national housing federation asset management...
TRANSCRIPT
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
Excellent homes. Quality service. Proud communities.
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.
Excellent homes. Quality service. Proud communities.
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.
Excellent homes. Quality service. Proud communities.
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?
Excellent homes. Quality service. Proud communities.
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.
Excellent homes. Quality service. Proud communities.
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’?
Excellent homes. Quality service. Proud communities.
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.
Excellent homes. Quality service. Proud communities.
VFM – Whose Definition?
Excellent homes. Quality service. Proud communities.
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?
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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
Excellent homes. Quality service. Proud communities.
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
Excellent homes. Quality service. Proud communities.
Excellent homes. Quality service. Proud communities.
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
Excellent homes. Quality service. Proud communities.
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
Excellent homes. Quality service. Proud communities.
• 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?
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Mixed Supply Chain
Excellent homes. Quality service. Proud communities.
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!
Excellent homes. Quality service. Proud communities.
Effective Performance
Management
Excellent homes. Quality service. Proud communities.
- 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?
Excellent homes. Quality service. Proud communities.
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
Excellent homes. Quality service. Proud communities.
Excellent homes. Quality service. Proud communities.
Winner - Most Efficient Landlord of the Year
Winner – Community Initiative of the Year
UK Housing Awards 2012
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Repairs: CIH Charter for housing Joanne Kent-Smith
Senior Policy and Practice Officer, CIH
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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
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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
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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)
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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
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• ‘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!
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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
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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
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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
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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
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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
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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)
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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
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Thank you - Questions
Direct: 024 7685 1715
Mobile: 079 4445 8294
Twitter: @joannekentsmith