ASSET MANAGEMENT STRATEGY 2019 – 2031 · Customer Experience 48 - 49 CONCLUSIONS 50 - 51 GLOSSARY OF ABBREVIATIONS 52 ... supported by excellent customer care. It must consider

Ta i C a l o n C o m m u n i t y H o u s i n g ’ s

ASSET MANAGEMENT

STRATEGY

2019 – 2031

November 2018| Staff Bulletin | 2 Asset Management Strategy 2019 - 2031

CONTENTS

FOREWORD 3

EXECUTIVE SUMMARY 5 - 6

INTRODUCTION 7

Purpose of the AMS 8

Why Asset Management 9 - 11

Links to strategic documents 12 - 13

STRATEGIC CONTEXT 14 - 16

CONTEXT FOR DEMAND 17 - 19

ABOUT OUR HOMES 20 - 23

MEASURING PERFORMANCE 24

BUSINESS ACTIVITIES ASSET MANAGEMENT OBJECTIVES

Property Sustainability 25 - 27

Health and Safety 28 - 30

Maintaining WHQS 31 - 34

Warm Healthy Homes 35 - 36

Maintenance & Repairs 37 - 38

Aids & Adaptations 39

Development Programmes 40 - 43

Project Management 44

Delivering Value for Money 45 - 47

Customer Experience 48 - 49

CONCLUSIONS 50 - 51

GLOSSARY OF ABBREVIATIONS 52

APPENDIX 1 – ASSET MANAGEMENT PLAN


FOREWORD

We are pleased to present to you Tai Calon Community Housing’s Asset Management

Strategy 2019 – 2031 which outlines the asset management objectives and plan that we

have identified to help Tai Calon unlock its asset potential. This Strategy outlines our

commitment to continue to improve our services for our tenants and tenants of the

future.

The process of formulating this new Asset Management Strategy has given us the

opportunity to reflect on past successes and failures, and to determine our future goals

in light of the challenges ahead. This Strategy details how we will develop and evolve in

response to changing needs but also as an active and participating agent in Blaenau

Gwent valleys.

We have drawn on our knowledge of our homes to develop this strategy, which reflects

the stage that we have reached in improving the quality of our homes. We have carried

out consultation with tenants and colleagues to identify the key business activities, and

how we can ensure that we are achieving our full potential from all of our assets. These

aspirations are reflected in the detailed objectives and work plan set out in the Strategy.

The last 5 years have seen a focus on the interior of our tenants’ homes. This Strategy

sets out how we will work to maintain and improve on this standard. Introducing more

cyclical and preventative maintenance programmes that focus on the whole

environment will ensure that we can continue to maintain our homes as well as improve

our neighbourhoods. There is no one size fits all answer to what is the perfect

environment and therefore over the coming years we will need to consult at a local level

to agree what tenants really want to see changed and improved in their neighbourhood.

Our commitment is to develop our assets and to begin building new homes in Blaenau

Gwent. This is an important objective in the coming years and we are introducing

development projects that we can deliver whilst still focusing on our core services for

our tenants.

Stacy Thomas

Director of Assets

and Property

Dr Norma Barry MBA,

FRSA

Board Chair


ACTIVITY 2

Health &

Safety

ACTIVITY 4

Warm Healthy

Homes

ACTIVITY 3

Maintaining

WHQS

ACTIVITY 5

Repairs &

Maintenance

ACTIVITY 6

Aids &

Adaptations

ACTIVITY 7

Development

Programme

ACTIVITY 10

Customer

Experience

ACTIVITY 1

Property Sustainability

ACTIVITY 9

Delivering Value

for Money

ACTIVITY 8

Project

Management


EXECUTIVE SUMMARY This Strategy sets out plans for the management and development of

Tai Calon’s stock and land over the period up until 2031, and details the

methodology for taking decisions about the future of its assets.

The Strategy has been developed in light of Welsh Government’s policies and priorities,

and those of Blaenau Gwent County Borough Council, the Tai Calon vision, together

with an analysis of current and projected housing needs as detailed in the Local

Authority’s Housing Market Assessment. This Strategy will be reviewed and updated on

a three yearly cycle.

Tai Calon’s overall strategic aim is to develop and manage its property, open spaces

and land assets to meet the current and future needs of the local population, whilst

maintaining a financially viable business.

The objectives underpinning the strategic aim are to:

o Understand all our homes, ensure that they meet tenants’ needs, and make the right decisions for reconfiguration, demolition, disposal or investment if required.

o Ensure our homes and estates are safe for tenants, their families and visitors and meet the safety requirements set out in law.

o Maintain our current status of 100% WHQS compliance. o Provide warm healthy homes which are suitable for tenants’ lifelong

needs and contribute to their well-being. o Provide tenants with a high quality Value for Money (VfM) repair and

maintenance service that embraces a ‘right first time’ approach. o Ensure that our tenants are provided with the necessary aids and

adaptations to help improve their well-being and quality of life to choose to live independently.

o Deliver a housing land and property portfolio that meets the needs of current and future generations.

o Make the best use of every pound and every home. o Use sound Project Management practices to ensure the smooth

delivery of work programmes. o Plan and deliver an effective service according to tenants’ individual

needs.


Over the medium-term, housing need is

expected to change and Tai Calon

needs to make plans now to meet this

changing need.

Currently, Tai Calon has an oversupply

of 3-bedroom homes. With no action

taken this over supply will reduce,

improving the situation by almost 50% by

2021 and by 2031 the oversupply will be

reversed and replaced with a significant

under supply.

The need to improve and grow Tai

Calon’s house stock is strong and well

evidenced. However, meeting 100% of

future need will be a significant

challenge with over 6000 additional

homes required by Blaenau Gwent

County Borough Council; nonetheless

Tai Calon’s contribution to this is

essential.

Within the national and local political and

policy context Tai Calon, as the largest

housing provider in Blaenau Gwent is

well placed to play a lead role in meeting

the housing needs of current and future

generations, and help deliver the Welsh

Government’s and Blaenau Gwent’s

aspirations for housing and communities.


INTRODUCTION Tai Calon Community Housing was formed on 26

th July 2010 as part of

a Large Scale Voluntary Transfer from Blaenau Gwent County Borough

Council. It is the largest social housing landlord in Blaenau Gwent.

We manage 5,685 general needs homes and 215 sheltered homes in neighbourhoods

across the Borough. The majority of these are three bedroom houses. Since transfer we

have focused on bringing all homes up to the Welsh Housing Quality Standard

(WHQS). This was achieved in December 2015 with a total of £104m capital investment

since transfer, plus £38m invested in maintenance and empty homes. Extensive stock

surveys and validation of data shows a requirement for a further investment of £389m

(capital and revenue) over the next 30 years. An updated stock condition survey was

completed in October 2016, bringing the surveyed properties up to 60%. The results of

this survey have been built into the assets works programme.

Ebbw Vale

le

Ebbw Vale

Tredegar

Abertillery

Brynmawr


PURPOSE OF THIS STRATEGY The purpose of this strategy is to outline

the context within which Tai Calon

operates. It presents an analysis of

current housing provision, existing and

future demand, and assesses what

needs to be done to meet present and

future housing need.

Tai Calon’s ability to deliver homes and

good services for current and future

tenants is reliant on its ability to make

the most of its homes, land and other

assets. Tai Calon aims to create good

places for people to live and enjoy their

open spaces, whilst making effective use

of its assets on which the financial

viability of the whole organisation is

dependent.

