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Asset Management.doc

  1. 1. Castle Rock Edinvar Asset Management Strategy 1.0 Introduction 1.1 Vision Castle Rock Edinvar is a member of the Places for People Group. Places for People’s purpose, is to create new and manage existing communities in a responsible and sustainable manner and the vision statement is “to create neighbourhoods of choice”. Castle Rock Edinvar’s Asset Management Strategy aims to contribute to that vision by establishing the framework in which we manage our property assets. 1.2 Strategic Overview Our Asset Management Strategy aims to ensure that Castle Rock Edinvar’s property assets meet current standards and are fit for purpose for the future. Annually we invest approaching £6milllion in our stock. This represents approximately 30% of our annual rental income. Our Asset Management Strategy is developed around ensuring that all properties meet the Scottish Housing Quality Standard (SHQS) by 2015 and meeting the challenges of delivering cost effective and excellent property maintenance services in order to provide well maintained, warm and safe homes which contribute to sustainable communities. Priorities beyond 2015 will emerge in the coming years. The Asset Management Strategy has been prepared to inform Castle Rock Edinvar’s and Places for People’s Business Plan Objectives. The strategy is also intended to complement our Affordable Warmth Strategy. 1.3 An Holistic Approach The Asset Management Strategy involves all aspects of managing our property portfolio and includes: • Establishing the framework to ensure that investment is directed towards meeting our legal obligations and meeting the SHQS by 2015 as a minimum standard. • Providing an efficient and effective maintenance service to customers which involves planned and cyclical maintenance works as well as a reactive repairs service. • Considering the disposal of property assets where properties cannot be economically brought up to the SHQS
  2. 2. • Considering remodelling or disposal of purpose built special needs properties that have reached the end of their useful life. • Developing specific local investment or tenure diversification strategies to support our approach to neighbourhood regeneration. 2.0 OUR HOUSING STOCK 2.1 Castle Rock Edinvar’s rented housing stock is diverse in nature and location. Our total stock as at 31st March 2008 was 5244. Table 1 sets out our stock profile. Table 1 Stock Profile 31st March 2008 CITY OF EDINBURGH high 4 in a all types house rise tenement block flat/maisonette pre 1919 A 737 648 1 88 1919-1944 B 29 29 1945-1964 C 3 3 1965-1982 D 453 107 0 0 0 346 post 1982 E 1767 310 19 10 1428 TOTALS 2989 417 0 699 11 1862 CLACKMANNANSHIR E high 4 in a all types house rise tenement block flat/maisonette pre 1919 A 0 1919-1944 B 0 1945-1964 C 0 1965-1982 D 0 post 1982 E 48 32 16 TOTALS 48 32 0 0 0 16 EAST DUNBARTONSHIRE high 4 in a all types house rise tenement block flat/maisonette pre 1919 A 0 1919-1944 B 0 1945-1964 C 0 1965-1982 D 0 post 1982 E 28 28 TOTALS 28 28 0 0 0 0 EAST LOTHIAN high 4 in a all types house rise tenement block flat/maisonette pre 1919 A 37 37 1919-1944 B 0 1945-1964 C 0 1965-1982 D 1 1 post 1982 E 330 33 297 TOTALS 368 34 0 0 0 334 FALKIRK 2
  3. 3. high 4 in a all types house rise tenement block flat/maisonette pre 1919 A 0 1919-1944 B 0 1945-1964 C 0 1965-1982 D 0 post 1982 E 8 8 TOTALS 8 8 0 0 0 0 MIDLOTHIAN hous high tenemen 4 in a all types e rise t block flat/maisonette pre 1919 A 440 440 1919-1944 B 85 0 8 77 1945-1964 C 0 1965-1982 D 29 29 post 1982 E 378 57 0 35 286 TOTALS 932 497 0 8 112 315 WEST LOTHIAN hous high tenemen 4 in a all types e rise t block flat/maisonette pre 1919 A 0 1919-1944 B 13 1 11 1 1945-1964 C 36 36 1965-1982 D 319 216 9 94 post 1982 E 362 149 37 26 150 TOTALS 730 366 0 48 35 281 STIRLING hous high tenemen 4 in a all types e rise t block flat/maisonette pre 1919 A 0 1919-1944 B 0 1945-1964 C 0 1965-1982 D 0 post 1982 E 141 84 57 TOTALS 141 84 0 0 57 0 TOTAL FOR ALL AREAS hous high tenemen 4 in a all types e rise t block flat/maisonette pre 1919 A 1214 440 0 648 1 125 1919-1944 B 127 1 0 48 77 1 1945-1964 C 39 0 0 3 0 36 1965-1982 D 802 324 0 0 9 469 post 1982 E 3062 701 0 56 128 2177 TOTALS 5244 1466 0 755 215 2808 5244 self contained 3
  4. 4. Our properties are a mixture of construction types varying from traditional stone/brick built properties as well as no fines concrete to more modern block cavity and timber framed properties. Our stock profile can be summarised as: • Approximately 23% is pre 1919 including 648 dispersed Edinburgh tenement flats and 40 ex Coal Board properties in Midlothian. • 319 individual properties built between 1965 and 1982 acquired from Livingston Development Corporation through a trickle transfer process. • 958 purpose built sheltered, very sheltered or supported accommodation properties. • 58% of our stock which has been constructed since 1982, with 20% constructed between 1995 and 2000 and reaching a critical stage in terms of life cycle planning. Included in our stock are properties acquired from non-RSLs for improvement at the Thistle Foundation and improvement and part disposal from Grange Estates in Newtongrange. We also provide a property management and factoring service to 195 sharing owners and 258 privately owned properties including 100% owner occupiers and private retirement homes. In addition, we have a responsibility to manage the assets of our subsidiary company Lothian Homes who have 349 mid and market rent properties and to manage 104 Blueroom properties for our parent company Places for People. 3.0 LANDLORD RESPONSIBILITIES Our responsibilities as a registered social landlord are set out in Housing (Scotland) Act 2006. As a registered social landlord, we are required by law to keep properties wind and water tight and ‘reasonably fit for human habitation’. Our obligations are: (a) To keep in good repair the structure and extent of all properties and communal areas, this will include: • foundations, roof, chimney stack, external walls, external doors, window sills, window frames, drains, gutters, external pipes • internal walls, ceilings and floors, fair wear and tear • fitted cupboards and kitchen units, fair wear and tear • pathways, steps and other types of entry, boundary walls/fencing and gates • garages, external stores, outbuildings (not those installed by tenant) 4
