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Asset Management Strategy

Author I Jekyll

Job Title Operations Director

Approved by / Date 18 July 2012

Approved by Challenge Group / Date June 2012

Review Date July 2017

Cross Reference with Business Plan, Risk Management Strategy, VFM

Strategy, Tenant Involvement Strategy, Added

Value Strategy, Sustainable Energy & Affordable

Warmth Policy

All Staff email sent 23/07/12

Timetable updated 23/07/12

www.rfha.org.uk

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Contents

Section Page

Executive Summary 3

1 Introduction 5

Key Aims and Objectives

2 Our Housing Assets 6

Stock Profile

Stock Condition

Supply & Demand

3 Managing the Assets 10

Key Components & Tools

Asset Optimisation

4 Investment Programmes 12

Five Year Asset Management Plan

Transforming Homes Programme

Aids & Adaptations

5 Funding the Strategy 15

Availability of Resources

Long Term Future Investment Plans

6 Service Delivery 16

Contractors

Staffing

Categorisation of Maintenance Activities

Responsive Repairs

Voids

Cyclical Maintenance Work

Planned & Major Improvement Work

7 Health & Safety 21

Gas Servicing

Electrical Testing

Fire Safety

Asbestos Management

Legionella

Control of Contractors

8 Affordable Warmth & Improving Energy Efficiency 24

9 Tenant Engagement & Partnerships 25

Working with Tenants

Training Opportunities

10 Strategy Delivery & Monitoring 26

Budgetary Control

Procurement

Risk Management

Performance Management

11 Equality & Diversity 28

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12 Review 28

13 Action Plan & KPIs 28

Appendices

Appendix 1: Asset Management Framework

Appendix 2: Decent Homes Standard

Appendix 3: Option Appraisal Process

Appendix 4: 5 Year Asset Management Plan

Appendix 5: 30 year Asset Management Plan

Appendix 6: Staffing Structure

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Executive Summary

Effective asset management is fundamental to the successful delivery of organisational objectives

and business plan priorities.

This Asset Management Strategy (AMS) is a key tool in delivering our overall strategic aims. It will

highlight relevant asset management risks, including increasing investment costs, changing

government policy, tenancy turnover and voids, housing need/demand and wider economic and

demographic change.

The 2012/13-2017/18 Business Plan includes 8 strategic priorities, one of which relates directly to

the AMS:-

“To ensure that we continue to meet & if possible exceed the Decent Homes Standard by facilitating

a range of tailored services.

To identify major repairs programmes that will reduce our reactive repairs costs and improve tenant

satisfaction levels. Stock investment used efficiently for maximum impact and best value is

achieved."

The AMS is pivotal in supporting our Value for Money Strategy, as repairs and maintenance is one of

the biggest areas of expenditure in the overall budget.

This AMS has been developed from a review of the previous strategy, the introduction of new Asset

Management software system (Keystone) and a rolling stock condition survey programme.

The specific aims of this strategy are:

• Any asset management activity should preserve or increase the value of our assets.

• Best value for money is achieved.

• Funds committed to stock investment are used efficiently for maximum impact Tenants

aspirations are met, high levels of customer satisfaction are maintained and tenant

involvement in decision making is meaningful.

• To ensure the right tools are used to identify risks, liabilities and costs, to reduce exposure to

acceptable levels.

• To provide a continuous improvement framework based on monitoring, performance

reporting, and accountability to tenants.

• To provide a framework for decision making which uses financial, stock condition and

housing management data in a rational and consistent way.

• Investment programmes are delivered in a cost-effective manner in accordance with sound

procurement principles and in line with statutory requirements.

• We help to improve the communities we work in and provide local employment

opportunities wherever possible.

In February 2012 we entered into a key partnership with Futures Housing Group (FHG). This will

help to ensure that our stock reinvestment programmes are managed as efficiently and effectively

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as possible, maximum value for money is achieved and high levels of customer satisfaction are

maintained.

As a result of this significant benefits have been achieved:-

• Projected 24% savings on major improvement programme costs

• Improved specification and quality of work and benefitting from a range of added value

initiatives e.g. apprenticeship scheme

• Access to specialist asset management software. Enhanced our management and

manipulation of stock condition data, assisting annual and long term budgeting.

• A cost effective stock condition survey programme, fully integrated with asset management

software.

• Access to an EU procured responsive repairs service at nil cost

• FHG expertise and knowledge of procurement and contract management, a skills gap in our

current Maintenance Team.

Tenants have a role in shaping the delivery of this strategy. From RFH’s perspective our housing

stock represents a financial asset but to tenants it is their homes and it is therefore imperative that

tenants’ views are at the heart of our investment decisions. The Tenant Involvement Strategy details

the ways in which tenants can become involved in asset management and all other areas of

operation.

The strategy has been enhanced by the inclusion of:

• A specific 5 year Asset Management Plan

• A 30 year Financial Plan

• Plans to consult with tenants, leaseholders and stakeholders on strategy detail in line with

regulatory guidance

• A suite of performance targets, and a delivery action plan, to help measure the success of

the strategy.

The AMS sets out the 5 year medium term investment plans and looks forward 30 years to 2042,

assessing the stock investment needs and resources required to ensure the future life of existing

stock and replacement of obsolete housing.

A holistic approach to housing asset management is essential alongside the effective planning of its

repairs and maintenance, voids and planned works programmes that represent value for money.

The Decent Homes Standard alone cannot deliver the change necessary to improve neighbourhoods

and meet our tenants’ aspirations. It is vital therefore that we make the best use of internal and

external resources that may be available for investment.

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1. Introduction

1.1 Key Aims & Objectives

This strategy is deigned to act as the framework within which RFH makes strategic decisions on

stock investment and, where necessary, disposal. It has been drawn up to complement the business

plan, assist in meeting the requirements of the regulator and to set out priorities for the ongoing

maintenance and improvement of RFH’s housing stock.

RFH has a number of long term strategic aims. They are:-

• To provide quality homes

• To deliver excellent services

• To demonstrate our community values in everything we do

• To exceed expectations

In common with every other housing organisation, RFH has finite resources to spend on asset

management. It must make the best use of these to obtain maximum benefit for tenants.

Appendix 1 shows the framework for delivery of asset management at RFH. The Asset Management

Strategy is central to this framework. It is intended to assist RFH’s staff and Board of Management in

meeting our strategic objectives and balancing competing needs for investment.

The key objectives of this strategy are to:-

1. Meet statutory and regulatory requirements including 100% Decent Homes compliance

2. Provide safe affordable quality homes that meet current local housing need and that take

account of future demographic changes tenant profile and aspirations.

3. Deliver a quality repairs and maintenance service which achieves high levels of customer

satisfaction

4. Achieve a quantifiable reduction in repair and void expenditure without sacrificing quality

5. Maintain a robust procurement strategy for achieving value for money and maximise

operational efficiencies.

