National Housing Federation Asset Management...

Excellent homes. Quality service. Proud communities.

National Housing Federation

Asset Management and Maintenance

Conference 2012

Added Value in Repairs and Maintenance

David Pye, Head of Development and

Asset Management, Derwentside Homes


Derwentside Homes: Who Are We?

• RSL established in December 2006, primarily

based in County Durham.

• Subsidiary company, Prince Bishop Homes,

specialising in market rent properties with a ‘Rent

To Buy’ scheme.

• Most Efficient Landlord (2012 UK Housing

Awards).

• CIOB Chartered Building Consultancy.

• CIOB Chartered Building Contractor.

• HQN Accredit DLO.


Major Investment In Our Communities

Derwentside Homes:

• Prince Bishops Community Bank .

• Social Housing Enterprise Durham (SHED).

• The Store.

• The Spot.

• Local and regional apprentices

(neprocurement and Employments and

• Skills).

• Community Initiatives, eg: KICKz, Change

Maker, Apprenticeships, Employment

Initiatives Officer, Welfare Advice Officer,

Tenant Energy Advisors,

Silver Talk, Durham Green.


Repairs and Maintenance: Is It Broken?

Or are we seen as any easy target and a source of capital?

• Are our Repairs and Maintenance teams

doing a bad job?

• Do we take no regard of value for money

(VFM)?

• Are our tenants dissatisfied with the services

we provide?

• Do we ignore stock condition and life cycles?

• Do really ignore what our tenants tell us?

• Can our tenants really buy cheaper than us?


Repairs and Maintenance: Is It Broken?

• The TSA ‘Existing Tenants’ Survey’ reports that four in five social housing

tenants are either satisfied or very satisfied with their landlord:

oTop of the list for a good rating was ‘the perceived effectiveness of

repairs services and the extent to which the landlord was seen as

maintaining the home in a ‘decent condition’.

oThe most common ‘good point’ cited was that tenants have the

benefit of a good repairs and maintenance service.

• Social landlords have invested heavily in work scheduling, appointments

systems, ‘right first time’ approaches, inspection, auditing and customer

satisfaction measures.

• Stock condition databases drive our business plans.

• We invest heavily in community initiatives.


Remember the Big

Conversation?

• The TSA’s big conversation showed that repairs and

maintenance was the biggest priority for tenants.

• Residents consistently put the provision of a quality repairs

and maintenance service at the top of their list when asked

about their priorities for service delivery from their landlord.

• They seek

o a service which is both responsive but flexible

o for their accommodation to be maintained in a good

condition for the long term.

But…Did the Government like the ‘Big Reply’?


Repairs and Maintenance: Far from Broken!

Yet :

• A significant minority (29%) of tenants

said they would accept more responsibility

– like dealing with minor repairs, in return

for a rent discount.

• There is still social housing stock that remains non decent.

• We spend approximately £5bn per year on repairs and

maintenance.

• HQN benchmarking data shows a significant gap between the

highest and lowest performing landlords

• We all have difficulties in delivering effective tenant involvement.

Our Approach To Effective

Repairs and Maintenance • Delivery of an effective repairs and maintenance service is a corporate

and strategic priority, with repairs and maintenance an integral part of

asset management.

• We equip everyone in the repairs and maintenance service with the

right skills, capacity and resources, including investing in I.T. where

appropriate.

• We provide an accessible and accountable repairs and maintenance

service which reflects the needs of our tenants.

• We deliver a quality service which is tailored to our tenants needs and

measured by targets set by them.

• We ensure that a value for money approach is embedded across our

service, defined in consultation with our tenants.

• We continually strive to improve our performance and benchmark all

aspects of the service.


VFM – Whose Definition?


Value for Money is the relationship between three

components:

• Economy - buying inputs of a given quality at the

lowest cost.

• Efficiency - ensuring that the maximum amount of output is

achieved from an operation for the minimum amount of

input.

• Effectiveness - ensuring that the outputs of an organisation

are as closely aligned as possible to its objectives.

Government – Nice and Clear?


