CIH Asset Management Fringe Conference Event Pdfs... · CIH Asset Management Fringe Conference Investing, Managing or Administering your Assets? 12th March 2019 i.s.4 housing and

CIH Asset Management Fringe Conference

Investing, Managing or Administering your Assets?

12th March 2019i.s.4 housing and regeneration limited, Anna Evans Housing Consultancy and Anderson Business Development are the founding

members of The Indigo House Group SC544395 ; Registered Office: 15 Lauriston Place, Edinburgh, EH3 9EP.

Strategic Asset ManagementInvesting, Managing or Administering your Assets?

• Approaches to asset management have evolved considerably over the last 10 years with leading landlords reaping significant benefits (financial and otherwise) as they embrace and embed strategic analysis in the planning, management and maintenance of their housing assets and services.

• In this session we examine the journey experienced by Dudley MBC as they applied advanced strategic planning and analysis techniques to their housing assets to address specific short, medium and long term pressures in their business plan and how the benefits achieved are helping Dudley maximise the impact of their investment strategy in the communities they serve.

• In a world of increasing self-assessment, continued constraint in public spending and expectations to do more with less we expect the Dudley experience will be of interest to many landlords, regardless of size, location or purpose.

Strategic Asset Management Overview• Strategic management of housing is not just about “assets”. Property information, including SCS, is

important but it is just one of a number of key considerations. In some cases, a stock condition led approach can lead to suboptimal investment decision making.

• It is as much about the management and performance of the range of associated services delivered by a landlord informed by a meaningful understanding of the tenants and communities they serve and the markets in which they operate (supply and demand).

• Has expert strategic planning and analysis techniques supporting the strategic management of value to ensure no detriment to tenants and to protect the landlord business plan.

• Our SAM approach is both tried and tested and has been in use since 2009. It underpins the SHR guidance http://www.scottishhousingregulator.gov.uk/publications and has been used to analyse substantial housing portfolios in the UK including every social housing provider in Scotland on behalf of Audit Scotland in 2012. Their review of social housing in Scotland, published in July 2013 can be found at http://www.audit-scotland.gov.uk/utilities..

http://www.scottishhousingregulator.gov.uk/publications

http://www.audit-scotland.gov.uk/utilities

Strategic Asset Management Asset Performance is understood from bottom up, inside and out and across the organisation


A comprehensive range of financial and non financial KPIs and data sets provide the evidence base informing the landlords assessment of its stock.

The evidence base is systematically used to support decision making.


NPV illustrates the net financial contribution made by every housing asset to the business plan. NPV is the primary VFM indicator. The

stronger the NPV performance, the stronger and more sustainable the investment decision and business plan.

Strategic Asset ManagementSuccessful common attributes

There is an understanding

of ‘value’ beyond just

cost

The governing body are effectively

engaged and strategic aims & priorities are

clear

It is an organisation wide team

effort and is not just left to the

‘property people’

Short and medium term

decisions sit in the context of a long term view

It is about community and neighbourhood

s/quality of life/places

where people want to live and more It is on the

‘corporate’ agenda and key

connections across the

organisation and with others

external to the organisation are

being made

There is a reliable evidence base

drawing together qualitative as well

as quantitative data.

And……

Investment planning is undertaken and sits in

context alongside service and financial planning

Options appraisal or similar is used to test

alternatives. Component replacement is used, but

this is just one of a number of approaches and the organisation is able to identify where broader intervention is

required eg regeneration.

The organisation understands its

customers/(housing needs and demands) and

is clear on the relative performance; what is ‘core’ stock and has a long term future, stock which is obsolete and

stock which has a doubtful future.

There are fully resourced action and delivery plans to support key strategies

and there is an understanding that asset

management is about balance, focus,

prioritisation and alignment of resources

and interests.