In order to deliver our vision of providing

“homes and thriving neighbourhoods

where people are proud to live” it is

important that the organisation manages

effectively the various factors that need

to be taken into account when making

strategic asset management decisions.

Poor decisions or a lack of decision

making can lead to lost income or higher

costs in the future. Prudent and timely

decisions now can create efficiencies

and achieve value for money in the

medium to longer term.

Most of Tai Calon’s revenue stream

comes in the form of rent, whilst the

majority of costs are of management,

maintenance and investment. It is,

therefore, important that the

organisation’s assets are managed in a

way that delivers the required income

and sustainable tenancies, whilst

ensuring that expenditure is targeted and

delivers value for money. This means

keeping empty properties at the lowest

level possible; maintaining homes at

reasonable costs; creating vibrant

communities; and carrying out

development that meets future needs,

and is financially viable.


WHY ASSET MANAGEMENT? The aim of asset management is to guide and direct the future shape of

the organisation’s assets to ensure that they meet corporate objectives

and tenants’ expectations.

Tai Calon has defined asset management as:

Effective asset management needs:

Clear corporate direction;

A whole organisation approach;

Well-defined and strong links with the overarching Business Plan and Strategic Action Plans; and

Proportionality of approach.

The future of asset management at Tai Calon goes beyond investing in good repairs

and improvements. Asset management is about reshaping our assets to deliver the

right properties in the right locations, supported by excellent customer care. It must

consider a ‘whole life’ of a home approach, provide value for money and understand

how future running costs will affect tenants. By adopting an effective Asset

Management Strategy across our homes we will realise the following benefits:

Ensure long life good quality materials are used

Reduction in responsive repairs

Reduction in repairs expenditure

Inform additional cyclical, preventative and planned programmes

Disrepair prevention

Reduction in empty properties

Improving tenant satisfaction

Balancing the costs,

opportunities and risks against

the desired performance of our

properties and land.


The Asset Management Strategy sets out the strategic framework that will provide good

quality housing, focus investment in our homes and neighbourhoods, and sensibly grow

our business to meet future demands, whilst ensuring a continued strengthening of our

financial position. To ensure that we deliver this Strategy, we will measure our

performance against the following ten key Asset Management Objectives (AMOs),

across key business activities:

Understand all our homes, ensure that they meet tenants’ needs, and make the right decisions for reconfiguration, demolition, disposal or investment if required.

Ensure our homes and estates are safe for tenants, their families and visitors and meet the safety requirements set out in law.

Maintain our current status of 100% WHQS compliance.

Provide warm healthy homes which are suitable for tenants’ lifelong needs, and contribute to their well-being.

Provide tenants with a high quality VfM repair and maintenance service that

embraces a ‘right first time’ approach.

Ensure that our tenants are provided with the necessary aids and adaptations to help improve their well-being and quality of life to choose to live independently.

Deliver a housing, land and property portfolio that meets the needs of current and future generations.

Make the best use of every pound and every property.

Use sound Project Management practices to ensure the smooth and timely delivery of work programmes.

Understand, plan and deliver an effective service, according to tenants’ individual needs.


The Asset Management Objectives (AMO’s) relate to the following business activities:

BUSINESS

ACTIVITIES

DE

VE

LO

PM

EN

T

PR

OG

RA

MM

E


LINKS TO STRATEGIC DOCUMENTS The Asset Management Strategy should be read in conjunction with the following strategic documents and policies all of which have helped shape and inform the content of this Strategy:

Our Corporate Plan 2015-2020

Tai Calon’s tenants are at the heart of our business. The Corporate Plan 2015-2020

provides the high level objectives that inform the Asset Management Strategy. The Plan

outlines Tai Calon’s vision to provide homes and thriving neighbourhoods where people

are proud to live and states that this will be achieved by:

Providing safe and warm homes which are suitable for tenants’ lifelong needs

Understanding, planning and delivering effective services for each tenant according to their individual needs

Being a key partner in promoting strong communities, regeneration, full employment and community safety

Our 30 Year Business Plan

Our 30 Year Business Plan is first and foremost a financial document, which at this

point in time demonstrates that Tai Calon can fund the borrowing required to meet its

current and future financial commitments.

Our Sustainability Strategy

Tai Calon’s Sustainability Strategy outlines our commitment to promote the principle of

sustainability across our business, our homes and estates, and the communities in

which we operate. It also communicates how we will contribute towards the well-being

goals in Welsh Government’s Well-being of Future Generations Act (Wales) 2015.

Our Risk Management Policy

Tai Calon’s Risk Management Policy underpins the Asset Management Strategy. It

explains the organisation’s underlying approach to risk management and documents

the roles and responsibilities of the Board, Audit and Risk Committee, and the

Executive Team. It also outlines key aspects of the risk management process and

identifies the main reporting procedures.

https://www.taicalon.org/about/corporate-publications/

https://www.taicalon.org/wp-content/uploads/Risk_Management_Policy_v4__February_2017.pdf


Our Procurement Policy

Tai Calon’s Procurement and Tendering policy sets out the rules which must be

followed when procuring goods, services or works. The policy adopts key principles to

help deliver value for money (VfM); robust processes and systems; effective partnering

and collaboration; sustainable procurement; improved staff capabilities; technological

modernisation; and the effective management of contractors and suppliers.

Our Repairs Policy

Tai Calon’s repair policy is intended to bring about a reduction in responsive repairs,

and focus resources on ‘just in time’ cyclical and programmed maintenance. We will

ensure that high quality and long-life components are used, to minimise breakdown and

disrepair. The policy strives to deliver VfM for the benefit of the business and our

tenants.

https://www.taicalon.org/wp-content/uploads/Repairs_and_Maintenance_Procedure_v1_September_2017.pdf


STRATEGIC CONTEXT The Welsh Government is committed to providing an additional 20,000 affordable homes by 2021, and has set the following delivery objectives:

Supporting the construction of social housing for the most vulnerable through tried and tested schemes including the Social Housing Grant (SHG)

Supporting construction of more than 6,000 homes through the ‘Help to Buy’ scheme. Phase II of the scheme will see £290 million invested until 2021

Developing a more ambitious house building programme in terms of design, quality, location and energy efficiency

Supporting a variety of housing tenures in order to respond to a wider range of housing needs

Developing a ‘Rent to Own’ scheme which supports those who aspire to buy their own home but struggle to save a sizeable deposit

Promoting a range of routes into home ownership at an affordable cost, especially for first-time buyers in areas where they are often unable to purchase a home due to high local property values

The Welsh Government has also

legislated for sustainability in the form of

the Well-being of Future Generations

(Wales) Act 2015.

This Act is about improving the social,

economic, environmental and cultural

well-being of Wales and creating a

Wales that people want to live in, now

and in the future.

Although Tai Calon is not covered by the

Act, it is a member of the Blaenau

Gwent Public Service Board and applies

the spirit of the Well-being goals to all its

activities via its own Sustainability

Strategy.

https://gov.wales/topics/people-and-communities/people/future-generations-act/?lang=en

https://www.blaenaugwentpsb.org.uk/public-services-board.aspx

https://www.blaenaugwentpsb.org.uk/public-services-board.aspx


The strategic landscape of the County Borough has been shaped by numerous policy,

plans and initiatives (Fig1 below).

Tackling housing issues is a priority across Blaenau Gwent. It is clear that the supply,

demand, affordability and quality of housing is one of the greatest challenges facing

Blaenau Gwent’ Councils strategic partners, with recognition that housing has a key role

to play in creating more sustainable and prosperous communities.

