Asset Management Strategy Planning and delivering investment in our homes and places.

Transcription

1 Asset Management Strategy Planning and delivering investment in our homes and places xx

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3 Contents 3 Foreword by the chief executive/chair of the Board 4 Executive Summary 5 Achievements Asset Management Operating Context and Drivers 9 Asset Profile our homes and other assets 13 Asset Management at Phoenix 22 What will we aim to achieve by Planned Investment Profile 26 Strategy Consultation 26 Delivering and Monitoring the Strategy 28 Supporting Documents 29 Definitions 2

4 Foreword by the Chief Executive and Chair of the Board Welcome to our new asset management strategy for In 2017 we celebrated Phoenix s first decade as a resident-owned and led housing association. Reflecting on these first 10 years together, we can be very proud of everything that has been achieved since our properties were transferred from Lewisham Council. We have fulfilled our promise of decent homes for Phoenix residents and it is important that we continue to maintain our properties to safe, decent standards and beyond presents a very different environment for Phoenix. This new strategy sets out how we will improve planning and delivering investment in our homes and areas in , and is the foundation for our activities after At the centre of our asset management strategy is a quality and data-driven understanding of our properties and the assets that we own. This knowledge allows us to adopt a longer-term view to maximise the value of our assets now and in the future. This strong approach to asset management also enables us to deliver extra services and social value to our residents. This strategy has been developed with our residents and the current and future needs of our diverse community in mind. Many Phoenix residents and staff contributed to this strategy. We want to thank everyone who helped to create this document, and took part in our consultations perhaps as a member of the Phoenix Gateway Committee, by attending an asset management workshop or by completing a survey online or in person at one of our community events. Jim Ripley Chief Executive Anne McGurk Chair of the Board 3

5 Executive Summary Phoenix Community Housing is a not-for-profit registered housing association. Our stock is located primarily in the London Borough of Lewisham. Phoenix celebrated its 10 year anniversary in 2017 and all our homes met the Decent Homes Standard in This means that we are therefore still maturing in our asset management activities and developing our strategic direction. This Strategy sets out Phoenix Community Housing s approach to asset management over the next two years: In consultation with our Board, residents and staff the key themes for our strategic approach are improved communication, data-driven decision-making and transparency in all we do. The two-year timescale of this strategy allows us to target these areas and focus our efforts on the following: y Capturing and maintaining high quality stock condition information to inform all investment decisions y Shaping a holistic, place-based approach to investment in line with the Gateway Model y Maximising the impact of our investment in terms of the quality and sustainability of our assets, and the satisfaction and wellbeing of our residents y Setting our Standards for homes and places y Understanding the needs and aspirations of our diverse resident groups and projected future demographics y Improving resident satisfaction through increased transparency in planning and decision-making y Responding positively to our current and projected operating environment This Strategy is intended to be a high-level overview of Phoenix Community Housing s Asset Management approach. It is one of a suite of documents and should be read alongside the Asset Management Principles, supporting strategies, policies and procedures and Asset Management Plans. The Asset Management Strategy is set within the context of The Corporate Plan and supports the vision, and strategic and corporate objectives of Phoenix Community Housing. The Strategy will be fully reviewed and rewritten to support the review of the Corporate Plan and to reprioritise based on our refreshed future approach. 4

6 Achievements There have been a number of key successes achieved during the Asset Management Strategy: y Decent Homes Standard achieved and maintained at 100% y Named as one of the UK s top 10 landlords in nationwide housing polls 2015, 2016 and 2017 y Completion of our first residential development, and our first extra care scheme, at Hazelhurst Court y Development Strategy implemented with plans to build 200 new homes y Homes and Communities Agency V1 G1 (viability and governance) regulatory judgements achieved y Every dwelling under our management has a Landlords Gas Safety Check less than 12 months old, Asbestos Management Survey information and an Electrical Condition Report y Reduction in long term voids of over 80% and void cost per property halved in the last three years PRS achieved 95% customer satisfaction y Utilisation of our Asset Management Database to report decency and programme works y External and communal works undertaken to the majority of our blocks y Implementation of stock viability software to understand asset performance y Phoenix Repairs Service started trading in 2014 as a wholly owned subsidiary, taking full management of the repairs service in 2015 y Phoenix Repairs Service achieving 95% resident satisfaction and nominated finalists in the 24Housing Awards Repairs and Maintenance Provider of the Year in its first year of operation y Green Infrastructure Audit undertaken to review green spaces owned and managed by Phoenix y Major Works spend of over 155m since stock transfer demonstrating our commitment to improving the quality of our homes y Overall tenant satisfaction with Phoenix as a landlord maintained above 80% y Major and minor adaptations spend of over 250,000, assisting residents to stay in their own home y Obtained over 4m Heritage Lottery funding to refurbish the Fellowship Inn, a listed building in our area, to become a centre for arts and leisure y Home Makers piloted; a private lettings management service for Phoenix leaseholders and Board agreed to set up a subsidiary to continue the service in 2017 y Grounds maintenance brought in-house

