Report to be presented to Kirklees Council - 1 October Kirklees Neighbourhood Housing Annual Report,

Transcription

1 Report to be presented to Kirklees Council - 1 October 2014 Kirklees Neighbourhood Housing Annual Report,

2 Quality Homes and Services in Successful Communities Foreword by Dave Harris, Chair of KNH On behalf of the Board and our staff, I am proud to present this annual report to the Council on the performance of Kirklees Neighbourhood Housing for the 2013/14 financial year. Despite the challenging external environment, our overall performance has been good, with the collection of rental income, maintaining decent homes and support and advice to vulnerable tenants and their communities being excellent. Early intervention and prevention have paid dividends, especially in debt advice, and this will become ever more important as we move into the future. We are not complacent and will continue to do all we can to improve our services to tenants in the most efficient ways possible. I would like to thank all our staff, council colleagues and external partners who have contributed to this success and who continue to do so as we move forward into next year. KNH is part of the Kirklees family and together we are here to help deliver the Council s corporate priorities and support our communities as they come under increasing stress. We need to look to the future. Housing needs in Kirklees are not being met. Our people need decent and affordable places to live. One of the most important determinants of health and wellbeing, which is a key Council priority, is the quality of the home that people live in. We need to build more homes. We need to build a range of different homes to meet particular needs. We need to provide homes for our ageing population. We especially need to build more Council houses so people have truly affordable rents and a secure and decent home in which to live and bring up their families. As a company we are a key strategic partner of the Council, and, as other ALMOs are now demonstrating up and down the country, we can do more to help deliver your housing priorities if you decide that is what you want. On the back of building homes are jobs, training, apprentices and support to local business. Homes and jobs are interlinked. There are resources in the Housing Revenue Account now that can be invested in the Councils housing priorities. The time is now before interest rates go up and increasing Government scrutiny of headroom and reserves may mean our window of opportunity is closed and the resources end up somewhere else. My Board colleagues strongly subscribe to the Council s values in supporting the many communities of Kirklees and providing the best services we can for them. We know that we will all have to help people do more for themselves in the current economic climate. We will play our part in doing that. We fully endorse your housing priorities and the need to support individuals and communities in difficult times. We will do everything we can to help you and I hope this annual report gives you the confidence that we are a financially sound, well led company, with dedicated staff ready and willing to move forward on a wide range of partnership projects with you over the coming years. Dave Harris 28 July

3 Contents Foreword by Dave Harris, Chair of KNH Purpose of this report Background Context and governance KNH s contractual obligations to the Council Tenant satisfaction and customer services Empty homes Income collection Repairs and maintenance Value for money Safer communities Community engagement Contributing to the Council s strategies Helping tenants into work and training Health and wellbeing Added value services Opportunities and challenges Further information Appendix 1: Performance table Appendix 2: Value for money assessment Introduction KNH s comparative costs Actions to improve VFM gains and outcomes for service users Investment and return on the Council s housing assets Summary

4 1.0 Purpose of this report 1.1 This report sets out to identify the activities and progress Kirklees Neighbourhood Housing (KNH) has made over the past year. It also sets out how KNH can continue to deliver services for the Council to help meet its objectives over the coming period. The report is set out in the following sections: 2.0 Background 3.0 Context and governance 4.0 KNH s contractual obligations to the Council 5.0 Contributing to the Council s strategies 6.0 Added value services 7.0 Opportunities and challenges 2.0 Background 2.1 KNH is an arms-length housing management company (ALMO) 100% owned by Kirklees Council, set up in 2002 to deliver the Council s Housing Strategy for 23,000 homes. In managing the Council s homes, as well as nearly 200 for other partners, KNH is one of the largest ALMOs in the country. The tenants remain tenants of the Council, not KNH. 2.2 Management contracts have been awarded on a five year basis. The first contract renewal was agreed by the Council from 2007 and a further five year contract was agreed in autumn 2011, commencing in April The current contract expires in March KNH s mission - Quality Homes and Services in Successful Communities reflects the fact that whilst we are a provider of services for the Council s tenants, we also have an essential role to play in helping individuals and communities develop and prosper. KNH manage some of the most deprived areas of the borough; in partnership with the Council, the positive way in which we engage with communities and other organisations will be increasingly important as we tackle the challenges ahead. 2.4 The Council s Delivery Plan for KNH identifies the key areas of work for the organisation; it is outcome focused and provides clear links to the Council s vision and priorities. 2.5 Performance management of KNH sits with the Place Directorate and is the responsibility of the Assistant Director Streetscene and Housing. There are quarterly performance review meetings involving the Council s Lead Member for Housing, Assistant Director Streetscene and Housing, KNH Chair and senior managers. The reviews focus on the key performance indicators as well as KNH s contribution to Council objectives; they review progress and policy to ensure that risks are taken into account and appropriate actions are taken to ensure outcomes are achieved. These business meetings are complemented by regular meetings with the Leader of the Council and Lead 4

