Building the governance and foundations for effective asset management - HRA Asset Management Plan
We have built on our self-assessment to arrive at SIX key asset management requirements for building the governance and foundations for effective asset management. For each of these, we have sought to understand how our approaches need to address these, and the risk implications for the Council, tenants and others if we do not do so. Many of these risks relate to not being able to meet regulatory requirements set out in the published Consumer Standards, and they need to be managed through an effective governance and accountability framework.
1. Tenant engagement and influence
| Asset Management Requirement | Risk Implications |
|---|---|
| We need to fully understand tenants’ needs and expectations of our services and their improvement priorities. | If we do not fully understand the needs and expectations of tenants, then our works and services may fail to sufficiently meet their requirements. The Regulator of Social Housing (RSH) requires us to ensure tenants and residents can influence decision making and show how their views have been considered. |
| We need to use targets to drive improved levels of satisfaction with our services and the safety and repair of homes. | The setting of targets is a key performance management tool and helps tenants hold us to account. Without them, we will struggle to drive and measure improvements in the quality and reliability of our works and services and the levels of satisfaction with them. |
| We need use tenant feedback and complaints to help improve our repair and maintenance services. | If we do not do this, we will miss crucial opportunities to improve services. We will also fall short in meeting the requirements of the RSH that we learn from feedback and complaints. |
| Tenants and residents should help shape and inform service or home quality standards, investment programmes, and our works to decarbonise homes. | We will fall short of meeting the requirements of the RSH to ensure tenants and residents influence decision making. Also, that the delivery of repairs, maintenance and planned improvements to homes and communal areas is informed by the needs of tenants. |
| We need to communicate well with tenants and residents and keep them sufficiently well informed on things that matter to them. | To meet regulatory requirements, we must clearly communicate with tenants in a timely manner on a range of matters, including about repairs, maintenance and planned improvements to homes. |
| We need to maximise the use of IT and modern methods of communication to best meet tenant’s needs. | This is important to secure the efficiency and service delivery improvements that modern IT and methods can bring. |
2. Establishing the right governance arrangements for effective decision making
| Asset Management Requirement | Risk implications |
|---|---|
| We need to have clear strategic direction and leadership in place for making the key decisions needed for driving forward our HRA asset management work. | Without clarity of purpose, roles and behaviours, coupled with strong leadership, management and direction, our asset management work will lack focus, key decisions won’t be made. |
| We need to have an appropriate group/forum in place that can take ‘ownership’ of the delivery of our asset management work and priorities, with representation from across housing assets and related teams. | Without a dedicated group/forum for tracking, measuring and monitoring progress in delivering out asset management priorities, our work will lack focus, and necessary actions will ‘drift’. |
| We need to develop our IT systems, operational and management processes to meet the needs of our complex business and strengthen our service planning and control capabilities. | Good data on which we can rely is fundamental to good decision making. Good quality IT systems, data, systems and procedures, we will help us meet the regulatory requirement for using data to inform the provision of good quality, well maintained and safe homes. |
| We need to continue building on our stock condition data and put in a mechanism in place to use repairs data to inform our service planning or works. | Without fully up to date and complete stock condition data we will struggle to meet the regulatory requirement of having an accurate record at an individual property level of the condition of homes, based on an up-to-date physical assessment of all homes. |
| We need to proactively survey homes to find tenant safety or housing quality/condition issues based on an intelligence, data-led approach. | The RSH has made it clear that periodic stock condition surveys alone will not be sufficient and that intelligence-led, risk based ad hoc inspections are required to identify and pick up on potential hazards or disrepair issues. |
| We need to have a data-led rolling 5-year investment programme that sets out what and when improvements will be made to ensure safe, good quality homes that are ‘fit for the future’. | Our works programmes need to be sufficiently well-developed and targeted so we meet the regulatory requirement for keeping tenants advised on when works will be carried out on their home. |
| We need to fully understand the relative performance (strengths/weaknesses) of properties so we can make long-term investment decisions based on the sustainability of homes/schemes/estates. | It is a long-standing regulatory requirement that we understand the relative performance of our housing stock so we can make informed decisions on stock investment and ensure value for money. |
3. Safe homes that are in good repair and meet current and future facing standards
| Asset Management Requirement | Risk implications |
|---|---|
| We need to have a Repairs and Maintenance Policy in place that sets out in one document all our linked approaches to delivering responsive repairs, void property maintenance, planned maintenance etc. | Without a comprehensive Repairs and Maintenance Policy in place teams will be hampered in our efforts to work collaboratively to shared goals and objectives. If other specific policies aren’t in place, then we may not have a written policy in place for some key business areas. |
| Recent regulatory involvement has shown that some aspects of our approach to maintaining statutory compliance have fallen short. We need to have a robust performance management and assurance framework in place that supports the delivery of good quality and safe homes. | If we do not maintain and demonstrate full statutory compliance across the ‘big 6’ areas (gas, electrical, fire, asbestos, lifts, water hygiene) then serious health and safety risks may ensue, and serious regulatory or criminal action may be taken against the Council or individuals. |
| We need to have in place a proper systematic approach to specifying and managing void works, so we make consistent decisions around standards. We need to develop and agree a new ‘fit for purpose’ Void Policy and Void Standard that delivers homes of a good quality at an affordable cost. | If we do not have a ‘fit for purpose’ Void Policy and Void Standard in place our approach to void property works will be confused, inconsistent, and inefficient, with a lack of quality and cost control. |
