Annual Report 2018/2019

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ContentsObjectives and values 3Chairperson’s statement 4Housing operations 7Development and reinvestment 9Community investment and engagement 11Social housing performance indicators 12Procurement activity 15

Objectives The objectives of Sanctuary Scotland are to:

• provide good quality, affordable housing for both rent and for sale to those least able to compete in other sectors of the housing market.

• provide housing and associated services for those with more specific housing requirements, such as the elderly and those with long-term disabilities.

• provide value-for-money services and advice to individuals and organisations working to provide social housing.

• ensure that any investment made by Sanctuary Scotland provides sustainable benefits for local communities.

Values In pursuing these objectives, Sanctuary Scotland works to Sanctuary Group’s values:

• Ambition• Diversity• Integrity• Quality• Sustainability

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Chairperson’s statement2019, the 50th year of Sanctuary Group, will mark the end of my second spell as Sanctuary Scotland’s Chairperson. It has been an honour to lead the governance team during two periods of considerable growth. The merger of Sanctuary Scotland with Sanctuary Cumbernauld and Tenants First was undoubtedly the biggest milestone during my eight years as Chair. The Board of Management strives to ensure that this bigger Sanctuary Scotland is also better for the tenants of our 6,800-plus homes. The changes to our operating model introduced last year have improved the service we provide. Our housing officers now spend the majority of their time out and about on their patch, meeting with tenants and generally making a difference in the heart of our communities. On top of an increase in the amount of face-to-face contact, customers can now phone Sanctuary 24/7, at a time that suits them, and not just during traditional office hours. Many necessary but time-consuming administrative tasks are now carried out by shared Group resources in England. The outcome is our housing teams engaging with residents more than ever before. The visit of First Minister Nicola Sturgeon to Anderston in Glasgow is a recent highlight of my time as Chair. Ms Sturgeon formally marked the completion of our £60 million area regeneration, an award-winning project we are rightly very proud of. From Peterhead to Paisley, our new-build programme has created more than 3,000 affordable homes. Few social landlords have been as prolific as Sanctuary Scotland in improving the country’s housing stock. Our attractive, high-quality, energy-efficient developments have improved countless people’s living conditions. The majority of our stock is older homes, properties no less important to us. Millions of pounds have been spent improving our stock through a reinvestment programme touching all areas of the country.

I thank Sanctuary Scotland’s staff and my fellow Board of Management members for all of their help and support during my time as Chair. As I stand down I wish everyone connected with Sanctuary Scotland all the very best for the future. I am sure Sanctuary Group will continue to thrive under the stewardship of Craig Moule.

Professor Kenneth GibbChairperson

Housing operations

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The changes made to Sanctuary Scotland’s operating model in 2018/2019 have transformed the organisation for the better. By making greater use of Sanctuary’s 24-hour Customer Service Centre (CSC), our housing teams have been able to spend more time in our neighbourhoods, the places where their work is most effective. All of our housing officers are equipped with tablets which enable them to access real-time tenant and rent account information when out and about. The CSC allows residents to contact us at any time day or night, more in tune with modern living than the limitations of an ‘office hours’ service.

Our use of the Group’s Central Income Team (CIT) has changed how we manage rent accounts in arrears. The CIT’s involvement further allows our housing teams in Aberdeen, Glasgow, Dundee and Cumbernauld to focus on visits and customer interactions. Time-consuming administrative tasks like notifications and amendments are dealt with efficiently, consistently and no longer require staff in Scotland to be behind a desk. There have been challenges to overcome including training and development, legislative differences and system integration. The benefits are borne out by improvements in our performance and a year-on-year reduction in rent arrears.

Local staff and the CIT continue to provide high-level support and advice to customers transitioning to Universal Credit. Our welfare rights service provides support and advice to households to ensure income maximisation. We now have four welfare rights officers to give us Scotland-wide coverage, including a dedicated staff resource in the North East. The decision to bring the service across Aberdeen and Aberdeenshire in-house has been widely welcomed by residents. During 2018/2019 more than 330 clients received assistance in claiming weekly, backdated and one-off benefits payments. The income generated from the support given by our welfare rights officers exceeded £900,000.

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Development and reinvestment

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The completion of our £60 million regeneration of Anderston in Glasgow was formally marked in December 2018 with a visit by First Minister Nicola Sturgeon. Ms Sturgeon met Sanctuary’s Group Chief Executive Craig Moule before unveiling a Group-commissioned statue of renowned artist and architect Charles Rennie Mackintosh. Sanctuary Scotland worked with the local community, Scottish Government and Glasgow City Council to transform Anderston’s housing stock, a 10-year project which saw many 1960s buildings demolished and replaced with 540 affordable homes. The final phase included 87 flats for social rent and 119 for mid-market rent. Our transformation of Anderston won awards including the Chartered Institute of Housing’s excellence in regeneration award for Scotland.

