Investing in homes and places where people want to live - Asset management strategy 2013-18
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Investing in homes and
places where people
want to live
Asset management strategy 2013-18
In partnership with:
Contents
Executive summary ……………………………………….. 1 5. Additional tenant priorities…………………………….. 17
1. Introduction …………………………………………………. 2 5.1 City-wide energy efficiency 17
2. Context……………………………………………………….. 3 5.2 Additional improvements 18
2.2 Stock characteristics and performance 3 6. Decommissioning, regeneration and new build….. 19
2.3 Funding 6 6.1 City-wide demolition and regeneration 19
2.4 Priorities for the Asset Management Strategy 8 7. Delivering the plan……………………………………… 20
2.5 Outcomes from the Asset Management Strategy 10 7.1 Key drivers 20
3. NCH Dynamic Asset Management…….….……………. 11 8. Performance management…………………………… 23
3.1 Investment options: Maintain, Invest and Improve, Replace 13 8.1 Understanding the impact of investment 23
4. Meeting the Nottingham Homes standard……………. 16 8.2 SMART targets for 2018 24
4.1 Legislative and safety 16 8.3 Contribution to Corporate Plan targets 25
4.2 Decent Homes and maintaining decency 16 9. Appendix: Plan of investment by ward…………….. 26
Asset Management Strategy 2013-18
NCH Asset Management Plan 2013-2018
Complimenting these priorities are the key drivers of: maximising the effect of
Executive summary
the investment on the local economy; helping our tenants deal with the ever
growing threat of ‘fuel poverty’; and reducing carbon emissions.
Over the next five years the Nottingham City Homes (NCH) Asset
Management Team will deliver a quarter of a billion pound programme of In summary, based on the successful delivery of the 2007-2013 NCH Asset
investment to the 28,000 council homes owned by Nottingham City Council Management Strategy we are now embarking on an exciting, five year
(NCC). In addition to this NCC funding, there is a potential to attract up to investment programme of works to council homes across Nottingham. The
£50 million of external funding from energy companies. This equates to a following strategy describes how we will achieve this challenge in line with
programme of over £1 million per week. our corporate vision of creating ‘homes and places where people want to
live’.
The scale of this investment means that we can really make a difference in
creating homes and places where people want to live. It is crucial to
Nottingham that this investment is made in line with our tenants’ priorities,
our corporate plan, NCC key drivers and to the benefit of the wider
community. The role of the NCH Asset Management Team is to ensure that
the programme is delivered in line with these priorities and this strategy
outlines how we will achieve this over the next five years.
Central to this strategy is the concept of ‘NCH Dynamic Asset Management’,
based on a continual circle of ‘Diagnose, Plan, Invest, Learn’. This model
ensures that investment decisions are informed by all contributing factors,
including evidence of our wider social, economic and environmental impact,
and that the asset management of the housing stock remains ‘dynamic’.
The strategy is complimentary to and builds on the long-term priorities and
plans set out in the ‘NCC Housing Revenue Account Business Plan (HRABP)
2012-2042’. The investment plans are based around the three HRABP
investment priorities of:
• meeting the Nottingham Homes Standard
• additional tenant priorities
• decommissioning, regeneration and new build.
1 Asset Management Strategy 2013-18
1. Introduction period in which work will be done. It connects that with our customers’
priorities for investment in the homes they live in, and takes into account the
priorities set out by partner organisations in the city of Nottingham so that the
Nottingham City Homes is an Arms Length Management Organisation
plan maximises the contribution NCH can make to helping them with their
(ALMO) created in 2005 by NCC to manage its council housing stock. We
objectives, as set out in Nottingham’s Sustainable Community Strategy.
are a not for profit company run by a Board of non-executive directors. The
Board is made up of 12 members including five tenants and leaseholders, An important guiding and reference document for this strategy is the recently
three councillors nominated by NCC and four independent members. published Housing Revenue Account (HRA) Business Plan 2012-2042
(September 2012). The HRA Business Plan describes NCC’s vision for the
In April 2011 we signed a new 10 year partnership agreement with NCC.
future of the housing stock we manage and how NCH can work in partnership
Within this agreement we are seen as a key strategic partner of the council
with NCC to meet the investment requirements necessary to maintain our
and are positioned to take a much broader role in the city than simply our
homes to a decent standard over the next 30 years, including energy works
core business. We will work alongside the council at both operational and
and to building much needed new council homes.
strategic level to deliver our mutual ambition. It is within this context that this
Asset Management Strategy looks to the future, ensuring we manage the We know from our ground-breaking
maintenance and investment in our housing stock in a way that contributes to housing investment impact study that “…the study, undertaken
this wider remit. capital works have major benefits that by Nottingham City
are beyond the straightforward physical Homes with Nottingham
A priority for our customers is that the homes they live in are well maintained,
improvements to the properties. This Trent University, of the
and of a decent, modern standard. It is also our customers’ priority that their
research is widely quoted by the HCA wider impact of decent
neighbourhoods are attractive places where people want to live. These
and Department for Communities and
priorities are at the heart of this strategy. homes… has made a very
Local Government (CLG) as an
useful contribution to
The Asset Management Strategy sets out our approach to managing the example of best practice of an effective
impact evaluation leading to better our knowledge, and
physical assets that NCH is responsible for. This is the stock of homes that ought to be required
we manage on behalf of NCC. It also includes the maintenance of certain informed asset management decisions.
reading for those who
communal assets on housing estates, such as open spaces, footpaths,
We have the opportunity to ensure that doubt the importance of
fencing, paved areas and landscaping. The strategy is designed to show how
learning from this research and our on- investing in our social
we will maintain and improve those assets in the coming years.
going impact studies is put into practice housing stock.”
The strategy brings together our knowledge of the assets we are responsible and that the wider benefits are
maximised. This Asset Management Andrew Sturnell, Under Secretary of
for, what we predict needs to be done to maintain, improve or replace them, State for CLG
the funds we will have available for that investment and the predicted time Strategy shows how we will do that.
