Asset Management Strategy
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- Damon Ball
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1 Asset Management Strategy 1.0 Our Intention 1.1 Our Asset Management Strategy details our commitment to delivering well maintained, energy efficient homes and fantastic neighbourhoods that meets the needs of our customers and their satisfaction with the neighbourhoods they live in. We continually review our assets to make sure our homes meet our customers changing needs and create increased financial value within our business. 1.2 We are also looking to the future for the sustainability of our homes and our neighbourhoods and ensuring we are always considering the return on our investment. To do this we will continue to evaluate our assets and our service delivery at every opportunity through an appraisal process which is not only based on financial performance, but reviews social and environmental impact and customer satisfaction. 1.3 This process has resulted in disposal of assets which were determined financially unviable, were located in neighbourhoods where we had little or no other management responsibilities and would not have been effective to continue to manage or deliver services to. In one particular case this resulted in disposal of assets to another Registered Provider (RP), with presence in an area of regeneration and a better strategic fit and more localised service delivery for customers. 1.4 By disposing of assets which are either poor performing or that do not have a strategic fit with the organisation, we are able to create the capacity to invest elsewhere in accordance with our plans for growth. 1.5 Disposing of underperforming assets is not always our first priority. We take great pride in our customers and neighbourhoods and will always look to how we can improve a neighbourhood, change customer behaviour and ultimately create a place where people want to live. 1.6 We always aim to work with customers and communities to create vibrant, successful and thriving neighbourhoods. Our customers are at the heart of everything we do and play a pivotal part in shaping our service delivery, contractor selection and ensuring we achieve value for money across all areas. 1.7 To ensure that we are achieving value for money we will benchmark our costs and performance against our peers. ASSET MANAGEMENT STRATEGY AUTHOR: MICHAEL SINNOTT PAGE 1 OF 7
2 2.0 Our Achievements 2.1 Achieving a balance between providing local services and operating efficiently and effectively requires good communication and engagement with our customer, colleagues, partners and stakeholders. As we have continued to grow and evolve we have encouraged a culture where customers and colleagues can share ideas and listen to others. This has meant that we have not done the same thing everywhere but that we have had a consistent approach to identifying the right thing to do, at the right time and then doing it the right way. 2.2 Our strategy is driven by our 5 key priorities which have supported our work to provide great homes, communities and neighbourhoods collectively; we have made a number of significant achievements that has reinforced our status as an innovator in the sector. For example, we have set ourselves a number of challenging targets around our key priorities: Zero Arrears Zero Relets Zero Repairs Zero Customer Dissatisfaction Zero Colleague Sickness 2.3 We have invested 29m over the past 3 years in terms of planned and cyclical improvements and an additional 5.5m on responsive repairs. We have also been able to provide our Neighbourhood team with an additional 1m to invest in locally based projects in response to our local offers. 2.4 It is important to reflect on our achievements over the past 12 months to demonstrate how these principles have shaped our approach to managing our assets. In the past 12 months we have achieved the following: Purchased 23 additional homes as part of our intent on growth in a controlled way Achieved 100% Decent Homes Fully compliant on gas servicing Fully compliant on Fire Risk Assessment Fully Compliant on Legionella Continued with the remodelling of our 50Plus homes through the conversions of bedsits and other communal areas at Seymour Court Increased the planned budget from 10m to over 12m to enable the current life cycles to be met Gained further efficiencies on tendering by entering into framework for the 50Plus remodelling work and finalising the planned improvements framework for Relet times reduced from 0.9 days to 0.3 days Launched our Return On Investment (ROI) project Introduced our Social Housing with Style concept to over 50 properties Disposal of assets which have come to the end of their life and have no financial/social/sustainable return i.e. Constable Lee Court. ASSET MANAGEMENT STRATEGY AUTHOR: MICHAEL SINNOTT PAGE 2 OF 7
3 3.0 Adapting for Future Success 3.1 RPs face a rapidly changing environment, driven both by socio-economic conditions and a policy agenda that challenges the social housing sector to prove its worth. Simply providing a good standard of service is no longer enough for our customers. 3.2 We are committed to providing support where it is needed and promoting well being and customer independence where it is sustainable. This means thinking about how our properties are designed, improved and maintained to provide the greatest comfort in the most efficient way. By looking after our neighbourhoods we ensure they are safe, green and with a sense of community that makes for a great place to live. 3.3 Our financial strength is equally important, enabling us to provide newly styled homes and take advantage of new opportunities to grow. Financial strength and our investment in colleagues keeps us focused on our mission and continually add value. 4.0 Asset Management going forward Planned Maintenance Action Increase Diamond Service membership to ensure our planned programme is having the desired impact Outcome/Target 75% membership Revise the process for tendering the planned framework, placing the emphasis on quality as well as price and ensuring the Association has options should a contractor be under performing Embed style into the planned works within the approved budget and continue to innovate and challenge the accepted norm of traditional replacements Continuous review of component life cycles to ensure budgets reflect requirements Increase the amount of planned works that can be carried out by our in-house maintenance company from 30% in 2015 to 100% in 2018 Achieve VFM in all future projects 100% customer satisfaction Reviewed bi-annually Continue to involve our customers in the choices made for planned replacements and the appointing ASSET MANAGEMENT STRATEGY AUTHOR: MICHAEL SINNOTT PAGE 3 OF 7