6. Improve service whilst reducing costs by taking a planned elemental approach to repairs

wherever possible, achieving an effective balance of expenditure on responsive, cyclical and

capital works.

7. Tackle fuel poverty and the environmental impact of climate change on the housing stock,

ensuring tenants have every opportunity to reduce energy consumption and the associated

cost of heating their homes

8. Ensure capital and revenue resources are targeted to properties that have a long-term future

and represent value for money by using Keystone and financial analysis costing techniques to

determine future investment plans.

9. Ensure consultation with our tenants on medium term investment plans and priorities is

effective and plans are clearly communicated to tenants.

10. Provide employment opportunities for the local community wherever possible.

This strategy aims to help achieve the RFH’s mission and guide investment decisions to enable us to

deliver quality homes which achieve, and in some areas, exceed the Decent Homes Standard.

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2. Our Housing Assets

2.1. Stock Profile

RFH's stock is located in six local authority districts:-

East Northamptonshire Wellingborough Kettering

Corby Daventry Northampton

The majority (92%) is located in East Northamptonshire. Our stock profile is as follows:

499 properties trickle transferred from East Northamptonshire Council; 63 new build properties

constructed since 1995;

74 Existing Satisfactory/Purchase & Repair properties; 21 properties for market renting;

6 shared ownership properties;

150 properties managed for Circle Group.

We also manage a small portfolio of up to 10 properties within a Private Sector Leasing Scheme,

‘Key Solutions’, in partnership with East Northamptonshire Council (ENC).

RFH’s property profile is as follows:-

Property Type

No.

1 bed flat 36

2 bed flat 2

2 bed bungalow 3

3 bed bungalow 2

2 bed house 186

3 bed house 412

4 bed house 19

5 bed house 1

Total 663

RFH's stock is currently valued 'at cost' in our balance sheet at £18,277,202 as at January 2012.

During 2008 a re-valuation exercise of stock in charge to the Nationwide Building Society was

carried out. Following this exercise RFH's stock is valued as follows:

Basis of valuation 446 general needs units

EUV-SH

Existing Use Value for Social Housing

£17,031,000

MV-ST

Market Value subject to tenancies

£31,158,000

MV-VP

Market Value with vacant possession

£47,000,000

Insurance reinstatement guidance £60,572,243

RFH has 132 unencumbered properties with an estimated EUV-SH of just over £5 million.

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2.2 Stock Condition

2.2.1 Stock Condition Surveys

The RFH engaged external surveyors, Property Techtonics, to undertake a 100% stock condition

survey (SCS) in 2009/10. This data has recently been transferred onto the new Keystone asset

management software and used to produce the financial forecasts included within this strategy.

Following the last stock condition survey we agreed to adopt an alternative approach, surveying our

stock on a rolling programme over 5 years, rather than the whole stock every five years. This would

provide more accurate and up to date information, enabling us to monitor our position in relation to

the Decent Homes Standard more effectively.

Futures Housing Group monitors their stock like this, and offers this service at a very competitive

price to partner organisations. RFH has therefore chosen to employ FHG to carry out ongoing stock

condition surveys, effective 1st April 2012.

The new stock condition survey programme has commenced. The original plan to do 20% each year

has increased to a 25% year on year rolling survey of all properties. This was partly due to concerns

about the quality of the previous stock condition data but also to enable us to capture the condition

of all homes in a 4 year plan that feeds into the 4 year major improvement programme.

Surveys are completed by FHG’s in-house surveyors using palmtop computers which are

synchronised with the Keystone Asset Management system. The stocks’ needs in terms of

investment for short, medium and long term plans will be derived from data held in Keystone.

The management of stock condition data will be validated by an independent specialist Chartered

Surveying organisation every five years.

2.2.2 Stock Condition Information

Ensuring that investment needs and funding required is accurate requires staff time and use of stock

condition information systems to manage, check, challenge and make adjustments as both the

number and condition of housing changes.

RFH, supported by the Futures Housing Group (FHG) Asset Management Team, manages an Asset

Management database for strategic planning, including Decent Homes, capitalised repairs and

planned maintenance programmes.

Responsive repairs are managed through the Omniledger housing management system.

Asbestos data is currently managed using the Omniledger system, but following surveys carried out

prior to major improvement works, we intend to start a new asbestos database. This data will be

stored on specialist Property Compliance Manager (PCM) software, accessible to contractors as well

as members of staff.

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The Asset Management Plan is based on stock condition information recorded in Keystone which is

used for scenario planning of improvements and priorities of work. The plan identifies the key

replacement elements and the timescale in which replacement is required. This data forms the basis

of annual major improvements required to maintain Decent Homes Standard. Details of the Decent

Homes Standard can be found at Appendix 2.

The projected serviceable life of elements forms the basis of modelled stock investment needs and

medium and long term financial cost projections. Profile reports are generated and projects the

capital costs for the replacement of key elements over a 30 year period.

Investment decisions are informed by the Asset Management database but the final decisions are

informed by other factors which include:

• Life Expectancy of the stock

• Ensuring programmes are planned for cost effective delivery by contractors

• The possibility of extending the life expectancy of the component by cost effective repairs

• Tenant demand, aspirations and priorities

• Spreading elemental renewal programmes to optimise the use of financial resources.

All of the RFH’s properties had met the Decent Homes Standard by 2010.

Age is the most significant factor affecting RFH’s stock. It is fundamental to this Asset Management

Strategy. The table below shows the numbers and percentages of the stock in 10 year ranges.

Age Range Number %

0-9 years 20 3.02%

10-19 years 76 11.46%

20-29 years 18 2.71%

30-39 years 15 2.26%

40-49 years 40 6.03%

50-59 years 76 11.46%

60-69 years 96 14.48%

70-79 years 204 30.77%

80+ years 118 17.80%

The expected life of the main structures of a property i.e. walls and foundations, is 80 years. The

above table shows that nearly a fifth of the stock has exceeded this life expectancy and a further

30% will do so in the next 10 years.

Although the quality of construction of older properties generally results in this 80 year life cycle

being exceeded, the effects of an aging stock on future investment decisions need to be considered.

It is anticipated, for example, that increased budget provision may have to be made for roofing and

roofline works, repointing, re- rendering and replastering from 2012 onwards, partly because some

of these costs have been increasing in recent years in relation to both void costs and reactive repairs

expenditure but also because stock condition data indicates a high number of potential Decent

Homes failures due to the age and condition of property structure.

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2.2.3 Housing Health and Safety Rating System (HHSRS)

We have built HHSRS methodology into our stock condition survey programme and tackle any

Category 1 (severe) failures immediately. Any works related to less urgent failures are built into our

forward plans.

2.3 Supply & Demand

Over the next 30 years stock numbers will change as some properties are lost through disposal or

‘Right to Buy’ sales. However, we expect at least the equivalent stock numbers to be gained.