The current position is one of variable housing demand, slow delivery and missed

targets. The main issues include:

Below target supply of open market and affordable housing Improvements required to the quality and standards of homes Low levels of new social housing developments The poor viability of sites and piloting new development models Current Housing Market Assessment under review to provide refreshed strategic

direction and to help inform future need

The Blaenau Gwent County Borough Council (BGCBC) Housing Strategy and

Regeneration Report identifies specific examples of where the public sector will attempt

to stimulate private interest in the publicly owned sites. It also refers to the availability in

Figure 1: Hierarchy of Plans & Initiative in Blaenau Gwent

Well-being Plan (PSB)

Local Development

Plan

Corporate Plan

(BGCBC)

Thematic Plans e.g Housing Strategy

CCR City Deal

CCR Targeted

Regeneration Investment

Valleys Task Force/Tech

Valley Metro

Enterprise Zones


Blaenau Gwent of additional Social Housing Grant from Welsh Government. Welsh

Government has allocated additional capital funding, including an increased allocation

of Social Housing Grant and Housing Finance Grant 2, which for Blaenau Gwent

amounts to £9.19million over a four year period (2017/18 – 2020/21).

Spatially, the focus is on stimulating new homes in the Ebbw Vale and

Brynmawr/Nantyglo area. This is in response to the strategic status that Ebbw Vale has

been given in planning and regeneration terms and also the availability of land

opportunities within public ownership. To a lesser extent, Llanhilleth is also highlighted

as an opportunity for new homes.

The Council’s Local Housing Strategy’s aim is ‘To have a balanced, flexible, healthy

housing market, which can respond to the changes in demand, changes in the economy

and supports regeneration’. Its priorities are:

To improve the supply of new homes to buy and rent To improve the quality and standard of homes, To meet the needs of vulnerable households.

Priorities in Blaenau Gwent for 2017-18 have been identified as stimulating private

interest and investment, including:

o To deliver open market housing through development and innovative funding model on the school site in Ebbw Vale;

o To deliver housing on the Works site in Ebbw Vale and consider enabling activity that is needed for other strategic sites across the Local Authority;

o To maximise the opportunities in Blaenau Gwent from the Cardiff Capital Region City Deal, the Welsh Government Innovative Design funding and Vibrant and Viable Places (Target Regeneration Investment) funding.

A key document regarding current and future housing need is Blaenau Gwent County

Borough Council’s (BGCBC) Local Housing Market Assessment 2012 – 2031

(LHMA), which sets out the projected housing requirement for the period. It contains

estimates of current and future demand for housing, and enables an understanding of

associated risks and is updated on a regular basis.

Over the next ten years BGCBC is committed to the development of new open market

homes and social housing grant supported homes. Tai Calon continues to work closely

with BGCBC to ensure we develop our Strategy aligned to the aspirations of the

Borough.


CONTEXT FOR DEMAND With the most significant changes for at least a generation, Tai Calon

and its tenants are facing some of the greatest ever challenges. Wales’

socio-economic outlook remains weak and uncertain, with austerity

continuing into 2019, leading to further cuts to local government

budgets and will impact on service delivery to our tenants.

Welfare reform has been a major feature of recent government spending cuts.

Concerns about escalating costs, combined with a drive to simplify the welfare system

and encourage recipients into work, have resulted in significant changes to taxes and

benefits. The system is becoming tougher and tighter, with more sanctions,

reclassifications, exclusions and suspensions of payments.

As welfare reform takes effect, low-income tenants and social landlords – two of the

groups most directly affected – become a barometer of its impact. The ripple effect in

communities is huge.

“Over the next two decades, Wales is projected to undergo major demographic

changes which will impact heavily on the housing, care and support sectors. Our

population is set to continue growing. In 2036 it is projected that there will be an

additional 227,000 people aged over 65 in Wales. However, projections estimate

96,000 fewer working aged individuals in the same year, compared to the current

population. Future changes to the sizes of households will impact on the demand for

certain property sizes. It is projected that we will see a move away from three-person

families towards two person and one-person households. Such changes will have far

reaching implications for housing associations in Wales and the homes they develop

and adapt.

A shrinking workforce and technological advances will change the way that housing

associations operate. The rise of digital ‘natives’ and increasingly agile working

practices may see the end of traditional office-based working. Similarly, an increasingly

digitally savvy population is already creating a demand for 24/7 services and access to

support online. Working practices will inevitably have to change to meet this demand”.

(Housing Horizons, Establishing the challenge. Data Resource May 2017).

https://chcymru.org.uk/uploads/general/Housing_Horizons_Data_Resource_-_Establishing_the_Challenge_FINAL.pdf


Local market

Blaenau Gwent has both a declining and aging population. The current population is

69,600, with the proportion of young people aged 0 - 15 (17.5%) also decreasing and

slightly lower than the Welsh average (17.9%). In 2015, 63.1% of the population were of

working age which was above the Welsh average of 61.9%.

The percentage of the economically active was 71.5% in June 2018, below the Welsh

(76.3%) and UK (78.4%) averages; of those considered economically active 67.9% are

in employment.

The levels of unemployment are currently at 5.6%; whilst reducing, this remains above

the Wales (4.8%) and UK (4.2%) averages. A key factor and challenge going forward is

the percentage of economic inactivity stemming from long term sickness in Blaenau

Gwent when compared to other areas. As of June 2018, 38.5% of economic inactivity

was due to long term sickness, whilst the UK figure was 22.3%. A further observation is

the percentage of students contributing to the economic inactivity figure which is

significantly lower in Blaenau Gwent (15.2%) than Wales (24.8%) or the UK (26.8%).

4.3% of Blaenau Gwent young people aged 18-24 were benefit claimants in September

2018. This was higher than the Wales (3.5%) and UK (3.1%) averages, highlighting the

need to ensure young people are supported and equipped for the transition from

education to employment.

Whilst unemployment is reducing, the number of workless households (24%) in Blaenau

Gwent remains high, indicating the deep-rooted and inter-generational barriers to

employment; which has been the focus of recent employment support initiatives such as

LiFT. This is higher than the Wales average of 17.5% and a UK average of 14.5%.

The above statistics were provided by Nomis, which is a service provided by the Office for National Statistics, ONS, giving free access to the most detailed and up-to-date UK labour market statistics from official sources. https://www.nomisweb.co.uk/

Demand

Meeting the needs of the housing register (administered by BGCBC), and wider

demand for future new affordable housing size/type is a key element of consideration

and for understanding the sustainability of our housing stock and our communities.

With regard to types of households, single adult households with and without children

are increasing, with the largest growth being of single adult households without children.

There has been a reduction in households where there are two or more adults with or

https://www.nomisweb.co.uk/


without children. This correlates with families moving away from the county borough.

(Ref: ONS/WASHP)

In terms of the size mix, around a third of homes in Blaenau Gwent are two bedroom

and a half of all homes are three-bed. Approximately 14% of homes have one bedroom

and less than 1% have four bedrooms or more.

Tai Calon currently has an oversupply of three bed accommodation but an under-supply

of four and five bedroom accommodation. This became an issue following the

introduction of the Bedroom Tax. Before the Bedroom Tax, it was possible to manage

low demand by allowing tenants to under occupy homes. The Bedroom Tax makes this

more difficult. However, many choose to pay the tax and remain in their home. Older

people do not have to pay the Bedroom Tax.