Dudley Context1. Decision in 2015 to undertake a fundamental review of the approach. Recognition that

the scale of the investment required exceeded available resources.2. At that point Dudley MBC was under considerable pressure:

– Circa 22,500 council houses owned in the West Midlands (neighbouring authority to Birmingham)

– Government imposed rent reduction of -1% year on year

– Debt in excess of £450M being serviced on an interest only basis and limited to nil new borrowing capacity

– Significant back log of investment to address, failed stock transfer

– Welfare reform and General Fund under considerable pressure also

Dudley Context1. Increasing challenges facing the housing services including:

– Aged and ageing stock profile requiring higher than average investment– Low demand properties & challenging void property issues– Long term back log of investment exacerbating quality of stock issues– Service & contractor performance issues (and in house DLO to keep busy)– Housing Market Imbalance & stifled aspiration

• Over provision of social housing in some areas • Under provision of the right type & quality in others• Competition with other landlords

2. Council wanted to enhance and modernise their traditional SCS led approach with a wider evidence-based approach connecting the property and technical considerations with broader place and peopleconsiderations to better meet (match) the specific housing needs of Dudley’s different communities.

3. The resource allocation challenge – where do we start?

Dudley Context• Agreed a strategic approach was required:

– As investment on a component replacement basis was no longer sufficient or appropriate for all of the stock;

– The scale of investment - £1.5BN (30 years) - required evidence to support decision making;

– The nature and timing of the investment required varied considerably locally;

– To keep rents as affordable as possible over the longer term;

– To ensure maximum impact from each HRA £ invested (tenants rents, public grant +any permissible borrowing) in balancing housing supply and demand;

– To demonstrate VFM and good practice (including in options appraisal) and engagement and consultation with key stakeholders; and,

• Dudley MBC is a major housing provider and investor in housing in the area and how the Council chooses to invest has significant impact on the local housing markets and wider communities acoss the borough (beyond its own housing stock).

The Dudley JourneyIn 2015 we embarked on a comprehensive asset strategy development process recognizing that in addition to the traditional bricks and mortar investment needs we also needed to consider the broader objectives of the Council and wider place, community council and housing priorities. This included:

• In 2016/17 the development of a comprehensive evidence base to understand the financial and social performance and prospects of each and every property owned by the Council to ensure investment decisions are based not just on a financial assessment but also on the broader social value that our housing stock provides in different areas for our residents. To date we have applied a 60%/40% balance.

• In 2017/18 we then examined the capacity of the HRA and the stock across the Borough within the strategic framework of the HRA and our approach to how we manage and maintain our housing and housing related asset portfolio, address additional investment priorities such as new build housing, de-investment and conversions, facilitating independent living for vulnerable people with disabilities by adapting properties, and estate-based community improvements to provide sustainable communities for the future.

• In 2018/19, we then developed the asset management strategy. Going forward the focus is on area investment planning and mainstreaming the strategic planning annual update.

What we found:From the initial strategic analysis and capacity review:

• Most of the Council’s stock was performing well, but some of it was not. Significantly, we found a strategy offull retention with full investment is open to challenge on VFM terms as it does not represent value for themajority of tenants. This represented a major departure from the historical approach.

• The stock which is not performing well was a significant drain on the HRA (in addition to the blight on thecommunities in which they are located) and so properties which are not viable, and for which there is nocertain demand, will be addressed through alternative interventions.

• The shortfall in funding was, for many years, managed through prioritisation and scheduling of works withinthe HRA. However, this was becoming increasingly difficult as the back log continued to grow due to the ageof the stock.

Some early benefitsWhat we have experienced so far:• A number of significant decisions taken to tackle poorly performing stock which previously had not

been possible (including several MSFs);• A £4m boost in last 18 months from disposal of long term void properties or high investment need

properties;• An increase of over £8M in the strategic valuation of the housing stock from £0.525M to £0.533M,

despite continued rent decreases over that period and loss of valuable stock through right to buysales;

• A 5% growth in the net strategic value of our housing stock per unit from just under £23,400 perunit to just over £24,500;

• Proportionately more of the stock assessed as green/performing (74% compared to 72% in 2016) asa result of the current investment programmes and intensive management initiatives and acorresponding reduction in stock assessed as cause for concern/amber (1.5% improvement) and notperforming/red (0.5% improvement).

Strategic Management of HRA Value

Additional HRA capacity. Further appraisal and investment planning required but

spending priotiries collaboratively developed

Strategic management of HRA ValueBaseline and SAMS plans compared

Taking a more strategic approach delivers a significant improvement in the HRA with some early benefits already realised. Whilst there are fewer assets over the longer term, these are generating stronger cashflows as the

majority of the underperforming stock, particularly the long-term liabilities are proactively addressed. Importantly this means there is more cash available for reinvestment in fewer units and so the available resources can go

further (Dudley Standard+). The impact on the local housing market and community beyond the financial gain is also measurable and how this is measured over time requires further development.