7 Asset Management Operating Context and Drivers EXTERNAL As a social housing organisation Phoenix Community Housing is impacted by a range of external environmental factors. NATIONAL CONTEXT y 1% rent reduction to This has resulted in the requirement to save or generate income of 4m y Latest settlement of CPI + 1% rent increase from 2020 onwards y Decent Homes Standard; the Government s minimum standard for social housing providers to meet and maintain y As a social housing provider we are regulated by the Regulator of Social Housing (RSH) and must comply with our statutory obligations y Revised RSH Regulatory Framework y Revised RSH Value for Money Standard expected including balancing reinvestment in existing and new homes y Government development targets focus on the urgent provision of new homes y Government carbon emissions reduction targets y Sector culture change in approach to asset management focusing on dynamic, active asset management with emphasis on data, financial viability and stock performance y Impact of welfare reform; benefits cuts, Housing Benefit size criteria (aka bedroom tax) and the introduction of Universal Credit y Reduction in energy efficiency grant funding y General Data Protection Regulation (GDPR) and new Data Protection Act, enforcing us to exercise more control over our data processing activities. This will include Asset Management related data y Brexit; uncertainty as to the future impact y Aftermath of Grenfell Tower fire and the yet-unknown implications on fire safety, housing standards and resident consultation y Technological and digital developments y Sustainability and fuel poverty LOCAL CONTEXT y High demand for social housing in Lewisham and the surrounding areas y High housing need y Local area housing associations and their activity and aspirations Lewisham Homes, L&Q, Affinity Sutton, etc. Phoenix is the 2nd largest housing association provider of general needs social housing in Lewisham. There are 19, 711 general needs social housing homes in the 6

8 Borough. Of the 58 other housing associations working in the Borough, five own 85% of these homes and only 12 have more than 200 general needs homes. The others own a small number of properties, specialist supported housing or homes for older people. y Local demographics, for example an ageing population alongside higher percentage of children than national percentage y High levels of deprivation y Residents changing aspirations for their homes alongside changing ideas of the responsibilities of the landlord and tenants y Increased Greater London Authority development targets for Lewisham y London Living Wage INTERNAL PHOENIX COMMUNITY HOUSING CONTEXT y Our Vision and Strategic Priorities Resident leadership and membership Sustainability for our business and our community Building a better future for our Phoenix community Excellent services, delivered with empathy and fun Growth in new homes and opportunities 7

9 y Community Gateway Model tenants and leaseholders empowered to take a central part in decision-making, and our increased focus on the community y Phoenix s funding and loan arrangement including refinancing to develop more homes completed February 2018 y Phoenix in the early stages of becoming a developing organisation y Phoenix Community Housing existing internal strategies and policies 8

10 Our Homes Asset Profile The current stock is located primarily in the London Borough of Lewisham, with a small proportion of the stock located in the London Borough of Bromley. SUMMARY OF PHYSICAL ASSETS Phoenix (as at March 2018) owns and manages 5,334 homes for rent, 869 leasehold properties and 60 extra care homes. We have a block portfolio of 392 blocks. We also own and manage a number of non-housing assets including The Green Man (our community hub and main office), 390 garages, five community centres, 14 commercial units, pramsheds and green spaces. We also manage homes for market rent on behalf of landlords through Home Makers, our private lettings management service, currently focused on Phoenix leaseholders who sublet their properties. 9

11 Table showing number of properties owned and managed under archetype and bedroom numbers Property tenure type General needs Leasehold Freehold Supported housing Grand total No of bedrooms Grand total Property class Property floor level Bedsit Flat Ground Flat total 91 1, ,256 House Maisonette , , , Total 91 1,146 1,935 2, , ,498 2,331 2, ,396 As with all Social Housing Associations, stock figures are fluid and impacted by new developments, acquisitions, disposals, tenure change and Right to Buy/Right to Acquire sales. TENURE TYPES The impact of the Right to Buy and Right to Acquire schemes have resulted in our estates and neighbourhoods becoming mixed tenure areas, where tenants and homeowners live side by side. Through our ongoing Development Strategy we aim to also introduce shared ownership tenures. BUILD TYPES AND DESIGNATIONS Phoenix owns a number of non-traditional build properties. There are a number of Wimpey No-fines concrete construction properties built from the mid-1940s and two properties are of factocrete block construction. We will ensure we have records of all non-traditionally constructed properties and potential implications stored in Keystone. 10