5 Member for housing involving the KNH Chair and other Board members, as well as meetings with other senior political figures and the Council s Chief Executive, Directors and Assistant Directors. Coupled with this are a range of more informal relationship development sessions to ensure KNH is playing a full and active role as part of the Kirklees family. 2.6 KNH employs around 380 staff, with a senior management team of three supported by four heads of service. The senior team, along with all other public service bodies, has reduced significantly over the years. 2.7 There were some very significant changes in 2013/14. Perhaps the most important change was the implementation of further phases of welfare reform, and in particular the under occupation charge. These changes had a major impact on the customer experience and service response. As expected, the collection of rent was affected and there was also an impact on empty homes. The details are discussed in more detail in section 4.0, but there is no doubt that KNH, along with every other housing provider, is dealing with a very new set of circumstances that have had a profound impact on the delivery of services, and continue to do so. 3.0 Context and governance 3.1 KNH is run by a board of 15 non-executive directors; all are volunteers. Five members are appointed by the Council; five independents are appointed through a recruitment and selection process; four tenant representatives are appointed by ballot of tenants in one of four neighbourhoods; and the fifth is nominated by Kirklees Federation of Tenants and Residents. The Board has overall responsibility for the strategic management of KNH. 3.2 Over the past year, the KNH Board has continued to take a rigorous approach to the governance of the company. As well as ensuring that Board members have the right skills and attributes to succeed through their appraisal and training programme, the Chair, and committee chairs have a prominent role in supporting the rest of the Board in driving improvement and holding the executive to account. 3.3 KNH s purpose is to meet the Council s requirements as set out in The Council s Delivery Plan for KNH and we seek to do this through the delivery of our mission: Quality Homes and Services in Successful Communities. This report updates the Council and other partners on progress during the last financial year in three areas: how KNH is meeting its contractual obligations how we contribute to the Council s housing and related strategies what added value KNH brings to the Council and its partners 5

6 The KNH Board, along with the management of the organisation, is fully committed to continue working with the Council at every level during a difficult period to tackle the challenges we all face. This includes making the most of KNH s services in the continued support of Council objectives. 4.0 KNH s contractual obligations to the Council This section looks at how KNH is meeting the Council s requirements, as set out in the Council s Delivery Plan for KNH. The table at Appendix 2 shows how KNH has performed over the last two years against key performance indicators and against a benchmark group. This section looks at the main areas of housing management performance, including tenant satisfaction, rent collection, repairs, and the management of empty homes. 4.1 Tenant satisfaction and customer services The view of tenants on the service provided by KNH is a key indicator of service quality. An annual survey is carried out independently to a national standard. The graph below shows how satisfaction has changed over the past five years. 90% 85% 80% 80% 83% 86% 87% 85% Tenant satisfaction % 70% For the survey in late 2013, 2,000 tenants were randomly selected, of whom 755 replied, a response rate of 38%. Their views are collated by an independent survey organisation to give a comprehensive view of tenants perceptions. The surveys referred to in this report are from this source Having risen from the mid-60s at the start of KNH s first contract, satisfaction levels have fallen slightly in the past year to 85%. The survey has a margin of error of 3.75% so this is not thought to be significant. Overall satisfaction is significantly higher for older tenants across all areas surveyed. The survey company states this is typical of the sector; it highlights the need to further engage with younger customers. To address this, the greater use of social media is being explored. 6

7 4.1.4 However, satisfaction with KNH listening to tenant views and taking them into account fell from 69% to 62%. This is a significant reduction, and further work is being carried out to identify why the change has occurred following an increase in satisfaction for this indicator in the previous year. A contributory factor may be the implementation of policy changes Satisfaction with the neighbourhood rose again from 80% in 2010 to 85%, a reflection of the investment into neighbourhood improvements, increased satisfaction with Streetscene services such as grounds maintenance, and the work of KNH s popular estate caretaking service, which carried out over 11,000 jobs in the year. Importantly, satisfaction rates show little variation between neighbourhoods something that has not always been the case. Satisfaction with the neighbourhood Total Batley & Spen Dewsbury Hudds North Hudds South Satisfied 85% 86% 84% 87% 84% Dissatisfied 10% 9% 12% 6% 12% When asked which aspects of the service are most important, as in previous years repairs and maintenance were top by some margin, followed by quality of the home and the neighbourhood as a place to live. These results show a similar pattern to previous years, with little variation in responses The same survey showed 83% of tenants are satisfied with the quality of their home. Given the very high value tenants place on the repairs service, the partnership between Building Services and KNH is crucial to maintaining a cost effective, highly valued repairs service with high levels of satisfaction. During the last year, satisfaction with the repairs service showed a small decrease from the previous year at 82%. However given the margin of error in the survey, this is not thought to be significant. There is evidence to suggest that after many years of increasing tenant satisfaction with services at a national level, there is a levelling off. This is reflected in KNH s figures. As part of a national benchmarking club, KNH will be comparing performance in these areas and carrying out a range of actions to seek to maintain what are high satisfaction levels. However the marginal costs of maintaining very high levels of satisfaction have to evidence value for money. 7