Strategic asset management Over the longer term

• A key focus over the next 10 years is on tackling under-performing stock whose liability is weighing down the HRA in order to free up financial capacity for re-investment in more sustainable and necessary investments (including increasing compliance). Our liabilities are clearly identified and alternative options are being considered for those properties that are not viable under a full retention strategy;

• Our long-term challenge is to balance our existing portfolio of housing stock equitably across the entirety of the borough to meet demand. This, whilst addressing the lower value poorly performing stock at a pace and on a scale, that maintains value in those areas and properties that are currently performing and has sufficient impact to prevent any further decline in value for those that are not;

• Through understanding the relative performance and value of our properties, on a property by property, street by street and area by area basis, we can better plan to meet the needs of our existing and future tenants (for example, the housing needs and demands of older people) and deliver better strategic fit of housing supply with demand in our local communities; and,

• We have an early indication of future issues emergingand the council’s strategy for investment in its existinghousing stock, services and new housing supply is re-connected to the communities in which theinvestments will be made.

Strategic asset management

Investing, Managing or Administering your Assets?

Thank you

Any questions?

Cairn’s Asset Management Journey

12th March 2019

Meg Deasley

Strategic Asset Projects Manager

Mark Brown

Investment Manager

Cairn’s Asset Management Journey12th March 2019

Meg Deasley Strategic Asset Projects Manager

Mark BrownInvestment Manager

Our Asset Management Journey

• Introduction• Digital Asset Management System • Asset Performance Review • Challenges Ahead

Introduction

Who are Cairn?

• Scottish Housing Association & Registered Charity

• Part of the Cairn Housing Group with ANCHO

• Around 3,200 properties in 22 Local Authorities concentrated in the central belt and Highlands with 3 office locations in Edinburgh, Bellshill and Inverness

v

• Mix of General Needs, Sheltered and Retirement Housing, as well as HMOs leased to external organisations

• Range of traditional and non-traditional building types

• Mix of in-house and external repairs

Introduction

Setting up the system

• Existing systems – inadequate and unused

• Looking at our historic datao Inconsistent, data gaps, relevance, lack of energy datao Commissioned Stock Condition Survey to address data weaknesses

• Identified what we thought we needed (but didn’t get it all – missed the importance of digital mobile surveys)

o Server-basedo Energy modellingo Linked to corporate systems

• Tendered and brought in the software – now the work starts

Digital Asset Management System

Implementation- Learning new system – training and

set-up- Data structure & alignment- Data loading- Making it a corporate system- Keeping the system current- Making it change with us

Digital Asset Management System

• Why do it?o Understanding our data and stock groupso Informing future decisions

• What did we do?o Agreeing asset groupso Defining good performance – what are we looking for?o Data collection – filling in gaps and weaknesses?o Proportionate and representativeo Are the indicators the right ones?o Involving all aspects of the organisation – not a property exercise

Asset Performance Evaluation

How do we use the findings?• Identifying more questions – a ‘tin opener’• Flagging up anomalies and sense-checking our

assumptions• Focusing our investigations and option appraisals• Informing strategic decisions


What are the

challenges?

• Embedding data collection

• Getting the timing right – having useful data that is still relevant

• Looking across the Cairn Group

• Other benchmarking opportunities?


Challenges Ahead

• Responding to changing legislation• Fire safety• Heat meter regulations• EESSH/EESSH2• Digital/analogue

• Building digital information with BIM• GIS• Utilising the internet of things

What are your challenges?

Your experience?

Housing Proactive

www.alertacall.com

Staying safe, living well:

Using technology to keep older people safe, in control & connected

Louise Dunlop - Head of Loretto Care (Acting)

Margaret Crawley – Wheatley Livingwell Lead

Martin Cutbill – Director, Alertacall

12 March 2019

www.alertacall.com

► Housing management service from Alertacall

► Deployed by 10 housing providers in Scotland. 40+ across the UK

► Installed in more than 15,000 properties

► Highly Commended for Innovation at National Business Awards

► OKEachDay service for private customers endorsed by Dame Esther Rantzen

► D&B credit rating of A1

introducing Housing Proactive 95%of customers

surveyed would

recommend the service to a friend

daily contact offered 365 days a year

via the OKEachDay telephone

other devices for those without landlines

improve customer access to daily contact,

news and information

online management reporting offering

insight to customers and properties

what else does the service offer?