2
HRA Business Plan 2012-42 http://www.nottinghamcityhomes.org.uk/documents/about_us/
performance/30_Year_HRA_BP_31.10.12.pdf
1 3
NCH Corporate Plan 2012-15 http://www.nottinghamcityhomes.org.uk/about_us/ Decent Homes Impact Study, available online at http://www.nottinghamcityhomes.org.uk/
corporateplan.aspx improving_your_home/impact_study/default.aspx
2 Asset Management Strategy 2013-18
2. Context One of the key strategic drivers for NCC is to increase the numbers of family
houses and bungalows by building modern, well designed, high quality new
2.1 Existing stock characteristics and performance council homes.
Stock Types
NCH manages NCC’s council housing stock of 28,000 rented properties and High Rise Flat Mainsonette
over 1,000 leasehold properties. This equates to 22% of the total Nottingham 7% 3%
residential housing stock. This includes approximately 18,000 houses and
bungalows, 2,000 high-rise flats and almost 8,000 low-rise flats (including
Low Rise Flat
those that are independent living accommodation for older people). The 26%
following pages show the geographical distribution of council houses within
the NCC boundary.
Most of our homes can, with the investment detailed in this plan, continue to
provide quality accommodation over the next 30 years. These properties will
need on-going maintenance, while some of the non-traditional construction House
and solid wall properties with no cavities will require significant additional 56%
insulation to improve their energy efficiency. Stock and construction types Bungalow
8%
are illustrated in the following charts.
Currently there are over 7,000 remaining properties of various ‘non cavity’
The majority of our homes were built between the 1920s and the 1970s. construction types requiring external wall insulation. The predominant
These include large purpose-built estates such as Broxtowe, Bestwood and archetype are solid brick wall properties built in the 1920s (2,500) and
Clifton. Other areas such as St Ann’s and Bulwell have a greater mix of ‘Wimpey No Fines’ concrete system-built houses (over 2,000).
homes in terms of age and type.
Construction Type
Date of Construction
Concrete System Other Non
1980-2011 Pre-1919 Built - Other Traditional High Rise
9% 3% 3% 1% 7%
Concrete System
1920-1939
Built - No Fines
27%
17%
Solid Brick Wall
14%
1960-1979
47% 1940-1959 Cavity Brick
14% 57%
Asset Management Strategy 2013-18
3
Number of council homes per ward
Number of properties per ward
Wollaton West, 169
Berridge, 204
Mapperley, 448
Wollaton East, 533
Arboretum, 575
Leen Valley, 613 St Anns, 3342
Bulwell Forest, 672
Dunkirk & Lenton, 713
Sherwood, 990
Aspley, 3136
Clifton North, 991
Radford & Park, 1189
Dales, 1199
Bestwood, 3109
Basford, 1375
Bridge, 1546
Bilborough, 2861
Clifton South, 1713
Bulwell, 2589
4 Asset Management Strategy 2013-18
5
Geographical Distribution of Nottingham City Owned Council Stock
Asset Management Strategy 2013-18
2.2 Funding Potential funding through Green Deal
Energy Company Obligation (ECO)
Since April 2012
NCC Capital Funding and Decent Homes council housing is no Nottingham has a real opportunity to attract millions of pounds of ECO
longer funded through funding into the city to carry out much needed external wall insulation. This is
the old centralised funding arrangements. Changes introduced in the particularly important when considering that there are still 7,000 no cavity wall
Localism Act 2011 mean that Councils’ Housing Revenue Account (HRA) are properties that need insulation works
‘self financing’ – they fund their services from the rents and service charges to stop excessive heat loss through the
they collect and from the investment decisions they make. Freedom from the fabric of the building. This heat loss is
annual centralised system means that we are now able to make longer term a significant factor towards many of We are confident that we
planning and investment decisions. HRA self-financing allows us to make our tenants being in fuel poverty. can attract up to 70% of
effective use of our housing assets and plan efficiently when considering
capital investment. The first round of ECO is set to finish the required funding
on 31st March 2015 and it is our target from external sources...
Since 2008, the other main source of investment for council housing in to insulate at least 3,000 of these
Nottingham has been the government’s Decent Homes backlog funding. properties by this date and all of the resulting in an additional
Funding for these works therefore comes from the balance of the Central 7,000 by 2018. We are working in £50 million external
Government Decent Homes money (£46 million) and NCC HRA (£196 close partnership with Efficiency East
million). Midlands and the NCC Energy Team investment.
to ensure that we attract as much
The current five year 2013-18 programme equates to £240 million worth of
funding through ECO as possible.
investment.
Secured spend profile: £240m (2013-18) We estimate that the costs of the external wall insulation is approximately
£10,000 per property equating to a total programme of works of £70million. In
Additional improvement Legislative and safety the NCC capital programme of works 2013-18, £20million has been allocated
11%
programme for these works.
18%
Through our extensive negotiations and discussions with the energy
companies we are confident that we can attract up to 70% of the required
funding for these 7,000 homes, resulting in an additional £50 million external
City-wide energy investment into Nottingham. Adding this to the already secured £20 million in
efficiency
10%
Decent Homes and the capital programme means that we will be able to complete this vital
maintaining decency
40%
insulation work by 2018 – many years in advance of that currently allowed in
the NCC self financing cost model.
City-wide demolition and
regeneration The effect of this additional funding is summarised in the following charts.
21%
6 Asset Management Strategy 2013-18
Spend profile and funding sources
A further benefit of the potential for
Indicative spend profile: £290m (2013-18) additional ECO funding is that
(including £50m indicative ECO funding) investment costs identified to carry
Legislative and safety
out this insulation work included in
Additional improvement
programme 9% the NCC Self Financing 30 year cost
15% model will be released for other
works.