VFM – Whose Definition? Business Definition – Perception?

VALUE FOR MONEY is in the perception of the buyer or receiver of goods and/or services.

Proof of good value for money is in believing or concluding that the goods/services received was worth the price paid.

Value For

Money Quality

Suitabilit

y

Expertise

Whole

Life Cost

Price

Communit

y Benefits

Percepti

on

Employme

nt and

Skills

Sustainabili

ty

Fashion Custome

r Service Environme

nt

Time

Risk


New Value For Money

Standard

Regulatory Framework - Required Outcomes

“Registered providers shall articulate and deliver a comprehensive and strategic approach to achieving

value for money in meeting their organisation’s objectives. Their boards must maintain a robust

assessment of the performance of all their assets and resources (including for example financial, social and environmental returns). This will take into account the interests of and commitments to

stakeholders, and be available to them in a way that is transparent and accessible. This means managing

their resources economically, efficiently and effectively to provide quality services and homes,

and planning for and delivering on-going improvements in value for money.”

VFM Standard: Page 14

Our Approach to VFM

• Effective asset management with all

investment based on sustainability

• Expenditure Review

• Commercialism and mixed supply chain

• In-house DLO

• Invest in our staff and I.T.

• Benchmark our performance at all levels

• Consult with our tenants and tailor our services

• Learn from customer feedback

• Effective performance management

• Reviewing organisational structure



Corporate Strategy &

Business Plan

Sustainability Matrix

Corporate Policies, Systems

& Governance

Repairs & Maintenance Plan &

Programme

Investment Plan &

Programme

Development Plan &

Programme

Asset Register

Asset Management

Strategy

Value For Money

Procurement Strategy

Resident Involvement

Effective Asset

Management is the Key!

Effective Asset

Management


Rising customer expectations

Ageing stock

outdated stock

Eco-impact

&

fuel poverty

Development with less grant

Regulation

... to ‘get more out of what you’ve got’!

All social landlords know the pressure is on ....

Our Approach – use the information at

hand to create a Sustainability Matrix


• Financial

Rents and Service Charges

Rent lost through voids

30 Year Investment (NPV) KEYSTONE

Repair Costs

Housing Management Costs

• Social Performance and Prospects

Stock turnover

Tenancy duration

STATUS – Resident Satisfaction with Neighbourhood

STATUS – Resident satisfaction with the overall quality of the home.

Fluctuating Market

• Unsustainable tender prices

• Massive spread on R&M Tenders

utilising the NHF:

oNHF v.5.1 +15% to -10%

oNHF v6.0 +5% to -35%

• ‘Bought Contracts’ have a direct

impact on client resource and quality.

• Does the investment in collaborative working

end due to cheap market rates?


Mixed Supply Chain


NEP Frameworks

• One of the founder members of

NEP & ReAllies.

• Members make commercial

savings of circa 27% across all

workstreams.

• Resistant to fluctuations in

market.

• Huge community investment via

community fund.

• Different way of working.

• Real financial savings and

demonstrable social benefits.

• Used where it fits our business.

Internal DLO – VFM?

YES, for us!

• HQN accredited DLO.

• 5 Year Business Plan.

• Capital, Repairs, Voids, & Cyclical.

• Not all works.

• VFM review on all contracts.

• VAT saving has never been used to

justify contract award.

• VAT saving is real, but only labour.

• Van tracking, OPTI-Time XMBRACE.

• Must run as a commercial business!


Effective Performance

Management


- A suite of KPI geared at delivering the

corporate objectives, with a performance

culture embedded across the whole

organisation.

- Challenging targets agreed with tenants and

set at a team, service and organisation level.

- Easy to use dashboard to monitor

performance.

- Performance monitored, reviewed and

reported.

- Tenant scrutiny and focus groups to monitor

and challenge service delivery.

- Review of best practice to improve services

Either:

• Confirmation of what you already do,

Or..

• A framework upon which to develop a

best practice repairs service

with your stakeholders.

Why wouldn’t you sign up?