8 4.1.8 In September 2013, KNH was re-accredited with the national Customer Excellence Award. The award is re-inspected on an annual basis Face to face customer service provision changed in 2013/14. From 2013 all customer access points for the Council s tenants are now through shared service centres at the Walsh Building in Dewsbury, Civic Centre 3, and the Town Halls in Batley and Cleckheaton. These moves have gone well: the quality of service has much improved and excellent joint work across service areas is in evidence KNH s telephony service through the Support and Information Team has faced a challenging year. The team received almost 120,000 calls in the year, a 20% increase in call volumes. The length and complexity of calls has also increased, with call times lasting over five minutes, an increase of over one minute. This change came about almost overnight following the welfare reform changes introduced in April It is a trend that has continued and we are reviewing the team s resources to improve the service to customers. However, the overall satisfaction with the service has remained high, and over 28,000 outgoing calls were made to customers to assist them with bidding for homes, as well as a wide range of housing and other concerns. 4.2 Empty homes There was a significant increase in empty homes activity during the year. In total 2,686 homes were relet during 2013/14 with just 316 empty at the end of March. Significantly, tenancy terminations increased, and there was a a particular increase in terminations of larger properties. Two bedroom property terminations increased by 12%, three bed by 20% and larger properties by 30%. This has had a very significant impact on workloads, and the average relet time, which increased to 36 days Overall stock turnover was higher at 12% reflecting these changes. Kirklees turnover is relatively higher than many other areas. This may in part at least be policy driven, and it can mean that people are more able to find solutions to their housing problems. It also has a direct impact on costs as empty homes need to be repaired, and there are significant costs associated with the reletting process. In addition, a high turnover in particular areas can have an impact on social and community stability, something KNH will continue to monitor and respond to There is good evidence to suggest these changes have come about as a direct result of welfare reform, and again the trend is reflected elsewhere with other housing bodies, particularly in the north. KNH s Homefit team are working with tenants under-occupying to help them find new homes more suited to their needs. Over the past year, 112 tenants with two or more spare bedrooms have been helped in this way. Another 106 found smaller homes through the allocations process. 8

9 4.2.4 As the graph shows, compared to the previous year, there was a sharp increase in the number of empty homes in the first half of the year reflecting the increase in terminations. Effective joint work with Building Services has brought this back in control, and this more stable trend has, so far, continued into 2014/ KNH fully recognises the need to continue to maintain pressure in reducing empty homes numbers and relet times. Together with Building Services colleagues, a LEAN review is being undertaken this year across the whole of the empty homes process to take out unnecessary procedures and inefficiencies. In addition we will continue to work with Council colleagues to review and update allocations policies to aid more efficient letting of homes. 4.3 Income collection KNH is responsible for the collection of the Council s 80 million annual rent debit. As well as the additional collection arising from benefit reform at around 1.6 million, the debit increased by 5% during 2013/14 as a result of the national formula-based rent rise. By the end of the year, 99.54% of the 80.3 million rent due had been collected Along with every other housing organisation, KNH was braced for the impact of welfare reform, and in particular the under occupation charge introduced in April The challenge was to maintain rent collection rates whilst at the same time balancing the very real needs of tenants whose incomes had fallen and who were also having to find additional finance to cover additional costs. For instance, the largest change, the under occupation charge, affected around 2,200 tenants at the start of the year. In addition, in anticipation of the change to Universal Credit, 9

10 which was due to commence implementation in October, the nonpayment weeks were abolished and rent was collected over 53 weeks In anticipation of the reforms, the Council agreed to fund additional debt advisers. The number of debt advice referrals doubled to nearly 1300 cases with debt advisors and arrears recovery officers seeing increasingly complex multi-debt cases. The emphasis on preventing debt and rent arrears wherever possible is proving effective in the current climate, and collection rates show that this investment has been value for money. Rent collected % in year debit (excluding historical debt) Rent collected (including historical debt) Current rent arrears (including historical debt) Former arrears cash collected Summary of rent collection 2012/ / % 99.54% 97.6% 97.5% million million 353, , The use of Discretionary Housing Payments (DHP) has had a positive impact on rent collection. However this can only ever be a temporary solution and as payments to tenants come to an end in the current year, further pressure will arise in maintaining collection rates Similarly, an increase in the number of tenants on direct debit from 2,000 to 6,500 over the past year has helped collection rates whilst reducing transaction costs KNH s activities on welfare reform have been overseen by a subcommittee of Board members and community representatives. This has enabled real focus and customer involvement in the activities to tackle the challenge the reforms present. The introduction of further phases of welfare reform will continue to present very considerable challenges to KNH and the Council in the collection of rents and other charges. Action has been taken in partnership with the Council to introduce more effective and cost efficient payment methods, and additional resources have been focused on the extension of debt and financial advice services to help mitigate the impact. We continue to work closely with Council officers to develop strategies and programmes to reduce the risks of lower rent collection rates and support vulnerable people as further welfare changes are introduced. 10