Decent Homes and
City-wide energy maintaining decency
efficiency 33%
8%
City-wide energy
efficiency -
indicative ECO
17%
Funding sources: £290m (2013-18)
(including £50m indicative ECO funding)
City-wide demolition and
regeneration
18%
Nottingham City
Decent Homes (CLG), Council HRA funding
£46m £194m
ECO
£50m
7 Asset Management Strategy 2013-18
2.3 Priorities for the Asset Management Strategy
A key factor in our These factors shape the 30 year HRA Business Plan, which is the long-term
Tenant and leaseholder consultation successful stock investment strategy on which this Asset Management Strategy is based. This has built on
to date has been on-going the long-term priorities in the HRA Business Plan, incorporating further tenant
detailed and genuine consultation with our tenants and leaseholders to consultation on investment priorities. This has identified five streams of work,
establish their priorities for investment. Over the last five years the number to meet our long-term priorities.
one tenant priority has remained safety and security. The second priority
remains ‘warmth’ in relation to more efficient and effective heating sources The priorities from the HRA Business Plan and resulting Asset Management
coupled with improved heat retention resulting in energy savings on tenants’ Strategy five streams of work are:
fuel bills. These priorities were confirmed at the March 2013 tenant
conference. HRA Priority 1: Meeting the Nottingham Decent Homes Standard
Tenant outcome priorities Tenant element priorities 1. Legislative and safety works
2. Decent Homes and maintaining decency
1 Security 1 New composite doors
HRA Priority 2: Additional tenant priorities
2 Saving energy bills 2 External wall cladding
3. City-wide energy efficiency
3 Modern facilities 3 100% double glazed windows
4. Additional improvements
4 Wider community 4 Renewable Technologies
HRA Priority 3: Decommissioning, regeneration and new build
5 Neighbourhood improvements 5 Environmental works
5. City-wide demolition and regeneration
The following city-wide Further details on why these aspects have been prioritised and examples of
City-wide strategies and priorities strategies form the context of works to be carried out under each stream are set out later in the strategy
our Asset Management Plan, as document.
well as our Corporate Plan:
The NCH Direct Labour Organisation (DLO) will continue to maintain council
• The 2030 Vision (the Local Strategic Partnership vision) homes in line with the existing NCC/NCH repairs contract. This maintenance
• The Nottingham Plan to 2020 (the Sustainable Community Strategy) work includes day to day repairs, gas servicing and voids work and equates
to over 3,000 repairs every week.
• The Housing Nottingham Plan (the city’s housing strategy)
• Other city-wide strategies such as NCC’s crime strategy (the Crime and
Drugs Partnership Plan)
8 Asset Management Strategy 2013-18Asset Management priorities Why Improvement works
• Fire safety and Equality Act 2010 works
Our first priority is to keep our tenants safe, by • Asbestos works
1. Legislative
ensuring we meet all safety requirements set out • Water hygiene
and safety by law. • Lift replacement and maintenance
• CCTV and door entry systems
Our ambition is that all tenants – now and in the • Completing the Secure, Warm, Modern programme (including city wide
2. Decent Homes future – will live in better than decent homes,
composite door scheme) - 100% Decency- March 2015
& maintaining • Maintaining decency including completion of door programme
providing a fundamental foundation for a better
• Roof and chimney replacement
decency quality of life.
• Other external improvements
• External insulation to over 7,000 ‘hard to treat’ homes across the city
3. City-wide NCH is committed to helping tackle the twin • Replacing high-energy heating systems with district heating and
challenges of reducing fuel poverty amongst our Combined Heat and Power installations
energy tenants and reducing carbon emissions, • Further photovoltaic solar panel installations
efficiency contributing to both local and national targets. • Voltage optimisation and LED communal lighting
• Environmental and estate impact works
Our Dynamic Asset Management approach ensures • Major void works
4. Additional
we include flexibility in our plans to meet other • Timber framed window upgrades
improvement local priorities, that have the biggest positive • Independent Living scheme improvements
programme impact on our tenants. • Other roofing works
• Decommission and demolition of 1,000 properties across the city
5. City-wide Addressing the most costly and difficult to let
• Regeneration of these sites, plus other smaller infill developments, to
properties through whole-scale regeneration of build 400 new council homes by 2017
demolition and these estates will ensure they meet the present
regeneration • Further properties built through NCH-owned new build and affordable
and future needs of our communities. housing
9 Asset Management Strategy 2013-182.4 Outcomes of the Asset Management Strategy
The vision set out in our Corporate Plan is to create ‘homes and places where people want to live’. The Asset Management Strategy aims to achieve a number
of outcomes that will contribute to the overall company goals.
Corporate goals Asset management outcomes
Corporate goal 1:
To be a first class housing 1. Meet our tenants’ priorities for capital investment, to deliver more local jobs and training,
organisation in the eyes of our maintain high quality and customer care, and ensure value for money.
tenants & leaseholders
2. Provide housing of suitable quality and type which makes people want to work and live
in every neighbourhood.
Corporate goal 2: 3. Increase the impact of our work on the local economy, using our procurement and
To be a major player in contracting to promote local employment, support to SMEs and social enterprises, and
transforming the quality of life in improved training and skills outcomes.
our neighbourhoods 4. Reduce carbon emissions in line with city targets, and lower fuel poverty among tenants.
5. Help improve the quality of life for tenants, such as increased security, warmth and
wellbeing.
Corporate goal 3: 6. Maximise investment opportunities, proactively seeking funding sources and ensuring
To be a great place to work, widely best value for money from our resources.
respected as an efficient & 7. Maintain and strengthen our reputation with NCC, Central Government and other key
professional organisation stakeholders through effective partnerships and efficient delivery.
10 Asset Management Strategy 2013-183. NCH Dynamic Asset Management
Introducing NCH Dynamic Asset Management
Historically, asset management has been about tracking components’ This policy also demonstrates that we also have a genuine and clear
lifecycles and replacing them at the end of their theoretical life. We are commitment to the corporate values and objectives.
already doing far more than this: the focus of this strategy is to clearly define
how we move forward with a ‘Dynamic Asset Management’ approach. By We are therefore focused on a Dynamic Asset Management policy which not
dynamic asset management we mean a process that makes sure investment only successfully delivers capital investment programmes, but also places
delivers more than simply component renewal on a like for like basis, but tenants and customer satisfaction at the heart of investment. This is done
invests in the long term future of each property and the community where it’s with a focus on local employment and delivery, links with social enterprises
located. and skills training, tackling fuel poverty and reducing carbon emissions.