12 Older Person Designated Units Phoenix took over the management of 30 over-55 designated blocks under the transfer agreement from Lewisham Council in Extra Care Housing Phoenix completed its first development, a 60-unit extra care scheme located on land adjacent to an existing older persons scheme, partly funded by grant from the Greater London Authority and Lewisham Council, in September This is the first extra care scheme in Phoenix s stock. DEMAND AND DIVERSITY There is a high demand for Phoenix Housing stock resulting in a low number of voids per annum, limited rent loss due to voids and low relet refusals. Lewisham Council s Housing Strategy Homes for Lewisham highlights the increasing demand for homes in our area with a long-standing undersupply of new homes. The strategy also emphasises the need for suitable housing for older people and those with additional needs due to an anticipated increase in the number of people with physical disabilities and mobility issues. We aim to contribute to the housing supply and help address London s growing population primarily through our Development Strategy and the delivery of 200 new homes. We will also review the suitability of our older person designated homes and continue to provide adaptations to ensure residents can stay in their homes where possible. 11

13 ASSET FINANCIAL PERFORMANCE Phoenix uses future major works, maintenance and management forecasts alongside rent projections to calculate income versus expenditure over a 30 year period. Using inflation rates and discount factors this data produces a net present value (NPV) per property, which demonstrates financial viability. The high investment in Phoenix homes since transfer has positively impacted our overall stock NPV, as demonstrated in the graph below. NPV Distribution of Phoenix stock We have very few properties exhibiting issues in terms of financial performance or negative NPV. SUMMARY In summary our stock is predominantly of good quality design and construction, has a strong ongoing demand and has a high net present value. The close geographical locations of our properties does not highlight any immediate opportunities (or risk) for a stock rationalisation programme. The 2015 STAR survey indicated 73% of tenants were very or fairly satisfied with the overall quality of their home and 80% with their community as a place to live, 86% also felt their rent provided value for money. A large proportion of the Phoenix stock was built pre-1945, is therefore around 80 years old and will need a large programme of continuous investment to maintain standards. 12

14 Asset Management at Phoenix For Phoenix, achieving effective asset management means: y Data driven approach based on reliable, well maintained and managed property data y Taking a long-term, proactive, agile approach to investment with well-documented, justified and transparent investment decisions y Assessing property performance, in terms of their economic and social return in detail y Providing homes that meet the Decent Homes Standard y Understanding residents changing expectations and considering these when making decisions y Optimising returns on assets to ensure more resources are available for reinvestment in services to residents and developing new homes y Efficient procurement and delivery of works and services DATA DRIVEN APPROACH BASED ON RELIABLE, WELL MAINTAINED AND MANAGED PROPERTY DATA All of our key property-related data is held in our Asset Management Database. In order to cleanse and validate this data we will continue to undertake an extensive Stock Condition Survey programme. We are committed to having 100% surveyed homes by 2021 (excluding tenant refusals). Going forward all properties will be surveyed on a rolling basis to keep our records continually up to date. Planned works programmes will be produced from the Keystone asset management database based on component replacement due years and the Decent Homes Standard. Investment decisions that are led by stock condition survey data enable more accurate investment programmes, value for money procurement and positive resident communications regarding future planning. We will continue to report Decency statistics from our Asset Management database to our regulator at the end of each financial year and are committed to keeping this to 100% through these planned programmes. Tenant refusals for surveys and major works will be recorded on the asset management database and reported to the Housing Management team to resolve underlying reasons for refusal. We will also proactively contact households annually where they have previously refused entry to carry out a survey to offer a stock condition survey and potential subsequent works. Where we are again refused or do not hear from the resident, we will attempt to gain access to the property and communicate with the resident through the Gas Safety Check process. 13