4 of contractors Develop an option appraisal for all schemes to ensure investment is synchronised more efficiently between planned investment and the requirements of neighbourhoods Reactive Repairs Continue to utilise our in-house maintenance company to maximise savings and increase customer satisfaction Continue to reduce the number of none essential repairs by linking commonly raised jobs to future planned programmes 2015 and ongoing Ensure same day relets as the norm and that exceptions are reported. This will ensure zero void rent loss 100% same day Increase the number of property MOTs by 50% each year Increase the number of multi trade workers to 50% and promote the recruitment of apprentices Opportunities for Growth Continue to purchase properties utilising grant funding and private finance and explore new build opportunities 100 properties Explore best options for acquisition through distressed property purchases/bank -investor stock sales/auction houses/rtb/rta buy backs/stock swap and acquisitions with other RPs Continue with the Manchester Empty Homes initiative 4 properties annually Develop partnerships with other Local Authorities to purchase empty homes 2015 ASSET MANAGEMENT STRATEGY AUTHOR: MICHAEL SINNOTT PAGE 4 OF 7
5 Explore opportunities for stock transfer/acquisition of disused older persons housing Provide 6 monthly area based market analysis reports identifying future opportunities Further embed our ROI project to monitor the present net value and performance of our assets and project future expenditure. Monitored bi-monthly by our Asset Management Group Land-banking & Disposals Continue to produce option appraisals and evaluations on all assets through management and monitoring of strategic voids/repeat turnover/dispersed properties with no management presence in numbers Evaluate annually, values and options for landbank in terms of disposal/new home development opportunities currently 2 major sites Review market position for Intermediate Market Rent properties and options for marketing for sale subject to valuations to existing customers initially Utilise the ROI database to identify under performing assets and dispose if appropriate Home re-modelling and conversions Implementation of 50Plus strategy of remodelling homes that are no longer of choice with conversion of bedsits to one beds across all the 50Plus portfolio 142 in total 100% bed-sit conversions Explore re-categorisation of 50Plus to meet the needs of applicants going forward to enable and encourage inter-generational Sustainability of all 50Plus schemes and development to intergenerational living ASSET MANAGEMENT STRATEGY AUTHOR: MICHAEL SINNOTT PAGE 5 OF 7
6 living in schemes as appropriate Remodel communal areas where appropriate in 50Plus including conversion of 1/2 bed apartments, office space, communal areas and guest rooms Reduce the impact of Welfare Reform by creating desirable and lettable homes through non 50Plus bedsit conversions Making best use of garage areas to convert to properties that add to the property portfolio 4 garage conversions for Tenure Conversion Review options as part of the appraisal process for tenure conversions as may be appropriate Annual SAP Rating Target our lowest performing homes for energy performance improvements and minimum rating for all homes Ensure all homes are rated C and above Compliance Environmental Improvements & Impacts Move to SAP 2012 Ensure compliance in: Domestic Gas Servicing Communal Gas Servicing Lift Inspections Fire Safety Legionella Asbestos register and surveying Provide secure and sustainable green spaces including tree planting programmes/community development opportunities such as allotment provision 2015 Review the current risk assessment by 2016/17 Increase the number of domestic surveys by 10% each year Linked to Environmental Strategy Determine the requirements of homes for energy efficiency, affordable warmth and eradicating financial exclusion for customers ASSET MANAGEMENT STRATEGY AUTHOR: MICHAEL SINNOTT PAGE 6 OF 7
7 Successful implementation of our Environmental Strategy Image & Branding Continue to innovate and challenge the accepted norm of traditional communal areas with a specific corporate style which is transferable across all areas and property types e.g. Social Housing with Style at all cottage flats/older person schemes/walk-up flats/multistorey blocks Aids & Adaptations Continue to support our Local Authority partners in administering their obligations review our 40% contribution level annually Stock Condition Have up to date and accurate data on our homes, eradicating the use of cloned data and target resources including budgets more effectively by introducing a dedicated in housing stock condition team from June 2015 Continue to achieve the Decent Homes Standard Life Cycle Review Review and evaluate current lifecycles for component replacement in conjunction with 30 year financial planning Neighbourhood Re-establish an IT based health Management Health check system based on Check neighbourhood performance/asset performance/customer feedback to build into the asset appraisal process as part of the ROI database 2015/ onward 100% by June % Decency 2016 Develop league table of performing assets/neighbourhoods driving investment considerations Monitoring and Review 5.1 This strategy will be reviewed on an annual basis and be reported to the Operations Committee. The strategy is supported by an action plan that is monitored bi-monthly 5.2 When reviewing the performance, a strong emphasis will be placed on achieving value for money in all areas and ensuring customer satisfaction and feedback is a key consideration. ASSET MANAGEMENT STRATEGY AUTHOR: MICHAEL SINNOTT PAGE 7 OF 7
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