Asset Management Strategy - 2018-20 'Planning and delivering investment in our homes and places' - Phoenix Community ...
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Asset Management Strategy
2018-20
‘Planning and delivering investment
in our homes and places’
www.phoenixch.org.uk xx
PNB Asset Management Strategy Final V3 March 2018
asset management strategy PNB Asset Management Strategy Final V3 March 2018
asset management strategy
Contents
3 Foreword by the chief executive/Chair of the Board
4 Executive Summary
5 Achievements 2013-2018
6 Asset Management Operating Context and Drivers
9 Asset Profile – our homes and other assets
13 Asset Management at Phoenix
22 What will we aim to achieve by 2020
25 Planned Investment Profile
26 Strategy Consultation
26 Delivering and Monitoring the Strategy
28 Supporting Documents
29 Definitions
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PNB Asset Management Strategy Final V3 March 2018
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Foreword by the Chief Executive and
Chair of the Board
Welcome to our new asset management strategy for
2018-20.
In 2017 we celebrated Phoenix’s first decade as a resident-owned and led housing association.
Reflecting on these first 10 years together, we can be very proud of everything that has been
achieved since our properties were transferred from Lewisham Council. We have fulfilled our
promise of decent homes for Phoenix residents and it is important that we continue to maintain
our properties to safe, decent standards.
2018 and beyond presents a very different environment for Phoenix. This new strategy sets out
how we will improve planning and delivering investment in our homes and areas in 2018-20, and
is the foundation for our activities after 2020.
At the centre of our asset management strategy is a quality and data-driven understanding of our
properties and the assets that we own. This knowledge allows us to adopt a longer-term view to
maximise the value of our assets now and in the future. This strong approach to asset
management also enables us to deliver extra services and social value to our residents.
This strategy has been developed with our residents and the current and future needs of our
diverse community in mind. Many Phoenix residents and staff contributed to this strategy. We
want to thank everyone who helped to create this document, and took part in our consultations
– perhaps as a member of the Phoenix Gateway Committee, by attending an asset management
workshop or by completing a survey online or in person at one of our community events.
Jim Ripley Anne McGurk
Chief Executive Chair of the Board
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Executive Summary
Phoenix Community Housing is a not-for-profit registered housing association. Our stock is
located primarily in the London Borough of Lewisham.
Phoenix celebrated its 10 year anniversary in 2017 and all our homes met the Decent Homes
Standard in 2013. This means that we are therefore still maturing in our asset management
activities and developing our strategic direction.
This Strategy sets out Phoenix Community Housing’s approach to asset management over the
next two years: 2018 - 2020.
In consultation with our Board, residents and staff the key themes for our strategic approach are
improved communication, data-driven decision-making and transparency in all we do.
The two-year timescale of this strategy allows us to target these areas and focus our efforts on the
following:
yy C apturing and maintaining high quality stock condition information to inform all investment
decisions
yy Shaping a holistic, place-based approach to investment in line with the Gateway Model
yy Maximising the impact of our investment in terms of the quality and sustainability of our assets,
and the satisfaction and wellbeing of our residents
yy Setting our Standards for homes and places
yy Understanding the needs and aspirations of our diverse resident groups and projected future
demographics
yy Improving resident satisfaction through increased transparency in planning and
decision-making
yy Responding positively to our current and projected operating environment
This Strategy is intended to be a high-level overview of Phoenix Community Housing’s Asset
Management approach. It is one of a suite of documents and should be read alongside the Asset
Management Principles, supporting strategies, policies and procedures and Asset Management
Plans.
The Asset Management Strategy 2018-2020 is set within the context of The Corporate Plan 2017-
2020 and supports the vision, and strategic and corporate objectives of Phoenix Community
Housing.
The Strategy will be fully reviewed and rewritten 2020-2025 to support the review of the Corporate
Plan and to reprioritise based on our refreshed future approach.
