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.
Derwentside Homes: Major Investment In Our Communities • • • • •
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? • 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? Or are we seen as any easy target and a source of capital? 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: o Top 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’. o The 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. Excellent homes. Quality service. Proud communities.
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? Government – Nice and Clear? 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.
Excellent homes. Quality service. Proud communities.
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. Time Sustainabili ty
Percepti on
Suitabilit y Quality Expertise
Value For Money
Risk Communit y Benefits Whole Life Cost
Price Fashion Custome Employme r Service Environme nt and nt communities. Skills Excellent homes. Quality service. Proud
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.” Excellent homes. Quality service. Proud communities.
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.
Effective Asset Management is the Key! Corporate Policies, Systems & Governance
Value For Money
Sustainability Matrix
Corporate Strategy & Business Plan
Asset Register Asset Management Strategy
Repairs & Maintenance Plan & Programme
Resident Involvement
Investment Plan & Programme
Excellent homes. Quality service. Proud communities.
Procurement Strategy
Development Plan & Programme
Effective Asset Management All social landlords know the pressure is on ....
Rising customer expectations
Regulation
Development with less grant
Ageing stock outdated stock
... to ‘get more out of what you’ve got’! Excellent homes. Quality service. Proud communities.
Eco-impact & fuel poverty
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. Excellent homes. Quality service. Proud communities.
Fluctuating Market • Unsustainable tender prices • Massive spread on R&M Tenders utilising the NHF: o NHF v.5.1 +15% to -10% o NHF 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? Excellent homes. Quality service. Proud communities.
Mixed Supply Chain • 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. Excellent homes. Quality service. Proud communities.
NEP Frameworks
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 - 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 Excellent homes. Quality service. Proud communities.
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.
UK Housing Awards 2012 Winner - Most Efficient Landlord of the Year Winner – Community Initiative of the Year
Excellent homes. Quality service. Proud communities.
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 Learn with us. Improve with us. Influence with us | www.cih.org
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Not forgotten….our tenants! • ‘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
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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 Learn with us. Improve with us. Influence with us | www.cih.org
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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 Learn with us. Improve with us. Influence with us | www.cih.org
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Thank you - Questions
[email protected] Direct: 024 7685 1715 Mobile: 079 4445 8294 Twitter: @joannekentsmith
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