| Our approach to funding and carrying out adaptations needs to ensure we meet regulatory requirements. | We could be at risk from not meeting the regulatory requirement to clearly communicate to tenants and relevant organisations how we will make available and assist tenants seeking housing adaptations services. |
| We need to have an established and agreed quality standard for an OCC home, with reference to both current and future standards. | Adequately specified and targeted investment programmes that deliver good quality, desirable homes are a key requirement for meeting the needs of current and future tenants. |
4. Energy efficient homes that meet target levels of performance
| Asset Management Requirement | Risk implications |
|---|---|
| We need to have a decarbonisation strategy or ‘road map’ that sets out our investment priorities and plans for retrofit in the short, medium and long term. | Without a suitable strategy in place, we will struggle to effectively manage our resources to achieve our objectives, set targets, set informed budgets, plan or design programmes of work. |
| We need a detailed 5-year programme for meeting EPC C by 2030 with clear plans on how the retrofit works can be integrated with our routine component replacement programmes. | If we do not effectively integrate our retrofit works with our routine component replacement works, we risk spending more money that necessary due to inefficiencies in procurement and works delivery. |
| We need to have plans, proposals, and funding in place for delivering our ambition for net zero carbon homes by 2040. | Without plans in place that quantify the works needed, we will struggle to quantify and secure the HRA or other resources needed to deliver these works. |
| We need to develop out in-house skills, capacity and resources for delivering our decarbonisation works programmes and wider net zero ambitions for sustainable operations. | Without the necessary skills, capacity and resources in place we will struggle to properly develop our approaches, scope out, plan and deliver our works programmes. |
| We need arrangements in place to support the Council’s wider ambitions for decarbonisation and infrastructure development. | It is important to ensure that the HRA activities support the delivery of the Council’s wider decarbonisation targets and ambitions. |
5. Estate management and regeneration
| Asset Management Requirement | Risk Implications |
|---|---|
| We need to work with tenants to develop local Neighbourhood Standards, including well-specified and managed grounds maintenance arrangements. | We will fail to meet the regulatory requirements for engagement with tenants on landlord services and in providing well-managed neighbourhoods. |
| We need to ensure planned and cyclical investment programmes reflect local priorities that maximise our impact on places and communities. | We may not target our works programmes and resources to best meet the needs and expectations of tenants. Also, we will fail to meet the regulatory requirements for engagement with tenants on landlord services and in providing well-managed neighbourhoods. |
| We need to work sufficiently closely with colleagues and partners to improve the quality of our neighbourhoods for the benefit of tenants. | If we do not work with colleagues and partners in this wide-ranging area of work, we will fail to maximise the potential for our work to bring about tangible, lasting improvements to our estates and neighbourhoods. We will also fail to meet regulatory expectations for partnership working in this area of activity. |
| We need to use the outcomes of our strategic asset performance work to carry out option appraisals so we can direct our resources on regenerating underperforming homes and estates. | Unless we fully understand and act on knowledge and insight on how our properties/schemes/estates perform we will not direct our resources and programmes to best effect and will not meet regulatory expectations in this area. |
| We need to provide clear leadership to actively manage and improve the quality, value, and use of green and other communal spaces. | Without us taking clear leadership in this area we will not achieve the standards and improvements that are needed, and we will not meet regulatory expectations. |
6. Delivering an efficient and well-run service
| Asset Management Requirement | Risk Implications |
|---|---|
| We need a plan in place to address the ‘gaps’ in the capacity, skills and resources of our assets team. | Without the necessary capacity, skills and resources we will struggle to effectively deliver our repair and asset management work, our Asset Management Plan or lay the foundations for a fully developed Asset Management Strategy. |
| We need to strengthen our approach to procurement with a strategy for delivering the optimum blend of cost, quality and tenant satisfaction through our works. | Without an effective procurement strategy in place, we will struggle to optimise the value for money we secure from our repair service and planned programmes. |
| Our arrangements with ODS need to provide good value for money. | As our key partner, we spend substantial sums with ODS. If their costs are not in line with appropriate benchmarks, we will spend more money on delivering our repair and planned works than we should. |
| We need a well-developed pool of external contractors in place to complement the arrangement with ODS, and our approach to contract management is weak. | Without a pool of other, competitively priced contractors in place we may have to overly rely on ODS for works they themselves subcontract with pricing that does not represent good value for money. Without good contract management we will struggle to get the best results from the contracts we let. |
| We need to strengthen our approach to performance management and review our targets/indicators for all our repair, maintenance, and investment work. | Without a strong approach to performance management, we will struggle to secure the ongoing and continuous improvement to the repair service or our asset management work |
| We need to make effective use of data, systems, and procedures for measuring, monitoring, and reporting on our performance, including the use of benchmarking. | Without good quality data, systems, processes, and the use of benchmarking we will not have the reliable management information we need to help inform and drive improvements. |
| We need to fully implement the QL system, so it meets our repair recording and asset management database requirements. | Unless we make full use of the QL system we will struggle to effectively manage and understand the performance of the repair service and the investment needs of our stock. Also, we will not be able to interface effectively with ODS. |
| We need to be proactive in seeking out external funding opportunities to support the delivery of the Asset Management Strategy. | We know the HRA Business Plan is under considerable pressure. Without external funding, we risk not being able to deliver the scale of investment needed in our stock, especially our longer-term decarbonisation works. |
