held on the asset management database and will be used when undertaking repairs to safeguard the employee or contractor and demonstrate that Newark and Sherwood Homes manages asbestos in accordance with relevant legislation.
v. An investment need has been identified and included in the HRABP (see appendix 3c) to survey all properties within 5 years and to manage the removal, encapsulation or monitoring of any asbestos that is identified.
vi. When we undertake major refurbishment works we will ensure that intrusive ‘refurbishment surveys’ are commissioned in accordance with the latest asbestos regulations. vii. A web based access is available to all employees providing ‘read only’ access to asbestos information and training on the utilisation of this system will be provided to all key staff.
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Appendix 7 Energy Efficiency
We will undertake a range of activities to measure and improve the energy efficiency of the Council’s assets as follows;
i. We are preparing for enhancements in the way that energy efficiency ratings are measured. A SAP 2012 rating was introduced on 6 April 2014 by the Building Research Establishment (BRE) which will set higher standards. Whilst for continuity purpose we may still measure against the old ratings, we will also commence measurement of the housing stock against the new standard. ii. In line with legislation, Newark and Sherwood Homes undertakes Energy Performance Certificates (EPC’s) to all void properties. The certificates detail the energy efficiency and carbon performance of the dwelling and where appropriate may be used to identify investment requirements to the housing stock. iii. Building upon the excellent success in the past, through this strategy we will aim to achieve continuing year on year increase in the energy efficiency of the housing stock and reduce the risk of fuel poverty. iv. Working in partnership with a range of funding providers has allowed us to access significant inward investment from the Green Deal ECO. This investment targeted over 500 properties in areas with high levels of deprivation. These properties were of a non- traditional solid wall design and amongst the least energy efficient homes in the Council’s housing stock. The works undertaken provided external insulated render and energy efficient heating systems dramatically improving the energy efficiency of these homes. v. Newark and Sherwood Homes recognises the need to shift from fossil fuel heating system to renewable energy alternatives. This change will become more essential over time as rising energy prices make existing fuel sources unviable thus increasing the risk of fuel poverty. vi. In response to this known risk, renewable heating technologies including Ground Source and Air Source Heat pumps have been trialled and incorporated into some of the housing stock. These have been installed to homes that did not benefit from gas heating and are being monitored on a regular basis to identify suitability and efficiency etc which will inform future investment in alternate heating systems.
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vii. Newark and Sherwood Homes, supported by the Council became one of the first social housing provider to install a large scale scheme of Photovoltaic (PV) technology to social housing. The project has invested nearly £3m and installed PV panels to 430 homes. This investment has been very successful and has proven the suitability of social housing for such new technology but importantly through the Government’s Feed-in-Tariff (FIT) will return a significant inward investment each year with a profit to the HRA estimated in excess of £10m during the 25 year lifespan of the FIT contract. viii. Inward investment yielded from the PV project will contribute towards maintaining and improving tenant’s services for all tenants over the next 20 year period including targeting the reduction of fuel poverty. ix. In addition to new technologies, significant investment has been made over recent years towards improving the overall energy efficiency of the Housing stock examples include:
a. Double glazed windows fitted to all homes exceeding the requirements of the decent homes standard. b. An ongoing programme of installing composite external doors to replace timber when beyond economic repair. c. All cavity walls are insulated. d. All lofts are insulated and have been topped up to current standards. e. ‘A’ rated energy efficient condensing boilers were fitted through the decent homes programme and we continue to replace old boilers with these when their current life cycle is expended. f. LED lighting to communal areas g. Voltage optimisation to all communal electrical systems h. Over 500 properties that are of a solid wall construction and classed as ‘hard to treat’ have had external solid wall insulation installed.
x. In partnership with Newark and Sherwood District Council, Newark and Sherwood Homes was successful in gaining inward investment as part of the Government’s Local Authority New Build programme. The has led to the development of 52 energy efficient homes over eight sites built to level 4 of the Code for sustainable homes. These homes also include new technologies ranging from Photo Voltaic panels to Air Source heat pumps.
xi. In partnership with Newark and Sherwood District Council, Newark and Sherwood Homes was successful in gaining inward investment as part of the Government’s Care and Support initiative. This led to the development of 25 energy efficient homes built to level 4 of the
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Code for sustainable homes. These homes also include new technologies such as Air Source heat pumps.
xii. In partnership with Newark and Sherwood District Council, Newark and Sherwood Homes was successful in gaining inward investment as part of the Homes and Community Agencies 2015-18 affordable homes programme. This led to the development of 32 affordable homes over 5 council owned former garage sites being completed by April 2016
xiii. The Government through its Low Carbon transition plan has targeted an 80% reduction in carbon emissions by 2050. This includes Housing which emits nearly 30% of all Carbon in the UK. In achieving the 80% reduction, a target of reducing housing emissions by almost one third has been set for 2020.
xiv. To meet the above and future targets, Newark and Sherwood Homes have set aside appropriate resources within the proposed 30 year HRABP to continue making improvements to the energy efficiency of the housing stock. In delivering these improvements we will consider the outcomes of the pilot projects for new technologies in order to ensure we make the best investment decisions for tenants.
xv. Where possible we will use the SAP data available for the Council housing stock to target future energy efficiency improvements towards the lowest rated properties. This is a key factor in the reduction of fuel poverty for the tenants of Newark and Sherwood District Council.
xvi. We will continue to seek inward investment opportunities in the future to assist in the delivery of more energy efficient homes and reduce the risk of fuel poverty for tenants. xvii. In tackling the issue of energy efficiency and fuel poverty, Newark and Sherwood Homes work closely with the Council’s energy team in sharing information and delivering community wide energy efficiency initiatives. xviii. In addition to the physical improvements made to Council’s housing stock, Newark and Sherwood Homes have made the following improvements;
a. All tenants have received energy advice information to help them reduce their energy consumption and save money. b. Regular energy saving advice is provided through our Homes from Homes tenant magazine. c. Key front line Newark and Sherwood Homes’ employees have been specifically trained in providing energy advice and other relevant topics such as Ground Source heat pumps etc.
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d. We have been successful in obtaining funding through the Warm Homes campaign awards scheme and will be utilising this to promote energy efficiency through community engagement projects.
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