Demand for Tai Calon homes is localised, with demand changing significantly from

street to street, and can be influenced by a number of factors. Low demand for bedsits

is a particular issue in sheltered housing and general needs accommodation.

When looking at the housing need data set out in the Local Housing Market

Assessment (LHMA), there is a current backlog in unmet housing need of 1612 social

rented homes. There is, therefore, a significant under supply of social rented homes,

now, and this under supply is forecast to get more severe in the future.

The need for larger homes will change over time. By 2021 the current oversupply of

three bedroom social rented homes will reduce by almost 50%. By 2031 the oversupply

will be reversed and replaced with a significant under supply. The demand for social

rented homes will exceed Tai Calon’s availability of stock across all house types by

2031. Housing is a long term asset and planning for future demand is important.


ABOUT OUR HOMES Corporate assets

As of 31st March 2018 Tai Calon Community Housing held stock totalling 5927 homes,

as distributed below. This represents approximately 22% of all households in Blaenau

Gwent.

Property Type Total No. Bedrooms

1 2 3 4

House (general needs) 4010 53 936 2969 52

House (supported living) 2 1 1

Bungalow (general needs) 777 419 357 1

Flat (general needs) 922 109 813

Flat (supported living) 208 199 8 1

Bedsit (supported living) 8 8

Total No. bedrooms 789 2114 2972 52

No. of bedrooms as a % of stock 13.3% 35.7% 50.1% 0.9%

Total Housing Stock 5927

The majority of Tai Calon’s homes are general needs homes (96%), whilst the

remaining 4% are dedicated to housing older people and people with support needs.


There are over 2,000 non-traditional homes in the portfolio - 85% of which are houses - built using non-traditional techniques to address the acute housing shortage in the inter-war and post-war periods. Many of these homes are in demand as they benefit from spacious plots and are in popular locations

As well as social rented homes, Tai Calon owns and manages 339 leasehold flats and a

small portfolio of commercial properties and garages. In addition to property, Tai Calon

owns a significant land portfolio, 80% of which could possibly be developed to build a

significant number of additional new homes, subject to Board approval, financial

capacity and planning permission.

The majority of the homes are in high

weather exposure areas and some of the

homes are subject to severe weather

exposure. The prevailing climate and

weather make thermal insulation, wind

and water tightness of homes a

challenge. The topography also makes it

very difficult and cost prohibitive to

provide high quality gardens and external

spaces. With regard to Welsh Housing

Quality Standard, many homes will

always be subject to “Acceptable Fails”

due to physical constraints.

Rents

96%

4%

Usage per property type

GENERAL NEEDS SHELTERED


Rents

Tai Calon receives less rent per household in Blaenau Gwent compared to all other

areas of Wales. This lower level of rental income makes it even more imperative that

our empty homes are kept to a minimum, every pound spent is invested wisely, and we

achieve best value for money. This Strategy sets out to ensure that this is achieved.

The graph below shows the average turnover per home per year of all Welsh Housing

Associations. This is a way of showing the average rent incomes across the whole

housing stock. The graph demonstrates that Tai Calon has the lowest rent levels and

the lowest rental income of all Welsh Housing Associations.


Stock Condition and Evaluation

The availability of accurate stock information and reliable data systems is a key element

to delivering robust asset management, and is integral to the operational delivery of

improvements. ‘Pimss4Communities’ (Pimss) is the primary Asset Management System

database that we use to capture the condition of our stock. This is supported by a stock

evaluation tool, known as the Asset Performance Evaluation tool or APE, which

provides models for investment based on short, medium and long-term profiles.

The most recent stock condition survey was completed in October 2016. Tai Calon now

has 60% actual surveys, with the rest being ‘cloned’ and then supplemented by actual

component renewal dates.

The stock is grouped into logical cost archetypes. 60% of properties in each cost

archetype have been surveyed. The results of the surveys have been cloned across the

rest of the properties in the cost archetype. This far exceeds the minimum industry

standard and the requirements of our lenders.

The entire stock condition database is also validated by industry leading external

consultants, who are experts in stock condition and WHQS. They were commissioned

by Welsh Government in 2014/15 to review RSL’s approach to WHQS compliance and

drafted the current Welsh Government guidance on WHQS compliance issued March

2015.

The data is managed on a real time basis with regular updates from the analysis of

relevant component replacement works undertaken. This updating is currently carried

out independently by Pimss. Repairs data is also analysed and triangulated against

complaints data and stock data to identify any early component failures within homes.

It is essential that we understand the long-term relationship between future investment

expenditure and the stock income profile, if we are to provide best value for money over

the life of the 30-year Business Plan, and meet the needs of tenants and communities.


MEASURING PERFORMANCE To ensure we deliver a robust Asset Management Strategy, we will measure our

performance across key business activities. Pages 25 - 49 of this Strategy illustrate how

we will deliver the 10 Asset Management objectives (AMO’s), each with its own Key

Performance Indicator(s) (KPIs).

Our Asset Management KPI’s are designed to provide quantifiable measurements, which will enable us to monitor our progress against the 10 AMO’s. When developing key indicators, and in line with best practice, we will ensure that they are SMART. The plan to deliver the 2019 – 2020 objectives of this Strategy can be found within

the Asset Management Plan Appendix 1 to this Strategy.


Property Sustainability

Objective 1: Understand all of our homes, ensure that they

meet tenants’ needs, and make the right decisions for

reconfiguration, demolition, disposal or investment if

required.

A Sustainable Asset Management Process (SAMP)

The objective of the Sustainable Asset Management Process (SAMP) is to understand

the impact of our investment options and decisions at individual household, wider local

community, and borough wide level. This is achieved by bringing together all our

technical, and tenant needs, to inform our decisions. This includes stock condition data,

stock assessment tools, consultation with residents and community representatives,

and knowledge of wider benefits and their impacts.

Historically, asset management at Tai Calon has been about replacing individual

components to deliver stock transfer promises and to a lesser extent an assessment of

building component lifecycles and replacing them at the end of their theoretical life.

As part of Tai Calon’s commitment to improve Value for Money (VfM), we have adopted

a “just in time” approach. This means that components will be surveyed as they

approach the end of their forecast lifecycle and, if the component is in good condition, it

will not be replaced but rather the expected life will be extended for a reasonable period

of time, and reviewed again when appropriate and just in time. This approach aligns

with the Welsh Housing Quality Standard, for example WHQS says that kitchens should

be less than 15 years old or in good condition. In the future, the condition of the

component will drive its replacement rather than any notional expected lifespan.

In addition to the “just in time” approach, this Strategy aims to take a more holistic

approach by ensuring our investment programme delivers more than just component

renewal, and focuses on the longer term future of each property and the wider

community it is located within. The Strategy encourages our assessment of stock

investment at the macro level to consider the bigger picture, rather than just at the micro

level. It looks at the longer term future of the housing stock and estates, and seeks to

consider opportunities for achieving wider benefits from our investment process.


Tai Calon’s Sustainable Asset Management Process (SAMP)

To analyse the performance of our assets, and understand how they assist delivery of

financial, social, and housing objectives, Tai Calon uses an Asset Performance

Evaluation (APE) tool. This ongoing assessment of performance enhances the

understanding of our assets and our ability to make informed decisions about what to

do with those assets, such as reconfiguration, demolition, disposal, investment or to

maintain.

