More than Decent? or What does the future hold for Asset Management, Maintenance and Repairs?

More than Decent?More than Decent?oror

What does the future hold for Asset What does the future hold for Asset Management, Maintenance and Repairs?Management, Maintenance and Repairs?

Presented by Greg TrimmerPresented by Greg Trimmer

More than Decent?More than Decent?

Why are we here?


Agenda• We are going to hit the Decent Homes We are going to hit the Decent Homes

Standard, aren’t we?Standard, aren’t we?• Decent Homes – The Sequel: will there be Decent Homes – The Sequel: will there be

one?one?• Emerging issues for maintenance standardsEmerging issues for maintenance standards• Greening our existing homesGreening our existing homes• Partnering and Maintenance – is it ‘old hat’? Partnering and Maintenance – is it ‘old hat’? • Tackling Asset Management Challenges in a Tackling Asset Management Challenges in a

broken marketbroken market


Decent Homes Standard - Background• Lots of rules about new housingLots of rules about new housing

– Existing housing largely ignoredExisting housing largely ignored

• A massive backlog of council housing A massive backlog of council housing maintenancemaintenance– Long term underfunding £19bn in 2000Long term underfunding £19bn in 2000

• 1979 brings a “new” government determined 1979 brings a “new” government determined to set up a strong economic framework for to set up a strong economic framework for the UKthe UK– ““Fiscal prudence”Fiscal prudence”– Target drivenTarget driven– More money only in exchange for More money only in exchange for

more “value” measured by targetsmore “value” measured by targets


DHS - Four Criteria

1.1. Fit for habitationFit for habitation

2.2. Not Old Not Old andand in in DisrepairDisrepair

3.3. Reasonably Reasonably Modern FacilitiesModern Facilities

4.4. Thermal ComfortThermal Comfort


Decent Homes – the context• A commitment made by government• Macro level – used to promote 3 options

– Transfer– PFI– ALMOs– “There is no 4th Option” - Prescott

• Micro level - A soundbite promise – the ‘devil’ is in the detail

• Financial Incentives– Extra borrowing approvals for PFIs &

ALMOs– ALMO funding tied to DHS– No financial incentives for RSLs!

• DHS failure rates:– LA = 31% (Apr 2007)

– HAs = around 20%



Decent Homes Plus• Most of us think DHS is too lowMost of us think DHS is too low

– Hence local standards and or DHS+Hence local standards and or DHS+

• Little consistency about what constitutes Little consistency about what constitutes DHS+DHS+– A response to local concerns and resourcesA response to local concerns and resources

• Examples include:Examples include:– shorter lifetimes for key elements, shorter lifetimes for key elements, – elements not included in DHS (double glazing, lifts elements not included in DHS (double glazing, lifts

etc)etc)– kitchens and bathrooms without the full modern kitchens and bathrooms without the full modern

facilities testfacilities test

• BUT – does DHS+ help you hit the target?BUT – does DHS+ help you hit the target?


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DHS failures

Are you going to hit the DHS?


BRE Research

• Many councils are over estimating failureMany councils are over estimating failure• Applying old or poor condition – not bothApplying old or poor condition – not both• ““The vast majority of LAs and RSLs are The vast majority of LAs and RSLs are

carrying out work well in excess of the thermal carrying out work well in excess of the thermal comfort criterion”comfort criterion”

• Some landlords are overestimating cavity wall Some landlords are overestimating cavity wall insulationinsulation


Are we on target?

• Largely – we think so– No HA’s (say they)expect to

fail– A few ALMO’s started late –

not of their own volition!– A few LA’s have major

financing issues

• Not sure - says CLG– English House Condition

Survey suggests little or no reduction in DHS failures!


DHS The sequel• A revised definitionA revised definition

– Retaining the same headline componentsRetaining the same headline components– Codifying some of the existing flexibilitiesCodifying some of the existing flexibilities– Introducing additional exceptionsIntroducing additional exceptions

• MonitoringMonitoring– Probably by TSA, AC and EHCSProbably by TSA, AC and EHCS– Probably no revised target dateProbably no revised target date– Could compensation be introduced for Could compensation be introduced for

tenants living in non DHS homes?tenants living in non DHS homes?


DHS - The Sequel• Thermal ComfortThermal Comfort

– Will they take the chance to use EPC’s as Will they take the chance to use EPC’s as the measure?the measure?

