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Future Proofing Your Repair Service
Richard Woolfall
Assistant Director Asset Management
Magenta Living
Magenta Living
We are all talking about it!
“In general terms the benefit changes have made it
increasingly difficult to let previously popular three-
bedroom homes”
“Covering the cost rental income means revisiting long-
term asset management strategies”
“62% increase in liability orders issued in the borough
of Enfield in the last 6 months”
“Asset Management Strategies need to look at who is
our future customer”
What we’ve been saying
• The world of social housing has changed more in the
last 12 months than it has in the last 20 years.
• The introduction of the benefit reforms has changed
the landscape of social housing beyond recognition
• For many RP’s the guarantee of a steady flow of
customers is diminishing
• Customers access to money has diminished, the cost
of living increased, council tax relief and other
benefits reduced
The world has changed
• The traditional customer base of many RP’s has
changed
• The housing needs & aspirations of many customers
are now encompassing high end private sector
housing
• The new world of social housing is here, and it’s here
to stay
• To avoid an uncertain future, the sector needs to face
these new challenges it is presented with and deal
with them in an honest and pragmatic manner
The world has changed
• Magenta Living is a North West LSVT located on
the Wirral peninsular, between Liverpool and North
Wales
• Established in 2005, Magenta’s stock profile is:
12,170 units
8 high rise blocks
417 low rise blocks
24% of stock are 1 bed properties
27% of stock are 2 bed properties
Decent Homes 99.2%
Who is Magenta Living?
Percentage of households affected by the Under
Occupation Charge
Effect of the benefit changes
The average annual loss per household affected
Effect of the benefit changes
The estimated cost of the under occupation over the
next 3 years
Effect of the Benefit Changes
• Like many RP’s Magenta has implemented a rent
loss mitigation focused strategy
Identification of affected tenants
Tenant education and support
Pro-active re-housing of affected tenants
Increased internal rent collection resources
Examination of options for flat conversion
schemes
• All of which have had a positive impact, however...
Magenta’s Response
• Despite our efforts performance over last 12 months
The impact upon Magenta
• up 11% Void turnover
• up 42% Void rent loss
• up 13% Void expenditure
• up 0.2% Repairs expenditure
• The new world of social housing fundamentally
challenges RP’s long-held presumptions about stock
• Magenta took the view that its no longer about
replacing kitchens and bathrooms, its about making
stock sustainable for a new customer base
• Are we delivering the right service, right product, at
the right cost, for the right market?
• To answer these questions we needed an honest and
focused evaluation of our approach to our repairs
and investment model, to protect rental income
New Strategy for a New World
• To address the challenge Magenta took a traditional
model and applied the three ‘P’s’ to facilitate change
• Magenta considered what the maintenance service
should look like in terms of:
The Magenta Living strategy
Physically Politically Psychologically
The 3 ‘P’s’ of change
Fit for purpose
maintenance service
Physically
Structure
Resources
Value
Psychologically
Culture
Leadership
Vision
Politically
Relationships
Reputation
Strategic friendships
• CiH Working Together Repairs Project
• Consolidation of existing internal maintenance projects
• Setting the vision
• Identify the challenges
Cultural change
Quasi social commercial focus
Quantify Value
• Collaboration with DLO & Housing Management
• Identify common objectives and differing needs
The Project
The Art of Repairs
Steering Group
Procurement
Strategy
Review
ICT Support
Plan
DLO
Change Plan
Home
Standard
Review
Voids Service
Review
Responsive
Repairs
Service Review
Growth
Strategy
Cultural
Development
Plan
R&M
Cost Model
Strategy
Asset
Management
Strategy
Review
CIH
Steering
Group
Report a Repair
Project
Customer focused
service standard
document
Customer focused
service model
Customer focused
service model
Fit for purpose VfM
R&M service
Fit for purpose VfM
R&M service
Fit for purpose R&M
SLA
Fit for purpose
service delivery
structure
A business focused
culture & staff
development
A business focused
culture & staff
development
Enhanced customer
focused access to
R&M services
A “Golden Thread”
of IT support
Establishment of
strategic friendships
& diversification of
asset base
Enhanced return on
investment
What does success look like?
• Establishment of strategic friendships
• Cultural re-alignment
• Creation of a quasi social commercial maintenance
service
• Creation of a broader customer base
• Diversification of service
• Diversification of stock
• The measurement of value
• An agile asset management strategy
Project outcomes