  5. 5. (b) To keep in good repair and proper working order installations for the supply of water, gas, electricity, sanitation, space and water heating, this will include: • sanitary fittings (for example, sinks, washbasins, baths, showers and toilets) • fittings which supply water, gas and electricity • fire and central heating systems which we have installed or have agreed to maintain • water heating systems which we have supplied. (c) Where Service Charge agreements are in place to repair and maintain communal areas, this will include: • cleaning of common access stairs • lighting where appropriate • lifts and door entry systems • communal television aerials • grounds maintenance of open spaces • carry out regular external and common access painting. (d) Publish and inform tenants of their, and the Association’s, responsibilities in respect of repairs. 4.0 SCOTTISH HOUSING QUALITY STANDARD 4.1 On the 4th February 2004, the Minister for Communities announced the introduction of the Scottish Housing Quality Standard (SHQS), a standard for decent homes in Scotland. The SHQS is a national standard based on a minimum set of quality measures for all houses in the social rented sector. As part of our preparations for meeting SHQS standard, we are required to set our investment plans to achieve it by 2015. To achieve the standard a property must meet 6 essential criteria. These are: • Above the tolerable standard • Free from serious disrepair (primary element) • Free from serious disrepair (secondary element) • Energy efficient • Have modern facilities and services • Healthy safe and secure. 4.2 Prior to their merger of Castle Rock and Edinvar both organisations took a different approach to assessing the condition of their housing stock. Castle Rock collected stock condition data based on assumptions driven from a component life cycle database while Edinvar’s approach was to identify failures based on part stock condition surveys and part cloned information. 5
  6. 6. We recognise the need to improve our knowledge of the condition of our housing stock and will complete a stock condition survey of our entire property portfolio by the end of September 2008. 4.3 Castle Rock and Edinvar Housing Associations originally made separate SHQS submissions to Communities Scotland. A revised combined Castle Rock Edinvar submission was provided to the Scottish Housing Regulator in March 2008. The submission identified 1122 properties deeming to fail to meet the SHQS. This number will reduce as survey work is completed and by September 2008 will be able to certify more accurately that properties meet the standard. The 1122 failures represent 21% of our total stock and compares favourably with the monitoring information provided in Communities Scotland SHQS Progress Report dated January 2008 which states: • Section 5.3 “average failure rate per RSL is around 32%...” • Section 5.5 “54% of RSLs have an SHQS failure rate of less than 25%...” 4.4 The failures identified at 31st March 2008 consist mainly of the following categories Modern Facilities & Services (60%) Mostly kitchens & bathrooms Free from serious Disrepair (36%) Roof overhauls and Windows Energy Efficient (3%) Inefficient heating systems Healthy, Safe & Secure (2%) Insecure doors/sound insulation 4.5 In our SHQS Investment Plan we set out to eliminate stock failing to meet the SHQS by end of year 2010/11, four years ahead of the target date of 2014/15. Our assessment of the condition of our housing stock to date has determined that approximately £3.0 million will be required to bring properties currently failing up to standard by year 2011. After 2011 increasing levels of investment will be required per annum to ensure existing properties continue to retain the SHQS. From 2011/12 over £3million will need to be invested annually. 4.6 Our investment levels and impact on meeting the SHQS are set out in Appendix 1 – The Self Certificate Schedule 1 (from the SHQS investment plan). 4.7 Our intention is to ensure that our stock information remains up to date. We will continue to regularly inspect a sample of our properties on an 6