11 4.4 Repairs and maintenance On behalf of the Council, KNH delivered 33m of capital investment and 20m of revenue funded through the HRA. As a result of the capital investment, 3,300 homes were improved including: 361 kitchens 663 bathrooms 1,000 new central heating systems 273 rewires 181 new roofs 172 homes with thermal render Several large regeneration schemes were completed including Harold Wilson Court (the former Richmond flats). Tenants have benefitted from additional thermal insulation funded through the European Regional Development Fund Programme as part of the BIG Energy Upgrade programme - a new approach to energy efficiency and renewable energy projects. New energy efficient boilers and panel heaters, as well as heat exchangers that recover up to 95% of what would normally be wasted heat, have transformed the flats and the lives of their residents. Combined with LED lighting, triple glazed windows and thermal insulation inside and out, these measures are resulting in much lower energy bills for tenants. The investment has transformed the building internally and externally. It is now a warm, safe, comfortable and popular place to live, aided by an intensive pretenancy induction process for all new tenants so that they fully understand the responsibilities of having a council tenancy and living in a flat. The newly refurbished flats were officially opened in February 2014 by Cllr Mehboob Khan 11

12 4.4.3 Other external investment includes around 650k in support of green initiatives such as thermal render, connection to gas networks, narrow cavity insulation and external rendering In summary, the capital expenditure has ensured Kirklees homes remain above the basic decent standard with high levels of energy efficiency and condition of homes In addition to capital spend, over 20 million was spent on revenue works including 77,000 responsive repairs, gas servicing and repairs to empty homes Comparative information from other housing organisations shows that Kirklees costs are relatively low for investment per property and responsive revenue repairs. However, continuing work will be needed to extract greater value from repairs budgets; for instance, there is an increasing trend in the number of responsive repairs over the last three to four years. This continued in 2013/14, coupled with an increase in reports of dampness and condensation. KNH and Building Services will continue to work in partnership to manage repairs programmes, enabling a focus on high levels of customer satisfaction and value for money, whilst retaining a flexible and efficient workforce. 4.5 Value for money A detailed value for money assessment is included as an appendix to this report. Some of the key VfM issues are included in this section for ease of reference In KNH, as well as internal efficiency drivers, efficiencies have taken the form of an annual fee reduction. There has been a 12% reduction in the three years up to and including 2013/14. KNH has reduced costs across a range of activities: substantial reduction in back office costs, management cost reductions and a voluntary redundancy exercise to further reduce staff numbers. KNH costs have reduced by around 25% in the period from 2004/5 to 2013/14. However front line service provision has been protected, and satisfaction with the service has remained high as a consequence In order to compare costs with other housing providers, KNH are members of Housemark, a benchmarking organisation owned by the Chartered Institute of Housing. There well regarded and widely used benchmarking services always a direct comparison with both costs and quality of service across a range of housing bodies. Details of cost comparisons can be found in the appendix. 12

13 4.5.4 In terms of customer perceptions, the tenants survey in 2013 showed that 81% of tenants thought that the rent for their property represents value for money, a rise from 59% in Greater efficiency will also be developed through improved decision making that will arise from the clarity being given to areas of responsibility and accountability. The Council s Delivery Plan for KNH, with its focus on key priorities for delivery, is assisting in developing this clarity and enabling quicker, more streamlined decisions to the benefit of all stakeholders Overall, both performance and satisfaction with the service have increased during a period of cost reductions. During 2014 KNH continues to work closely with the Council in helping shape future services under the comprehensive review. We recognise and are sensitive to the impact of reducing resources faced by Council services and the tough challenges that represents, and we are committed to working in every way possible with the Council to help mitigate the impact The Housing Revenue Account, which funds KNH services, remains in a healthy position. In addition there are substantial reserves to enable continued maintenance of decent homes and provision of services to tenants. 4.6 Safer communities Following a successful colocation pilot with the Council s antisocial behaviour team and West Yorkshire Police, KNH s antisocial behaviour team transferred to the Council s new community safety partnership in The integrated approach to working brings significant improvements in services for victims and witnesses of ASB and is able to draw on a wider skills base including officers from West Yorkshire Police. Low level ASB continues to be dealt with by KNH area teams, and as with the approach to rent arrears, prevention is the objective. In order to support this, KNH have a partnership with West Yorkshire Mediation who, in the last year, dealt with 28 cases cases were dealt with by the partnership in the year and of these, 10% were escalated for enforcement action such as ASBOs, injunctions, and tenancy possession Satisfaction rates for those using the service has remained high, with nearly half responding to survey requests and 82% satisfied with the quality of service provided by the partnership. 4.7 Community engagement In coordination with the Council s community based teams, KNH s small community engagement team works with individuals and groups across priority neighbourhoods in Kirklees. We work closely with a wide 13