NCH Dynamic Asset Management considers not just the physical investment This strategy looks to the next five years to continue in this direction,
but the outcomes of this for maximising the benefits of investment for our customers and the communities
individual tenants, the wider we serve.
community and the city as a NCH Dynamic Asset
whole. It is based on using all Management considers not just The four stages in the NCH Dynamic Asset Management model are:
our knowledge of both the physical investment but
technical and community • Diagnose – what are the key issues and root causes
the outcomes of this
needs to diagnose the relevant
issues, for example drawing on for individual tenants, the • Plan – what is the best solution (replace, improve, maintain)
our robust stock condition data, wider community and the
stock assessment tools, our city as a whole and is • Invest – how can we best deliver the investment
knowledge of the wider based on using all our
benefits and impact from knowledge of both technical • Learn – what can we do better next time.
investment, and our
relationship with tenants and
and community needs to The key drivers around these four stages are summarised in the diagram
their representatives. diagnose the relevant issues. over the page.
At times it involves looking at
the bigger picture, to step back and consider the long term future for an area,
rather than merely maintaining it for maintenance’s sake. This also means
that opportunities are always sought to obtain wider benefits from the
investment process.
Asset Management Strategy 2013-18
11NCH Dynamic Asset Management model
Robust
stock
Housing condition Community
management data consultation
info
Net
City Present
strategies/ Value
needs calculation
analysis
Diagnose:
What are the key
Plan:
issues and root What is the best
Research and causes? solution - replace, Funding
intelligence improve, opportunities
maintain?
Impact Learn: Invest: New
evaluation What can we do technology
How to best solutions
better next time? deliver the
investment?
Customer
satisfaction Legacy
and benefits
feedback
12 Asset Management Strategy 2013-183.1 Investment options: Maintain, invest and The remaining properties are being surveyed when access is available. This
improve, replace wealth of data means that future asset management decisions can be made
with a high degree of confidence in the data. Another benefit of this approach
Currently NCH has full stock condition was that we surveyed properties months, and
Stock condition surveys information for 96% of our properties. We sometimes years, ahead of the works been
therefore believe that Nottingham has the carried out by our Decent Homes/ Capital Works
best council housing stock information in the country. The richness of this We believe contractors, allowing NCH to stay in firm
information has allowed us to go forward with great confidence when Nottingham has programme and budgetary control of these
considering key strategic decisions such as multi-million pound projects.
whether to invest or demolish and the best stock
regenerate. Many other ALMOs, (including 3 Star
information in organisations), Large Scale Voluntary Transfers
To make sure the stock condition data the country. (LSVTs) and Registered Providers (RPs) have
held on the Nottingham council stock relied on 10% surveys to build their Decent
was as robust as possible and that the Homes and Capital Works programmes and pay
data could be used with a high degree of their contractors to complete the stock condition
confidence, in 2006/2007 NCH procured survey on their surveys. This not only means that programmes of work built
a full survey of all of its stock. This from such stock condition survey information can be up to 90% wrong, but
information has proved crucial in also that the client is conceding control of the programme to their contractors.
informing future decisions on stock
retention or demolition and in identifying Stock condition data is held on a ‘real-time’ live database (Keystone), which
the need for structural investment works is constantly updated with additional stock information and actual costs
to the stock in the short, medium and incurred from a variety of refurbishment programmes. In short, every time
long term. In line with best practice, this there is work done to the properties, the database is updated. NCH has
structural survey on all non-traditional helped Keystone develop and improve
stock will be repeated in 2013/14 and their software, sharing good asset
thereafter at management practice across the
five year intervals. sector.
Full structural
The NCH Asset Data team, working in
survey of all non- partnership with Savills, surveyed 96% of council
traditional homes across the city between 2009 and 2011.
This captured full stock condition data on the
stock. homes including Housing Health and Safety
Rating System (HHSRS) scores, asbestos and
energy performance rating.
13 Asset Management Strategy 2013-18NCH stock assessment tool NCH has produced an assessment tool Clearly decisions on the investment of the
to assist in the decision making on the stock will not be taken on a purely Decisions on the
Council’s stock. This compares the necessary costs to keep the stock up to commercial basis. To assist consultation
standard, against the income from the same properties, over a long-term (30 and decision making, we have combined investment of the stock
year) period. This is known as the Net Present Value (NPV). The NPV is then the information on the physical investment will not be taken
combined with other information on the popularity and performance of needs of the stock with wider indicators on a purely
estates to provide an overall assessment of stock value. from the NCH Housing Management Team
to indicatively rate stock on its performance commercial basis.
HRA self financing makes it essential and desirability.
that we understand the long-term Consultation with tenants is also a central
HRA self financing makes balance of future costs against part of the process. This reflects NCH’s commitment to include tenants in our
it essential that we income (NPV), so we can ensure our decision making, as set out in our Tenant and Leaseholder Involvement
financing position is affordable in Strategy4.
understand the long-term future years. This also strengthens
balance of future costs our ability for forward planning, so we This is used to create a composite rating for each estate. The inputs to this
can move from a passive approach – are the quantitative data on tenancy duration and stock turnover during the
against income (NPV), so of keeping the current stock at the past five years taken from NCH’s housing management system, for example:
that we can ensure our current standard – to gradual and
affordable replacement and • home and neighbourhood satisfaction from our annual customer
financing position is improvement. satisfaction survey
affordable in future years. • a deprivation assessment is taken from the Indices of Multiple Deprivation
The NPV takes into account the 30
(IMD)
year replacement costs for each
element of the property, a • a housing management assessment of the ‘on the ground manageability’
maintenance cost, plus NCH housing management costs. Income from the of the estate (taking into account such matters as anti-social behaviour
properties over the same timeframe is also calculated including rental levels and tenancy and neighbourhood issues).
income, service charges and other incidentals.
The stock is rated from calculations based on all these elements.
The hierarchy of the stock can then be used to get an NPV level by whole
stock, area, estate, ward or a more individual area such as a sheltered The result of this process is summarised on the next page. This helps
scheme. It is also available per individual property. determine the most appropriate decision: to maintain, invest and
improve, or replace each property or neighbourhood. This is part of our
more dynamic approach to asset management.
4
http://www.nottinghamcityhomes.org.uk/get_involved/default.aspx
Asset Management Strategy 2013-18
14Radford high rise (Highurst, Clifford
and Highcross) – had a very low stock
This diagram shows some example estates and high-rise blocks to illustrate rating and a large negative NPV. The
This helps determine
the model. right asset management decision for the most appropriate
these blocks is to demolish and replace
with new council housing. Following the decision: to maintain,
NCH NPV assessment in 2011, these invest and improve, or
Negative Radford blocks are now at various stages of
highrise
NPV decommissioning and demolition and replace each property
Replace new build housing will start in these
or neighbourhood.
sites in autumn 2013. This is an extreme
Bilborough BISF Lenton highrise example of properties that need
replacing.