Best Practice Sign Posts

• Together Housing Tenant Cash Back Scheme:

o Targeted estate action.

o Social benefits rather than financial?

• Your Housing Group:

o Satisfaction survey based on statistical accuracy rather than

mass effect.

o Identification of the issues that are key to tenants.

o A way to prove/develop your local offer?

• Derwentside Homes Community Initiatives and Tenant

Cashback pilot.

o Cost neutral initiative without changing tenancy agreement



Winner - Most Efficient Landlord of the Year

Winner – Community Initiative of the Year

UK Housing Awards 2012

Learn with us. Improve with us. Influence with us | www.cih.org

Repairs: CIH Charter for housing Joanne Kent-Smith

Senior Policy and Practice Officer, CIH

Learn with us. Improve with us. Influence with us | www.cih.org 24

What we will cover today

• Background to ‘Getting the basics right campaign and charter’

• Policy and operating environment

• The campaign outputs

• The challenges

• What you can do


Ringing the changes: Out with the old……

• 2yrs in – the coalition government

End to central government direction

End to national targets and PIs focus on local solutions

End to audit commission inspections

End to consumer driven regulation


In with the new…

• New policies -significant far reaching consequences

Regulation and development funding - enhanced focus on efficiency and VFM

Introduction of Affordable Rent

Tenure reform: Introduction fixed term tenancies

Welfare reform: size criteria and rent capping (large families / high rent areas / affordable rent tenancies £110)


So what does this mean for R&M?

• Balancing income streams with expenditure

Repairs biggest area of spend

Subsidy to investment

• different returns expected

• impact on interest rates (refinancing arrangements)

• Pressure to maintain social values whilst demonstrating VFM

• Commercially astute: Creative management and maintenance of assets – consider new delivery models


• ‘Made to measure’ services - Landlords to take ownership of delivering:

Local solutions

Offer choice

Customer satisfaction

• Area of service affects biggest proportion of tenants

• The area of service which is the highest priority

• Austerity measures (many tenants disproportionately affected by cuts

Not forgotten….our tenants!


Making it fit…..

• CIH ‘A Year of practice’ (ASB, E&D, Complaints)

• Emphasis on practice, get the day job right

• Identifying the challenges and supporting landlords get to adapt to ensure the sector is ‘future fit’

• Repairs ‘Getting the basics right’ campaign

Developed in partnership with Mears

Outcomes include Charter, briefings, qualifications and wider support


The CIH charter for housing

• Developed in partnership with Mears and collaboration with NHF, DWF, NHMF, TPAS and HM

• 50 Strong advisory group

• Wide sector consultation


The front runners

• Launched June 12

• Lincoln City Council first landlord to sign up and active advisory group member

• 25 organisations

– Landlords

– Contractors

– Inc: Wales and Scotland


Custom built

• Not a regulatory tool but provides a basis for internal challenge

• Sign up in voluntary and based on self assessment

• Focused on outcomes not processes

• Intended to drive sector-led improvement

• Effective tool to engage tenants


The headlines

• Any landlord / any delivery model (UK)

• 6 core commitments and principles

• Planning

– Corporate and strategic priority

– Capacity skills and resources

• Delivery

– A quality service

– Access / accountability

• Improvement


Not seen it yet - what to expect?

• No surprises

• Some challenges around:

– IT (consumer focus)

– building skills and capacity

• Moving the debate around RFT

– From RFT to same day?

• Strong focus on VFM

• Use to develop real customer choice and influence (costs and rents)


Our offer ….

• Sign up to the Charter

• How to …. Briefings ( x 4)

• Level 4 certificate and diploma in Managing Responsive Repairs

– Sept 2012

• Signatories to charter can benefit from open access online network – shared practice (Summer 2012)

• CIH experts can provide external assistance and critical challenge

• Visit www.cih.org/charters

http://www.cih.org/charters

Learn with us. Improve with us. Influence with us | www.cih.org

Thank you - Questions

[email protected]

Direct: 024 7685 1715

Mobile: 079 4445 8294

Twitter: @joannekentsmith

mailto:[email protected]



https://twitter.com/



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