The APE tool enables us to:

Measure the long-term performance of our properties

Analyse asset worth to our Business Plan via modelling

Provide an objective baseline from which to make investment decisions based on sustainability and demand

Demonstrate those properties representing Value for Money (VfM) and those which require an option appraisal

Balance our objectives; incorporating return on investment alongside social, economic and environmental viability; enabling us to set clear, measurable targets for future improvement

Diagnose - What is the problem

APE Model

Plan - Select the best solution

Invest - what is the best method

5 stages of options apprasial

Deliver -

Complete the project

Learn - What could we do better


The APE tool identifies the cost to keep the stock up to the required standard and

compares it to the income from the same property over a 30-year period. This

evaluation process uses the Net Present Value (NPV) approach, which is compared

and contrasted with other housing management information, on the popularity and

performance of the stock, and the community, at local/estate level. Once the stock has

been assessed, Tai Calon will move quickly to deliver the appropriate option to:

Maintain – this is our best stock, good financial performance and a place people want to live. We will work to maintain the good NPV and good community sustainability score.

Invest – This is stock where there is good financial performance but poor community sustainability. We will invest to improve the community sustainability score whilst maintaining the good NPV.

Improve – This is stock with poor financial performance and good community sustainability. We will work to improve the financial performance of this stock whilst maintaining the good community sustainability.

Replace – This is stock with poor NPV and poor community sustainability. This stock is our highest risk where more radical options will be explored to resolve both a poor NPV and poor sustainability.

How do we know we’re doing well?

14 Options Appraisals to progress and make decisions in 2019-2020

Income loss through empty homes -1.6%

Garage and commercial asset review in 2019 - 2020

Invest

Maintain

Reconfigure

Demolish

Dispose

Empty homes? 1,2,3,4 bedrooms?

Poor performing?


Health and Safety

Objective 2: Ensure our homes and estates are safe for tenants, their

families and visitors, and meet the safety requirements set out in law.

A major priority is to make sure our homes are safe for tenants, their families and

visitors, and that we meet all the safety requirements set out in law. Tai Calon has a

robust assurance framework in place based on the three lines of defence model.

We have a team of Assets and Property Services staff, trades and specialist

contractors, dedicated to making sure the safety standards of our homes are managed

in compliance with legislation. Our responsibilities cover many elements, including:

Health &

Safety

Gas Safey

Electrical Safety

Fire

Safety

Water

Hygiene

Asbestos

HHSRS


#SafetyFirst

Gas Safety

We have a policy that ensures the safety of our tenants in their homes where a

gas supply and associated appliances are present. It is a requirement under Gas

Regulations that Landlord’s issue an annual Landlord Gas Safety Certificate to

each property. We aim to maintain a 100% certification at all times.

Electricity

Electrical safety inspections of the fixed wiring installations are undertaken at

periods of between five and ten years, based on condition. We are moving from a

10 year cycle to a 5 year cycle, which will be fully complete by 2021.

Water Hygiene

Risk assessments have been completed and are reviewed on a periodic basis

regarding the risk of Legionella to our sheltered housing sites, and other sites with

common stored water as required by the HSE Approved Code of Practice L8. Tai

Calon will carry out risk mitigation work by flushing hot and cold-water systems in

empty properties before they are occupied.

Asbestos

Tai Calon has an Asbestos Management Policy for all its homes, which sets out

how we identify and manages asbestos. Tai Calon conducts surveys and

sampling, and manages asbestos in accordance with its Asbestos Management

Plan and the Control of Asbestos Regulations 2012. Information obtained during

surveys is held on an Asbestos Register together with an Asbestos Management

Plan.

Fire

In accordance with the Regulatory Reform (Fire Safety) Order 2005, Tai Calon

has undertaken Fire Risk Assessments (FRA) of communal areas to flats and

sheltered schemes. The Fire Risk Assessments are reviewed on a cyclical basis

dependent on the risk identified by the FRA and recorded on our Asset

Management database. Any remedial work required to mitigate the risks identified

is undertaken and management processes put in place. Tai Calon staff carry out

regular checks of the common parts of flats and scheme coordinators conduct

checks on Sheltered Schemes as well as planned fire evacuation exercises.

https://www.taicalon.org/about/corporate-publications/procedures/


Tai Calon has no high rise (six stories or higher) blocks and has never used the

Aluminium Composite Material (ACM) implicated in the spread of fire at the Grenfell

Tower tragedy. All current and past cladding used on our properties meets all British

and European standards and no concerns have been expressed by our Fire Risk

Assessors about its use.

Smoke and Carbon Monoxide Detectors

Tai Calon provides smoke detectors to all properties as per the statutory requirements.

In addition, Carbon Monoxide Detectors are provided as per the statutory requirements.

The Housing Health & Safety Rating System (HHSRS)

All Tai Calon Staff involved in surveying our properties are trained in the use of the

Housing Health & Safety Rating System (HHSRS). The HHRS is a UK Government

approved approach to the evaluation of the potential risks to health and safety from any

deficiencies identified in homes. The system is founded on the logical evaluation of both

the likelihood of an occurrence that could cause harm, and the probable severity of the

outcomes of such an occurrence. It relies on the informed professional judgements of

both of these to provide a simple means of representing the severity of any dangers

present in a home.

The HHSRS concentrates on threats to health and safety, and is generally not

concerned with matters of quality, comfort and convenience. However, in some cases

such matters could also have an impact on a person’s physical or mental health or

safety and so can be considered. Also, as the rating system is about the assessment of

hazards (the potential effect of conditions), the form of construction and the type and

age of the home do not directly affect an assessment. However, these matters will be

relevant to determining the cause of any problem and so indicate the nature of any

remedial action.

If a property fails under a HHSRS inspection, immediate remedial action(s) will be

undertaken to ensure that tenants, their families and visitors remain safe.


100% of homes remaining compliant with all health and safety legislation


Maintaining WHQS

Objective 3: We will maintain our current status of 100% WHQS compliancy.

What is the Welsh Housing Quality Standard (WHQS)?

The WHQS is the Welsh Government’s standard of housing quality. The WHQS was

first introduced in 2002 and aims to ensure that all homes are of a good quality and

suitable for the needs of existing and future residents.

The WHQS requires homes to have safe and secure doors, windows, modern kitchens

and bathrooms, and to be located in attractive and safe environments. The Welsh

Government set a target for all social landlords to improve their housing stock to meet

the WHQS.

The WHQS was achieved across all of our homes in 2016, where tenants agreed to

planned improvements. The WHQS measures 42 individual elements within the

following seven categories:

1. in a good state of repair 2. safe and secure 3. adequately heated, fuel efficient and well insulated 4. contain up-to-date kitchens and bathrooms 5. well managed (for rented housing) 6. located in attractive and safe environments 7. suit the specific requirements of the household (e.g. specific disabilities) as

far as possible.

However, there can be situations where achieving the standard for an individual

element is not possible. Such situations may include the cost or timing of the work,

residents choosing not to have the work done, or where there are physical constraints

to the work. In these instances, the landlord may record one or more element as

acceptable fails. Where a home contains one or more ‘acceptable fails’ but all other

elements are compliant, the home is deemed to be compliant subject to those

acceptable fails.


WHQS

Compliance

Safe & Secure

Adequately heated, fuel efficient &

well insulated

Well managed &

well maintained

Located in attractive &

safe environments

Suit the specific needs of

individuals

VfM

Component lifecycle

Residents' choice

Cost of remedy

Physical constraint

Time of Remedy


Tai Calon has met the WHQS across its housing stock, albeit with some qualified

passes (acceptable fails). This was achieved via an age of component/end of forecast

component lifecycle approach. With this approach if we forecasted a component could

last 15 years, we replaced it at 15 years. In addition, components in the same street

were replaced at the same time, even if particular components had not reached the end

of their forecast life cycle.