14 range of communities, both organised and more informally, to engage and support them to create better places to live. We work in partnership with Kirklees Federation of Tenants and Residents Association (KFTRA), whose more specific role is to support and develop tenants associations and widen resident involvement. We recognise the essential role of local elected members in this, and continue to improve mechanisms to ensure they are fully engaged in a way and to a degree that meets their needs KNH s community team have supported over 50 activity programmes, engaging over 1,000 adults and children, supported by 55,000 of external funding. Community engagement officers work with partners to organise a range of school holiday activities, such as this trip to Oakwell Hall for children from Windybank The wide range of tenant and resident associations (there are over 90 groups) and other community organisations, together with KFTRA, offers KNH and the Council a tremendous opportunity. Through these groups, effective communication and involvement can be undertaken on current challenges such as welfare reform, health and well-being, targeting of services /reducing costs, promoting empowerment and selfhelp, as well as the more traditional role as consultees and participants in the development of services Developing community leaders of tomorrow is being addressed through our Achievers programme which has been refreshed over the last year. This is a series of programmes of adult learning, supporting and developing tenants who want to improve their skills and knowledge to take an active role in their community. Since completing the course, many of the Achievers graduates have taken on a range of responsible roles - as board members, running community organisations and taking part in scrutiny exercises. 14

15 4.7.5 Work is almost complete in the Council s priority areas using HRA funding to improve the environment and local facilities. The investment has been used as a catalyst to engage with members of the community and local elected members to help find lasting solutions and is already resulting in increased satisfaction with the neighbourhood. This work will be completed by the end of 2014/ Tenant scrutiny was further developed following successful pilot schemes in 2012/13 with professional support from the Council s Scrutiny Team. Two reviews were completed over the year: lettable standards and chargeable repairs. The findings from the reviews were presented directly to KNH s Delivery Committee by the tenant review panel members and action plans are agreed by the full Board to ensure effective implementation of the recommendations made The arrangements for tenant scrutiny will support KNH in ensuring that the views and priorities of tenants and residents are able to influence the Board`s decision making in relating to service provision. It will also act as a key driver for providing the challenge to effect change, improve standards, and increase efficiency The effectiveness of these relationships relies on the creation and maintenance of trust and confidence between all the parties: tenants and their local communities, the Council, local members, and staff of both the Council and KNH. It offers opportunities to develop and shape services with people at a time of huge change. In Kirklees this provides a sound basis on which to build that work 5.0 Contributing to the Council s strategies In addition to the core business of delivering high quality housing management services, KNH contributes to the development and implementation of the Kirklees Economic Strategy - supporting training, skills and jobs - and the Health and Well Being strategy. 5.1 Helping tenants into work and training In the last year 36 tenants were helped into work and 117 into training through the jointly funded programme with the Department of Work and Pensions Support for adult learning in the community and supporting adult learning events, in particular the KNH Achievers programme developing community leaders for the future Development of KNH s own apprenticeship programme, providing opportunities for six people in a range of housing related activities. 15

16 5.2 Health and wellbeing Some examples of the work KNH are doing in support of health and wellbeing are set out below The highly popular older people s service supports active independent living and reducing demand for more intensive services from the Council and other partners. KNH manages 19 retirement living schemes with over 500 residents and also provides floating support to older people who do not live in the schemes Coupled with this, a range of activities are run at the schemes. In the last year over 300 sessions were held with almost 3,000 people taking part. These have included music sessions, games afternoons, and digital inclusion. Intergenerational ukulele lessons, run in partnership with Kirklees Music School, have been particularly popular The Home from Home scheme, a partnership with Adult Services and NHS recognises the need to move people on from hospital care back to their own home to support recovery and tackle bed blocking. Working with Adult Services, it provides a halfway house accommodation in several sheltered scheme units which might otherwise be difficult to let. It is provided for those leaving hospital but unable to return to their home for a period, for instance because adaptations are required The standards of the Council s homes for energy efficiency are some of the highest in the country, helping tackle fuel poverty and the health impact that poorly heated homes can have. This will be an area of continued focus for KNH in the years ahead as fuel poverty coupled with energy price increases becomes an increasing issue. 16