  7. 7. annual basis. We will also use information obtained from our own in house maintenance teams on the quality and condition of properties based on their experience of carrying out day to day repairs. This will allow us to move to accurate evidence based stock condition data to inform future investment programmes. Specifically we will seek external verification of the condition of our stock against the Scottish Housing Quality Standard by 2010/11. 5.0 ENERGY EFFICIENCY STANDARDS 5.1 National Home Energy Rating (NHER) The NHER is a score of a homes energy efficiency on a scale from 0 (inefficient) to 10 (very efficient). The rating is based on total running costs per square meter of floor area under standard occupancy conditions. Most homes in the UK score approximately 5, while a house built to current building regulations would score between 7 and 9. Our existing data shows that our average NHER rating is 6.9 on properties constructed prior to 2005. Properties constructed after that date are subject to a Design Standard of NHER 9.0. 5.2 Standard Assessment Procedure (SAP) The SAP is the Government’s preferred energy rating, initially introduced as a way to compare different energy levels being delivered within the UK. SAP assessments are one way of assessing that homes conform to building regulations. SAP ratings are assessed using a score of between 1 and 100. The main difference between SAP and NHER is that SAP is independent of geographic location and does not take into account energy used by lights and appliances. A home scoring 0 would be very inefficient whilst a home scoring of 100 is considered very efficient. The average SAP rating of our stock for properties constructed/refurbished prior to 2005 is 78.1. Properties constructed after that date are subject to a Design Standard of SAP 85 – 90. It is anticipated that around 16% of our rented stock has a SAP rating less than 65. We aim to achieve a minimum SAP rating of 65 for all our properties by 2012. This exceeds the SHQS requirement of a SAP rating of 50 for gas heating and 60 for all other forms of heating by 2015. 5.3 Energy Performance Certificates On 4th January 2003, the Directive 2002/91/EC of the European Parliament and Council on the energy performance of buildings took effect. The objective of the Directive is to highlight awareness of use in buildings and is intended to lead to substantial increases in 7
  8. 8. investments in energy efficiency measures within these buildings. Both domestic and non-domestic buildings must comply with the legislation. The Directive prescribes that when a building is constructed, sold or rented, an Energy Performance Certificate detailing its energy performance must be made available. This certificate can either be to the owner or by the owner to the prospective buyer or tenant. EPCs will provide owners and tenants with better information about the carbon dioxide emissions from their properties and will include simple cost-effective home improvement measures that will help save energy, reduce bills and cut carbon dioxide emissions. EPC’c will be required for existing buildings in Scotland from January 2009. An annual budget provision of around £25,000 to £30,000 will be required to provide EPC’s for relets and through a forward planning programme. Further detailed guidance on who will be eligible to produce EPCs in Scotland is awaited from the Scottish Government. In the interim, Castle Rock Edinvar will be part of the Group tender arrangements with Scottish Power and this will be reviewed on receipt of the Scottish Government guidance. 6.0 ASSET INVESTMENT 6.1 Investment Planning Our investment planning framework includes: • Planning for a 5 year investment programme which forms part of the cash flow submission and SHQS investment plan to the Scottish Housing Regulator. • Preparing a detailed three year planned programme of works within Places for People’s three year rolling business plan framework. • Developing an annual detailed programme of works for each year which is provided for as part of our annual budgetary process. 6.2 Investment Programmes Castle Rock Edinvar has finite resources to invest in our housing stock. Our ongoing investment programme will not only continue to prioritise investment to achieve the SHQS standard and to prevent stock that currently meets the SHQS from failing in future but will also ensure that issues over and above SHQS are included in our long term planning. These include meeting Health and Safety requirements, delivering our Affordable Warmth objectives and a co-ordinated approach to neighbourhood planning. Spending on our housing stock is delivered through a number of inter- related but distinct activities: 8
  9. 9. • Routine repairs and maintenance, including responsive repairs, works to void (empty properties), servicing equipment and cyclical work such as external painting. We are currently spending around £2.1 million a year on this type of work. • Planned maintenance carried out when parts of a property or building needs to be replaced where components have reached the end of their useful life and are beyond economical repair. We are now spending around £3 million a year on this type of work. • Environmental and Estate improvements which improve the condition and security of estates. We are spending £50,000 - £70,000 a year on this type of work. • Adaptations to our stock to meet medical needs are supported by Scottish Government through Stage 3 grants and currently we invest £200,000 per annum. 6.3 Investment Priorities It is essential that investment is co-ordinated, managed and directed to derive maximum benefit and achieve value for money. Our investment priorities to meet our strategic objectives are: • Continue with our programme to ensure properties are wind and water tight and to extend the useful life of the structure of the buildings. Investment will focus on overhauls to roof coverings, 400 roofs have been programmed for overhauls or roof covering replacement between 2008/09 and 2010/11. • Continue with our programme of window and door replacement targeting properties in greatest need. We aim to replace windows in 966 properties and doors in 416 properties between 2008/09 and 2010/11. • Improve the stock at the Peffers, Thistle Foundation and former Grange Estates properties in Newtongrange where a programme to complete 1 and 3 bedroom properties will commence 2008/9. • Continue with our programme to replace kitchen and shower/bathrooms including revision of layouts where necessary to maximise storage/amenity etc. We aim to replace 485 kitchens and 773 bathrooms between 2008/09 and 2010/11. • Improve the energy efficiency of our stock in line with the aims of our Affordable Warmth Strategy to include: Loft & Cavity Wall Insulation Draft Proofing Energy Efficient Windows Replacement of old inefficient electric storage heating 9