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Achievements 2013-18
There have been a number of key successes achieved during the 2013-2018 Asset Management
Strategy:
yy Decent Homes Standard achieved and maintained at 100%
yy Named as one of the UK’s top 10 landlords in nationwide housing polls 2015, 2016 and 2017
yy Completion of our first residential development, and our first extra care scheme, at
Hazelhurst Court
yy Development Strategy implemented with plans to build 200 new homes
yy Homes and Communities Agency V1 G1 (viability and governance) regulatory judgements
achieved
yy Every dwelling under our management has a Landlords Gas Safety Check less than 12 months’
old, Asbestos Management Survey information and an Electrical Condition Report
yy Reduction in long term voids of over 80% and void cost per property halved in the last three years
‘PRS achieved 95% customer
satisfaction’
yy Utilisation of our Asset Management Database to report decency and programme works
yy External and communal works undertaken to the majority of our blocks
yy Implementation of stock viability software to understand asset performance
yy Phoenix Repairs Service started trading in 2014 as a wholly owned subsidiary, taking full
management of the repairs service in 2015
yy Phoenix Repairs Service achieving 95% resident satisfaction and nominated finalists in the
24Housing Awards Repairs and Maintenance Provider of the Year in its first year of operation
yy Green Infrastructure Audit undertaken to review green spaces owned and managed by Phoenix
yy Major Works spend of over £155m since stock transfer demonstrating our commitment to
improving the quality of our homes
yy Overall tenant satisfaction with Phoenix as a landlord maintained above 80%
yy Major and minor adaptations spend of over £250,000, assisting residents to stay in their own
home
yy Obtained over £4m Heritage Lottery funding to refurbish the Fellowship Inn, a listed building in
our area, to become a centre for arts and leisure
yy Home Makers piloted; a private lettings management service for Phoenix leaseholders and
Board agreed to set up a subsidiary to continue the service in 2017
yy Grounds maintenance brought in-house 2017
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Asset Management Operating Context and Drivers
EXTERNAL
As a social housing organisation Phoenix Community Housing is impacted by a range of external
environmental factors.
NATIONAL CONTEXT
yy 1% rent reduction to 2020. This has resulted in the requirement to save or generate income of
£4m 2016-2020
yy Latest settlement of CPI + 1% rent increase from 2020 onwards
yy Decent Homes Standard; the Government’s minimum standard for social housing providers to
meet and maintain
yy As a social housing provider we are regulated by the Regulator of Social Housing (RSH) and
must comply with our statutory obligations
yy Revised RSH Regulatory Framework
yy Revised RSH Value for Money Standard expected 2018-2020 including balancing reinvestment
in existing and new homes
yy Government development targets – focus on the urgent provision of new homes
yy Government carbon emissions reduction targets
yy Sector culture change in approach to asset management focusing on dynamic, active asset
management with emphasis on data, financial viability and stock performance
yy Impact of welfare reform; benefits cuts, Housing Benefit size criteria (aka bedroom tax) and the
introduction of Universal Credit
yy Reduction in energy efficiency grant funding
yy General Data Protection Regulation (GDPR) and new Data Protection Act, enforcing us to
exercise more control over our data processing activities. This will include Asset Management
related data
yy Brexit; uncertainty as to the future impact
yy Aftermath of Grenfell Tower fire and the yet-unknown implications on fire safety, housing
standards and resident consultation
yy Technological and digital developments
yy Sustainability and fuel poverty
LOCAL CONTEXT
yy High demand for social housing in Lewisham and the surrounding areas
yy High housing need
yy Local area housing associations and their activity and aspirations– Lewisham Homes, L&Q,
Affinity Sutton, etc. Phoenix is the 2nd largest housing association provider of general needs
social housing in Lewisham. There are 19, 711 general needs social housing homes in the
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Borough. Of the 58 other housing associations working in the Borough, five own 85% of these
homes and only 12 have more than 200 general needs homes. The others own a small number
of properties, specialist supported housing or homes for older people.
yy Local demographics, for example an ageing population alongside higher percentage of children
than national percentage
yy High levels of deprivation
yy Residents’ changing aspirations for their homes alongside changing ideas of the responsibilities
of the landlord and tenants
yy Increased Greater London Authority development targets for Lewisham
yy London Living Wage
INTERNAL
PHOENIX COMMUNITY HOUSING CONTEXT
yy Our Vision and Strategic Priorities 2017 - 2020
Resident
leadership and
membership
Sustainability “Building a better Excellent
— for our future for our services,
business delivered
and our
Phoenix with empathy
community community” and fun
Growth in new
homes and
opportunities
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yy C ommunity Gateway Model – tenants and leaseholders empowered to take a central part in
decision-making, and our increased focus on the community
yy Phoenix’s funding and loan arrangement including refinancing to develop more homes
completed February 2018
yy Phoenix in the early stages of becoming a developing organisation
yy Phoenix Community Housing existing internal strategies and policies
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Our Homes — Asset Profile
The current stock is located primarily in the London Borough of Lewisham, with a small
proportion of the stock located in the London Borough of Bromley.