Housing Minister Kevin Stewart met Sanctuary tenants at two projects completed during 2018/2019. In Aberdeen, 124 affordable homes now occupy the site of the former Her Majesty’s Prison Craiginches. The mid-market rent homes are managed by Sanctuary Scotland and are available to key workers who might otherwise struggle to secure affordable accommodation. The £19 million project was made possible thanks to an £8 million Scottish Government grant. Mr Stewart also took the time to see Sanctuary’s seven-storey Ellerslie Crescent project in Glasgow which overlooks the River Clyde. The £6 million development by Sanctuary Homes is made up of 42 flats available for mid-market rent and received a £2.6 million Glasgow City Council grant.

Sanctuary completed 60 homes for social rent in Renfrew’s Station Road, bringing our total number of new-build properties in the town to 137. In Paisley, the 49 homes handed over at Wellmeadow Street marked the first stage of the regeneration of the town’s west end. Our project in Paisley’s Love Street will be completed before the end of 2019, providing another 132 affordable Renfrewshire houses.

In Cumbernauld our regeneration of the town’s high-rises continued with 24 new flats completed at Hume Road and another 66 under construction on neighbouring land. A total of 45 flats were handed over in nearby Berryhill Road, with another 23 flats now under construction. Elsewhere in North Lanarkshire we handed over 40 homes in Gartcosh, half of which are mid-market rent.

We spent more than £3.89 million improving Sanctuary’s Scottish housing stock during 2018/2019. The majority of this money was on capital reinvestment activity including new windows, new kitchens and wall insulation. Most of the work was carried out in the North East, a priority area for reinvestment, with £1.17 million also spent in Cumbernauld.

Group Chair’s Statement

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Community investment and engagement

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During 2018/2019 we supported several groups who help make people’s lives better. From teaching people new skills, to improving their mood and neighbourhood, Sanctuary Scotland staff made a difference. Our community participation officer Anthony Morrow and his assistant Kieran Renshaw led on this work across the country. Their efforts helped maximise its benefits to residents, providing opportunities which otherwise might not have been available.

Some of the youngest beneficiaries attend a weekly breakfast club near Sanctuary Scotland’s office in Glasgow’s Priesthill. Anthony and Kieran play a supporting role in establishing the breakfast club, as well as helping the local volunteers with any other small jobs that need to be done. The breakfast club began as a 10-week pilot back in 2016 and continues to feed more than 40 people each week. Over and above providing local families with their first meal of the day, the breakfast club gives residents a place to talk which helps to reduce isolation while at the same time highlighting events and services in the wider area.

Sanctuary’s Grand Ideas Fund and development-linked ‘more’ initiative continue to enhance Scotland’s communities. A £1,000 Grand Ideas donation paid for the materials for Sanctuary tenants in Aberdeen to transform a wall near their homes. Design student Jade Duffield worked with Donside Community Association to decorate a section of hoarding with murals. The project brought art to the heart of Donside Village plus joy to residents and visitors. In a similar vein, primary pupils in Glasgow created a gallery of pictures to mark the 450th anniversary of the Battle of Langside. We transformed a section of hoarding around Glasgow’s former Victoria Infirmary with the pupils’ work before construction begins on 400-plus flats.

In Paisley, as a community benefit of the 132 affordable homes being built on the other side of Love Street, we resurfaced garden paths at the local Disability Resource Centre to make it possible for centre users with mobility issues to access the entire garden.

In Dundee, a charity supported by Sanctuary Scotland celebrated a £93,000 funding boost. The Ardler Village Trust will receive £73,121 from the Big Lottery and £20,300 from the People and Communities Fund to continue serving the local community. The Trust’s shop in Turnberry Avenue has raised £190,000 since it opened in September 2008. Sanctuary Scotland provides the shop unit free-of-charge to the Trust as a legacy benefit of our area regeneration, plus £5,000 a year towards the charity’s running costs.

Our wider work sees Sanctuary create jobs and training opportunities for young people, both in-house and through our supply chain. During 2018/2019 site apprentices were able to earn as they learned on Sanctuary projects across Aberdeen, Cumbernauld, Glasgow, Paisley and Renfrew.

Social housing performance indicatorsHousing stock (self contained) 2019 2018

Total available for letting 6,743 6,389

Not available for letting 123 220

Total stock 6,866 6,609

Allocations and voids 2019 2018

Number of relets 446 336

Average number of days to relet 25.37 22.0

Residential rent lost through voids % 0.43 0.42

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The hundreds of homes created through Sanctuary’s new- The number of homes we had to relet increased. This had build programme saw our housing stock increase. The a small impact on the average time taken to relet.majority of unavailable properties were flats within high-rise blocks that have since been demolished.