The present Government’s proposals to reinvigorate Right to Buy include the intention to double

the discounts available. The Government wants to see a significant increase in sales to fund new

social housing on a ‘one for one’ replacement. The proposals are targeted at local authority stock at

present so RFH is currently unaffected but it is unclear how Registered Providers (RP) will be

affected in the future. It should be noted that almost all of our stock is currently excluded from the

Right to Buy/Right to Acquire.

In terms of stock expansion, RFH is a member of the Quantum Consortium, led by East Midlands

Housing RFH, but is not currently developing properties. Our position in relation to property

development will be reviewed as part of our decision making process regarding the use of

affordable rent and flexible tenancies. The views of our local authority partners will be taken into

account on these issues as well as advice in relation to RFH’s charitable status.

RFH is seeking additional borrowing of around £2m, as outlined in the Business Plan. Recent

negotiations with our funders in relation to additional borrowing have not been successful, due to

the short term nature of the funding available. During 2012 we will be investigating alternative

sources of funding to enable us to maximise our borrowing to support future growth.

Due regard will be given to the local Strategic Housing Market Need Assessment when considering

future growth.

RFH introduced customer profiling in 2010 and we now have profile data on 92% of our customers.

Our main client group are predominantly young families, headed by a woman of working age.

Despite this, a surprisingly high percentage has a disability (15%).

The Welfare Reform Act, which came into force in March 2012, introduced new property size

criteria for housing benefit claimants in the social housing sector, also known as the ‘bedroom tax’

or “under occupation penalty”.

This new criteria means that any working age household deemed to be under occupying their home

will lose part of their housing benefit from April 2013. Housing benefit will be reduced by 14% for

claimants with one extra bedroom and 25% for two or more extra rooms.

We estimate this is likely to affect around 17% of the RFH’s tenants, including disabled people living

in an adapted property. Many of these tenants may be forced to move to smaller properties either

within the RFH’s stock or with another RP.

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The new rules are expected to lead to higher void and relet costs as tenants downsize. We also

expect unmet demand for smaller properties and a corresponding impact on demand for 3 bedroom

properties, which make up over 60% of the RFH’s stock. The table below shows the numbers of

properties under occupied by size and the likely corresponding increased demand. Some of the

demand for 2 bedroomed properties will be offset by the tenants moving out of these under

occupied properties into one bedroomed properties.

Bedrooms Under Occupied Potential Additional Demand

1 0 65

2 18 48

3 91 0

4 4 0

Total 113 113

3. Managing the Assets

3.1 Key Components & Tools

Reducing costs, whilst maintaining excellent service delivery, is a key business priority. To this end,

in February 2012 we formed a partnership with Futures Housing Group for the delivery of our major

repairs service, stock condition surveys, asset management software.

As a result, RFH now has new tools to deliver this strategy. These include:

• Stock condition data, updated regularly, collected using statistically reliable and verifiable

stock survey techniques

• A comprehensive and dynamic stock condition database

• A formal Option Appraisal Process to assess major capital Investment proposals

• An informed experienced workforce, internally (and externally via FHG), to deliver quality

projects on time within budget.

These are the basic tools required to enable RFH to take informed decisions. Once strategic

decisions are taken, RFH may use the various strategic components to deliver results including:-

• Refurbishment of dwellings so that they continue to meet modern requirements and

tenant expectations

• A planned maintenance programme, achieving economies by replacing components just

as they reach the end of their lifecycle, anticipating changes in minimum acceptable

standards, and reducing future requirements for demand driven maintenance

• Cyclical maintenance to prevent deterioration in the physical condition of the stock and

annual servicing to comply with legislation

• A responsive maintenance service to address unforeseen sporadic repairs

• An efficient and effective voids repair service, helping to protect RFH’s revenue and

minimise the number of rejected offers on the grounds of poor condition

• An effective option appraisal process that considers different forms of intervention

including disposal.

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3.2 Asset Optimisation

The AMS has to optimise the use of funds available to enhance the stock and benefits that tenants

should enjoy. Long term planning and continuous annual monitoring is therefore essential.

Where investment does not reflect service priorities or value for money then alternative solutions

such as disposal or other routes will be explored.

We expect a significant number of properties will continue to remain structurally sound, despite the

age profile of our stock. However, we must plan for a proportion to fail structurally, with resulting

high repair costs in relation to the value of affected properties.

However, non-financial factors such as the continuing high demand for social housing in our area of

operation means that is unlikely that we would consider disposal or demolition, except in very

extreme cases.

The full range of options must be considered and evaluated when deciding on the future of a

property. The intention will be to find long term solutions to any issues. Escalating actions include

the following:-

• Minor works to improve lettability

• Major works to resolve fundamental issues Tenure change to address demand issues

• Disposal by transfer to another organisation or sale

Reasons to consider disposal include high management costs, demand issues, long term viability,

customer aspirations (linked to demand), condition/cost of repairs and sustainability of worthwhile

investment (damp, sound insulation, access issues, health and safety issues etc.).

The benefits of disposal are that it can address problems that are beyond the scope of reasonable

investment, meet customer aspirations, improve services and reduce overhead costs. Some

properties are disproportionately time consuming and expensive to manage and will never achieve

high levels of customer satisfaction. It should be noted that the consent of the Homes and

Communities Agency is required should RFH wish to consider disposal or demolition of any

properties that have been grant funded.

The indicators that will be taken into account when considering disposal include high marginal costs

of management, for example arising from distance or low stock numbers in a location, high

comparative costs of maintenance or refurbishment and housing management based indicators

such as voids, tenancy turnover, abandonment and tenant complaints.

The appraisal process and the key data that is used to inform the assessment are set out in

Appendix 3.

Appraisals take into account both the current and future value of assets, ongoing maintenance,

repairs and investment to maintain the assets to arrive at a Net Present Value (NPV). The NPV

informs us whether it is sensible to continue to invest in certain types of properties. A negative

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score for example may indicate that despite investment the value of the asset will never offset the

costs.

The model allows for an objective and consistent way of assessing properties and we plan to use

this approach as part of our continuing work to carry out option appraisals on all the stock. As part

of this process we may also consider the disposal of high value larger properties that do not require

significant investment in the future. Funds released from these sales would be recycled to purchase

properties that would assist us to meet future demand for smaller homes.

4. Investment Programmes

In the appendices, the 30 year plan and the 5 year plan set out the amounts required to maintain

and improve RFH’s housing stock over time, based on stock condition survey information which is

regularly updated with works undertaken. These plans also identify risks to RFH posed by any part

of its property portfolio, and will assist in the management of these risks.