17 5.2.6 KNH staff are also involved in sponsoring and supporting holiday activities for young people, reducing crime and anti-social behaviour in neighbourhoods during school holidays We completed the Plant it, grow it, eat it project, a three-year Big Lottery-funded scheme managed by KNH to encourage the development of community gardens and healthy eating in areas of highest need. Plant It sites, such as this one at a children s centre, were set up to be self-sustaining and so continue to thrive The young people s support team provide intensive housing management support to those aged under 20, with 90 tenancies set up in the year; this has helped keep young people safe but independent. 5.3 KNH is also involved in a range of environmental activities which support Council strategies: Investment in neighbourhood improvement is reflected in improved satisfaction with neighbourhoods as a place to live Delegated resources to tenants are being invested in local environmental projects to meet local needs based on an agreed investment criteria Partnership work in regeneration projects such as Southgate flats has helped improve town centre living, while other projects in Deighton and Brackenhall are bringing new homes, jobs, and an improved environment to some of the most deprived areas of the borough. 5.4 KNH will continue to work in close collaboration with the Council on a series of shared priorities. These include: the challenges presented by welfare reform, neighbourhood working, further development of employment and training 17

18 opportunities, developing social enterprise and the support to vulnerable older people to remain independent. KNH works closely with some of the most vulnerable members of the community and are able to respond quickly and effectively to challenges and changes in demand as they evolve. 6.0 Added value services 6.1 As well as making a contribution to the Council s key strategies, KNH also carries out a range of functions in partnership with services which add value to the work of the Council and its partners, and the communities we serve. Below are some examples of that work that are providing a valued contribution to the welfare of vulnerable people and their communities. This is particularly important in difficult economic times. It shows how KNH are using resources to provide a wider scope of services in support of individuals and communities that complement the work of the Council and partners. 6.2 Over the past 12 months an effective partnership between KNH and the Council s Fraud Team has seen the return of 30 homes for re-letting following successful investigations into fraudulent tenancies. This work will continue into , funded for a further year by government financial assistance. Beyond that a new policy framework is being developed to meet the latest legislative requirements in this area. 6.3 The Think Smart Recycle project, run in partnership with Fusion Housing, supports hundreds of tenants with recycled furniture to enable them to start their tenancy on a sound basis. During the year, over 6,000 items of furniture and equipment were supplied. This project has been extended in the past year to reflect the growing need for this type of support. A shop front in the centre of Huddersfield was opened in the former housing office in New Street to aid fund raising and improve access to cheap household items. The Think Smart Recycle shop on New Street was opened by Cllr Cathy Scott in February

19 6.4 We have set up schools partnerships through the KNH Kids programme delivering citizenship events in the classroom. We also run holiday diversionary activities in partnership with Council services, external providers and community groups. 6.5 Take up of web based services amongst social housing tenants is relatively low compared to the wider population. KNH has run several projects to tackle this, including the inclusion of free Wi-Fi in the newly refurbished Harold Wilson Court. A KNH-funded project is extending access to several other locations, and a broader project in coordination with the Council is being prepared for launch later in the year. The access to web based services will also encourage self-service, which will help reduce costs. 6.6 The handypersons service continues to support new tenants in setting up a new home as well as other small day to day jobs, for instance curtain hanging for elderly people. This service is self-funded through discounts achieved through the decorating voucher scheme. 6.7 Working with Council colleagues, KNH have developed new affordable homes through Quality Social Housing (QSH) without the need for public sector resources. A pilot of four was let early in 2012, managed by KNH, and a further twelve were let in summer There is the potential to have another 60 homes let on this basis over the coming year. In addition, 30 homes subject to social housing fraud were returned to letting through partnership action with Council colleagues. 6.8 There is a desperate need for more new affordable homes in Kirklees. KNH are keen to work in any way with the Council to increase the supply of affordable and social housing. Whether this is through use of HRA reserves, borrowing through the HRA headroom or these and a mix of other methods, KNH are committed to playing a full and active part in seeing new homes built and managed locally. 7.0 Opportunities and challenges 7.1 There are a series of national changes which are, and will continue, to put increasing pressure on services. In addition, Council budget reductions and growing demand resulting from an aging population are placing increasing pressure on services. 7.2 KNH is actively involved in the Council s response through the Comprehensive Review. In this context, effective collaboration at every level with the Council and other key partners has never been more important. There are opportunities to shape and enhance particular areas of service to support tenants and residents, for instance the extension of the older people s service to enable people to remain independent in their homes. This fits well with the Council s strategic objectives, and could help reduce pressure on Adult Services budgets. This one of a range of service areas where discussions are taking place with the Council to see where KNH could add further value to the comprehensive review process. 19