Rent arrears 2019 2018

Current tenant rent arrears % 5.11 5.67

Current tenant rent arrears £ 1,593,162 1,617,507

Former tenant rent arrears % 0.48 0.35

Former tenant rent arrears £ 149,219 100,696

Current tenant arrears decreased – our staff and welfare rights service work hard to support people in financial difficulties and maximise their income.

Former tenant arrears increased slightly.

Maintenance services

Classification of repair 2019 2018

Emergency repairs 6,653 7,132

Non-emergency repairs 22,325 21,356

Total 28,978 28,488

Repairs performance 2019 2018

Average time to complete emergency repair (hours) 5.27 6.77

Average time to complete non-emergency repair (days) 7.84 8.31

The number of non-emergency repairs has increased and The average time taken to complete all repairs has the number of emergency repairs has reduced. Overall improved.there is a small rise in the number of repairs completed, reflecting the increase in property numbers.

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Procurement activity This section reports on procurement activity that has taken place since the publication of the Procurement Strategy issued in December 2016, arising from the Procurement Reform (Scotland) Act 2014. Sanctuary’s strategy can be viewed at www.sanctuary-group.co.uk/suppliers.

In terms of regulated procurement, goods and services for the Group as a whole are procured centrally by the procurement team, in accordance with established Group procedures and Public Contract Regulations that prevail in both England and Scotland. All such Group-wide activity is reported in overall Group reports and the impact of community benefits is summarised in the Group’s Our Impact report. An area where procurement occurs in Scotland separately is where Sanctuary carries out development and house building. A summary of this activity is below.

Summary of activity 2018/2019The following schemes have been awarded in the period April 2018 to March 2019:

Scheme Contractor Contract amount £m

Date of contract Number of units

Craigdhu, Milngavie Ashleigh (Scotland) Ltd 1.5 19 February 2019 12

Inverclyde Multi Sites, Inverclyde Cruden Group Ltd 12.3 31 March 2019 96

Malletsheugh, East Renfrewshire

Barratt Developments PLC 5.6 7 February 2019 42

Portsoy, Aberdeenshire Robertson Group Ltd 5.8 14 March 2019 44

Total 25.2 194

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Scheme Consultant Fee amount £m

Appointment date

North Anderson Drive, Aberdeen

Scott Bennett Associates 0.7 12 October 2018

The Victoria, Glasgow Collective Architecture 0.9 18 September 2018

Total 1.6

Grand Total 26.8

All services listed above have been procured in accordance with Group procedures and Public Contract Regulations (Scotland) 2015, and consequently the principles contained in the strategy. Future works Due to the nature of development works, it is not always possible to publish an anticipated programme as the progression of schemes to site is never certain, neither is the advanced knowledge of site opportunities. Sanctuary will similarly publish a retrospective summary in 2020.

During 2018/2019 Sanctuary tendered a series of major works and consultancy frameworks to support the Group’s development programme. All frameworks require providers to consider how community benefits can be delivered. A thorough Community Benefits, Skills and Apprenticeships Framework for main contractors ensures we maximise opportunities for community investment and the improvement of people’s life chances.

Contract and award notices will be published on Public Contracts Scotland and in the Official Journal of the European Union. Again, the outcome of these requirements will be reported in 2020.

Group Chair’s Statement

Sanctuary GroupSanctuary House

Chamber CourtCastle Street

WorcesterWR1 3ZQ

Tel: 01905 334000Fax:01905 334958

www.sanctuary-group.co.uk

Sanctuary Group is a trading name of Sanctuary Housing Association, an exempt charityRegistered office: Chamber Court, Castle Street, Worcester WR1 3ZQ

Registered as a provider of social housing with the Homes and Communities Agency No. L0247Registered Society No. 19059R

Published: June 2019

If you would like this publication in analternative format or language, please

telephone 01905 334344or email pr@sanctuary-housing.co.uk

sanctuary-group +sanctuarygroup

Sanctuary Scotland Housing Association LimitedSanctuary House7 Freeland Drive

GlasgowG53 6PG

0800 131 3348www.sanctuary-scotland.co.uk

Sanctuary Scotland Housing Association LimitedRegistered office: Sanctuary House, 7 Freeland Drive, Glasgow, G53 6PG

A Registered Social Landlord - HEP 302 and a property factor registered in Scotland No. PF000124Registered Society No. 2508R(S) and a charity registered in Scotland No. SC024549

Sanctuary Scotland Housing Association Limited is a subsidiary of Sanctuary Housing Association, an exempt charity.

Published: August 2019

If you would like this publication in an alternative format or language,

please phone 0800 131 3348.