Objectives for the investment and maintenance of RFH’s stock are set out below:

• Effective and responsive maintenance of the property portfolio

• Investment in properties with a long term future

• Ensuring that properties meet a defined lettable standard

• To maintain the Decent Homes Standard, and meet revised Standards

• Engagement with tenants in making decisions

When taking decisions on our portfolio, we will have regard to:

• Costs of management and maintenance and rents that can be achieved

• Future investment required for properties to meet Decent Homes Standard

• Lettability of property types or in specific locations

• Other regeneration initiatives in the area and how the property contributes to this

4.1 Five Year Asset Management Plan

The AMS uses as a starting point the current known stock condition at 2012.

Our current resources mean that our main focus will be to continue to maintain 100% compliance

with the Decent Homes Standard. This will be achieved through the Major Improvement

Programme, also known as Transforming Homes Programme, and a series of planned

programmes, all of which will consider potentially non-decent issues.

Appendix 4 attached to this report shows the 5 year Asset Management Plan for the period 2012/13

to 2017/18.

The Major Improvement Programme budgets assume total resources in the region of

£2.75M over the period, most of which is capitalised. In addition to this, Revenue Repairs, Cyclical

Maintenance and Voids costs are estimated to be £2.9M over the 5 years.

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This is more than the current 5 year budget, which accompanied the business plan approved in

March 2012. This is largely due to a new workstream being identified (re-pointing and re-rendering),

and other increasing costs due to the age of the stock, as detailed at 2.2.2.

However, it should be noted that the component replacement dates and associated costs included

in the 5 Year Asset Management Plan are only an indication of work that may need to be carried

out, not work that necessarily will be carried out. The majority of the replacement dates are based

on the 2009 stock condition survey carried out by Property Techtonics, which needs to be verified.

In addition to this, costs are based on 2011 figures and are therefore due to be updated on

Keystone in the near future with the new schedule of rates following recent tenders.

Because of these two factors it is prudent to wait until we have more accurate information later this

year before making any significant changes to the budget. Nevertheless, it is apparent that it will be

necessary to start making some budgetry provision from 2013 for a new work stream to undertake

re-pointing and re- rendering. This will need to be addressed by examining ways to reduce these

costs to bring them closer into line with the overall budget, securing additional funding, reprofiling

the major repairs budget or increasing the overall major repairs budget allocation. It is likely to be a

combination of all these approaches.

The budgets are of course subject to annual review and challenge.

4.2 “Transforming Homes” Programme

The current 4 year Major Improvement programme, also known as the Transforming Homes

Programme, was tendered in partnership with Futures Housing Group. RFH and tenants were

involved at all stages of the process and maintained control over timings and work specifications.

The procurement process followed an EU Restricted Procedure and resulted in Lovell Partnership

Limited being appointed as the contractor by both organisations.

The programme was launched in April 2012. The total budget for RFH’s 4 year programme is

approximately £1.2m.

Without this improvement programme pockets of stock will progressively become non-decent. The

main programme will therefore continue to be:

• New windows and external doors where required

• New kitchens and bathrooms

• Upgrades or rewires to the electrical system

• New roof coverings.

The programme will be completed by 31st March 2016. It will be subject to ongoing re-profiling in

response to information obtained from the rolling stock condition survey and any identified non-

decent properties that will be in the programme.

Properties earmarked for Major Improvement works occupied by Tenants that have refused the

works for various reasons, are monitored and included in the database. They will either be improved

when void or revisited at the end of the programme.

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The contract with Lovell is managed by FHG with ongoing involvement from RFH’s Property Services

Manager.

Various regular meetings across the partnership will occur to audit progress/stalls, etc. These will

include:

- Operational/Progress : weekly

- Steering Group Meeting : monthly

- Partnering Board Meeting : bi-monthly

- Commercial and Supply Chain Meetings : monthly

- Tenant Liaison Group (Repairs & Improvement Group)- bi annually

Health and Safety and Construction Design & Management will be monitored by FHG in conjunction

with ARC Consultants.

A suite of KPIs monitor handovers, completed works, waste management (environmental issues),

time in properties, property storyboards, activities on site, health and safety, etc. The individual

household storyboard is also part of the handover pack highlighting the customer journey and is

measured according to a scoring system.

4.3 Aids & Adaptations Work

The Aids and Adaptation Policy outlines RFH’s approach to providing a range of property

adaptations that give elderly, disabled tenants and people with special needs housing that suits

their physical needs, improves their quality of life, and enables them to be independent.

RFH adopts a customer focused approach to all aspects of our service delivery and we will consult,

inform and involve tenants at all stages of the adaptations process. We will offer tenants a degree of

flexibility and choice in the style of aids and adaptations where possible and where funding

arrangements will allow.

While providing tenants with suitable housing for their individual health needs is the key priority,

the suitability and future use of the housing stock must be considered and look at ways in which the

stock use can be maximised and households provided with alternative suitable adapted homes.

We are committed to working in partnership with the relevant agencies and professional services to

ensure that the work is co-ordinated to deliver the most appropriate solutions for people in need of

Aids and Adaptations.

Adaptations are split into two categories – minor and major. These distinctions are based on the

nature of the work required in order to implement the adaptation and do not correspond to the

impact the adaptation will have on the individual requiring such work. It is understood that both

minor and major adaptation work can impact significantly on an individual’s quality of life.

Below are examples of the types of work categorised as either minor or major:

• Minor adaptations; (typically under £1250) include the provision of ramps, handrails, grab

rails, hoists, bath-boards, seating in shower area and lever taps.

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• Major adaptations; (Over £1250) require more extensive and complex work and include the

installation of stair lifts and level access showers; over bath showers; bathroom and kitchen

conversions; access alterations.

The starting point will again be an Occupational Therapist assessment to ensure the work is

appropriate and the best way forward. Works will normally be being funded through the Local

Authority Disabled Facilities Grant. This is a means tested grant where tenants may be required to

make a contribution to the cost of the works irrespective of value and may take up to 12 months to

be sanctioned from the date of the formal OT recommendation.

OT recommendations for more significant work may be incorporated into other planned works.

In view of budget limitations the wait for such adaptations could be considerable and in view of this

and with the tenant in focus RFH will consider a range of measures to help improve the situation in

the short term.

This could include;

• Temporary (or permanent) provision of a `Lifeline` alarm call system

• Minor adaptation work as an interim measure

• Liaison with any other support agencies

Welfare Reform is likely to impact on how we deliver disabled adaptations in certain cases. Any

changes will be reflected in the Aids and Adaptations Policy.

5. Funding the Strategy

5.1 Availability of Resources

RFH should have sufficient funds available for the lifetime of the business plan to undertake all

works necessary to maintain the current 100% compliance with the Decent Homes Standard,

dependant upon the impact of welfare reform and other factors. However, as mentioned at 4.1, the

costs indicated in the 5 year Asset Management Plan, which takes into account potential non

decency as well as renewal of some additional components, are higher than those allowed for in the

five year Business Plan budget.

Availability of resources and updated stock condition data will be reviewed on an annual basis and

the AMP revised accordingly.