– Thermal InsulationThermal Insulation• Most of the stock should have achieved Most of the stock should have achieved

recommended levels by nowrecommended levels by now• Cavity wall insulation – hard to check, and in Cavity wall insulation – hard to check, and in

extreme cases hard to installextreme cases hard to install• BUT – would a reduction in DHS be politically BUT – would a reduction in DHS be politically

acceptable?acceptable?• Could they introduce a higher insulation Could they introduce a higher insulation

requirement?requirement?


Sustainability• Expect some new “green” requirementsExpect some new “green” requirements

• Possibilities includePossibilities include– Requiring landlords to provide energy Requiring landlords to provide energy

saving advicesaving advice– Low emission lightingLow emission lighting– Communal lighting systems and other Communal lighting systems and other

communal energy systemscommunal energy systems– Water saving measuresWater saving measures– Energy monitoring for every householdEnergy monitoring for every household


What should be in the Sequel?• LiftsLifts• Safety/fear of crime issuesSafety/fear of crime issues• Basic disrepair – however old the Basic disrepair – however old the

componentcomponent• Water butts for every gardenWater butts for every garden• Energy monitoring systemsEnergy monitoring systems• Consistent guidelines on acceptable Consistent guidelines on acceptable

kitchenskitchens• SAP ratings or EPCsSAP ratings or EPCs• EcoHomes XBEcoHomes XB

Emerging Issues


Emerging Issues for Housing Maintenance• EPCsEPCs• Short notice InspectionsShort notice Inspections• Euro-procurement rules get tighterEuro-procurement rules get tighter• Digital TVDigital TV

– Digital inclusion: Digital inclusion: ““We now need to consider how digital inclusion might best be embedded in housing policy.” - HM Govt Oct 2008

• Flood resistanceFlood resistance• EcoHomes XBEcoHomes XB


EPC’s• Every social letting now Every social letting now

needs an EPCneeds an EPC– Likely to increase void Likely to increase void

turnaround timesturnaround times– Unlikely to promote energy Unlikely to promote energy

efficiencyefficiency

• Strong case for energy Strong case for energy improvements to existing improvements to existing stockstock– Who pays? = the landlordWho pays? = the landlord– Who benefits? = the tenantWho benefits? = the tenant


Short Notice Inspections• For Fair HA’s onlyFor Fair HA’s only

– For now, but watch this space!For now, but watch this space!

• 5 days notice5 days notice

• Increased focus on Customer InvolvementIncreased focus on Customer Involvement

• Limit on evidenceLimit on evidence– 5 documents in advance5 documents in advance

• Self assessment – if recentSelf assessment – if recent– Is yours?Is yours?


What will Inspectors look for?

• Continuous ImprovementContinuous Improvement

• Appointment systemsAppointment systems

• Inspection regimesInspection regimes

• Procurement strategiesProcurement strategies– E-procurementE-procurement– Procurement ClubsProcurement Clubs

• Asset Management is top of their list!Asset Management is top of their list!

Greening Our Homes


Greening our existing homes

• Sustainability major political issueSustainability major political issue

• Recent announcementsRecent announcements– 80% saving of greenhouse gasses80% saving of greenhouse gasses

– 27% of CO27% of CO2 2 comes from housingcomes from housing

– COCO2 2 from housing up by 5% since 1997from housing up by 5% since 1997

• Expect to do more!Expect to do more!


Greening Our Homes – Possibilities

• InsulationInsulation– Is it as high as you can get?Is it as high as you can get?

• Low energy lightingLow energy lighting– Have you claimed your free gift yet?Have you claimed your free gift yet?

• Smart MonitoringSmart Monitoring– Can you get a power company to pay?Can you get a power company to pay?

• Boiler replacementsBoiler replacements– A grade wherever possibleA grade wherever possible


Renewables• Micro-Generation promoted Micro-Generation promoted

this yearthis year– But now being questionedBut now being questioned

• CHP can make sense for CHP can make sense for communal heating systemscommunal heating systems

• Bio-fuels from local sourcesBio-fuels from local sources• Wind energyWind energy• Solar Water HeatingSolar Water Heating• Photo-voltaicsPhoto-voltaics• Heat pumpsHeat pumps• But – the funding dilemma.But – the funding dilemma.


Other sustainable ideas• Water buttsWater butts• Soft surfacingSoft surfacing• Spray taps, and more Spray taps, and more

showersshowers• Promoting cyclingPromoting cycling

– and recyclingand recycling

• Low carbon vansLow carbon vans• Less paper useLess paper use• Monitor/reduce Monitor/reduce

construction related construction related wastewaste

• Joint projects with Joint projects with energy companies energy companies

Partnering and Maintenance – is it ‘old hat’?