  10. 10. Replacement of inefficient gas boilers with combi-boilers. Replacement of solid fuel systems Renewable energy systems where cost effective Treatment of damp and condensation problems Provision of energy advice/low energy light bulbs. 6.4 Health and Safety Requirements 6.4.1 Safety Checks We have a legal responsibility to ensure all our customers live in properties which are healthy, safe and secure. In order to achieve this we undertake the following as part of our annual planned programme: • Annual safety checks of all gas appliances, pipework and associated fittings at properties we manage. This check also includes smoke alarms. • A programme of electrical checks on all our properties every 10 years or at change of occupancy and upgrading of installations identified during these checks. • Conduct regular testing and disinfection of water systems to office premises and high risk categories of tenure such as sheltered and very sheltered/supported and Care units to prevent contamination by legionella bacteria within timescales laid down by the Health and Safety Executive and approved codes of practice. We also undertakes regular servicing of the following: • An annual programme of testing of portable electrical appliances. • All fire alarms as required by current legislation • All emergency lighting installations • All fire fighting equipment and signage, replacing any damaged or faulty equipment • All passenger lift installations • All existing and future stairlift installations 6.4.2 Asbestos Management Information on asbestos is held on a web based register managed by the Group’s current Asbestos Consultant, BES. It is proposed that all properties identified as possible ‘at risk’ categories will be surveyed by BES. Survey will include common areas and a sample of individual flats within the site. Current information indicates that in Castle Rock Edinvar properties any asbestos identified is low risk. The current policy is to record and manage asbestos rather than removal. Reports are made available to contractors prior to any major works commencing. Work is underway to include ‘Asbestos Warnings’ 10
  11. 11. on reactive repair work orders. Only trained and accredited contractors are allowed to undertake any asbestos removal work. 6.4.3 Fire Safety We recognise the importance of fire safety and prevention. Fire Risk Assessments have been carried out on eligible properties under the Fire safety (Scotland) Act 2005. The assessments include a number of recommendations to meet and improve the fire safety in each site. We are currently preparing a rolling programme and budget to implement the essential recommendations raised in the assessments. We are currently working with Places for People to develop a robust strategy to install smoke detectors in all our stock. This will be undertaken by carrying out a GAP analysis set against information form our Stock Condition Surveys which will identify the number and location of hard wired / battery operated smoke alarms and where installation may still be required. This exercise will allow us to establish costs and create a working programme. Additionally future electrical upgrading will include installation of fixed wire smoke detectors as part of any upgrading works. We currently service 4500 gas heated properties and as part of this annual service our engineers check for the presence of a smoke detector and ensure it is in working order. 6.5 Energy Performance We will participate in Places for People’s agreement (CERT) with Scottish Power to deliver our Insulation Programme over the next few years. Scottish Power will assist in identifying properties with SAP ratings below 65 through surveys and interrogation of our existing stock condition database including NHER and SAP information. We have carried out substantial energy efficiency improvements to our stock and we will continue to do so over the coming years. Nearly all cavity walls and lofts have been insulated and as part of the Groups (CERT) partnership agreement with Scottish Power we will commence a programme of further loft insulation top ups to 270mm. The vast majority 80% of our properties have double glazing. Over the past five years we have also been installing energy efficient condensing boilers to our gas heated properties and we will work in partnership with EAGA (Energy Action Group Association) to determine the best options for upgrading inefficient electrical storage heating systems to deliver cost savings to our customers. 6.6 Neighbourhood Plans 11