In addition to the Business Plan funding we will work closely with the funders to find ways to secure

the required resources when they are needed for the purchase of new properties.

5.2 Long Term Future Investment Plans

The AMS 30 year plan is currently based on there being sufficient funding to meet RFH’s future

investment needs and this level of resources will be made available through normal funding routes.

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Appendix 5 provides detail on the level of investment needed over the next 30 years to carry out

general maintenance and elemental improvements as they are needed. The total investment

required is estimated to be £26m.

All costs are exclusive of professional fees, management and administration costs and are based on

current prices because it is not possible to predict inflationary increases, or changes to market

prices of labour and materials over 30 years. Costs, however, are inclusive of preliminaries and VAT

at the current rate.

Taking into account forecast resources set out above we will develop our future plans around the

investment needs and resources available. There will be a core of investment to maintain the

retained stock at a reasonable standard and to ensure we continue to meet the current Decent

Homes Standard. Any changes to the Decent Homes Standard will trigger a review of this strategy

and associated financial forecasts.

Further consideration will need to be given to improving the energy efficiency and environmental

sustainability of our properties. There is a need to work with other agencies and our tenants to

develop plans and associated resources required to achieve this.

6. Service Delivery

6.1 Contractors

Our community values are evidenced by our long standing commitment to use local contractors

wherever possible; approx. 75% of our total repairs expenditure is delivered by this means.

RFH has an approved contractor list, reviewed annually.

Following a recent tender exercise run in partnership with FHG the RFH’s responsive repairs are now

carried out by an approved list of around 9 Framework contractors under Term Partnering Contracts

(TPC2005). Joining arrangements have been agreed with individual contractors and they are all

required to comply with our Contractor Code. These are mostly small and medium-sized local

businesses.

Both organisations have benefited from current market competitiveness. RFH, in particular will

share the benefits of extended material warranties and lower unit costs on materials that

Framework Contractors will be able to purchase through Futures’ procurement agreements. Three

contractors carry out RFH’s cyclical programmes, under Measured Term Contracts. One of these

contractors is also a Framework contractor. These five year contracts run until 31st March 2016.

Contractors are subject to performance monitoring of customer satisfaction, complaints, value of

orders etc., to ensure that the service they provide meets the standards set. This monitoring

enables any performance issues to be identified and addressed at an early stage.

Regular contractor meetings take place, to exchange information, provide good practice and

legislative updates and deliver refresher training.

6.2 Staffing

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The current staffing structure is set out at Appendix 6. We have adequate staff resources to deliver

this strategy and manage the asset management process but will procure suitable external

assistance as and when required.

RFH works closely with FHG Asset Management Team. We will take every opportunity to benefit

from their expertise.

6.3 Categorisation of Maintenance Activities

RFH subdivides stock maintenance into a number of different types of work, each of which is used

to fulfil a particular purpose during the life of a dwelling. The five principal types are:

• Responsive repairs

• Void repairs

• Cyclical maintenance

• Planned maintenance

• Refurbishment and improvement.

A key component of this strategy is to provide a responsive repairs service for irregular unexpected

failures, for example, burst pipes or broken locks. Our tenants consider an efficient and cost

effective responsive repairs service as one of their top priorities (Jan 2012 Business Plan Survey), as

well nationally being recognised by the regulator as a high priority for tenants. Projected resources

for this work over the next five years are set out in Appendix 4.

A key aim of this strategy is to reduce long term responsive repair costs through targeted

investment and a pro-active planned repair programme. We propose to increase the proportion of

pre-planned work and to improve on our current performance.

The budget for responsive repairs is based on developing a long term reduction in costs due to the

effective management of the stock and investment in major improvements. The benchmark ratio of

planned repairs to responsive is 60 : 40 of which the responsive repairs should be aimed at the

benchmark priority ratio of 10:20:70, (Emergency:Urgent:Routine) wherever possible. We are

currently achieving a 63:37 planned to responsive repairs and responsive repairs priority ratio of

5:27:68.

6.4 Responsive Repairs

The majority of the 2500 repairs carried out each year are reported directly by tenants to the

Tenant Services Team. RFH spends approximately £300K a year on responsive repair work.

To achieve responsive repairs within the funding limits, repair requests from tenants are

standardised against a responsive performance service level agreement, which is included in the

updated Repairs Handbook following consultation with the RFH’s tenant forum, the Challenge

Group.

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Each repair request will be given one of the following priorities based on RFH’s statutory and

regulatory obligations:-

Emergency (make safe within 12 hours). Repairs needed to avoid an immediate danger to personal

health or safety or serious damage to property

Urgent (to be completed within 5 working days). Repairs needed to avoid substantial inconvenience

to the tenant or continued damage to the property

Routine (to be completed within 21 working days).

During the life of this strategy we will aim to introduce a further category; Programmed, which is

non urgent work that could be completed as part of a programme in order to provide greater

flexibility and achieve potential efficiency savings. Works such as external groundworks and

rainwater goods could be included in this category.

An emergency out of hours service is provided via one of the Framework Contractors, MAW

Services, with support provided from officers as required.

In 2012/13 only one KPI was not achieved or exceeded. During annual review, targets are

renegotiated to improve and challenge service delivery.

Lean Systems Thinking was implemented at RFH in 2011 and repairs and maintenance was the first

review. As a result of this review, there have been a number of efficiencies in the repairs service.

In addition, there are a variety of other mechanisms to review and monitor the success of the

repairs service, some involving Tenants.

Recent improvements include :

• Tendering work under Framework Agreements on 60/40 price/quality basis. resulting in

better prices whilst maintaining quality and a reduced Approved Contractor List who get a

greater share of work

• Better prices on materials via FHG’s procurement agreement with Travis Perkins – on

average achieving savings of around 16%

• Delivering 99.5% of all repairs within agreed timescales Achieving 96% tenant satisfaction

• Consolidating the invoice process to reduce officer time

• Using Customer Feedback to systematically improve the service such as offering reduced

timescales for responsive repairs

• Redefined Out of Hours emergency repairs arrangements with 23% reduction in works

undertaken out of hours through improved controls and enhanced telephone advice

• Reducing Out Of Hours emergency cover costs by 33%

• Implementing a new text messaging service which aims to reduce call times and missed

appointments and provide a more seamless service.

Also, the use of tenant profiling information will help further tailor the service to our tenant’s needs,

as detailed in the Customer Insight Strategy.

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6.4.1 Property MOTs

During the life of this strategy we will explore ways of reducing our responsive repairs expenditure

including the introduction of Property MOTs, an annual scheduled visit by a contractor, often

combined with the annual gas check, to identify and carry out any minor repairs. Pilots have shown

significant reductions in unplanned maintenance costs as a result of property MOTs.

6.4.2 Tenant Cashback

RFH is required, as part of the revised statutory standards for the provision of social housing, to

implement some form of repair and maintenance cash back scheme with effect from April 2012.