SUMMARY OF PHYSICAL ASSETS
Phoenix (as at March 2018) owns and manages 5,334 homes for rent, 869 leasehold properties and
60 extra care homes. We have a block portfolio of 392 blocks. We also own and manage a number
of non-housing assets including The Green Man (our community hub and main office), 390
garages, five community centres, 14 commercial units, pramsheds and green spaces.
We also manage homes for market rent on behalf of landlords through Home Makers, our private
lettings management service, currently focused on Phoenix leaseholders who sublet their
properties.
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Table showing number of properties owned and managed under archetype and bedroom
numbers
No of bedrooms Grand total
Property tenure Property
type Property class Bedsit 1 2 3 4 5 6
floor level
General needs Flat Ground 44 548 296 25 5 - - 918
1 34 426 223 111 6 - - 800
2 8 105 167 112 6 - - 398
3 4 30 26 20 3 - - 83
4 1 19 10 12 2 - - 44
5 - 3 - 2 - - - 5
6 - 3 - 2 - - - 5
7 - 1 - 2 - - - 3
Flat total 91 1,135 772 286 22 - - 2,256
House - 9 1,179 1,668 120 3 1 2,980
Maisonette - 2 34 51 9 1 - 97
Total 91 1,146 1,935 2,005 151 4 1 5,333
Leasehold 44 293 335 180 17 - - 869
Freehold 1 1 59 56 17 - - 134
Supported - - - - -
58 2 60
housing
Grand total 136 1,498 2,331 2,241 185 4 1 6,396
As with all Social Housing Associations, stock figures are fluid and impacted by new
developments, acquisitions, disposals, tenure change and Right to Buy/Right to Acquire sales.
TENURE TYPES
The impact of the Right to Buy and Right to Acquire schemes have resulted in our estates and
neighbourhoods becoming mixed tenure areas, where tenants and homeowners live side by side.
Through our ongoing Development Strategy we aim to also introduce shared ownership tenures.
BUILD TYPES AND DESIGNATIONS
Phoenix owns a number of non-traditional build properties. There are a number of Wimpey
No-fines concrete construction properties built from the mid-1940s and two properties are of
factocrete block construction. We will ensure we have records of all non-traditionally constructed
properties and potential implications stored in Keystone.
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10 www.phoenixch.org.ukasset management strategy Older Person Designated Units – Phoenix took over the management of 30 over-55 designated blocks under the transfer agreement from Lewisham Council in 2007. Extra Care Housing – Phoenix completed its first development, a 60-unit extra care scheme located on land adjacent to an existing older persons scheme, partly funded by grant from the Greater London Authority and Lewisham Council, in September 2017. This is the first extra care scheme in Phoenix’s stock. DEMAND AND DIVERSITY There is a high demand for Phoenix Housing stock resulting in a low number of voids per annum, limited rent loss due to voids and low relet refusals. Lewisham Council’s Housing Strategy ‘Homes for Lewisham’ 2015-2020 highlights the increasing demand for homes in our area with a long-standing undersupply of new homes. The strategy also emphasises the need for suitable housing for older people and those with additional needs due to an anticipated increase in the number of people with physical disabilities and mobility issues. We aim to contribute to the housing supply and help address London’s growing population primarily through our Development Strategy and the delivery of 200 new homes. We will also review the suitability of our older person designated homes and continue to provide adaptations to ensure residents can stay in their homes where possible. PNB Asset Management Strategy Final V3 March 2018 www.phoenixch.org.uk 11
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ASSET FINANCIAL PERFORMANCE
Phoenix uses future major works, maintenance and management forecasts alongside rent
projections to calculate income versus expenditure over a 30 year period. Using inflation rates and
discount factors this data produces a net present value (NPV) per property, which demonstrates
financial viability. The high investment in Phoenix homes since transfer has positively impacted
our overall stock NPV, as demonstrated in the graph below.
NPV
Distribution of Phoenix stock
We have very few properties exhibiting issues in terms of financial performance or negative NPV.