  12. 12. We will aim to align our investment priorities with our key neighbourhood planning areas to that our approach is co-ordinated and that investment in new and existing stock is protected. Our key localities for investment are: • East Craigs where local investment programmes are generally complete. • Newtongrange with investment in former Coal Board stock and the improvement of stock acquired from Grange Estates • Southside, Edinburgh with a range of investment programmes in our inner city stock • Craigmillar, Edinburgh with investment in the refurbishment of properties at the Thistle Foundation and Peffer Place as part of our contribution to the regeneration area. 7.0 REPAIR AND MAINTENANCE 7.1 Aims of the Service Repair and Maintenance of our assets is essential to the proper management of our housing stock and is key determinant of customer satisfaction with our services. We aim to ensure that we provide a repair and maintenance service, which discharges our legal obligations to tenants but which is efficient, responsive to changing demands and achieve value for money. 7.2 Maintenance Service Standards In meeting our legal obligations our maintenance service standards are: Category Operation Frequency Relationship to other operations general comments Responsive Emergency (Priority 1) Repairs (Safety, security and health On demand Complete within 24 hours of reasons could adversely notification affect structure of building) Urgent Repairs (Priority 2) (Likely to affect the comfort On demand Complete within 5 days of and convenience of our notification tenants) Routine Repairs (Priority 3) (non essential repairs which can be deferred without causing serious discomfort On demand Complete within 20 working to tenants) days of notification 12
  13. 13. Void Repair and/or decoration of On demand Return empty houses to our empty properties ‘Homepledge’ lettable standard Cyclical Rhone repair/renewal Cyclical Programme derived from Maintenance External/ Internal painting programme stock condition input as well Lift Servicing/Inspection as input from local housing Environmental staff and tenants via estates Improvements walkabout process 7.3 Qualifying Repairs The Scottish Secure Tenants (Right to Repair) Regulations 2002 sets out repairs which are qualifying repairs and the maximum time for landlords to complete the repairs. These definitions inform our Responsive Repairs Targets and service delivery. Qualifying Repairs and the completion times are given as: Defect Maximum Period in working days from date immediately following the date of notification of qualifying repairs or inspection Blocked flue to open fire or boiler 1 Blocked or leaking foul drains, soil stacks or 1 toilet pans where there is no other toilet in the house. Blocked sink, bath or drain. 1 Electric power: Loss of electric power. 1 Partial loss of electric power. 3 Insecure external window, door or lock. 1 Unsafe access path or step. 1 Significant leaks or flooding from water or 1 heating pipes, tanks or cisterns. Loss or partial loss of gas supply. 1 Loss or partial loss of space or water heating 1 where no alternative heating is available. Toilet not flushing where there is no other toilet 1 in the house. Unsafe power or lighting socket or electrical 1 fitting. 13
  14. 14. Water Supply: Loss of water supply; 1 Partial loss of water supply 3 Loose or detached banister or hand rail. 3 Unsafe timber flooring or stair treads. 3 Mechanical extractor fan in internal kitchen or 7 bathroom not working. 7.4 In-House Delivery In November 2007 the Board approved a business plan for the expansion of our in house maintenance team consistent with the Places for People model on a phased basis between April 2008 and September 2009. Growing our in house maintenance team will allow us to move away from an over reliance on external contractors, reduce maintenance costs and improve performance and customer satisfaction. In expanding our in house maintenance operation we have set the following key objective for our response maintenance service: • Customers to receive an appointment at the first point of contact • Increase responsiveness and customer satisfaction in relation to repair response times • Aim to complete the majority of repairs at first visit • Provide tenants with confidence and certainty that work will be carried out • Treat repair as a whole including all trades and undertake other small minor repairs identified by tenants during repair visits • Local accountability and continuity of service which reflects local need, demand and circumstances • Demonstrates continuous improvement in service and increased levels of customer satisfaction • Improved financial controls with ability to influence greater degree of control on maintenance expenditure. Our first in house ‘Home Repairs’ team are currently operating as a pilot in the Midlothian and East Lothian area and we continue to work with partner contractors to deliver our responsive repairs service in all other areas. Early indications are that our ‘Home Repairs’ pilot has been successful in achieving a number of its key objectives and plans for future phased roll outs are in place to expand this service to South and East Edinburgh by April 2009. 7.5 Measuring Performance 14