a service that is housing benefit eligible,

and hugely valued by customers

It’s non-intrusive, very convenient

and so reassuring if you live on your

own. S Ayers, Oxfordshire

I think it's good thing, especially for elderly

people. I much prefer this to a phone call

each morning.R Grahame, Glasgow

I’ve been a customer for several years and I love the

service. Your team are

always helpful & friendly which makes all the

difference. T Davies, Reading

www.alertacall.com

1 0 00 2 16

27

1812 15

75

8477

0

20

40

60

80

100

Installation Ease of Use Customer Service

With 1 being the least and 5 being the most, how satisfied were

you with

1) Installation, 2) Ease of Use & 3) Overall Customer Service

1 2 3 4 5

NB: Telephone survey completed by 100 residents.

Recent customer survey delivered excellent feedback –

positive opinion from 90%+ customers across all metrics

Transforming older people services

Livingwell: Empowering older customers

43

Redesign of Sheltered Accommodation in Glasgow

• Funding cuts …. 40% -2015 a further 33% -2017

• Commitment to modernise service due to changing customer profile

• Funding extended to 31 March 2018 after Chair of GHA wrote to GHSCP

• Housing Support Provision and funding at sheltered sites across Glasgow ended on

31 March 2018

• New integrated Livingwell Service established 1 April 2018

• The Livingwell model ensures older people can stay at home, safe, happy and well for as

long as possible

44

Previous Sheltered Model

• Registered with the Care Inspectorate - Inspection grades achieved were consistently very good

• Excellent customer satisfaction levels of 93% in 2017

• Supporting 742 people across 21 GHA sheltered housing sites, with dedicated onsite warden

Monday to Friday 9am-5pm

• 2 very sheltered housing sites with dedicated 7 day service Monday to Sunday 9a.m. to 8p.m.

as part of the GHA provision

• Supporting 412 in Loretto Care, inc Loretto HA, Cube HA and 8 partner RSLs

• 1154 elderly / vulnerable customers supported through change to new service model

45

Our new empowerment service model -summary

46

Q1 Q2 Q3

OKEachDay Button Presses53, 962 57,661 55,783

People called who didn’t press9,302 6,534 6,305

Average Daily Handovers 15 15 14

Hospital calls to check for early

discharge85 476 501

Engagement tracking 182 168 152

Repairs - completed 107 104 124

Birthday cards 82 163 98

Key Interactions

47

Technology and Innovation

OKEachDay

Click & Connect Touchscreen

Virtual Shop Front

48

Excellent Customer Feedback; OKEachDay

49

Promoting Active Ageing- Activities Programme

50

Promoting Active Ageing- Activities Programme

51

Case study: 1Carer feedback Livingwell service

Our mother resides in a Livingwell complex and has done so for over 30 years, we

have seen many changes throughout this time, we cannot speak highly enough of the

service and the staff at Livingwell

All our family agree that:

• Livingwell is a fantastic service that offers a variety of activities that are tenant led

• Staff interaction with tenants is great

• It has prevented our Mother from becoming isolated in her home

• Tenants are directing what happens at their service

• The drop in service is fantastic, we can even come over with Mum for a cuppa and

natter

• OKEachDay service gives us added piece of mind that our Mother is safe

• If advice is needed, staff are helpful and knowledgeable

52

Case Study 2:Customer feedback Livingwell service

Customer at Dougrie Terrace

I have lived at my current address for over 8 years, I used to kept myself to myself and took very

little interest in my neighbours or what was going on in the area, I did not feel the service was a

community

Things that are now working well

• I love OKEachDay and the freedom it gives me, I press my button and then I can go out for the

rest of the day and do not need to worry, it keeps me in control

• I can report my repairs by pressing a button, this saves me a walk to the Housing office

• There is more community involvement and neighbours are getting together more, we feel

empowered to take the lead in our service

• I attend all events and have built up good relationships with the advisors

• I feel able to pop in even just for a chat, this has made a big difference to my life, I no longer

feel lonely

• I love my home and my community, it is a great place to live

53

Case study 3:Customer feedback – Housing Proactive

Customer at Marfield Amenity

I have lived at my current address for about 15 years, during this time any repairs that I had I would

ask that the staff on shift report these for me, it was the easiest option at the time, however since

OKEachDay has been installed things are so much easier and faster for me.