• Egan – over ten years old!Egan – over ten years old!• Now everyone is “partnering”Now everyone is “partnering”

– Or are they….Or are they….

• Continued confusion:Continued confusion:– What partnering isWhat partnering is– Why are you doing it?Why are you doing it?– Is it cost-saving, or profit-sharing or risk-sharing?Is it cost-saving, or profit-sharing or risk-sharing?– A belief by landlords that the savings are all onteh A belief by landlords that the savings are all onteh

contractor’s sidecontractor’s side

RETHINKING

CONSTRUCTION


The Spirit of Partnering• Partnering should be tough!Partnering should be tough!• Based around a new – and re-freshed – Based around a new – and re-freshed –

review of what you valuereview of what you value– Money?Money?– Service?Service?– Community engagementCommunity engagement

• Know what’s in it for youKnow what’s in it for you– And what’s in it for the contractorAnd what’s in it for the contractor

• Share with your contractorShare with your contractor• Use partnering to become a Learning Use partnering to become a Learning

OrganisationOrganisation


Case Study - Gallions HA• Out sourced their DLOOut sourced their DLO

– New Partnering Repairs New Partnering Repairs ContractContract

– Private sector management Private sector management of works processof works process

– All staff retained – many All staff retained – many still employed four years still employed four years laterlater

– Better satisfactionBetter satisfaction– Better value Better value

• similar cost but more outputssimilar cost but more outputs


Case Study 2 – Responsive Repairs at Broomleigh

• Contractor deals with whole process from Contractor deals with whole process from tenant call through to final inspectiontenant call through to final inspection

• Whole organisation needs to be involvedWhole organisation needs to be involved• Took 5 years; 18 months to implement from Took 5 years; 18 months to implement from

decision to “go”decision to “go”• Better quality, better satisfaction, lower costsBetter quality, better satisfaction, lower costs• ££½M admin savings½M admin savings

– Eg instead of 42,000 invoices a year, now just 24!Eg instead of 42,000 invoices a year, now just 24!

A Broken Market –The Asset Management Challenges


Should we be worried?• Disposals fundingDisposals funding

– Major investment projectsMajor investment projects– In some cases underpins viabilityIn some cases underpins viability

• Do you need to sell?Do you need to sell?– Even if you do, can you wait a year?Even if you do, can you wait a year?

• Is the auction market holding up?Is the auction market holding up?

• Alternatives to disposalAlternatives to disposal


What can we do?

• Major regeneration projectsMajor regeneration projects– Consider other mixes of usesConsider other mixes of uses

• Think long termThink long term– Most schemes take years to get off the Most schemes take years to get off the

groundground

• Look again for grant fundingLook again for grant funding


The Fallout• Unmet Housing Need will increaseUnmet Housing Need will increase• 223,000 new households pa223,000 new households pa

– 100,000 (?) new homes this year100,000 (?) new homes this year

• Tenants may find it harder to pay rentTenants may find it harder to pay rent• Shared ownership staircasing and RTB Shared ownership staircasing and RTB

will reducewill reduce• Leaseholders under pressure tooLeaseholders under pressure too

– Can you reduce service charges?Can you reduce service charges?

• Some of our contractors will failSome of our contractors will fail– What’s your contingency plan?What’s your contingency plan?


Are there upsides?• Buying up housebuilders surplusBuying up housebuilders surplus

– different standardsdifferent standards

• Pressure on pricesPressure on prices– Oil pricesOil prices– Materials pricesMaterials prices

• Social Housing Market still strongSocial Housing Market still strong– £2.2bn spent by HA’s in 2006/7£2.2bn spent by HA’s in 2006/7– New contractorsNew contractors– More staff availableMore staff available

• Now is the time to forge partnerships!Now is the time to forge partnerships!


Conclusions• The National focus has moved back to new

housebuilding• A strong emphasis on energy efficiency and

sustainability – How green are our buildings?

• Expect DHS to be revamped• We need to make sure that what we own

supports what we are trying to do• Our tenants deserve good living standards

– Its our job to define those standards, and deliver their - and our - aspirations

thank you for listening.thank you for listening.

www.trimmercs.co.ukwww.trimmercs.co.uk

Documents

More than Decent? or What does the future hold for Asset Management, Maintenance and Repairs?