  15. 15. Our repair standards and performance targets will be achieved and monitored through: • Post Inspections of works. • Post repair customer satisfaction surveys undertaken by Customer Contact Centre on 5% of repairs activity and 20% of ‘Home Repairs’ Activity. • Performance against repairs targets. • Post Contract Customer Satisfaction surveys are carried out during and after major planned replacement programmes. Feedback is analysed and has influenced subsequent contract design or administration. • Publication of performance information. In addition to telephone customer satisfaction surveys by our customer service centre we use a range of other methods for seeking tenants views, including consultation with our Area Customer Liaison Panel, the Sheltered and Amenity tenant forum, registered tenants and residents groups. We also seek feedback from tenants on our repairs and maintenance service at our annual tenant conference, through involvement in specific focus groups and through our quarterly tenant newsletter, ‘The Rock Report’. 8.0 STOCK APPRAISALS 8.1 Our asset management strategy is developed around ensuring all our properties meet the SHQS by 2015. We will undertake option appraisals for retention and investment or disposal of stock where we identify: • Properties which cannot be economically brought up to SHQS • Purpose built special needs properties which are nearing the end of their useful life or where the design is now obsolete. • Properties in single tenure neighbourhoods which would clearly benefit from tenure diversification. • Properties where demand is falling or is anticipated to fall due to demographic changes. The Castle Rock Edinvar Board agreed on 30th May 2006 the framework for the approach set out below. 8.2 Pre-1919 Properties in Edinburgh Castle Rock Edinvar owns 648 pre-1919 properties in Edinburgh which have been refurbished to various standards over the past 30 years. Many of these cannot be economically brought up to the SHQS. Shandwick Place comprised 29 units in two blocks of flats in central Edinburgh and required investment of £4.5 million to improve and restore the building. With the agreement of the Scottish Housing 15
  16. 16. Regulator and the City of Edinburgh Council the property was sold with agreement to reinvest the £3.5million receipt in new supply at Caltongate, Edinburgh. We also own 400 individual tenement flats in 250 mixed ownership common stairs throughout Victorian Edinburgh. Due to the dispersed nature of the stock, it is difficult to plan for future investment needs. In principle agreement has been reached with the regulator and Council to promote a pilot project of shared equity sales with receipts being reinvested in new supply. Consideration will also be given to Existing Use Social Housing Value trickle transfers to other RSLs with ownership in the same tenement stairs. 8.3 Purpose Built Special Needs Properties 8.3.1 Castle Rock Edinvar owns four sheltered housing developments in Edinburgh which were designed as bedsit accommodation. Two of these developments have been converted to small one bedroom flats and have slow but continuing demand. A third property at St Stephen’s Court, Sighthill require significant investment and discussions are ongoing with the Council on the need for housing for older people in this location. The other development at St Barnabas Court, Moredun has no long term future and discussions are taking place on a possible wider development project. The HAG outstanding on those schemes are £63,729 and £156,698 respectively. 8.3.2 A number of purpose built supported accommodation developments were developed to provide rehousing for hospital closures in the 1990s. These are let to a range of support agencies. With the uncertainty around future revenue funding disposal of these units will be considered on a scheme by scheme basis. A property at Roman Camp Way, Pathhead has recently been sold for £375,000. 8.3.3 Lauder Lodge is a former hostel in Dalkeith acquired as part of the wind up of Haven HA. The Scottish Government has agreed to HAG fund the refurbishment of the existing building to provide 18 flats. 8.3.4 DARAG is purpose built supported accommodation in Mayfield, Dalkeith which was closed in 2008. The long term plan is to demolish the building and integrate the site for redevelopment with adjacent Council owned land. In the short term, the building will be leased to Midlothian Council as temporary accommodation for homeless people. The outstanding HAG on the development is £2000,000. 8.4 Tenure Diversification We will consider selling individual properties where the benefits of tenure diversification can be clearly demonstrated. As part of the refurbishment programmes at Newtongrange and in the Peffers it is planned to sell 78 properties through shared equity. 16
  17. 17. Similarly, it is proposed to dispose of 20 tenement flats in Edinburgh as part of pilot project being agreed with the Regulator and Council. Consideration is also being given to the potential to sell properties at the Hays, Craigmillar to introduce tenure diversification in an area where we own some 145 rented homes as part of a local neighbourhood plan. 8.5 Reinvestment Our intention is to reinvest receipts from property sales to create assets of improved quality and higher value. The strategy for reinvestment will be agreed as part of our development strategy and in conjunction with our key partners in the Scottish Government and local authorities. 9.0 CUSTOMER CONSULTATION 9.1 We recognise the importance of the statutory framework for tenant participation set out in the Housing (Scotland) Act 2001 which requires that we consult with tenants either individually or through a Registered Tenants Organisation on policies and standards of service for repairs and maintenance. 9.2 We will specifically consult tenants on changes or development of: • Repairs handling • Repairs response time • In house delivery through our Homes Repairs Team • Contractor code of conduct • Customer service standard • Investment priorities over and above the Scottish Housing Quality Standard. 9.3 We will consult through a menu of participation methods best suited to meeting the needs of the process as follows: • ACLP are consulted on strategic decisions such as investment priorities and where appropriate asked to agree the format of more detailed consultation. • Focus Groups will be consulted on major service changes. This was successfully completed for the roll out of the house repairs and the move to calls being directed to the Customer Contact Centre. • At an annual customer event exhibit and consult on kitchen, bathroom, window and other components which will allow customers to make individual choices for their homes. • Resident Groups or groups of individual tenants will be consulted on specific programmes in their area or affecting their homes 10.0 CONCLUSIONS 17
