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 1 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 2 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” 3 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. 4 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. 6 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.