• My heating in my flat went down some months ago

• I pressed the button on my OKEachDay phone and reported the repair to the customer service

centre, it was so easy to do, and only took a couple of minutes

• Within 1 hour of the call to the customer service centre the workmen had called at my flat and

repaired the fault

• When staff came on shift I was able to advise them I had the fault with the heating and it had

already been repaired

• I cannot believe how quick and easy this repair took to be reported and resolved

54

Excellent Customer Feedback

New Light Through

Old Windows

What’s the key to sustainable sheltered housing?

What’s ‘wrong’ with sheltered housing?

• Sheltered housing built up to the 1980s was not really designed

for ‘older older’ residents

• Still seen as ‘modern’ – built for children of the 19th century!

• Homes are often small – between 30m² & 35m²

• Poor layout & accessibility problems common

• Problems with structure & out-dated services

• Under-utilised ‘guest’ rooms, scheme manager’s office & external

drying areas

Who lives in sheltered housing?

• Sheltered housing residents are increasingly diverse – wide

range of expectations, needs & ages

• Residents are often older & frailer – often living with

dementia or chronic ill-health

• Increasing numbers of younger people – most have no care

or support needs but others have complex needs

• More residents need to continue to work

• These ‘imbalances’ make it harder to provide a service that

meets all tenants needs & aspirations

Understanding overall ‘performance’

‘Core stock’ -high

demand & below

average

reinvestment

‘Marginal stock’ –options

appraisal before

investment or area–based

actions

‘High risk’

reinvestment - poorly

performing /poor

quality assets

ARK’s approach

Continuous review & refinement

People & place

Understanding future demand

2019 2029 2040

By 2040 c.

95,000 over 90 –

double today

Life expectancy

up from 66 (M)

&72(F) in 1960 to

77.0 & 81.1

“Silver tsunami” –

large growth in older

groups especially 75+

- higher in rural areas

HEALTHY life

expectancy -

last 15+ years in

ill-health

Understanding ‘residents’ views

Understanding your resident profile

Scheme

Perc

en

tag

e

un

der

60

Perc

en

tag

e o

ver

80

Perc

en

tag

e o

ver

90

Perc

en

tag

e

wo

rkin

g

Hig

h s

up

po

rt

need

s

Iden

tify

ing

as

dis

ab

led

Mo

bilit

y iss

ue

Ow

n C

ar

Connery Close 12% 24% 12% 8% 22% 39% 36% 11

Sir Kenny Dalglish

House4% 56% 24% 0% 32% 58% 57% 9

Adamson Mews 25% 29% 8% 17% 10% 26% 32% 22

Understanding what future residents want?

What is important to residents?

(1 = most, 10 = least) Average Mode

Easy access to doctors & shops 4.4 4

The general appeal of the scheme 5.7 5

Good parking for cars & mobility scooters 5.0 3

Attractive garden area for residents 6.3 8

Located in nice part of town 6.8 9

Building security 2.9 2

Modern fitted kitchen 3.3 5

Adapted bathroom 5.6 8

Good communal facilities 9.2 10

Good access arrangements for disabled residents 5.9 6

a place where residents

can feel secure

kitchen big enough for

a washing machine

a bus route is key &

parking important

Communal facilities

not important

Internet access vital

Understanding market ‘competition’

Understanding location, location, location

Accessibility

Is it easy to walk on &

off the scheme?

Easy access to bus stop?

Local services

Are community facilities

- GP, shops & leisure

within a 10 minute walk

or 800m radius?

Social Inclusion

Attractive to local

people -continued

contact with friends &

family & local activities

they had engaged in

prior to moving?

Community

Integration

access to active

churches, community

centres, libraries etc.

Local people access

services within the

scheme? Safety

Is area attractive to

older people - safe,

clean & cared for (litter,

rubbish, rodents & dog

fouling) with accessible

parks & open spaces?

Security

Does the design of the

scheme combat any

perceived risks - groups

of young people, ASB,

crime

Property & performance

Understanding asset performance

Long-term

sustainable

homes

Understanding

our stock –

EVERY DAY!

