Agenda item

(Housing and Communities – Cllr. H Whitbread) - To approve the commissioning of a third party to write the housing asset management strategy (C-044-2022-23).

(1)        The Cabinet approved the commissioning of a third party to write the Housing Asset Management Strategy in line with the 30-year HRA finance business plan, to include a rolling five-year investment plan

(2)        The Cabinet approved the start of consultation with leaseholders and residents of the Broadway’s major works project with an estimate cost of £6million.

(3)        The Cabinet approved the co-funding of decarbonisation works to 130 properties should EFDC be successful in securing funding through the Social Housing Decarbonisation Fund (SHDF) Wave 2. It was noted that Cabinet approval was needed to direct award the works to E:On as set out in the Fusion 21 framework. This would come back to the Cabinet when more detail was known.

(4)        The Cabinet agreed that the Interim Strategic Director be the Council’s responsible person for Health and Safety in Council Housing.

The Housing and Community Portfolio Holder introduced the report. She noted that EFDC had a 30-year HRA finance business plan which outlines the available annual finances to meet our obligations under the decent home standard and the social housing white paper. However, we did not have an up-to-date housing asset management strategy document that would run alongside the 30-year finance plan which would direct our spending, outline our aims and goals including our approach to achieving Net Zero across our housing stock and informing our approach to disposal and development options.

We would like approval to outsource the production of this report to a third party via competitive tender. Whilst we would have hoped to have produced this report internally, resource and time constraints mean that outsourcing would produce the document in a timely manner.

Also, at January’s 2022 report to Stronger Communities regarding the housing business plan, there were several assets highlighted within section 7 requiring capital works expenditure. One of these assets was The Broadway which in the January 2022 report was estimated as requiring £2.75m worth of planned works.

We now want to bring this project back to the attention of members for two reasons. Significant additional works identified by our independent surveyor suggests that many components to the buildings external envelope are now life expired and require urgent maintenance/replacement.  The required budget for these is estimated to be £6m and is available within years 24/25 & 25/26 of the business plan. Firm costs for the proposed scheme would be provided following a competitive tender process under the SEC framework for External Works in the 3rd quarter of 2023.

Local ward members wondered how the estimated £36million cost would affect the leaseholders and the shopkeepers. What provisions were to be made to help them. They were told that they would be consulted, and the results would be brought back through scrutiny to the Cabinet.

Decision:

(1)        The Cabinet approved the commissioning of a third party to write the Housing Asset Management Strategy in line with the 30-year HRA finance business plan, to include a rolling five-year investment plan

(2)        The Cabinet approved the start of consultation with leaseholders and residents of the Broadway’s major works project with an estimate cost of £6million.

(3)        The Cabinet approved the co-funding of decarbonisation works to 130 properties should EFDC be successful in securing funding through the Social Housing Decarbonisation Fund (SHDF) Wave 2. It was noted that Cabinet approval was needed to direct award the works to E:On as set out in the Fusion 21 framework. This would come back to the Cabinet when more detail was known.

(4)        The Cabinet agreed that the Interim Strategic Director be the Council’s responsible person for Health and Safety in Council Housing.

Reasons for Proposed Decisions:

(1)        The Housing Asset Management Strategy will provide reassurance to the Council that our approach to investment in housing assets maintenance is driving the portfolio in a direction which meets our legal obligations but will also ensure that we are able to meet our Net Zero ambitions, helping drive down energy costs to residents.

(2)        Extensive capital works at the Broadway are essential to protect the asset and reduce future responsive repair expenditure.

(3)        The investment driven by the Social Housing Decarbonisation Fund will:

a.         Reduce tenant energy bills as properties can retain more heat and become more thermally efficient. Linked to this is the likelihood that residents are less likely to fall into arrears on their rent as they spend less on energy bills.

b.         It is anticipated all Landlords will have to meet a minimum energy efficiency standard of the EPC band C for new private rented tenancies in the next five years. 

c.         Added value to the assets. Typically, properties EPC rated B and C sell for 5% more than those rated D. Under the deliverables of government backed fund this project must ensure all included properties are improved to a minimum rating of C.

d.         Further protection to Assets. By following a fabric first approach and insulating the external envelope of the properties they are less likely to suffer from condensation, damp, and mould.

e.         This will enable tenants to live in homes that are much less likely to have damp and mould.

f.          By following a fabric first approach it becomes possible to undertake further thermal efficiency upgrades in the future (e.g. green heating systems) with the knowledge that EFDC stock can retain the heat efficiently. This will assist EFDC on its Green plan and the governments wider journey to net zero by 2050.

g.         Access to awarded funds via the SHDF will reduce strain on the HRA finances to begin working towards Net Zero.

(4)        Nomination of Senior Leader to be the Council’s person responsible for Health and Safety in council housing.

The regulations laid by Government on 29^th March 2022  require that the council will nominate a senior officer to be the person responsible for compliance with health and safety. That person must be “sufficiently senior to drive a culture of safety throughout the landlord organisation” and will be the public face of compliance for the council and, of course, tenants. By designating the post of Strategic Director to this role the council is ensuring that at the most senior level within the authority there is a post that will bring any compliance concerns to the attention of the Authority.

Other Options for Action:

(1)        Writing this document could be kept in house. Whilst this would save some costs, the production of the report would be delayed due to increased workloads because of the changes to housing and compliance regulations.

(2)        Many of the items listed for replacement are beyond basic repair. The commercial tenants are and will continue to be impacted by leaks from the above. Delaying other programmed works to reduce cost, such as the window replacement, would not be a cost-effective solution as we can now make use of the scaffolding being in place for the other elements.

(3)        By not progressing with the with grant works will put added strain on the HRA finance plan in the coming financial year, which will mean less properties undergo any works. The works will also help inform our approach to future decarbonisation works

(4)        As part of the changes and recommendations in regulations, there needs to be single nominated person for health & Safety.