20 7.3 During 2013/14, the introduction of the under occupancy charge has, as expected, added to the challenge of maintaining rent collection performance. The implementation of universal credit, at a date to be clarified but expected over the next two years, presents the next major challenge. To help tackle these issues, there is close and effective cooperation between KNH and Customer and Exchequer Services and other Council colleagues. All have a real focus on maximising information to residents in a way that is relevant and accessible. 7.4 KNH has worked with Council officers to review the resources needed to increase levels of rent collection, for instance increasing the availability of debt and financial advice. In spite of these measures, the impact on arrears will be significant if the experience of those housing organisations currently piloting the changes to universal credit is replicated. This will be taken into account in the longer term planning for the Housing Revenue Account business plan. 7.5 Whilst the challenges are in many ways unprecedented, the KNH Board, management and staff are fully committed to working with the Council in whatever way is necessary to support vulnerable people and communities. 8.0 Further information If you would like more information about any details in this report, please contact Simon Rogers, Chief Executive Kirklees Neighbourhood Housing E: simon.rogers@knh.org.uk T: July

21 Appendix 1: Performance table Performance Indicator 2012/13 Housemark upper quartile for Metropolitan ALMOs 2012/13 Outturn 2013/14 % satisfaction with services 87% (1) 86.5% 85% (1) 85% Average SAP rating % satisfaction with 84% (1) 84% 85% (1) 85% neighbourhood % repairs completed on 91.1% 98.8% 93.7% 94.6% time % satisfaction with repairs 85% (1) 85% 82% (1) 85% Average relet time (days) % rent loss on empty homes 1.36% 1.08% 1.85% 1.80% % rent collected (including 97.6% 97.7% 97.5% 96.0% historical debt) Notes (1) Results from STAR survey Target 2014/15 21

22 Appendix 2: Value for money assessment 1.0 Introduction 1.1 This appendix provides more information on KNH s value for money (VfM) assessment to complement the rest of the annual report. It is set out along similar lines to the Homes and Communities VfM self-assessment requirement for housing associations. It is done in this way not because KNH, or the Council, are obliged to do so, but as a tested framework within which performance on VfM can be better explained. 1.2 In context: the Kirklees HRA turns over more than 90 million annually, and the Council owns nearly 23,000 homes. Of that, KNH s budget amounts to around 13 million. 1.3 Housing management performance, tenant satisfaction with the overall service, satisfaction with value for money, and satisfaction with the neighbourhood as a place to live have all been maintained, and many have increased, during a period of cost reductions. 2.0 KNH s comparative costs 2.1 KNH is a member of Housemark, an organisation owned by the Chartered Institute of Housing, which runs a benchmarking service to which most social housing organisations subscribe. The Housemark VfM assessment is measured on a peer group basis, and KNH are included with ALMOs in metropolitan areas as the closest comparator group. KNH s group consists of around 15 similar organisations, all of which have a reputation for high performance. A summary is on page The peer group benchmarking shows KNH has amongst the very lowest overhead costs in the comparator group. Housing management costs are a little higher than average, but this reflects KNH s customer service and value for money strategies of supporting front line services. The approach has been to offer a consistent level of service across the whole area, but to invest in a more intensive service in areas of greatest need and vulnerability. For instance, we have a Young Peoples Tenancy Support Team who manage tenancies for those aged This has resulted in lower turnover of tenancies and fewer terminations for reasons such as eviction or abandonment. In 2013/14, of the 90 new tenancies created, only 5 ended and three of those were for positive reasons. 2.3 Higher than average management costs are also a consequence of the relatively high stock turnover, which for 2013/14 was 12%. It isn t an issue unique to Kirklees. Additional work by Housemark, commissioned by KNH in 2013, to drill down in more detail on costs, indicates this is characteristic of a number of registered social landlords and local authorities along the M62 corridor. This has an impact across empty homes costs, management of the allocations process, and related activities such as new tenancy visits and relet times. 22

23 2.4 The number of staff employed per 1,000 properties in KNH is exactly average for the group. Resident involvement costs are relatively high compared to the benchmark group, but this also includes the costs of the tenants involvement mechanisms funded through the HRA. This element of service is currently under review. 2.5 In terms of service user perceptions, the STAR tenants survey in 2013 showed that 81% of tenants thought that the rent for their property represents value for money. Satisfaction has risen to 81% from 59% in 2003, with a slight dip in the last year which, whilst not statistically significant, is forming part of our response to improve the perceptions of services users, particularly those in the younger age groups. 2.6 Repair and maintenance costs show repairs and empty homes to be low cost compared to the peer group. STAR satisfaction survey data on repairs at 82% satisfaction is comparatively high. 2.7 Since 2011/12 overhead costs have reduced whilst housing management costs have slightly increased compared to the ALMO comparator group. This reflects KNH s approach in bearing down on central and overhead costs whilst supporting front line services to vulnerable people and communities. Tenant satisfaction with value for money for rent,