REAL life-cycles

& costs

Setting the

standard –

quality vs

desirability

Understanding asset performance Wallace

House

–pupa

Ferguson

House

– pupa

Stewart

Court

– pupa

Connery

Close

–pupa

Connolly

Close

– pupa

Aids & Adaptations 0.07 0.04 0.07 0.09 0.05

Alarms 0.12 0.09 0.29 0.06 0.23

Carpentry 0.33 0.39 0.34 0.21 0.29

Catering 0.06 0.02 0.05 0.03 0.02

Electrics 2.71 2.76 3.06 3.16 2.91

Finishing 0.25 0.39 0.20 0.15 0.11

Glazing 0.22 0.17 0.14 0.18 0.06

Groundworks 0.07 0.47 0.22 0.15 0.13

Laundry 0.00 0.26 0.14 0.00 0.26

Lifts 0.34 0.00 0.06 0.00 0.00

Locksmiths 1.03 0.79 0.75 0.75 0.59

Miscellaneous 0.87 1.80 0.13 0.74 0.82

Plumbing 1.29 0.86 1.42 1.52 1.18

Roofing 0.04 0.09 0.04 0.01 0.02

TOTALS 7.61 8.15 6.97 7.09 6.74



3 weeks

less rent

One more

repair per

year

1 additional service

visit every 3 years

1 full dec

every 8

years

More

management

interventions

1 kitchen,

bathroom &

rewire beyond

lifecycle

1 more standard voids

every 10 years

Understanding overall ‘performance’

Would you want

to live in your

sheltered

housing?

55+

SECURITY

cost control

allocations

Outcomes &

questions?

Inhouse Vrs External Contractors for R&M Services

Craig Stirrat Chief Operations Officer,

About Us• As at 31 March 2018 : 3,122 homes +

756 Factored & 569 Shared Ownership

• Operate across 3 local authorities in Grampian

• 2017/18 our group turnover was £18.5 M

• largest areas of expenditure: Investment & maintenance of our stock = 40%

• 93.0% of homes SHQS (Scottish average of 94%.) - £92.4% meet EESSH (Scot Av. 80%)

• 91.0% of tenants who had repairs or maintenance carried out were satisfied with service(Scot Av. of 92.1%)

• OUR AVERAGE NPV per property is £39,957. (Range –minus £60K to Plus £50K)

About Us –How we compare

Context: Business Transformation

Why ?

ABOUT OUR JOURNEY• wholly owned subsidiary Limited (GHA)

operations on 1 April 2017.

• company limited by shares & GHA is a registered charity.

• established to carry out major repairs for GHA and generate savings through not charging VAT on labour costs and reducing the supplier mark up.

• loss making to date which is not unexpected for a new start business and positive steps have been taken to position the business for profit in year 3.

• commissioned a consultant to review its first year of trading results and has built their recommendations into the business plan.

Our Aims

• Reduce the cost of maintenance & generate income

• Provide more control over service quality, customer care & satisfaction

• Provide routes into training & employability

5 Year Business Plan

Lessons Learnt

Questions?

data | analysis | intelligence | insight | solutions

Kirsty Wells, Head of HouseMark ScotlandRussell Young, Data Analysis and Insight Manager

Don’t Forget the SHQS isn’t just EESSH

Scotland’s National Outcomes: Housing’s Contribution

• We have a globally competitive, entrepreneurial, inclusive and sustainable economy

• We respect, protect and fulfil human rights and live free from discrimination

• We are open, connected and make a positive contribution internationally

• We tackle poverty by sharing opportunities, wealth and power more equally

• We live in communities that are inclusive, empowered, resilient and safe

• We grow up loved, safe and respected so that we realise our full potential

• We are well educated, skilled and able to contribute to society

• We have thriving and innovative businesses, with quality jobs and fair work for everyone

• We are healthy and active

• We value, enjoy, protect and enhance our environment

• We are creative and our vibrant and diverse cultures are expressed and enjoyed widely

One day in February 2004

Ten years later - March 2014

2004 to 2020: 16 Years Of InvestmentWhy it matters….

Remember SHQS isn’t just EESSH

Source: A Tenant’s Guide to the Scottish Housing Quality Standard, 2011

Units failing by criteria and amount invested in 2017/18. All data from SHR unless stated otherwise.

Around 1 in 3 SHQS failures are not due to energy efficiency

while SHQS investment is balanced

In 2017/18, investment in non-energy efficiency SHQS outweighed EESSH for the first time

Amount invested by SHQS criterion

£129.8m

Abeyances reducing steadily

• Tenant refusals

• Owner refusals in

mixed-tenure blocks

When was your most recent SHQS survey/assessment?