Net Present Value
Lenton high rise – similar to Radford, these blocks are unpopular and have a
Invest & improve large negative NPV. Demolition commenced on this site in 2013 and new build
will commence in 2013/14. These properties clearly sit in the ‘replacement’
category.
Bilborough BISF – these properties have a relatively high stock rating but
because of their construction have a large negative NPV. BISF stands for
British Iron and Steel Federation and are built on a steel frame. Because of
Bestwood their popularity, the correct asset management decision is to carry out
necessary structural remedial works to the steel frame and insulate the
external walls. This estate therefore falls into the ‘invest and improve’ category.
Maintain Bestwood – this estate is an example of a popular area with a small positive
Woodlands NPV which only needs on-going maintenance.
Positive Wollaton Woodlands – these high rise blocks were subject to a multi million pound
cladding and refurbishment scheme in the 1990s which means that they have
NPV
a relatively high positive NPV. Despite this work, these high rise blocks remain
Highest Lowest difficult to manage. This puts a question mark on the original decision to invest
+ rating Stock rating rating and has informed the replacement decision on Lenton and Radford high rise.
Wollaton – high stock rating and large positive NPV means that this estate sits
clearly in ‘maintain’.
15 Asset Management Strategy 2013-184. Meeting the Nottingham Homes Standard 4.2 Decent Homes and maintaining decency
4.1 Legislative and safety Our ambition is that all tenants – now and in the future – will live in better than
decent homes, providing a fundamental foundation for a better quality of life.
Our first priority is to keep our tenants safe, by making sure we meet all
safety requirements set out by law. Tenant priorities remain as they were at the start of the Decent Homes
programme, to firstly make homes secure, then warm, and finally modern.
We have a dedicated team of staff and contractors who have the significant NCH will achieve 100% decency by 2015, in line with our funding programme
responsibility of making sure the safety standards of our properties are with the HCA and CLG.
managed in line with statutory regulations.
It is important to maintain the momentum created by the Decent Homes
Investment works will include: programme, so that our stock continues to meet the Nottingham Standard
• fire safety works into the future. Therefore over the next five years we will:
• equality Act 2010 works Upgrading windows and doors has resulted in a
• asbestos works significantly lower burglary rate in high-crime areas
7.0%
• water hygiene Replace all 31,000 7%
• electrical timber doors, 6%
• lift replacement and maintenance improving security. 5%
• CCTV and door entry systems 4%
3.6%
• paving and lighting 3%
2%
1.1%
1%
0%
NCH Baseline NCH SBD NCH SBD
windows windows &
doors
Complete ’warm’
programme and support
tenants to reduce their
energy bills through
energy behaviour change.
16 Asset Management Strategy 2013-185. Additional tenant priorities
5.1 City-wide energy efficiency
Replace all failing NCH is committed to helping tackle the twin challenges of reducing fuel
kitchens and poverty amongst our tenants and reducing carbon emissions, contributing to
bathrooms. both local and national targets.5
More than 2,000 of the ‘no cavity’ non-traditional and solid wall stock have
already have been insulated through over £10million of funding available
through the Community Energy Saving Programme (CESP) which ended on
31 December 2012. These works have had an immediate and positive impact
on tenants’ comfort, warmth, sense of wellbeing and fuel bills.
Post CESP, however, there still remains
over 7,000 properties of various ‘no cavity’
Maintain decency, NCH plans to insulate construction types requiring external wall
ensuring that all tenants the remaining 7,000 insulation. The predominant archetype are
continue to live in high solid wall properties, solid brick wall properties built in the 1920s
reducing heat loss, (2,500) and ‘Wimpey No Fines’ concrete
quality homes.
system-built houses (over 2,000).
keeping tenants warm
and combating
fuel poverty. Thermal image of insulated property (left)
and un-insulated neighbour (right)
It is hoped that the Energy
Company Obligation (ECO)
element of the Government’s
Green Deal initiative will assist
Invest £9m in external in funding these works over
improvements, such as the next five years.
chimney and roof
replacements.
5
NCH was awarded the CIH UK
Housing Award 2013 for Sustainable
Landlord of the Year
17 Asset Management Strategy 2013-185.2 Additional improvement works
Our Dynamic Asset Management approach ensures we include flexibility in
Replacing high- our plans to meet other local priorities that have the biggest positive impact
energy heating on our tenants.
systems with district
This includes
heating and
• environmental and estate impact works
combined heat and
power installations. • major void works
• timber framed window upgrades
• Independent living scheme
improvements
Our target is to improve the energy efficiency of the stock to a SAP rating of • other roofing works.
over 70 out of 100.
100
Target 70+
Baseline 60
1
18 Asset Management Strategy 2013-186. Decommissioning, regeneration and These areas will be regenerated, and NCH will build over 400 new homes.
new build
6.1 City-wide demolition and regeneration
Addressing the most costly and difficult to let properties through whole-
scale regeneration of these estates will ensure they meet the present
and future needs of our communities. NCH will build
Demolition has begun on the poorest performing and unpopular estates. 400 new homes
Over the next five years, 1,000 properties will be demolished. by end 2017.
1,000 poor
performing and
unpopular
properties will be
demolished.
Artist’s impression
Our new homes
meet high energy
efficiency and
quality standards
19 Asset Management Strategy 2013-187. Delivering the plan Discussions are already on-going with regards to the delivery of new build
housing and a planned composite door programme in 2013/14, with the
7.1 Key drivers potential for a roofing, external environmental and external wall /internal wall
insulation teams from 2014/15 onwards. Asset Management would maintain
Under the Decent Homes scheme, Secure Warm our client agent role in the programme, project and budget management of
Local economy Modern, every pound spent has a multiplier effect and the schemes. The new in-house contract delivery team would be the
generates £1.36 spending across Nottingham city. The contractor, with the key drivers that match the aspirations of the Asset
Broxtowe Education Skills and Training (BEST) case study (page 22) Management Strategy i.e. maximising local labour, local supply chains,
illustrated that investing in a local organisation results in a higher multiplier training, apprenticeships and working in partnership with social enterprises.
figure, so that every pound invested generates £2.01 spending across This initiative would also result in a very high local economic multiplier figure
Nottingham. This information, coupled with the key NCC driver of increasing for any works delivered through this route.
local labour employment, means that NCH has a fantastic opportunity to
make a difference on this agenda. Based on a £240 million capital works In recognition of our work in this area NCH won the National Housing
programme over the next five years summarised below, any increase on the Federation Measurement of Social Return on Investment Award 2013.