24 KNH VFM Summary from Housemark Benchmarked Against Metropolitan ALMOs 3.0 Actions to improve Actions in 2014/15 to improve value for money and reduce costs further include 3.1 LEAN review of the whole empty homes process in collaboration with the Council s Building Services. We aim to reduce empty homes rent loss from 1.85% in 2013/14 to below 1.5% by the end of 2015/16, a saving of at least 250,000 to the HRA. 3.2 Contributing to the Council-commissioned review of tenant participation costs. This is expected to reduce costs by around 100,000 to be reinvested in more effective means of engaging customers for instance through further work to tackle digital exclusion to help address the fall in satisfaction with consultation from 69 62% in the past year. 3.3 A review with the Council of the allocations policy to ensure the most effective use of homes. Projected savings from further changes are more difficult to quantify at this stage. However, each reduction of 1% in stock turnover on empty homes repair costs alone could release savings of around 250k back to the HRA. 3.4 A reduction in back office costs during 2014/15 through, amongst other things, the rationalisation of KNH office premises. This is expected to release savings 24

25 of up to 200,000 to be reinvested in further improvements to working method efficiencies, including IT support, as well as investing in projects to increase availability of debt advice, support for older people and enhanced digital inclusion. 4.0 VFM gains and outcomes for service users 4.1 Over the period 2011/ /14 KNH had a 12% efficiency target set by the Council. In cash terms this equates to savings of around 1.5 million; the target has been met. KNH s approach to reducing costs over this period, as referred to above, has been to identify front line services which were felt to be of high importance. Those services were protected from immediate cost reductions, but were expected to deliver internally driven VfM. Other cost centres, in particular back office costs, were reduced in scale and in staff numbers. This is a continuation of a process that has seen, for instance, the halving of directors numbers to two and a reduction in service heads from six to four. In addition there continues to be an approach to ensure there is no duplication with Council services. 4.2 The Housemark benchmarking shows KNH s overhead costs to be amongst the lowest of the peer group. The results for 2012/13 compared to the previous year show KNH s overhead costs as a percentage of all costs reduced from 17.04% to 14.7%. 4.3 The reduction in KNH expenditure has contributed to an increase in HRA balances. This has given greater assurance to the long term maintenance of decent homes and services, and will be used by the Council to support the long term maintenance of the stock and increase energy efficiency measures. This includes a large scale PV programme, specialist cavity insulation measures for non-traditional properties, and more investment in renewable heat measures. 4.4 In terms of services, additional resources of around 250,000 have been invested in debt and financial advice services and rent collection staff in order to manage the challenges of welfare reform. In 2013/14, KNH collected 99.5% of rent due. 4.5 The transfer of resources from KNH costs to the HRA has also helped the Council be in a sound position to make decisions not only about the future maintenance of homes and services to tenants, but also opens up the potential to develop new services and new supply. 4.6 During this period, satisfaction with the service remained high, rising from 83% to 87% over the three years, before falling slightly to 85% in late 2013, a reduction that is not statistically significant. During the same period, satisfaction with the neighbourhood as a place to live rose from 80% to 85%. This reflects continued investment in front line and tenant facing services to tackle ASB and in environmental improvements for instance through the work of the KNH estate caretaking team and through the decentralised tenant-led budgets. 25

26 4.7 During the last 18 months, tenant scrutiny has developed into a constructive and challenging enhancement to the development of services. A series of service enhancements have been identified and the KNH Board has, almost without exception, agreed to implement the findings. Improvements in the lettable standard, communal area cleaning, and better communication with tenants across a range of service areas, have been implemented at no additional cost. Our next stage in this process will be to evaluate more accurately the cashable savings derived from the scrutiny process and to work with tenants to assess how those resources can best be reinvested. 5.0 Investment and return on the Council s housing assets 5.1 The existing use value of the Council s housing stock is 451 million as at April 2013, an average of just under 20,000 per property. The investment to protect and improve the value of the Council s asset, and maintain the decent homes standard following investment of 250 million through the decent homes programme, is a key strategic priority of the Council. The investment plan reflects this priority. 5.2 The Housing Revenue Account is set out over a long term 30 year planning horizon, with detailed plans for investment over the next five years in support of this overall strategic approach. Excluding refusals, which are estimated at just over 4%, all of the Council s homes meet the decent homes standard. 5.3 KNH carries out stock condition surveys on a rolling four year programme. 100% of the external condition and over 90% of the internal condition is now known. The data is analysed using a sophisticated database to inform future investment priorities. 5.4 Tenants satisfaction with the overall quality of their homes has stayed consistently around 85% over recent years. 5.5 Housemark benchmarked costs for 2012/13 show major works and cyclical maintenance costs are very good value for money, amongst the best in the peer group. In the period from 2010 to 2014, as a result of focused and consistent investment, the costs of cyclical maintenance have reduced by around 30%. 5.6 Social value and environmental returns are an important aspect of the investment strategy. As part of this, a focus on improvements to energy efficiency is helping to reduce fuel poverty and CO 2. We are on track to meet our target of reducing CO 2 emissions from the Council s housing stock by 30% by In support of greater energy efficiency, in 2013/14, we fitted over 1,000 energy efficient boilers installed additional insulation to 1,250 homes externally rendered 180 homes with highly energy efficient material 26