Whilst the standard set by the Social Housing Regulator is not particularly prescriptive, all social

housing landlords must provide tenants with the opportunity to be involved in the:-

‘Management of repair and maintenance services, such as commissioning and undertaking a range

of repair tasks, as agreed with landlords and the sharing in savings made’.

No guidance (other than a letter outlining the scheme) has been issued by the Department for

Communities and Local Government (DCLG).

The scheme aims to encourage tenants to take control of their own minor repairs or commission

them locally, and benefit from any savings made. RFH has concerns over the costs of such a scheme,

how we would keep control of the works carried out and potential health and safety problems

created by poor standard repair work. In addition to this, we are not sure our tenants are actually in

favour of such a scheme. RFH has opened discussions with tenants and will use this feedback to

develop a scheme which fulfils our obligations, meets our tenants’ needs and RFH’s business

objectives.

6.4.3 Repairs Charter

The Chartered Institute of Housing launched its’ Repairs Charter in June 2012. It is a framework that

aims to drive improvements in the delivery of responsive repairs.

Sign up is voluntary and based on self assessment.

The Charter includes a set of commitments, underpinned by a range of outcomes, against which

organisations can assess where they are now and where they aspire to be. Once we have carried out

our self assessment in consultation with the RIG or Challenge Group, we aim to sign up to the

charter as a public commitment to delivering a high quality repairs service.

6.5 Voids

Void properties are unoccupied dwellings that arise when there is a change of tenancy. Repairs are

carried out in line with an agreed lettable standard. The lettable standard was initially agreed with

tenants in 2011 to ensure compliance with relevant legislation and to bring void properties up to a

common standard.

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Currently between 30 – 40 voids are dealt with per year, on average. RFH’s void turnaround time

has reduced from 16.9 days to 12.6 days over the last 12 months (excluding major voids). This level

of performance not only puts us in upper quartile but makes us one of the best performers. It is

important that we continue to deliver voids quickly to reduce rent loss, make properties available to

let sooner and prevent them being left empty for long periods of time.

Properties generally fall into 2 categories, either a minor void or a major void.

The majority of voids are Minor (24 during 2011/12). Works to bring these up to the agreed lettable

standard cost less than £3000 and are undertaken by our Repairs Team, taking on average 7 days

from the surveyor’s inspection to the keys being handed back to Housing Team.

Major voids (8 during 2011/12) exceed £3000 and generally include elemental replacement works,

such as new kitchen, bathroom, heating system due to the age and poor condition due to tenant

neglect/damage. These works are only carried out at void if considered necessary to ensure the

property is re-lettable and/or the works are so extensive that it would not be reasonable to carry

them out whilst the new tenant was in situ . The average time to inspect, undertake the major

works and hand back to Housing Team for 2012/13 was 26 days.

Consideration of the extent of the works to be carried out takes into account future elemental

programmed works to be undertaken within the following 12 months.

RFH has a cash reward scheme which was implemented in 2008 with the objective of reducing some

of the costs incurred in re-letting general needs voids.

Under the scheme, a cash reward of £200 is offered to an outgoing tenant where the property

meets the following qualifying criteria:-

• Property and garden are clean and clear

• Property is in good decorative condition

• Repairs have been carried out where it is the tenant’s responsibility

• There are no outstanding rent arrears or sundry debt.

The scheme does not appear to be meeting its objective in its current form; take up is very low with

only 15% of outgoing tenants qualifying for payment and there has been no tangible impact on relet

costs since the scheme has been in operation.

The current average cost of a void available for letting is £3130, including any major works carried

out and VAT. During the course of this strategy we will review alternative ways of working, and the

tenant incentive scheme will be revised with the aim of reducing rechargeable repairs costs.

The Lettable Standard will also be reviewed with tenants again within the life of this strategy. We

will also consider introducing a full refurbishment programme for a percentage of void properties,

bringing forward improvement programme works and carrying out additional works such as re-

plastering work etc. whilst the property is void rather than whilst it is tenanted to minimise

disruption to the new tenant. However, this will need to be balanced with minimising rental losses.

6.5.1 Void Appraisal

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This strategy introduces a structured options appraisal for void properties which require major

works above £10,000. Full property history, projected costs, available funding, and demand for the

accommodation will be considered before work is carried out to such properties. This will ensure

that resources are effectively spent only on properties that are sustainable and cost effective to

maintain. Properties with major works above £10,000 are subject to approval at a senior level. It’s

important that the appraisal process is completed quickly, however, in order to prevent delaying

relet with resulting higher void losses.

6.6 Cyclical Maintenance Work

These are works of a preventative nature which RFH plans in advance and repeats on a “cyclical”

basis. This is done in order to avert the premature decline of time sensitive components and meet

regulatory and legal duties.

Presently this part of the service spends approximately £165K a year, predominately from revenue

budgets. Cyclical programmes exist for:

• Gas heating servicing

• Electrical testing

• Fire fighting equipment

• External decoration

The organisation will continue to reduce the scale of its external painting programme by the

sensitive replacement of existing ‘maintenance hungry’ external components with low-maintenance

alternatives, i.e. external doors and soffits and fascias.

6.7 Planned & Major Improvement works

As discussed elsewhere in this strategy document, the core asset management issue for the

organisation in the medium to long term is how to cope with the need to maintain, replace or

revitalise an ageing stock.

Elemental replacement programmes will be identified from the Keystone database together with

input from Surveyors and repair trends.

RFH will seek to maximise the works undertaken within planned maintenance programmes and will

be exploring opportunities to achieve efficiencies through modern procurement methods, including

framework agreements with percentage reductions for volume of work.

7. Health & Safety

7.1 Gas Servicing

With respect to gas safety our objectives are to:-

• Ensure we meet our legal obligations under the Gas Safety (Installation and Use) Regulations

1998

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• Ensure all reasonable steps are taken to issue a Landlord’s Gas safety Certificate to all

tenanted dwellings on or before the expiry date of the previous certificate. The legal

requirement is 100% compliance.

We have a programme in place to ensure that all gas installations and equipment are tested,

inspected and maintained by competent persons in accordance with the relevant legislation and

other relevant standards. Our contractor also tests smoke alarms during the gas safety check.

We are 100% compliant with the gas safety regulations and our monitoring of the gas contractor is

externally audited to achieve quality assurance. We achieve 100% compliance by offering flexible

appointments followed up with a text reminder, cold calling and involvement of the Housing

Management Team in dealing with “hard to reach” tenants.

Only after all these processes have been exhausted would we enforce access by court injunction. To

date, this has never been necessary.

During 2012/12 we intend to introduce a programme to install CO detectors in our properties as an

additional measure to ensure the safety of our tenants.

7.2 Electrical Testing

We are delivering a programme of periodic testing and remedial works on fixed electrical

installations using our voids, Decent Homes and electrical maintenance programmes.