To improve VfM, Tai Calon now adopts a “just in time” approach. This means that

components will be surveyed as they approach the end of their forecast lifecycle and if

the component is in good condition, it will not be replaced, but rather the expected life

will be extended and reviewed again, at an appropriate time in the future. In the future

the condition of the component will drive its replacement rather than the notional

expected lifespan.

75% of our tenants told us that they are satisfied with the overall quality of their

home. (STAR 2018)

Component under WHQS

Stock at Nov 2018

(Adjusted for sales and approved strategic voids)

Fully compliant stock for

given component

Qualified Pass

Compliant stock subject to acceptable

fails

Percentage fully

compliant/ compliant

with qualified passes

Bathrooms 5,973 5,953 20 100%

Central Heating 5,973 5,958 15 100%

Doors 5,973 5,368 605 100%

Electrical Systems 5,973 5,951 22 100%

Energy Rating 5,973 5,852 121 100%

Gardens 5,973 4,790 1,183 100%

Kitchens 5,973 5,905 68 100%

Roofs 5,973 5,973 0 100%

Smoke Detectors 5,973 5,973 0 100%

Windows 5,973 4,402 1571 100%

In relation to all programmes of work, any hazards or disrepair identified are dealt with

via our repairs process. We are currently planning a programme to revisit all residents

who have previously refused the improvement works and have allocated sufficient

budget to carry out the works. Work will continue to be completed when properties

become empty, or if the tenants change their minds.



100% WHQS Compliance

Welsh Government Annual Monitoring Report


Warm healthy homes

Objective 4: Provide warm healthy homes which are suitable for

tenants’ lifelong needs.

It is estimated that the UK’s 25 million homes are responsible for 27% of the CO2

emissions in the UK. 24% of residents in Blaenau Gwent are classed as living in fuel

poverty, which is the highest level in Wales. This is exacerbated by some of the highest

levels of health and income deprivation in the country,

Tai Calon’s Sustainability Strategy recognises these issues, and commits to:

“Make available quality homes which tenants want to live in, ensuring our

properties are future proofed against climate change, and the rising cost of

energy, thereby reducing carbon emissions and fuel poverty”.

By improving the energy and thermal efficiency of our homes, we are helping improve

the well-being of our tenants, including their physical and mental health. We are

committed to understanding how our tenants interact with their homes, to establish how

best to maintain a heathy environment.

The Welsh Housing Quality Standard (WHQS) makes a requirement that our homes

must be adequately heated, fuel efficient and well insulated. To achieve this, there are

a number of measures that Tai Calon employs to ensure its homes remain warm and

healthy, save on fuel bills, and improve tenant well-being, these include:

Improving energy efficiency

We provide energy efficient boilers to all our mains gas homes and LED lighting to

communal areas.

Improving thermal efficiency (for example, windows, doors, loft insulation)

We are currently replacing widows to all homes, and undertaking retrofit programmes,

employing the latest technologies in External Wall Insulation. All our properties have

had loft insulation installed following the completion of our roofing programme.

Improving ventilation and damp

To help ensure air quality remains optimal, we fit mechanical ventilation systems to all

bathroom and kitchen areas. If further intervention is required to help prevent


condensation (and associated mould), we employ positive input ventilation methods,

which help balance the volume of fresh air that enters and leaves a home. We

constantly review the conditions of our homes to inform innovative damp solutions

suitable for each property to remove any damp issues that may exist.

Energy advice

Our teams are trained to offer energy advice to tenants in the form of energy saving tips

and switching. These tips are also communicated via our website, and information

leaflets.

Promoting Smart Meters

In order to make our tenants more aware of how their energy usage affects their bills,

we support and promote the roll out of the UK Governments Smart Meter Programme.

Exploring new technologies

We are well aware of the fast pace in the energy technologies sector, including the

progress being made in renewable technologies, and more efficient heating systems.

We work closely with Welsh Government, BGCBC and partners to explore best practice

in the use of new technologies across social housing stock.

Tenant self-help videos (help, manage, identify, prevent).

We promote self-help videos, to ensure our tenants have the knowledge to help them to

help themselves and keep their home healthy. A good example of this is Tai Calon's

‘mould condensation and dampness’ video.


% of homes achieving the minimum WHQS SAP performance rating

Welsh Government annual SAP return

Number of complaints relating to condensation, mould or damp

https://www.taicalon.org/tenant-information/energy-efficiency/


Repairs and Maintenance

OBJECTIVE 5: Provide tenants with a high quality VfM repairs and

maintenance service that embraces a ‘right first time’ approach.

It is essential for Tai Calon to closely manage and control all asset expenditure,

including repair and maintenance costs. This allows us to achieve the maximum benefit

for every pound spent. Works to our housing stock can be grouped under the following

three classifications:

1. Responsive Repairs

Minor repairs or routine maintenance undertaken in response to a tenant’s request.

This type of repair could include for example; a leaking roof, a failed window or a broken

extractor fan.

2. Cyclical maintenance and servicing

Cyclical maintenance is the regular routine maintenance of elements of a property

including mechanical and electrical plant. Cyclical servicing is planned at regular

defined intervals, for example boiler servicing, based on statutory requirements or best

practice.

Tai Calon also has in place cyclical maintenance programmes for our open spaces

including tree management and grounds maintenance.

3. Planned improvement works

Planned works are ‘large scale’ works that relate to problems that have been reported,

and or can be part of a planned upgrading works, that are required across more than

one property.

Rebuilding a retaining wall to a property would fall under a planned activity, because it

is more than simply routine maintenance. Larger scale programmes of work across the

housing stock could include; roof and window replacements, boiler upgrades and the

installation of external wall insulation etc.

Our data shows that major planned improvement works and cyclical

maintenance deliver better VfM than responsive repairs.

Our commitment to providing a ‘high quality’ right first time’ VfM service is reflected in

our Repairs and Maintenance Policy. The policy is intended to bring about a reduction


in responsive repairs and focus resources on ‘just in time’ cyclical and programmed

maintenance. We will ensure that high quality and long life components are used to

minimise breakdown and disrepair. Our specific objectives are:

Minimise breakdowns by delivering a just in time’ cyclical maintenance and replacement service.

Using quality components that achieve ‘long life’ at best value.

Seeking opinions of tenants through engagement to define standards.

Establishing, monitoring and measuring outputs and evaluating their impact against agreed standards.

Batching and programming work together to achieve best value.

Planned work programmes are managed as part of a five year Asset Management

Plan. The current Plan includes programmes of works being delivered between

2017-2022.

Friendly, Efficient, Effective, Reliable, VfM, Quality

Why do we adopt a preventative maintenance

approach?

• Better VfM

• Long life components

• More efficient and convenient

Why reduce responsive repairs?

• Expensive

• Service failure

• Inconvenient


% repairs completed right first time

Overall satisfaction with repairs

% Repairs completed in target time


Aids and Adaptations

OBJECTIVE 6: Ensure that our tenants are provided with the necessary

aids and adaptations to help improve their well-being and quality of life

to choose to live independently.

At Tai Calon we are committed to ensuring that our tenants are able to live

independently in their own home for as long as possible. It is our aim to deliver a

responsive aids and adaptations service which meets the needs of tenants, and

provides good VfM.