SUMMARY
In summary our stock is predominantly of good quality design and construction, has a strong
ongoing demand and has a high net present value. The close geographical locations of our
properties does not highlight any immediate opportunities (or risk) for a stock rationalisation
programme.
The 2015 STAR survey indicated 73% of tenants were very or fairly satisfied with the overall quality
of their home and 80% with their community as a place to live, 86% also felt their rent provided
value for money. A large proportion of the Phoenix stock was built pre-1945, is therefore around 80
years old and will need a large programme of continuous investment to maintain standards.
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Asset Management at Phoenix
For Phoenix, achieving effective asset management means:
yy Data driven approach based on reliable, well maintained and managed property data
yy Taking a long-term, proactive, agile approach to investment with well-documented, justified and
transparent investment decisions
yy Assessing property performance, in terms of their economic and social return in detail
yy Providing homes that meet the Decent Homes Standard
yy Understanding residents’ changing expectations and considering these when making decisions
yy Optimising returns on assets to ensure more resources are available for reinvestment in services to
residents and developing new homes
yy Efficient procurement and delivery of works and services
DATA DRIVEN APPROACH BASED ON RELIABLE, WELL MAINTAINED AND MANAGED PROPERTY
DATA
All of our key property-related data is held in our Asset Management Database. In order to cleanse and
validate this data we will continue to undertake an extensive Stock Condition Survey programme. We are
committed to having 100% surveyed homes by 2021 (excluding tenant refusals).
Going forward all properties will be surveyed on a rolling basis to keep our records continually up to
date. Planned works programmes will be produced from the Keystone asset management database
based on component replacement due years and the Decent Homes Standard. Investment decisions
that are led by stock condition survey data enable more accurate investment programmes, value for
money procurement and positive resident communications regarding future planning.
We will continue to report Decency statistics from our Asset Management database to our regulator at
the end of each financial year and are committed to keeping this to 100% through these planned
programmes.
Tenant refusals for surveys and major works will be recorded on the asset management database and
reported to the Housing Management team to resolve underlying reasons for refusal. We will also
proactively contact households annually where they have previously refused entry to carry out a survey
to offer a stock condition survey and potential subsequent works. Where we are again refused or do not
hear from the resident, we will attempt to gain access to the property and communicate with the
resident through the Gas Safety Check process.
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The Asset Management Database is accessible to all staff and an awareness programme will be
rolled out to ensure it is being fully utilised. Contractors are provided with limited access in order
to obtain relevant information to their contracts such as asbestos data and this will be set out in
the information sharing agreement or the contract.
TAKING A LONG-TERM, PROACTIVE, AGILE APPROACH TO INVESTMENT WITH WELL-
DOCUMENTED, JUSTIFIED AND TRANSPARENT INVESTMENT DECISIONS
Through a more strategic, data-focused approach we will realise opportunities for reduced
investment and value for money savings. For example:
yy Right to Buy applications and completed sales will continue to be closely monitored and
removed from planned works programmes.
yy Potential development sites will be reviewed by the Asset Management Team and potential
future planned works assessed and adapted where necessary. For example, where works are
not deemed Health and Safety related or urgent alternative decisions may be made regarding
the investment.
Investment in non-housing assets will be agreed in line with other investment decisions and
based on a holistic, place-based approach. Data from the garage review and the Green
Infrastructure Audit will be loaded into the Asset Management database and will be reviewed
alongside other estate data and resident aspirations in order to make decisions on future uses and
investment. To date we have continued to maintain community centres in the Phoenix area in
accordance with our transfer agreement commitment. These will be reviewed going forward as
part of our Community Regeneration Strategy, considering our future plans and the value to the
community. Beyond 2020 we have aspirations to create five-year place-based, local area plans
through consultation with residents and evidence-based data.
Investment decisions for disposals, acquisitions and new developments will be fully documented
and governance procedures followed for decision-making as per our Disposals Policy. A risk
appraisal panel with also take an overview of this area of work.