7.3 Fire Safety

RFH ensures that Fire Risk Assessments are carried out in accordance with the Regulatory Reform

(Fire Safety) Order 1995 at all applicable premises occupied or managed by RFH, and that all

necessary alterations, equipment and installations are implemented to reduce fire risks as low as

reasonably practicable.

There are 6 housing schemes, which require a Fire Risk Assessment; all bar one belong to Circle. We

risk assessed all these buildings in 2011, which resulted in the following action:-

• Works to carry out remedial repairs

• Smoke detectors replaced

• Fire safety information communicated to tenants and displayed in communal areas

• Programme of monthly Fire Safety checks with records of findings and any action taken

Fire Risk Assessments are reviewed annually.

During 2012/13 we intend to introduce a programme to replace battery powered smoke detectors

with hard wired detectors in void properties, although this is not a legislative requirement.

7.4 Asbestos Management

RFH has a duty of care to ensure that all Asbestos Containing Materials are in a safe condition.

Legislation relating to the management of asbestos came into force on 21 May 2004. The legislation

requires the ‘Duty Holder’ to have a detailed register of non domestic locations with the asbestos

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materials that exist at each location, together with effective management arrangements for dealing

with those materials.

Further legislation under The Control of Asbestos Regulations 2012 came into force in April 2012. In

practice the changes are fairly limited. They mean that some types of non-licensed work with

asbestos now have additional requirements, i.e. notification of work, medical surveillance and

record keeping. All other requirements remain unchanged.

RFH will seek information regarding any Asbestos Containing Materials (ACM’s) within premises

occupied by, or under the control of, RFH or in which RFH employees are working, and take

appropriate measures to protect employees, tenants, visitors, clients, contractors, and other

persons who may be affected by RFH’s activities from unsafe exposure to ACM’s within those

premises.

Employees and contractors will be provided with adequate training to ensure that they are aware of

the properties of asbestos and its effects on health; the types, uses and likely occurrence of

asbestos and ACMs in buildings and plant; the general procedures to be followed to deal with an

emergency; and how to avoid the risks from asbestos.

RFH has developed an Asbestos Management Policy and Procedures, which contains detailed

arrangements for the management of ACM’s in premises occupied by, or under the control of, RFH.

7.5 Legionella

RFH adopts, as far as reasonably practicable, the principles of control and management identified in

the current edition of the H.S.E Approved Code of practice and Guidance Document L8 “The Control

of Legionella Bacteria in Water Systems” (ACOP L8).

To comply with its legal duties RFH will:

• Identify and assess sources of risk

• Prepare a scheme for preventing or controlling the risk

• Implement, manage and monitor all precautionary control measures identified

• Keep records of precautionary measures

• Identify responsibilities of employees and contractors within RFH.

We have developed a Legionella Management Policy, which contains detailed arrangements for the

management of Legionella Bacteria in premises occupied by, or under the control of, RFH.

7.6 Control of Contractors

Approved Contractors are responsible for complying with the relevant statutory duties placed upon

them by the Health and Safety at Work, etc. Act 1974, the Management of Health and Safety at

Work Regulations 1999 and other applicable Regulations.

This responsibility includes ensuring that all employees & sub-contractors are competent to carry

out their work safely, and in accordance with the relevant standards & statutory requirements.

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Contractors are also responsible for complying with RFH’s Contractor Code and instructions

regarding healthy & safety from duly authorised representatives of RFH.

Contractors are responsible for assessing the risks associated with their work on behalf of RFH, and

the methods to be used to eliminate those risks or reduce them so far as reasonably practicable.

Contractors should provide adequate information to RFH regarding these risks and the methods

used to control them.

We will seek to identify suitable contractors through competence checks and selection procedures

and ensure that any health and safety hazards within the area of work are communicated to

contractors.

RFH will issue RFH safety rules to contractors and will check to ensure that these are being adhered

to; control the contractors on site and will check that they have left the site clean and tidy.

All contractors selected to carry out any work on behalf of RFH should be made aware of the

standard of health and safety management that is expected of them.

The contractor will also be required to supply RFH with a copy of their Health and Safety Policy or

sign to adhere to RFH’s Health & Safety Statement of Intent. Areas of incompatibility with RFHs own

policy and or expected standards should be identified as soon as possible and appropriate action

taken. A copy of professional indemnity insurance must also be provided.

8. Affordable Warmth and Improving Energy Efficiency

RFH believes all tenants have a right to affordable warmth and that the environmental impact

should be reduced by the use of energy efficient materials. In recent years the increase in fuel costs

will have increased the number of families and individuals that are unable to heat their homes

properly. This can also have a detrimental effect on our stock as a result of poor ventilation as

tenants try to preserve as much heat in their homes as possible.

The aim of RFH’s Sustainable Energy and Affordable Warmth Policy is to ensure that we meet

Government targets in relation to carbon emissions and improve the SAP (standard assessment

procedure) ratings of our housing stock. By adopting this approach to energy efficiency, we can help

our tenants to keep warm at home, save energy, reduce fuel debt and maintain good health.

Asset Management programmes mean that the energy efficiency of our housing stock will continue

to improve year on year. We have a commitment to reduce carbon emission and improve the SAP

rating of our housing stock which is currently an average of 65.2, which is quite low but largely due

to the age of our stock, mentioned in 2.2.2 of the strategy.

When major items are due for renewal, e.g. boilers, they are replaced with more energy efficient

systems to reflect our commitment to improve the energy efficiency of housing stock.

The following major repairs have been undertaken on a substantial number of our trickle transfer

properties since the properties were acquired:

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• Rated Energy Efficient Boilers

• Replacement Roofs

• Installation of double glazed windows

• Loft and Cavity Wall Insulation

RFH produces Energy Performance Certificates for all vacant properties relet, as required.

Properties with a low SAP will be targeted for further assessment and interventions. Our longer

term target is to have no properties with a SAP rating of below 65. Our records indicate that there

are 234 properties with a SAP rating below 65. There are a further 58 properties for which we have

no energy rating. This figure is not accurate, however, because it does not take into account any

insulation, and some roofs and new boilers fitted since the 2009 Stock Condition Survey. This is

because Keystone’s ability to recalculate SAP ratings following completed works is reliant on the

format of the EPC.

During the life of the strategy we will commission a report that explores options that enable us to

address the issue of poor performing/hard to treat properties, and available funding to develop an

investment plan to address any deficiencies in our stock. We would expect this to include a

programme of external wall insulation to solid wall properties, which typically have low SAP ratings,

and are due for external rendering/repointing.

Research shows that where people understand their homes they are able to save considerable

amounts on fuel bills. In line with Ofgem regulations and FSA guidelines, we will promote

organisations that give our tenants choice and competitive tariff regardless of payment method,

usage or circumstance.

