All of the Authority's currents spending priorities are based on the condition survey carried out in 1998, together with a number of other surveys (energy ratings for the heating programme, electrical and door entry surveys for those programmes).
This data has then been recorded on stand-alone systems, which do not allow a full interrogation of the data to form integrated programmes. However, this data has enabled the Authority to focus its limited resources on those areas that are clearly identified and prioritised as being in need.
The stock condition survey that was carried out in 1998 meets many of the requirements for stock condition surveys set out in the Consultation Paper, "Business Planning for Local Authority Housing with Resource Accounting in Place". The Councils survey, carried out by independent Chartered Surveyors, looked at individual components within dwellings giving each component an anticipated future life and a date when the component would need to be replaced. The survey focused primarily on the outside of dwellings and also collected energy ratings and details on asbestos.
In addition, the planned maintenance programme that followed the survey was developed using a scoring matrix evolved in partnership with tenants and leaseholders to weight the above-mentioned components.
In order to address the differences between the current survey and the type of information that will be required for the Business Planning approach, a new stock condition survey has recently been commissioned to obtain the more comprehensive range of data required for the Capital Strategy. This research will be carried out in accordance with the recommendations set out in the tripartite publication, Collecting, Managing and Using Housing Stock Information.
This new survey will be linked to the introduction of a new integrated housing management computer system, so that the data collected can be fully integrated with all other records and can be appropriately and adequately evaluated and developed.
The full details of the sample size and the extent of internal surveying work will be fully explored to ensure that the data collected will meet the organisations needs. In addition, now that full guidance has been issued, the survey can fully meet these requirements to maximise the benefit of the survey.
Given that there is an estimated stock repair back log of over £53,000,000 it is essential that the Council produces a robust Business Plan based on realistic estimates of income to protect the long term viability of the stock.
The new condition survey will enable the authority to be in a position to develop a long-term 30-year maintenance expenditure profile for the stock in order to:
- identify and quantify the total outstanding improvement and modernisation works needed to the stock;
- begin to prioritise planned renewal works in accordance with a clear picture of life cycles.
Early results will enable key issues to be taken on board in time for next year's Business Plan, as well as beginning the process of developing long-term maintenance and investment programmes.
Historical Investment Patterns
Given the limited resources available to the Authority, the priorities, over the last few years, have been to ensure that the external envelope of the dwellings is wind and watertight and to up-grade the energy efficiency of the dwelling through double-glazing and insulation (see background paper: Energy Efficiency Strategy*). All programmes have been designed to reduce the need for on-going maintenance.
From the Best Value Review (BVR) of the Repairs and Maintenance service (see background paper: Repairs and Maintenance Strategy*), it became apparent that the Authority's priorities largely linked with resident's priorities (the number one priority of residents by a large margin was double-glazing).
In March 1997, the Housing Committee approved a report to move away from traditional, individual planned programmes (such as a window programme or a roofing programme) and to develop a comprehensive approach.
This new approach was designed to carry out works to all aspects of the outside of a dwelling, with the aim of leaving a dwelling in a virtually maintenance free condition, thus reducing disruption, duplication and providing a more cost effective programme.
To develop this new programme clearly, openly and equitably, it was agreed that a condition survey needed to be carried out to determine the priority order in which dwellings would receive this new package of works.
Therefore, a comprehensive stock condition survey was carried out in 1997/98.
This survey focused on three key areas:
- the condition of all external components;
- a National Home Energy Rating (NHER) of each dwelling;
- the identification of any asbestos present.
The condition survey did not however, cover any of the internal components (kitchens, bathrooms, etc.) and the programme developed focuses solely on the outside of each dwelling.
In order to develop a programme from the survey, each individual component (e.g. windows, doors, roofs, gutters, etc.) was given a condition score. This score ranged from 1, in urgent need of renewal, to 10, renewal not required within the next 10 years.
In addition, in order to reflect the relative importance of the condition of different components, each component was given a weighting. For example, to reflect the importance of the condition of windows, these were given a weighting of 20. Conversely, as the condition of gutters was not so important, these were given a weighting of 2.
The condition score of each component was then multiplied by the weighting to give a total score. All individual weighted component scores were then added together to give a total property score.
In order to achieve a coherent programme, all property scores in a street/block were aggregated together to give a total street/block score. These street/block scores then became the basis for the programme, and the street/block with the lowest came first on the programme and the street/block with the highest score coming last on the programme.
However, it is important to note that the programme is very much a financially driven programme, with streets/blocks set out in priority order. Therefore, the programme covers as many dwellings per year that the budget can fund. This introduces significant flexibility, as the annual programme can be adjusted to take into account the funds available, whilst still ensuring that those streets/blocks most in need are addressed first.
The downside of this flexibility is that, if over a period of several years, the budget available is restricted, those dwellings in fairly urgent need would not get the investment they require at an appropriate time. This in turn leads to an increased level of failure and higher day to day repair costs and the pressure that this will have on those budgets.
Updates on the progress of the stock condition survey and the subsequent programme were reported to the Housing Committee on a regular basis, in March 1997, September 1997 and June 1998. Final approval was obtained in September 1998.
What Work is Done?
The external improvements programmes comprises some or all of the following work, dependent on the outcome of the condition survey:
- PVC-u double glazed windows;
- Composite front and back doors (except flats);
- Roof replacement or repair;
- New fascias, soffits, bargeboards, gutters and down pipes;
- External asbestos removal;
- Brickwork and chimney repairs/re-pointing;
- External decorations;
- External wall or cavity wall insulation;
- Upgraded loft insulation.
The package of works is tailored to each dwelling with the overall aim of creating a virtually maintenance free condition for the next 15 - 20 years.
Current Priorities
The Major Repairs Allowance gives the Council the opportunity to carry out more works than under the previous financial regime. The Council has made plans to utilise MRA to meet the priorities we currently have, primarily in the external improvement package, until new priorities are established through the new stock condition survey and consultation with key stakeholders (see background paper: Repairs and Maintenance Strategy*).
Breaking down the stock into its constituent parts has allowed the Council to start identifying the different expenditure priorities that different archetypes demand. Where maintenance costs are higher per unit, e.g. for high-rise properties, the expenditure profile has been adjusted to reflect that demand. The new ICT system will be able to collect information to enable greater disaggregation in future years. The major repairs element has been treated in a similar way.
Using the current stock condition survey information, which we believe to be an under-estimate, we recognise that the expenditure available to the Council is insufficient to meet all needs. This was borne out by the stock options appraisal (see background paper: Options Appraisal *). This shortfall may be addressed by the additional borrowing powers that an Arms Length Management Organisation would bring and this option has been further explored as part of scenario planning.
Decent Homes Standard
In line with most Local Authorities, the Council has not previously gathered the information necessary to be able to produce the required information for the Business Plan. The current stock condition survey will gather the necessary information and the detail of the current position and our plans for improving that position will form an important element of next year's plan.
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