ASSESSING PROPERTY PERFORMANCE, IN TERMS OF THEIR ECONOMIC AND SOCIAL
RETURN IN DETAIL
A complete and accurate dataset on all of our properties is imperative to calculate viability and
make allowances for future investment. We need to know how stock is performing at individual
asset level to make clear and informed decisions and we need to have a broader data set than
condition alone. In 2017 we implemented asset appraisal software that collates data from our
14 www.phoenixch.org.uk PNB Asset Management Strategy Final V3 March 2018asset management strategy Housing Management System and our Asset Management System. This then provides a financial measure of income and expenditure over time; net present value (NPV). A positive NPV indicates the asset adds financial value to the business plan. At present our use of the model has its limitations including disregard of strategic value and social value of homes regardless of financial value, and past investment. We aim to develop Stock Profiler to include socio-economic information resulting in a more holistic approach of assessing our homes. All high cost investment, including void and repair costs over £5,000 and structural works will be assessed through Stock Profiler to understand the NPV implications and then a full options appraisal will be carried out where applicable. Following quarterly reviews of our NPV data, the lowest 1%, i.e. the poorest performing financially, will also be investigated and options appraisals carried out where necessary. Options appraisals will consider financial viability through NPV, return on investment for any proposed works, social value (to residents and the wider community), energy efficiency and any other data we have available in order to make a well-informed decision. PROVIDING HOMES THAT MEET THE DECENT HOMES STANDARD In December 2006 the Government’s Housing Policy Statement, ‘Quality and Choice; A Decent Home for All; the way forward for housing’ outlined the Decent Homes Standard; the minimum standard to which social housing providers should maintain their stock. It does not however take into account the environment, aspirations and expectations of residents, and their future needs. It also considers components in isolation and ignores customer profile and organisational identity. Phoenix is committed to maintaining the Decent Homes Standard through planned works programmes and has also worked towards the ‘Phoenix Standard’; a locally agreed standard implemented as part of the stock transfer. This standard is an enhanced Decent Homes Standard agreed to be delivered for the first five years following stock transfer. If Phoenix wishes to continue to have a standard beyond the Decent Homes Standard this will need to be reviewed. Our Board has told us that maintaining the Decent Homes Standard is one of our investment priorities. We have changed our planned works approach in the last two years to ensure investment is more targeted. As a priority we will continue to address properties that appear to be newly arising non-decent homes according to the data we hold in our Asset Management database. We prioritise reinvestment requirements according to stock condition assessments. All properties must receive a full stock condition survey before we are able to put them into a major works programme. This is so we can ensure we are addressing all works due in the next five years PNB Asset Management Strategy Final V3 March 2018 www.phoenixch.org.uk 15
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at the same time taking a whole house approach, both to reduce resident disruption and ensure our
investment brings value for money.
In addition to this we will implement a cyclical works programme, which will undertake external and
communal decoration works to properties on a rolling programme (every seven-10 years). This will enable us
to address issues as they arise and deal with more works through a planned preventative approach rather
than on a responsive basis, reducing costs.
Internal Decency works will be carried out when void if urgent. In order to ensure low void turnaround time
to provide social housing quickly, minimal improvement works may be carried out and the works put into a
future delivery programme where required.
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HEALTH AND SAFETY COMPLIANCE
Phoenix is committed to ensuring the health and safety of our residents and compliance within all
our properties. Through our policies and procedures we demonstrate an ongoing, determined
promise to continuous improvement and ensure health safety and compliance remains
paramount to our business while actively contributing to our success.
Phoenix will comply with health and safety legislation in all our work programmes and behaviours.
The suitable and sufficient assessment of risks associated with health and safety hazards within
our properties e.g. Fire, Asbestos or Legionella etc. is the foundation of our compliance work
streams. This then drives practical and appropriate actions to be taken to prevent, reduce or
control risks to an acceptable level and reduce the potential for incidents and accidents.
We will engage and collaborate with our contractors and stakeholders to ensure their:
yy Health and safety capability and competence fulfil our health and safety expectations
yy Health and safety performance is monitored, reviewed and reported
yy Work activities have minimal health and safety impacts on our residents
Following the Grenfell Towers incident there is further impetus to embed our commitment to
health safety and compliance through open, transparent and effective communication. Thus
encouraging active questioning by our residents and promoting our message through all our work
activities, contractors and stakeholders.
We will ensure health safety and compliance of our residents and our properties remains of prime
importance.
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ENERGY EFFICIENCY
Phoenix has already undertaken works to improve energy efficiency in our stock such as boiler
replacements, double glazed windows, loft and cavity wall insulation and we will ensure all our
homes continue to meet the Decent Homes standard in regard to thermal comfort. Analysis of our
SAP data and extrapolation to the rest of the stock suggests an average SAP of 68.5 (band C) which
is in line with other social housing providers.