Date stock last surveyed or assessed for SHQS compliance

• “Cloned data can help to provide a reasonable assessment of overall stock compliance where actual survey data is missing”

• Age, construction, size, flat/house, street, scheme

• Typical rolling survey programme for actual data5-year cycle of 20% stock

surveyed annually

Cloning and Actuals

Cloning in EESSH

% of properties with a valid EPC

“Landlords are not expected to produce 100% EPCs for EESSH compliance. However, they may choose to work towards this target.”

A data challenge

SHQS / EESSH deletions

% of properties at or above the appropriate NHER (National Home Energy Rating) or SAP (Standard Assessment Procedure) ratings specified in element 35 of SHQS

SHQS – Stock failing by criterion

SHQS – Working towards the standard

SHQS – Anticipated exemptions as at 31 March 2015

SHQS – Actual and projected investment by criteria/element

SHQS – Income and expenditure

SHQS – Capital investment and sources of funding

Working towards the EESSH

Updated indicators and contextual info

Percentage of homes meeting SHQS at the reporting year end

SHQS Stock condition survey information

SHQS Stock summary

Percentage of properties meeting the EESSH

Anticipated exemptions from the EESSH

Energy Performance Certificates (EPCs)

Investment in the EESSH

One approach (simplified)

Stock survey data

Improvement works

completed

Change of tenancy

inspections

Housing Management SystemSHQS Elements

Investment planning

Workstream planning

Pilot with Field Dynamics and Lewisham Homes

How can we use this repairs history to predict future property maintenance costs?

7

£10

0£80

£120

£400

£500

£99

9

The kitchen needs a new oven

The bathroom sink is leaking

I found asbestos under the sink

I found mould under the sink

The wall is subsiding

This is really bad, we need to rebuild the

whole house!

2016

2017

2018

10 Robert Burns Drive, Dumfries

1 2 3 4 5 6

Data science problem

Free text data gathered from desk support staff descriptions and item descriptions

1 2 3 4 5 6 7

£10

0£80

£120

£400

£500

£99

9







whole house!

2016

2017

2018

kitchen

oven

bathroom

leaking

asbestos

sink

Data science problem

Individual payment values selected

7

£10

0£80

£120

£400

£500

£99

9







whole house!

2016

2017

2018 1 4 5 62 3

Data science problem – dependent variable

Annual property cost

£120 + £500 + £999 =

£1619

7

£10

0£80

£120

£400

£500

£99

9







whole house!

2016

2017

20181 62 3 54

Data science problem – independent variables

2016 text

7

£10

0£80

£120

£400

£500

£99

9







whole house!

2016

2017

20181 62 3 4 5

kitchen

oven

bathroom

leaking

asbestos

sink

Data science problem - training

Independent Variables

“The kitchen needs a

new oven, The

bathroom sink is

leaking, I found

asbestos under the

sink”

…

…

…

Dependent Variable

£1699

…

…

…

Model

71 2 3 4 5 6

Data Science Problem - Predicting

201 6

I fo

un

d m

ou

ld u

nd

er

the

sin

k

Th

e w

all i

s s

ub

sid

ing

Th

is i

s r

eally b

ad

, w

e n

eed

to r

eb

uild

th

e w

ho

le h

ou

se!

201 7

201 8

£120 £500 £999

£???Model

1 2 3 4 5 6 7

2018-19 costs

Predictive Analytics - Repairs Intelligence

Data Prep

Co

mm

on

sch

ema A

C

D

F

orem ipsum dolor sit amet,

at repellendus aenean in

lorem, ligula eget viverra,

nam erat ornare arcu ut

lorem donec, lectus

Standard reports

• Future costs • Top properties list• Top properties map• Property Repair history

Gantt• Free text analysis• Seamless integration

into Housemarks platform

Data cleanse & storage Intelligence Module

Crowdfunded business model with annual subscription

B

E

Post 2020: EESSH 2 and Fuel Poverty Bill

0131 281 2048

[email protected]

housemark.co.uk

CIH Asset Management Fringe Conference Event Pdfs... · CIH Asset Management Fringe Conference Investing, Managing or Administering your Assets? 12th March 2019 i.s.4 housing and

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