£1.36 Secure Warm Modern multiplier figure will have a massive benefit to
the local economy.
Every £1
Our target is to achieve a local multiplier of £1.75 on all NCH capital works
programmes by 2018. On the basis that we achieve an increase year on NCH spends
year, this will result in an extra £50 million spend within the Nottingham by 2018...
boundary plus the potential for hundreds of additional local jobs.
To achieve this we will need to be robust in the procurement of all our future
contracts, encouraging and promoting
...will generate
local labour and employment. We need to £1.75
This will result in an be equally robust in the way we monitor
spending £1.75
these to assess the impact on the local
extra £50 million economy. within
spend within the Within financial and procurement rules we
Nottingham
...creating an
Nottingham boundary will also be issuing more contracts to
encourage local social enterprises and additional
plus hundreds of
additional local jobs
SMEs to tender. £50m £50m
An additional initiative to maximise the
effect of our investment into Nottingham
spending
over the next five years is to develop an within the city
in-house property services contract delivery team capable of carrying out
capital programme works.
20 Asset Management Strategy 2013-18With rising energy prices, fuel We also work closely with the Homes and Communities Agency (HCA), to
Fuel poverty & carbon savings poverty (where households spend maximise the efficiency and effectiveness of Decent Homes funding. Other
more than 10% of their income on funding partners, such as energy companies, are also becoming key
heating their home to an adequate temperature) is becoming an increasingly stakeholders in delivering housing improvements.
serious and challenging issue for more and more of our tenants. NCH will be
looking to help mitigate the effects of the increasing energy prices by carrying Other key partners for delivery include our contractor partners, local supply
out energy efficiency works over the next five years. chain, the NCH DLO, and our procurement consortium Efficiency East
Midlands.
In addition, we have identified the need for a comprehensive and extensive
Tenant Energy Behaviour Programme as Other influential stakeholders that have helped shape our investment
our research to date has proved that our programme include our tenants and leaseholders, One Nottingham, the
tenants are not making the best use of We have also Crime and Drugs Partnership, and local universities such as Nottingham
the measures that we are installing. This Trent University.
identified the need
programme will be led by NCH’s new NCH’s ‘One in a Million’ scheme, in
Strategic Energy Lead Officer and will be for a comprehensive Training and apprenticeships which contractors pledge to take on
informed by the monitoring programme and extensive an apprentice for every £1m NCH
that we are carrying out in 40 properties spends with them, has already created over 100 apprenticeships. All
across the city through a short KTP Tenant Energy apprentices work towards a minimum of NVQ Level 2, and many to Level 3.
project with Nottingham Trent University. Behaviour Programme. The apprenticeships range across all trades, and also other functions such as
business administration and tenant liaison roles.
These initiatives will help meet the
Nottingham Energy Strategy targets to We will continue the One in a Million commitment in current and future
reduce carbon emissions from domestic properties by 37.6% by 2020. In contractual arrangements. Therefore, the total investment planned over the
recognition of our work in this area, NCH were awarded the Chartered next five years will generate 250 new apprenticeship or trainee positions. This
Institute of Housing UK Housing Award 2013 for Sustainable Landlord of the will build on NCH’s already established position as a ‘Top 100 Apprenticeship
Year. Employer’, recognised by the National Apprenticeship Service in 2011.
None of our successes to date would have In line with key local drivers to promote the local economy and provide local
Working in partnership been possible without the highly developed jobs and training, we have also worked in a highly successful partnership with
and mature partnerships we have developed a local social enterprise BEST. We hope to replicate this success with other
and nurtured over the last five years. social enterprises and SMEs. In addition, our recently launched Tenant
Academy will provide training for tenants and leaseholders, helping them to
Our key partnering relationship is with NCC. Excluding CLG Decent Homes gain valuable experience, qualifications and improve job prospects.
funding, we have managed our highest ever level of housing investment on NCH has a genuine commitment to invest in the training of our own staff. Our
behalf of NCC which will was in excess of £30 million by the 2012/13 year passion for training and apprenticeships has been recognised in the award of
end. This figure is set to rise as the demolition and regeneration programme Investors in People Gold standard in May 2013.
starts in earnest in 2013/14.
21 Asset Management Strategy 2013-18Broxtowe Education, Skills and Training (BEST)
Case study
NCH’s work with BEST has proven to be a pathfinder
example of how and why NCH can maximise its positive impact by working
with local social enterprises.
BEST is a social enterprise working at the heart of the local community in Every £1 NCH
Broxtowe estate to find ways of improving the skills and employment
prospects of residents. One of the ways of achieving this has been through
spends with
the development of BESTbuild, a jobbing small-works contractor. BESTbuild BESTbuild…
employs local people to deliver the construction projects it wins as contractor,
and includes supporting employees through accredited training such as
apprenticeships. £1 £2.17
NCH followed best-practice procurement standards to:
• develop a fair tendering process that is accessible to SMEs and social
enterprises to include contribution to social and economic goals £2.01
• pro-actively support local social enterprises such as BESTbuild to enable ...generates £2.17
them to compete for tenders, e.g. supporting them to meet industry spending within ...generates £2.01
standards spending within
Nottinghamshire
As a result, BESTbuild was successful in the competitive tendering process Nottingham city
and in 2012 became a principle contractor to NCH. BESTbuild have
delivered a number of environmental projects as well as a major clean-up
operation following a fire in a high-rise electrical sub-station.
Evidence of the positive impact of BESTbuild on the local economy has “Nottingham City Homes has recognised the importance of
proven the value of such an approach. A measure of the multiplier effect of procurement on the local economy. They are well ahead of the
NCH’s spend with BESTbuild on the local economy showed that: pack.