We are committed to addressing fuel poverty and will consider other energy efficiency options as
per the Phoenix Sustainability Strategy focusing on vulnerable residents particularly those living
in less energy efficient homes. We will also look to reduce communal energy requirements
through measures such as LED lighting provision.
We have set energy standards for our new developments and, where appropriate we will consider
options for renewable/ low carbon energy sources for new-build properties.
Energy Performance Certificates are undertaken when a property becomes void and we are
committed to ensuring all new relets are brought up to a minimum SAP score of 60 either before
or shortly after occupation.
UNDERSTANDING RESIDENTS’ EVOLVING EXPECTATIONS AND CONSIDERING THESE WHEN
MAKING DECISIONS
Board and resident groups have indicated the need to have a consistent standard alongside an
understanding of resident diversity and differing needs, and the ability to therefore review on a
case-by-case basis within defined parameters. We will ensure asset management decision making
reflects this.
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Resident consultation throughout 2017 has suggested that safety and security is seen as very
important alongside modern facilities while we should consider additional security features,
additional storage space and improvements to outdoor spaces as services we do not already
provide. Ongoing resident consultation will be undertaken to further understand resident
expectations to enable us to investigate feasibility and consider any potential opportunities to
incorporate these into future investment schemes.
RESIDENT ALTERATIONS
We are aware that some residents have made alterations to their homes including conservatories,
loft extensions and lean-tos in order to combat space constraints. These will be investigated and
assessed from a health and safety perspective and for potential impact on the Phoenix asset.
Recommendations will be made where necessary and in some circumstances formal action may
need to be undertaken. Residents considering carrying out alterations to their homes must
consult Phoenix to gain permission and ensure building regulations are complied with and
planning permission is obtained where required. Phoenix will not be responsible for remedial
works to the structure or costs incurred to the Phoenix asset as a result of the alteration.
SOCIAL VALUE
Phoenix seeks to maximise the positive impact on the community of its investment in the housing
stock through a variety of social value incentives. Major and minor adaptations are undertaken
on an ongoing basis to enable residents to continue living in their home. Stair lifts and other
adaptations are removed from voids and recycled where feasible to ensure value for money.
Phoenix also runs an internal decorations scheme that allows residents meeting criteria to receive
redecoration of one room within their home every five years, where budgets allow. In the last two
years alone, over 80 residents have accessed this assistance.
OPTIMISING RETURNS ON ASSETS TO ENSURE MORE RESOURCES ARE AVAILABLE FOR
REINVESTMENT IN SERVICES TO RESIDENTS AND DEVELOPING NEW HOMES
Our stock viability software provides the detailed analysis to enable an assessment of a property’s
return to inform future decisions to invest in properties or consider alternative use, including
disposal. Disposals and alternative uses for assets will be assessed as part of our options appraisal
process.
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Phoenix has a fairly low loss of social housing provision through Right to Buy and Right to Acquire
sales. Lewisham Council agreed an amendment to the original transfer agreement to allow
Phoenix to retain the net proceeds from these sales for the provision of replacement social
housing in 2016-17 so they can be invested in new homes.
Opportunities for increasing rental income will be considered – for example parlour type
properties will be converted at low cost while void to create an additional bedroom also helping
provide housing for larger families.
All investment shall be subject to rigorous appraisal for both financial and sustainability
implications before being committed to for either new build or redevelopment. All opportunities
to realise grant funding will be sought for schemes such as affordable homes and energy efficiency
upgrading. Residents will be fully involved in the development of all new build and redevelopment
that is planned.
In 2016 the Board approved the Development Strategy to build an additional 200 new homes
including 100 for shared ownership and 30 for private sale to provide cross subsidy for social rent.
The Development Strategy involves total additional capital expenditure of £55 million, which will
be partly funded by anticipated grant, private sale receipts and first tranche shared ownership
proceeds, as well as additional funding through private finances. The additional funding required
will be secured before any contractual commitments are made. Development will increase
revenue and reduce management costs per unit over time.
EFFICIENT PROCUREMENT AND DELIVERY OF WORKS AND SERVICES
The Asset Management team will ensure data required for future works programmes is provided to
the Contract Delivery team in a timely manner to ensure well planned procurement processes in
collaboration with staff across the organisation and our residents. The current major works
contract in place will cover works identified to 2020 to ensure continued compliance with the
Decent Homes Standard.