We understand our social responsibilities to provide adaptions and facilities for people

with a disability, and our responsibility to comply with the Disability Discrimination Act

2016

The type of work we undertake ranges from small items such as handrails and lowering

door thresholds, to more major adaptations such as wet-rooms and ramps. Tai Calon

has a team of staff dedicated to the delivery of this work, who have developed systems

to ensure:

Cases are effectively prioritised with our BGCBC partners

Work is carried out in a timely manner

Tenants are satisfied with the work

Tai Calon aims to ensure that vacant properties, which have disabled adaptations, are

re-let to tenants who require such adaptations. This will minimise the need for additional

expenditure.

The demand for this type of work is reflected in an ongoing annual budget provision of

£600,000. We will explore alternative grant opportunities with strategic partners to allow

us to deliver more due to the increasing demand.


% Tenants satisfied with their aids and adaptations


Development Programme

OBJECTIVE 7: Develop a housing, land and property portfolio that

meets the needs of current and future generations.

Tai Calon is now in a position to progress key development, refurbishment and disposal

projects, which will facilitate new opportunities, and deliver much needed new homes to

Blaenau Gwent. We will also make important decisions regarding what to do with our

empty properties.

During the next financial year, we will continue to progress strategic projects including

long term empty properties through our Governance Gateways, and look to release land

for sale and or development to bring additional income. We will also explore our current

lending arrangements to potentially re-finance and increase our capacity to build more

homes.

The illustration below highlights ‘pipeline’ projects that will be developed over 2019-

2020.

Hilltop Centre Flats Llangynidr Road Flats

Cosy Place Flats Stocktonville

Princes Court

Cwmrhydderch Court

Glanffrwd

Glan Yr Afon


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2019-2020 Housing development sites

Glanffrwd and Glan Yr Afon Court in Ebbw Vale are two sites identified for housing

development, and have been progressed to Governance ‘Gateway 3’. Both projects

have received Board approval to progress to RIBA Stage 3, which involves detailed

development appraisal, planning permission submissions, and agreement on initial

tendering and procurement routes.

2019-2020 Refurbishment Projects for consideration

Princes Court in Ebbw Vale and Cwmrhydderch Court in Cwm, are two flat complexes

that are being considered for refurbishment, disposal or development. Both projects are

at Governance ‘Gateway 2’, following Executive Team approval to progress to RIBA

stage 2, which involves completion of an indicative development appraisal.

2019-2020 Strategic Void Projects for consideration:

A key priority is to reduce the number of empty ‘off rent-roll’ properties that we have.

Over the next 12 months we will explore options to refurbish, dispose or develop the

following properties:

Hilltop Shopping Centre Flats

Llangynidr Road Flats

Cosy Place Flats

Stocktonville

Following Executive Team approval, all void projects are at the Governance ‘Gateway

1’ stage. The corresponding RIBA Plan of Works 2013 stages are 0&1, which involve

the completion of a feasibility study and the preparation of a Brief.

Housing sites - response to BGCBCs’ call for ‘Candidate Sites’

BGCBC has recently announced an initial call for potential housing sites, (for

submission in early January 2019) as part of a revised Local Development Plan (LDP).

Tai Calon has identified and submitted for consideration 18 sites that BGCBC may wish

to be considered for development, alternative use, or protection. These sites are known

as ‘Candidate Sites’.

These Candidate Sites will inform the Council’s spatial strategy for growth and

regeneration of the County Borough. Candidate Site submissions for five homes or

more (for residential use only) will be accepted for inclusion in the LDP.


Discussions with the local planning department indicated that in addition to Candidate

Sites the Council would like to know about other smaller infill or brownfield opportunities

that would inform the LDP’s windfall, and smaller sites allowance.

The LDP will also consider identifying green open spaces within established

neighbourhoods that need protecting. Tai Calon is taking part in these discussions to

ensure that appropriate land is protected from future development.

The Candidate Site process does not guarantee that future planning permissions would

be granted. The exercise is simply to inform land usage within the LDP and as a means

for the Council to calculate the amount of land available for future housing development,

and the total potential homes that could be developed within the borough. This

information will contribute to Welsh Government’s housing policy. We will work closely

with BGCBC during this process to ensure any suitable development sites that can be

taken forward during 2020 are submitted for Social Housing Grant consideration.

Tai Calon identified 18 Candidate sites, covering a total of 20.31 hectares. Based on a

calculation of 35 homes per hectare, Tai Calon could potentially accommodate

approximately 717 new homes.


Number of void properties

Number of new properties

Value of our assets


Project Management

OBJECTIVE 8: Use sound project management practices to ensure the

smooth delivery of work programmes.

What is project management?

Projects are separate from business-as-usual activities requiring people to come

together temporarily to focus on specific project objectives. As a result, Tai Calon

recognises that effective teamwork is central to successful projects.

Project management is concerned with managing discrete packages of work to achieve

specific objectives. The way the work is managed depends upon a wide variety of

factors, such as the scale, significance and complexity of the work.

At Tai Calon we believe that investing resources into effective project management will

have a number of benefits, such as:

providing a greater likelihood of achieving the desired result;

ensuring efficient and best value use of resources; and

satisfying the differing needs of the project’s stakeholders.

The project management process

RIBA Plan of Works 2013

The Royal Institute of British Architects (RIBA) Plan of Work 2013 organises the

process of briefing, designing, constructing, maintaining, operating and using building

projects into a number of key stages. It details the tasks and outputs required at each

stage, which may vary or overlap to suit specific project requirements. The RIBA Plan

of Works 2013 provides various tools and supplementary core documents to assist

project teams to deliver projects as part of a robust project management framework.


Delivering Value for Money

OBJECTIVE 9: Make the best use of every pound and every property.

Value for Money (VfM)

Delivering Value for Money (VfM) in social housing is not straightforward. There are a

range of perspectives held by different stakeholders as to what ‘value’ means and the

social element is often difficult to measure. Defining value and measuring it is,

therefore, a challenge. The Asset Management Strategy is committed to delivering VfM

when undertaking programmes of work.

Tai Calon has always had a duty to demonstrate VfM in the delivery of services. With

income at risk with the impact of Universal Credit it is essential that available resources

are used wisely and to maximum effect.

At Tai Calon VfM is about making the best use of every pound and every property, to

enable improvements to be made to existing stock, provide better services for tenants

and deliver new homes.

As a social housing provider in Wales Tai Calon must demonstrate to the Welsh

Government how it delivers VfM throughout its business activities. As a sector there

are generally three work strands, designed to provide greater transparency and

accountability. These are:

Cost and efficiency

Demonstrating value for money from the tenants’ perspective

Social value

VfM has long been defined as the relationship between economy, efficiency and

effectiveness, sometimes known as the ‘value chain’.”

The “three E’s” of value for money are:-

Economy – the price paid for what goes into providing a service (doing things at the right price).

Efficiency – a measure of productivity – how much you get out in relation to what is put in (doing things the right way).

Effectiveness – a measure of the impact achieved and can be quantitative or qualitative (doing the right things).


Tai Calon’s VfM Framework forms the basis of ‘whole life costs’ and social value, aiming

to ensure that our assets and resources are used economically, effectively, and

efficiently, to improve outcomes for our tenants and other stakeholders and partners.

To take account of the 30-year period of the Business Plan we will use a “discounted

cash flow whole life cost model”. This will ensure that appropriate information is

available when making investment decisions. This will help ensure that investments are

the ‘right’ one and not just the one that has available finance at the time.