  18. 18. Our Asset Management Strategy sets out our approach to managing and maintaining our property assets now and in the future. Over the next 5 years we intend to invest nearly £22 million pounds in our housing stock. The strategy prioritises current and future investment to meet or exceed the Scottish Housing Quality Standard and to increase our focus on energy efficiency, affordable warmth and our obligations in respect of health and safety. Our plans are advanced for the expansion of our in house maintenance operation to improve repairs performance and increase levels of customer satisfaction with the repairs service. Our proposals for investment and improving service delivery are underpinned by customer consultation and engagement. In managing our assets we will develop neighbourhood strategies to ensure that we invest in properties in sustainable environments and robustly assess the future life and investment requirements of stock and develop stock disposals strategies for consideration by the Scottish Housing Regulator and local authorities where appropriate. 18
  19. 19. APPENDIX 1 SCOTTISH HOUSING QUALITY STANDARD: SELF - CERTIFICATION ANNEX 1 DATA SHEET 1 (ALL LANDLORDS TO COMPLETE) A. GENERAL INFORMATION LANDLORD TO INPUT DATA INTO ROSE COLOURED CELLS ONLY 1. Name of landlord: Castle Rock Edinvar Housing Association (Combined/Revised Submission) 2. Type of landlord (Local Authority, Housing Association, Abbeyfield, Other): RSL 3. Location of stock (Local authority area): More than one 4. Location of stock (Communities Scotland Area Office): More than one 5. Date of stock condition survey (month and year): SHQS Surveys Ongoing 6. Date of stock condition survey update (if no recent survey carried out) month and year: Detailed surveys ongoing 7. Stock condition contractor: In-house Property Inspectors 8. Percentage of stock surveyed: 100% by August 2008 (SHQS & Stock Condition Survey) 9. Date of option appraisal (local authorities only) month and year: NA 10. Date of option appraisal update (local authorities only) month and year: NA 11. Option appraisal contractor (local authorities only): NA 12. Contact name: Andy Ashcroft 13. Contact position in organisation: Head of Property Services 14. Contact email: Andy.Ashcroft@castlerockedinvar.co.uk 15. Contact phone: 0131 657 0612 16. Date this form completed: Mar-08 17. Reference number (for Communities Scotland use only) B. PROJECTED STOCK NUMBERS Actual 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 1 1. Stock number at 1 April 4,175 4,336 4,622 4,786 5,244 5,329 5,493 5,740 5,857 5,977 6,097 2 2. Loss of stock due to Right to Buy (1 April -31 March) 3. Loss of stock due to demolitions (1 April - 31 March) 0 4. Loss of stock due to transfer (1 April-31 March) -11 -8 5. Acquisition of stock due to transfer (1 April - 31 March) 102 94 6. Acquisition of stock due to new build or conversions (1 April - 31 March) 142 184 164 353 93 164 247 117 120 120 120 3 7. Stock number at 31 March 4,336 4,622 4,786 5,244 5,329 5,493 5,740 5,857 5,977 6,097 6,217 4 8. Stock numbers at mid-year (30 September) 4,256 4,479 4,704 5,015 5,287 5,411 5,617 5,799 5,917 6,037 6,157 1 The financial year is assumed to begin 1 April unless the landlord states otherwise 2 Right to Buy is the legal right held by some tenants to buy their home at a price lower than the full market value. For more information, see the Scottish Executive website at: www.scotland.gov.uk 3 The total stock numbers at the end of the year after losses due to Right to Buy, demolitions and transfers and acquisitions due to transfers and new build 4 Average stock number = (number of units at the start of the year + number of units at the end of the year) / 2 19
  20. 20. APPENDIX 1 C. PROJECTED CAPITAL INVESTMENT (CONSTANT 2005-6 PRICES) Actual 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Total Amount of investment required (incl. prelims but excl VAT and fee s) (£000) 1. Refurbishment specific to meeting SHQS 1(a) To bring currently failing stock up to SHQS 159.000 799.729 1,575.951 715.131 1,608.000 755.000 699.250 0.000 0.000 0.000 0.000 6, 1(b) To prevent stock that currently passes SHQS from failing in future 2,043.000 1,953.459 86.900 1,327.913 1,119.421 2,135.373 2,393.141 3,088.477 3,354.121 3,454.745 3,558.387 24 (c) Total refurbishment specific to meeting SHQS (excl VAT and fees) 2,202.000 2,753.188 1,662.851 2,043.044 2,727.421 2,890.373 3,092.391 3,088.477 3,354.121 3,454.745 3,558.387 30 2. Refurbishment not specific to meeting SHQS e.g. to meet local house standards 3,727.777 0.000 44.800 277.017 338.425 282.181 256.350 253.299 349.173 359.648 370.438 6, 3. Total capital investment in the existing housing stock (SHQS plus non-SHQS) 5,929.777 2,753.188 1,707.651 2,320.061 3,065.846 3,172.554 3,348.741 3,341.776 3,703.294 3,814.393 3,928.825 37 4. Non-housing expenditure e.g. estate and environmental works 0.000 0.000 0.000 77.121 0.000 40.000 69.800 98.782 103.635 106.744 109.946 6 5. Demolition of surplus and/or poor condition stock 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 