The Group Procurement Strategy will be followed for all procurement activities, keeping in mind
the three aims within the policy:
yy Delivering social value and sustainability
yy Value for money, efficiency and savings through procurement activity
yy Using best practice, systems, processes and expertise to procure contracts in the most efficient
and compliant manner.
All contracts will include social value contributions which may be sponsorship, job opportunities/
work experience placements and/or community improvement.
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All contracted planned works will be procured using the process detailed within our new
Procurement Strategy, the main objectives of which are:
yy Delivering social value and sustainability
yy Value for money, efficiency and savings through procurement activity
yy Using best practice systems, processes and expertise to procure contracts in the most efficient
and compliant manner
Responsive repairs and work to empty homes will continue to be carried out by our in-house
contractor PRS.
Staffing structures will be monitored and appropriate resource allocated. Property and New
Business team responsibilities and task ownership will be clearly defined and there will be a
division between ‘planning’ and ‘delivery’ of major works.
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What will we aim to achieve by 2020
RESIDENT LEADERSHIP AND MEMBERSHIP
yy Working parties set up with residents for Major Works scoping and programming as with
Meadows
yy Continue consultation activities to ensure resident views are heard and incorporated into future
plans
yy Standards revisited to inform residents of our decision making processes and repairs and
maintenance responsibilities
New Phoenix Standard for homes
Resident Consultation Programme and Communication Plan developed to further
understand resident needs and aspirations
Resident Expectations document produced
EXCELLENT SERVICES DELIVERED EFFICIENTLY WITH EMPATHY AND FUN
yy Understand the demographics of our community and how our property portfolio meets their
needs
yy Develop and document all property-related data processes and decision-making processes for
property investment
yy Continue to develop our Asset Management Database to hold all property-related data and be
actively updated and utilised across the organisation
yy Improve data visibility internally for more informed asset-based decision making
yy Support the Digital Together project and ensure through the Customer Relationship
Management system all staff have access to relevant property data
Asset Data Strategy written and implemented alongside a full suite of processes and
procedures
Asset Management induction process set up for new staff, involved residents and Board
members
Asset Management Database Review and Improvement Group implemented
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SUSTAINABILITY-FOR OUR BUSINESS AND OUR COMMUNITY
yy Further embed a strategic approach to delivering value for money in managing our assets
yy Look to demonstrate potential cost savings to the business across Major Works and Repairs
through the better use of data, not through a reduction in the Standard we offer
yy Integrate our Asset Management Principles and Strategy into business-as-usual practices
across the organisation
yy Maintain our properties to a safe and quality standard
yy Support Phoenix’s Sustainability Strategy and improve energy efficiency in our homes
yy Continue to comply with statutory and regulatory compliance and health and safety
yy Review approach to Fire Safety in response to conclusions from the Grenfell Tower public
enquiry
100% Decency maintained across the stock
External cyclical programme planned and procured
Minimum SAP rating of 60 established in relet of homes
Asset Management Strategy redefined for 2020 – 2025
Fire Safety Strategy and Management Plan developed
Repairs data analysed to identify trends and properties with high repairs reported
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GROWTH IN NEW HOMES AND OPPORTUNITIES
yy Take a holistic, place-based approach to investment across all areas of Phoenix assets
yy Appraise all growth opportunities using our asset data
yy Investigate opportunities in existing stock to support housing needs and aspirations
(extensions, bathroom pods, parlour type properties)
Programmed delivery of 200 new homes through the Development Strategy
Place-based local area plan piloted
All non-property asset data recorded on Keystone
Stock Profiling software developed to include socio-economic weighting
Short term plan for bathroom pods agreed and implemented
GIS (mapping) software developed
As set out in our corporate priorities we will seek to embed Value for Money, innovation,
communications and equality and diversity into all of these projects.
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Planned Investment Profile
The major works projections in the business plan are currently based on the independent stock
condition survey by Mazars in 2013, taking into account actual major works undertaken since the
survey. For budget setting purposes, the business plan major works projection for each year is
then compared to the Keystone projection for that year to ensure there is adequate provision to
address newly arising non-decent properties requiring works. It is intended that by the end of
2018/19 the major works projections in the business plan will be driven from Keystone. Our aim is
for 100% surveyed blocks and 60% surveyed dwellings by this date and this data will be
extrapolated for the remaining properties. To provide assurance for the extrapolated date we will
undertake a comparison between this data and the Mazars survey results.