Every £1 spent by NCH with BESTbuild generates £2.01 spending within
Nottingham city, or £2.17 spending across the whole of Nottinghamshire. In It takes courage to make innovative changes and NCH should be
recognition of our work in this area NCH won the National Housing congratulated. Together in tough economic times we have
Federation Measurement of Social Return on Investment Award 2013. created and sustained local jobs and apprenticeships. This is a
This demonstrates a very high local multiplier effect – nearly all the money is partnership that I am proud of.”
re-spent locally, with the exception of tax and utility payments. This is
considerably higher than the multiplier effect from using other regional and Anna Mimms MBE, Chief Executive of BEST and BESTbuild
national contractors for NCH’s Decent Homes programme, for which every
£1 invested generates £1.36 spending in Nottingham city and £1.46 across
Nottinghamshire.
22 Asset Management Strategy 2013-188. Performance management
8.1 Understanding the impact of housing investment
The Impact Study showed:
The Decent Homes Impact Study provided an evaluation of the wider social
impacts of NCH’s Decent Homes programme. The research provided • A 58% reduction in burglary in two estates fitted with
evidence of impact of the Secure, Warm, Modern programme on NCH’s Secured by Design windows, compared to a 32%
tenants and communities, covering the impact on crime and security, health reduction across the city
and wellbeing, the environment and fuel poverty, and on the local economy • Energy efficiency improvements are estimated to have
and employment. saved 15,500 tonnes of CO2, and saved £3.5m in fuel
bills for our tenants
In recognition of our work in this area NCH won the National Housing
Federation Measurement of Social Return on Investment Award 2013. • Health and wellbeing is improved, reducing the number
of ‘excess winter deaths’ by two a year, and improving
This evidence of the wider impact of housing improvements is informing our the respiratory health of over 1,000 children
asset management decisions. For example, an analysis of the impact on • Positive impact on the local economy, as the investment
security highlighted the vulnerability of remaining timber doors to burglary. is spent and re-spent by local staff and businesses;
Using this information, and taking in account tenants’ top priority of security, every £1 invested in Decent Homes generates £1.36 in
this has resulted in NCH’s decision to replace every timber door with local spending
Secured by Design composite doors over the next five years.
We are continuing to evaluate the social impact of our housing
investments and other work, to further inform how we deliver our
investments to maximise the wider benefits to tenants and
communities.
For example, as shown in the BEST case study, further work has shown that
using such a local social enterprise has a bigger multiplied effect of the
spending on the local economy than using regional or national contractors.
Further research is planned to measure the impact of housing improvements
such as insulation on tenants’ healthy life expectancy. The aim is to be able
to demonstrate to the health service that housing improvements are an
effective long-term health intervention.
23 Asset Management Strategy 2013-188.2 SMART targets by 2018
SMART target Current 2018 Impact SMART target Current 2018 Impact
target target
Outcome 1: Meet our tenants’ priorities for capital investment, to deliver Outcome 4: Reduce carbon emissions in line with city targets, and lower
more local jobs and training, maintain high quality and customer care, fuel poverty amongst tenants.
and ensure value for money.
Increase customer satisfaction to 9 out of 8.76 9 Meet tenants’ All no-cavity properties insulated utilising 2,000 2013-18 Energy saving
10 across all capital programmes (Decent priority Green Deal ECO properties 7,000 and warmth
Homes) expectations insulated properties
insulated
‘One in a Million’ commitment to create 128 350 Local jobs and
250 more apprenticeships training Saving carbon
Outcome 5: Help improve the quality of life for tenants, such as
Outcome 2: Provide housing of suitable quality and type which makes increased security, warmth and wellbeing.
people want to work and live in every neighbourhood. Replace every timber door with a Secured 31,000 0 timber Increased
by Design composite door timber doors security and
Complete Decent Homes by 2015 79.95 % 100% High quality doors air-tightness
decency decency housing
400 high quality new NCC Council Homes, 26 400 Regenerating
to time and to budget, plus 100 NCH built, neighbour- Outcome 6: Maximise investment opportunities, proactively seeking
owned and managed properties hoods funding sources and ensuring best value for money from our resources.
Energy companies obligation funding 2011-13 2013-18 Energy saving
£10million £50million and warmth
Outcome 3: Increase the impact of our work on the local economy,
using our procurement and contracting to promote local employment, Saving carbon
support to SMEs and social enterprises, and improved training and
skills outcomes. Outcome 7: Maintain and strengthen our reputation with NCC, Central
Government and other key stakeholders through effective partnerships
Increase in Local Multiplier score to £1.75 £1.36 £1.75 £50m boost to and efficient delivery.
from £1.36 on all NCH capital works local economy
projects Stakeholder feedback
24 Asset Management Strategy 2013-188.3 Contribution to corporate targets
A number of NCH’s corporate goals will be directly achieved by this AMS: The AMS will also contribute to a number of other Corporate Goals:
2012 2015*
baseline target To be a first class housing organisation in the eyes of our
tenants and leaseholders:
To be a first class housing organisation in the eyes of our • overall satisfaction with the services delivered
tenants and leaseholders • tenant satisfaction that NCH keeps them informed about things that
might affect them
Tenant satisfaction with Secure, Warm, Modern 8.43 9
• tenant satisfaction that NCH listens to their views and acts upon them
% non decent homes 28.03% 0%
To be a major player in transforming the quality of life in our
neighbourhoods:
To be a major player in transforming the quality of life in our
• tenant satisfaction with their neighbourhood as a place to live
neighbourhoods
• tenant satisfaction with opportunities to be involved
Number of new homes built New 150 • percentage of estates meeting a four star rating
measure • percentage of blocks meeting a four star rating
• percentage of tenants who rate their quality of life as very good/good
*The corporate targets are up to 2015 • percentage of tenants who feel that NCH has delivered on its vision of
creating homes and places where people want to live
• percentage of tenants who feel they belong to their neighbourhood
To be a great place to work, widely respected as an efficient
and professional organisation:
• tenant satisfaction that their rents provide value for money
• percentage of employees who would recommend NCH as a good
employer to work for
• sickness absence days
• proportion of employee appraisals completed
25 Asset Management Strategy 2013-189. Appendix: Plan of investment by ward
City-wide (27,967 council homes within city)
• legislative and safety works: 2013-18 • achieve 100% decency: mop up schemes 2013-15 • maintaining decency: 2015-18
• environmental improvement works: 2013-18 • independent living scheme improvements: 2013-18 • roof covering replacement
programme: 2015-18
Arboretum (575) Aspley (3,136) Basford (1,375) Berridge (204)
• composite door programme: • composite door programme: 3,500 • composite door programme: 2,000 • composite door programme: 250
300 doors – 2013-14 doors – 2013-15 doors – 2015-17 doors – 2015-16
• achieve 100% decency: • demolition: 12 and 13 Denton Green • energy projects: external wall • energy projects: external wall
Including bespoke sash window – 2013-14 insulation to 100 no cavity concrete insulation to 100 solid brick wall
replacement – 2013-15 • new build: Keverne Close – 2 system built homes and 280 solid brick properties – 2016-18.