6. Total capital investment (housing plus estate works etc) excl VAT and fees (£000) 5,929.777 2,753.188 1,707.651 2,397.182 3,065.846 3,212.554 3,418.541 3,440.558 3,806.929 3,921.137 4,038.771 37 7. Fees relating to capital programme (excl VAT) 195.588 0.000 280.615 47.000 48.365 47.091 53.269 95.515 94.633 97.472 100.396 1, 8. VAT on both capital programme and fees 464.405 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 4 9. Total capital investment (housing plus estate works) incl VAT and fees (£000) 6,589.770 2,753.188 1,988.266 2,444.182 3,114.211 3,259.645 3,471.810 3,536.073 3,901.562 4,018.609 4,139.168 39 Amount of investment per unit excl VAT and fees (£) 10. Average SHQS investment per unit (applying mid-year units) 508 596 347 390 523 526 539 527 561 567 572 11. Average non-SHQS investment per unit (applying mid-year units) 876 0 10 55 53 52 46 44 59 60 60 Proportion of housing investment (excl VAT and fees) specific and not specific to SHQS (%) 12. % of total investment relating to achievement of SHQS 37% 100% 97% 85% 91% 90% 90% 90% 88% 88% 88% 13. % of total investment not relating to achievement of SHQS (i.e. to meet local standards) 63% 0% 3% 12% 9% 9% 7% 7% 9% 9% 9% 14. % of total investment relating to non-housing expenditure 0% 0% 0% 3% 0% 1% 2% 3% 3% 3% 3% 15. % of total investment expenditure relating to demolitions 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 20
  21. 21. APPENDIX 1 2 Right to Buy is the legal right held by some tenants to buy their home at a price lower than the full market value. For more information, see the Scottish Executive website at: www.scotland.gov.uk 3 The total stock numbers at the end of the year after losses due to Right to Buy, demolitions and transfers and acquisitions due to transfers and new build 4 Average stock number = (number of units at the start of the year + number of units at the end of the year) / 2 C. PROJECTED CAPITAL INVESTMENT (CONSTANT 2005-6 PRICES) Actual 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Total or average Amount of investment re quire d (incl. pre lims but excl VAT and fees) (£000) 1. Refurbishment specific to meeting SHQS 1(a) To bring currently failing stock up to SHQS 159.000 799.729 1,575.951 715.131 1,608.000 755.000 699.250 0.000 0.000 0.000 0.000 6,042.061 1(b) To prevent stock that currently passes SHQS from failing in future 2,043.000 1,953.459 86.900 1,327.913 1,119.421 2,135.373 2,393.141 3,088.477 3,354.121 3,454.745 3,558.387 24,844.937 (c) Total refurbishment specific to me eting SHQS (excl VAT and fees) 2,202.000 2,753.188 1,662.851 2,043.044 2,727.421 2,890.373 3,092.391 3,088.477 3,354.121 3,454.745 3,558.387 30,886.998 2. Refurbishment not specific to meeting SHQS e.g. to meet local house standards 3,727.777 0.000 44.800 277.017 338.425 282.181 256.350 253.299 349.173 359.648 370.438 6,199.108 3. Total capital investme nt in the e xisting housing stock (SHQS plus non-SHQS) 5,929.777 2,753.188 1,707.651 2,320.061 3,065.846 3,172.554 3,348.741 3,341.776 3,703.294 3,814.393 3,928.825 37,086.106 4. Non-housing expenditure e.g. estate and environmental works 0.000 0.000 0.000 77.121 0.000 40.000 69.800 98.782 103.635 106.744 109.946 606.028 5. Demolition of surplus and/or poor condition stock 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 6. Total capital investme nt (housing plus estate works etc) excl VAT and fees (£000) 5,929.777 2,753.188 1,707.651 2,397.182 3,065.846 3,212.554 3,418.541 3,440.558 3,806.929 3,921.137 4,038.771 37,692.135 7. Fees relating to capital programme (excl VAT) 195.588 0.000 280.615 47.000 48.365 47.091 53.269 95.515 94.633 97.472 100.396 1,032.944 8. VAT on both capital programme and fees 464.405 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 464.405 9. Total capital investme nt (housing plus estate works) incl VAT and fe es (£000) 6,589.770 2,753.188 1,988.266 2,444.182 3,114.211 3,259.645 3,471.810 3,536.073 3,901.562 4,018.609 4,139.168 39,189.484 Amount of investment per unit excl VAT and fees (£) 10. Average SHQS investment per unit (applying mid-year units) 508 596 347 390 523 526 539 527 561 567 572 5,656 11. Average non-SHQS investment per unit (applying mid-year units) 876 0 10 55 53 52 46 44 59 60 60 1,314 Proportion of housing inve stment (excl VAT and fees) specific and not specific to SHQS (%) 12. % of total investment relating to achievement of SHQS 37% 100% 97% 85% 91% 90% 90% 90% 88% 88% 88% 86% 13. % of total investment not relating to achievement of SHQS (i.e. to meet local standards) 63% 0% 3% 12% 9% 9% 7% 7% 9% 9% 9% 12% 14. % of total investment relating to non-housing expenditure 0% 0% 0% 3% 0% 1% 2% 3% 3% 3% 3% 2% 15. % of total investment expenditure relating to demolitions 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% D. STOCK NUMBERS FAILING SHQS BY CATEGORY (31 MARCH)1 Actual 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Average 1. Tolerable Standard 6 0 0 11 0 0 0 0 0 0 0 2 2. Free from Serious Disrepair 144 133 88 173 208 164 108 0 0 0 0 93 3. Energy Efficiency 319 278 30 151 94 200 200 0 0 0 0 116 4. Modern Facilities and Services 731 940 155 56 133 0 0 0 0 0 0 183 5. Healthy, Safe & Secure 887 835 31 113 282 5 5 0 0 0 0 196 6. Total number of failures (i.e. sum of rows D1 to D5) 2,087 2,186 304 238 251 450 421 0 0 0 0 540 7. Total prope rtie s failing to me et the standard (any crite ria) 885 1,101 300 1,122 871 421 0 0 0 0 0 427 8. Ave rage failures per failing property 2.36 1.99 1.01 0.21 0.29 1.07 0.00 0.00 0.00 0.00 0.00 0.63 Notes 818 291 21
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