Blocks Dwellings
March 2019 100% 60%
March 2020 100% 80%
March 2021 100% 100%
Provision for other improvements e.g. bathroom pod structures will be assessed through the
corporate planning process via business cases demonstrating costs and benefits and to ensure
that the improvements can be accommodated within the financial plan projections.
There is provision in the Business Plan to invest £17 million in our existing homes in the next
five years.
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Strategy Consultation
There has been significant consultation carried out in reviewing the Asset Management Strategy.
This was to encourage participation in the development of the strategy and to ensure we are
focused on the right tasks and deliver a sustainable approach to the Strategy both internally and
with residents.
Stakeholder Influence
Residents Resident survey to begin to understand
future needs– online SurveyMonkey, Chat
and Chips events, Phoenix Festival, joint
events, Digital drop-ins
Resident Gateway Committee Feedback on strategy aspirations and progress
Asset Management Working Group Ongoing discussions
Board steer Discussion on priorities and steer for the strategy
Internal staff Workshops to set aims and objectives
Involved residents Workshop to set aims and objectives
Executive Team steer Presentation and discussion
Delivering and Monitoring the Strategy
DELIVERING THE STRATEGY
The Asset Management team will lead on the delivery of the Strategy Action Plan. Sufficient team
resources will be maintained and reviewed to enable effective delivery and all staff within the
team will be recruited and assessed in line with the PCH Asset Management competency
framework (to be developed).
Staff buy-in from across the organisation and ongoing resident involvement will be obtained
through ongoing Asset Management Communications Plan activities.
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HOW WILL WE MEASURE SUCCESS?
yy Ongoing evaluation and review at the Asset Management Working Group
yy Internal audit reports
yy Resident feedback through ongoing consultation at Community events
yy The STAR survey to measure resident satisfaction and quality of services
yy Internal assurance through monthly and quarterly Key Performance Indicators and regular
review and improvement plans
yy Annual review and reporting process with the Executive Team and Board - review of action
points to ensure they remain relevant and fit for purpose , and to reprioritise for year ahead.
Assess that we are still able to respond effectively to emerging sector changes (in legislation,
regulation or best working practices) and internal changes in ways of working (including
financial challenges etc.) through the Strategy. Reviewing of progress against targets
yy Annual review with residents to check we are doing what we said we would and updating the
action plan
yy Benchmarking. The Regulator of Social Housing publishes a cost per home analysis of all
registered housing associations annually. We will use this to reassess our costs in relation to
other social housing providers. We are also a member of a benchmarking group (Housemark),
which provides more detailed comparative information on costs and performance. This
information allows us to compare ourselves against our peers, identifying areas of our business
where costs appear high or performance is low and further analysis is needed. We will use this
comparative information to assess our progress and target further improvements.
For effective risk management the Asset Management Risk Register will be continually updated
and reviewed identifying risks and controls in line with the organisation’s risk appetite. Monthly
and quarterly KPI reporting will take place alongside a rolling internal audit programme and all
key processes and procedures will be documented and agreed by relevant parties.
GOVERNANCE ARRANGEMENTS
The Board is responsible for overseeing the delivery of this strategy. The ownership and
implementation of this strategy rests with the Director of Property and New Business.
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Supporting Documents
Asset Management Principles Document
Value for Money Strategy
Development Strategy
Sustainability Strategy
ICT Strategy
Communications Strategy
Risk Management Strategy
Community Empowerment Strategy
Procurement Strategy
Corporate Plan 2017- 2020
Business Plan
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Definitions
Term/acronym Description
Resident Includes tenant, freeholders and leaseholders
SAP Standard Assessment Procedure (method used to
score properties for energy efficiencies on EPCs)
EPC Energy Performance Certificate
PRS Phoenix Repairs Service
GIS Geographic information system, a system for storing
and displaying data on a map
CPI Consumer Price Index
RSH Regulator of Social Housing
Universal Credit Government payment to help with living costs
GDPR General Data Protection Regulation
NPV Net Present Value
Star Survey Satisfaction survey of tenants and residents
BS18001 British Standard for occupational health and safety
management systems
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