• energy projects: external wall bungalows, Denton Green – 4 wall properties – 2015-17.
insulation to 40 no cavity concrete bungalows, Oakford Gardens – 13
system built homes and 120 solid brick bungalows – 2013-16
wall properties – 2017-18. • energy projects: external wall
insulation to 360 solid brick wall
properties – 2014-15.
Bestwood (3,109) Bilborough (2,861) Bridge (1,546) Bulwell (2,589)
• composite door programme: 3,500 • composite door programme: 4,600 • composite door programme: 1,800 • composite door programme: 3,000
doors – 2015-17 doors – 2014-16 doors – 2013-15 doors – 2013-15
• demolition: garage sites • Demolition: cross wall flats at • achieve 100% decency: replacement • new build: Ragdale Rd, 6 bungalows
• new build: Wendling Gardens – 4 Cranwell – 2013-15 kitchen, bathroom and loft top up work – 2015-16
bungalows, Bestwood Park Drive – 2 • new build: Cranwell Rd estate – 24 to 450 homes – 2013-15 • energy projects: external wall
houses, Henning Gardens – 7 houses flats, 8 bungalows and 34 houses – • demolition: Meadows Q Blocks – insulation to 100 Drury Cross wall, 440
– 2013-16 2014-16 2014-16 Wimpey No Fine no cavity system built
• energy projects: external wall • energy projects: external wall • new build: Meadows Q Blocks – 12 homes and 110 solid brick wall
insulation to 110 no cavity Wimpey No insulation to 255 BISF, 20 NCB Slip bungalows, 42 houses – 2014-16 properties – 2015-17.
Fine system built homes – 2016-18. Panel and 160 Wimpey No Fine no • energy projects: external wall
cavity system built homes and 15 solid insulation to 100 solid brick wall
brick wall properties – 2014-16. properties - 2016-18.
26 Asset Management Strategy 2013-18Bulwell Forest (672) Clifton North (991) Clifton South (1,713) Dales (1,199)
• composite door programme: • composite door programme: 1,200 • composite door programme: • composite door programme: 1,200
900 doors – 2015-17 doors – 2013-15 2,300 doors – 2013-15 doors 2015-17
• energy projects: external wall insulation • demolition: garage sites – 2013-15 • demolition: garage sites – 2013-15 • energy projects: Bentink, Manvers and
to 83 Wimpey No Fine no cavity system • new build: Meadowvale 3 houses, • new build: Middlefell Way five houses Kingston – replace current electric
built homes and 100 solid brick wall Eddlestone Drive 5 houses – 2013-15 • energy projects: external wall insulation heating to 270 flats with new system
properties – 2016-18. • energy projects: external wall insulation to 50 concrete and 828 Wimpey No Fine fuelled by the Waste District Heating
to 80 zrury cross wall and 350 Wimpey no cavity system built homes – 2013-15. 2013-15.
No Fine no cavity system built homes – Colwick Woods Court – replace
2013-15. current electric heating to 90 flats with
energy efficient fuel source 2014-15
Insulated cladding works to all four high
rise blocks. External wall insulation to
100 Wimpey No Fine no cavity system
homes and 140 solid brick wall properties
2015-17.
Dunkirk & Lenton Leen Valley (613) Mapperley (448) Radford & Park
(713) (1,189)
• composite door programme: 400 doors • composite door programme: 900 • composite door programme: 600 • composite door programme: 800 doors
– 2014-15 doors – 2016-18 doors – 2016-18 – 2016-18
• demolition: 5 high rise blocks at Lenton • energy projects: external wall insulation • demolition: St Ann’s school – 2014-15 • demolition: Highhurst and Clifford Court
plus garage block adjacent – 2013-16 to 100 solid brick wall properties – 2016- • new build: St Ann’s school – 2015-16 high rise – 2013-14
• new build: Lenton 10 flats, 54 18. • energy projects: external wall insulation • new build: High Cross, Clifford and
independent living flats, 16 bungalows, to 100 solid brick wall properties – 2016- Highurst - 53 houses – 2013-15
62 houses built over four construction 18. • energy projects: external wall insulation
phases – 2013-17 to 225 William Moss no cavity system
• energy projects: external wall insulation built homes, 25 solid brick wall properties
to 90 solid brick wall properties – 2016- 2016-18.
18.
St Ann’s (3342) Sherwood (990) Wollaton East & Lenton Abbey Wollaton West (169)
(533)
• composite door programme: 1,800 • composite door programme: 1,200 • composite door programme: • composite door programme: 300 doors
doors – 2014-16 doors – 2016-18 800 doors – 2016-18 – 2016-18
• new build: Robin Hood Chase – 2015- • energy projects: Woodthorpe and • energy projects: external wall insulation • energy projects: external wall insulation
16 Winchester high rise – replace current to 100 Crane bungalow no cavity system to eight solid brick wall properties –
• energy projects: external wall insulation electric heating to 175 flats with new built homes and 410 solid brick wall 2017-18.
to 60 Wimpey No Fine, 80 concrete and energy efficient fuel source. Insulated properties 2014-16.
60 William Moss system built homes cladding works to both highrise blocks.
plus 470 solid brick wall properties 2015- 2014-15. External wall insulation to 375
17. Additional insulation and window solid brick wall properties – 2016-18.
replacement work to the 430 Victoria
Centre flats - 2015-18.
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