We will investigate ways to enable our tenants to access opportunities for improved energy

efficiency and cost savings that may emanate from the government’s Green Deal initiative.

This theme is also covered in the Added Value Strategy 2012/13-2017/18 with interlinking

objectives and targets being set.

9. Tenant Engagement and Partnerships

9.1 Working with Tenants

RFH’s mission is to provide quality homes. It is therefore crucial to the success of this strategy that

tenants’ views are taken into account and they are empowered to assist in management decisions,

where feasible.

Specifications and works are discussed with tenants to ensure we try and meet as many priorities,

individual needs and aspirations as possible within the resources available.

Tenant representatives were involved extensively during the recent procurement processes to assist

in the selection of contractors and preferred partners to undertake improvement works and the

choice and quality of products we use.

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Tenants from RFH’s Repairs Improvement Group (RIG) went to Daventry & District Housing during

the recent joint procurement process with Futures HG to see examples of Lovell’s work on the

Futures part of the contract. The group was able to see for themselves the difference in quality over

price, with the specification providing attractive homes whilst retaining value for money. A tenant

representative will be involved in the ongoing monitoring of the contract and the RIG will be

updated on a twice yearly basis.

Going forward, tenants will continue to be invited to participate in any procurement, specification

and materials and service delivery projects.

9.2 Training Opportunities

We have one apprenticeship position in place. This is a two year placement, running on from a

Future Jobs Fund placement, which completes in summer 2013.

Our Major Improvement Programme partnerships are also delivering training and employment

opportunities. The contract includes a requirement for Lovell to appoint one new apprenticeship for

every £1m generated in turnover. This is likely to be delivered through a county wide training

academy. Progress in delivering the scheme will be monitored via regular FHG Partnering Board

meetings.

10. Strategy Delivery & Monitoring

10.1 Budgetary Control

There is a comprehensive system of budgetary control incorporating:-

• The timely production of management accounts

• Identification of adverse variances with reference to the budget holder for explanation and

corrective action

• Regular meetings with budget holders throughout the year to assess performance

• Regular reporting of the headline figures to the Board, key variances and a commentary on

the causes and action being taken

In addition all senior managers have budgetary control as one of their targets within the annual

appraisal system.

10.2 Procurement

RFH works closely with the FHG Procurement Team to challenge how work is procured and ensure

value for money is achieved.

Future procurement decisions will reflect lessons learnt, in particular the value of partnership

working and creating a balance between price and quality to achieve value for money. We will work

with partners, framework contractors and the supply chain to use our collective experience to

identify the right procurement strategies for the future.

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The Value for Money Strategy and Added Value Strategy provide information about our approach to

procurement including how we incorporate social value into the process, a new requirement

introduced by The Public Services (Social Value Act), which was passed at the end of February 2012.

10.3 Risk Management

RFH is acutely aware that evaluation of risk is an essential part of an effective asset management

strategy. Major decisions taken about the future and utilisation of the asset base in the absence of a

risk assessment may have a long-term detrimental effect on the sustainability of communities and

financial viability of the RFH.

In drawing up this strategy we have undertaken a risk analysis which feeds into RFH’s Risk

Management Plan.

The key risk to this strategy being achieved relates to the availability of ongoing funding, especially

in light of forthcoming Welfare Reform which could threaten RFH’s income.

Further risks in relation to asset management have been identified as:

• Risk in not undertaking stock improvements or ineffective targeting of our

programmes. May lead to wasted resources.

• Failure to continue to meet the Decent Homes Standard. May lead to non- decent homes,

regulatory action, high tenancy turnover and associated costs.

• Inadequate Stock Condition Information. This will result in the inability to make informed

decisions on investment requirements and priorities

• Inadequate information on life cycle costs. The estimation of a product’s life expectancy is

essential in order to programme effective planned maintenance programmes.

• Poor procurement. This may result in the loss of efficiencies and the potential misdirection

of finite resources

• Restrictions re stock disposal under the ENC Trickle Transfer Agreement. Failure to

successfully re-negotiate this agreement will mean that we cannot dispose of properties

acquired under the agreement which do not meet demand

• Failure of the FHG Partnership. This may result in the loss of efficiencies and the need to

retender services.

RFH has a systematic approach to managing risks. This involves the regular review of impact and

probability of specific risks materialising and an evaluation of the control arrangements that are in

place for managing and minimising current and emerging risks. These are updated in light of

changing circumstances.

The Risk Management Plan is reviewed on an annual basis with the support of Hargreaves Risk

Services (HRS), we also subscribe to Hargreaves’ risk management service for small RFHs.

In drawing up this strategy we have reviewed best practice guidance provided by Hargreaves Risk

Services and included new risks identified in the risk register.

10.4 Performance Management

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We will carry out periodic reviews and update our Asset Management Strategy and ensure it

remains fully aligned to our Business Plan and other related strategies. The review process will

enable us to assess how well we have delivered against the priorities, budgets and targets set,

identify further improvements and respond to the changing external environment we operate in.

The Action Plan included with this strategy details the activities that we will be undertaking to

achieve our objectives. It will feed into our team plans and from March 2013 into individual

performance targets and be the subject of regular monitoring, evaluation and review. Regular

reports will be provided to the Board of Management on progress with developing the Asset

Management Strategy objectives.

In addition Decent Homes and repairs have been identified as key areas which are linked to our local

offers and subject to close scrutiny by RFH’s Tenant Review Panel. This is because they deliver

important outcomes for tenants and contribute to achieving our primary objectives.

11. Equality & Diversity

This Asset Management Strategy sets the framework within which RFH will work to uphold the

condition of its property portfolio, deliver enhancements beyond the government’s basic decent

homes standard and ensure that our homes provide a safe place for our tenants to live in. Asset

management encompasses a broad range of activities, which ensures that our housing stock meets

needs and standards both now and in the future.

In setting out the Strategy we have been mindful of ensuring we have given due consideration to

best practice in the delivery of quality services. In this way we aim to engage our tenants in

everything we do. Equality and diversity considerations are also a mainstream factor in our

approach.

We recognise that the community we serve is made up of different backgrounds, disabilities,

religions and traditions with a variety of individual needs and expectations. We will ensure that we

reflect this in the way we present and deliver the repairs and maintenance service in line with RFH’s

Single Equality Scheme.

12. Review

This strategy will be reviewed every 5 years or earlier in the event of relevant legislative changes or

changes in standards for tenantial buildings i.e. building regulations, Decent Homes Standard.

The Five Year Plan and annual action plan are subject to annual review.

13. Action Plan & KPIs

This section of the strategy lists the range of targets the organisation has set itself for improving the

management of its assets and directing its investment in the most cost-effective manner. The action

plan is designed to cover the five year period of the strategy, and to be reviewed annually and

updated where necessary.

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For ease of reference the targets identified in the text of the strategy are summarised in the table

below, together with the time frame within which the work should be completed.