Providing VfM is not just about cost but is extremely important in determining whether

Tai Calon is providing services that benefit tenants and that it takes into account and

manages tenants’ priorities and expectations. It is about ensuring that tenants receive a

service that is considered to be of value to them.

Tai Calon operates in accordance with The Regulatory Framework for Housing

Associations Registered in Wales, in particular Performance Standard 6 “delivering

value for money in all areas of the business”.

The Aim of the Procurement Principle is to obtain value for money by promoting

economy, efficiency and effectiveness in all procurement activities.

Demonstration of the Procurement Principle

Staff understanding is being developed through training to recognise that value for money does not mean the lowest cost.

The Procurement Department will continue to undertake spend analysis and apply the intelligence this provides to ensure procurement activity is driven by business need and aligned to achieving the outcomes of the 2020 Vision.

Tai Calon ensures its procurement processes are simple, clear and focused on achieving value for money. Procurement processes are regularly reviewed to ensure best practice is reflected and any waste eliminated.

Tenants continue to be appropriately involved in procurement activity.

The Performance Management Framework is monitored to ensure Tai Calon delivers quality services that meet the needs of tenants.

Tai Calon meets regularly with its supply chain to monitor compliance with contract specific key performance indicators.

The cashable and non cashable gains, resulting from procurement activities are recorded and reported. Cashable gains record savings made against budgeted expenditure.

In order to carry out work on behalf of Tai Calon, minimum standards are set and maintained so that all suppliers achieve or exceed our requirements. The minimum standards utilised by Tai Calon are included in the Value Wales Supplier Qualification Information Database (SQuID).


A copy of Tai Calon’s latest VfM statement can be found by following the link below:

https://www.taicalon.org/wp-content/uploads/Tai-Calon-VFM-2018-Web.pdf


VfM annual statement

https://www.taicalon.org/wp-content/uploads/Tai-Calon-VFM-2018-Web.pdf


Customer experience

OBJECTIVE 10: Understand, plan and deliver effective services for each tenant

according to their individual needs.

At Tai Calon we are committed to providing our tenants with an exemplar service that

reflects our vison and values. Involving tenants in the decisions that help shape and

strengthen their neighbourhoods, and communities in which they live, is very important

to us.

We work closely with our tenants, who help us shape current and future work

programmes. Tai Calon’s Tenant Quality Forum (TQF) comprises of a selection of our

tenants who volunteer their time to scrutinise the procurement and delivery of

programmes of work. They also help inform strategies, procedures and corporate

policies. In developing this strategy, we have consulted with our TQF, and would like to

thank them for their input.

To enhance the tenant experience Tai Calon staff have been trained in the principles of

Service 1st.

When delivering our services we will:

1. See things from the tenants perspective – we will understand tenants,

stakeholders and colleagues, their needs and if we can’t do exactly what they

want, we will explain why and offer alternatives

2. Make their experience as straight forward as possible – we will design our

services around simple processes, skilled people and achieving tenant

satisfaction.

3. Always be happy to help – We will be polite, respectful and professional

making sure they get the help they need when they need it.


4. Do what we say we will do – We will make sure tenants, stakeholders and

colleagues know exactly what to expect from us and when we will deliver on

our promises.

5. Get the communication right – We will provide a wide range of ways to get in

touch, provide direct contact details and not use jargon.

6. Be open and honest – We will keep tenants, stakeholders and colleagues

informed, letting them know if things change and always being honest about

why.

7. Be prepared to say sorry – If we get it wrong, we will always apologise,

investigate why it happened and learn from it.


STAR Customer Satisfaction


Conclusions

Understanding the performance of our assets, and making the right decisions in the

short, medium and long term, across all of our asset management activities is critical to

the future health of Tai Calon and our tenants.

Repairs and maintenance are some of the most important services we offer, as we seek

to achieve high levels of customer satisfaction. The challenges facing Tai Calon are of a

continued demand for investment in our homes, set against tight income resources, due

to the relatively low rents that we charge. As a result, we must focus on achieving the

most from every pound we invest. This Strategy proposes a shift of emphasis over time,

from a responsive repairs based service, and towards an emphasis on cyclical and

planned preventative maintenance. This can, over time, reduce the need for responsive

repairs by reducing the likelihood of component failure. Programmed maintenance

generally offers better quality, better value for money, and better tenant experience.

It is important that we work in partnership with the Local Authority, and that our Asset

Strategy takes full account of the needs of those on the Housing Register, and the long

term projections of the Strategic Housing Needs Assessment. Housing is a long term

asset and it is important that the Strategy focusses on not just the here and now, but

also the medium and long term demands on the stock.

The delivery of this Strategy is supported by a long term 30 Year Business Plan. In the

medium term, a 5 Year capital investment programme has been produced. The

essential activities to deliver against this Strategy are detailed within Appendix 1.

Tai Calon, and the environment in which we operate is changing, it is therefore

appropriate that the plan is reviewed regularly and updated to reflect new emerging

priorities. Keeping this plan live will allow Tai Calon to respond quickly to an ever

changing environment. As we develop new homes and build our development

confidence to provide new homes in Blaenau Gwent, our aspirations may evolve and

over the next 12 months we need to review our financial capacity to enable us to

consider our development ambitions. Climate change is moving up the political ladder,

the demand for energy efficient homes, and aspirations of low or no carbon emission

homes, is likely to present new technical and financial challenges. Our warm and

healthy homes objective within this Strategy is likely to change in the coming years to

ensure that we are maximising our contribution to decarbonise our assets.


In developing the strategy, we have consulted the Tai Calon Tenant Quality Forum, our

staff and our Board, together with colleagues from Blaenau Gwent CBC. It is important

that the Strategy is supported by these key stakeholders and that it delivers on their

various aspirations, from a great repairs service through to building new homes to meet

local demand and the Welsh Government target of 20,000 new affordable homes. We

are committed to develop new homes to support this target, however we will always

retain our focus on delivering high quality core services and a positive tenant

experience to ensure that our reputation as a landlord in Blaenau Gwent continues to

improve.

All actions to deliver this Asset Management Strategy are

detailed in the Asset Management Plan. Progress will be

monitored by the Operations Committee and Board. The Plan will

be reviewed annually to ensure continuous improvement.


Glossary of abbreviations

ACM Aluminium Composite Material

AMO Asset Management Objective

AMS Asset Management Strategy

APE Asset Performance Evaluation Tool

BBCBC Blaenau Gwent County Borough Council

CCR Cardiff City Region

FRA Fire Risk Assessment

HHSRS Housing Health and Safety Rating System

HSE Health and Safety Executive

KPI Key Performance Indicator

LDP Local Development Plan

LED Light Emitting Diode

LHMA Local Housing Market Assessment

NPV Net Present Value

ONS Office of National Statistics

PSB Public Service Board

RIBA Royal Institute of British Architects

RSL Registered Social Landlord

SAP Standard Assessment Procedure

SAMP Sustainable Asset Management Process

SHG Social Housing Grant

TQF Tenant Quality Forum

VfM Value for Money

WASHP Wales Sub-national Household Estimates and Projections Working Group

WG Welsh Government

WHQS Welsh Housing Quality Standard



ASSET MANAGEMENT STRATEGY 2019 – 2031 · Customer Experience 48 - 49 CONCLUSIONS 50 - 51 GLOSSARY OF ABBREVIATIONS 52 ... supported by excellent customer care. It must consider

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