15 The Asset Management Database is accessible to all staff and an awareness programme will be rolled out to ensure it is being fully utilised. Contractors are provided with limited access in order to obtain relevant information to their contracts such as asbestos data and this will be set out in the information sharing agreement or the contract. TAKING A LONG-TERM, PROACTIVE, AGILE APPROACH TO INVESTMENT WITH WELL- DOCUMENTED, JUSTIFIED AND TRANSPARENT INVESTMENT DECISIONS Through a more strategic, data-focused approach we will realise opportunities for reduced investment and value for money savings. For example: y Right to Buy applications and completed sales will continue to be closely monitored and removed from planned works programmes. y Potential development sites will be reviewed by the Asset Management Team and potential future planned works assessed and adapted where necessary. For example, where works are not deemed Health and Safety related or urgent alternative decisions may be made regarding the investment. Investment in non-housing assets will be agreed in line with other investment decisions and based on a holistic, place-based approach. Data from the garage review and the Green Infrastructure Audit will be loaded into the Asset Management database and will be reviewed alongside other estate data and resident aspirations in order to make decisions on future uses and investment. To date we have continued to maintain community centres in the Phoenix area in accordance with our transfer agreement commitment. These will be reviewed going forward as part of our Community Regeneration Strategy, considering our future plans and the value to the community. Beyond 2020 we have aspirations to create five-year place-based, local area plans through consultation with residents and evidence-based data. Investment decisions for disposals, acquisitions and new developments will be fully documented and governance procedures followed for decision-making as per our Disposals Policy. A risk appraisal panel with also take an overview of this area of work. ASSESSING PROPERTY PERFORMANCE, IN TERMS OF THEIR ECONOMIC AND SOCIAL RETURN IN DETAIL A complete and accurate dataset on all of our properties is imperative to calculate viability and make allowances for future investment. We need to know how stock is performing at individual asset level to make clear and informed decisions and we need to have a broader data set than condition alone. In 2017 we implemented asset appraisal software that collates data from our 14

16 Housing Management System and our Asset Management System. This then provides a financial measure of income and expenditure over time; net present value (NPV). A positive NPV indicates the asset adds financial value to the business plan. At present our use of the model has its limitations including disregard of strategic value and social value of homes regardless of financial value, and past investment. We aim to develop Stock Profiler to include socio-economic information resulting in a more holistic approach of assessing our homes. All high cost investment, including void and repair costs over 5,000 and structural works will be assessed through Stock Profiler to understand the NPV implications and then a full options appraisal will be carried out where applicable. Following quarterly reviews of our NPV data, the lowest 1%, i.e. the poorest performing financially, will also be investigated and options appraisals carried out where necessary. Options appraisals will consider financial viability through NPV, return on investment for any proposed works, social value (to residents and the wider community), energy efficiency and any other data we have available in order to make a well-informed decision. PROVIDING HOMES THAT MEET THE DECENT HOMES STANDARD In December 2006 the Government s Housing Policy Statement, Quality and Choice; A Decent Home for All; the way forward for housing outlined the Decent Homes Standard; the minimum standard to which social housing providers should maintain their stock. It does not however take into account the environment, aspirations and expectations of residents, and their future needs. It also considers components in isolation and ignores customer profile and organisational identity. Phoenix is committed to maintaining the Decent Homes Standard through planned works programmes and has also worked towards the Phoenix Standard ; a locally agreed standard implemented as part of the stock transfer. This standard is an enhanced Decent Homes Standard agreed to be delivered for the first five years following stock transfer. If Phoenix wishes to continue to have a standard beyond the Decent Homes Standard this will need to be reviewed. Our Board has told us that maintaining the Decent Homes Standard is one of our investment priorities. We have changed our planned works approach in the last two years to ensure investment is more targeted. As a priority we will continue to address properties that appear to be newly arising non-decent homes according to the data we hold in our Asset Management database. We prioritise reinvestment requirements according to stock condition assessments. All properties must receive a full stock condition survey before we are able to put them into a major works programme. This is so we can ensure we are addressing all works due in the next five years 15

17 at the same time taking a whole house approach, both to reduce resident disruption and ensure our investment brings value for money. In addition to this we will implement a cyclical works programme, which will undertake external and communal decoration works to properties on a rolling programme (every seven-10 years). This will enable us to address issues as they arise and deal with more works through a planned preventative approach rather than on a responsive basis, reducing costs. Internal Decency works will be carried out when void if urgent. In order to ensure low void turnaround time to provide social housing quickly, minimal improvement works may be carried out and the works put into a future delivery programme where required. 16

18 HEALTH AND SAFETY COMPLIANCE Phoenix is committed to ensuring the health and safety of our residents and compliance within all our properties. Through our policies and procedures we demonstrate an ongoing, determined promise to continuous improvement and ensure health safety and compliance remains paramount to our business while actively contributing to our success. Phoenix will comply with health and safety legislation in all our work programmes and behaviours. The suitable and sufficient assessment of risks associated with health and safety hazards within our properties e.g. Fire, Asbestos or Legionella etc. is the foundation of our compliance work streams. This then drives practical and appropriate actions to be taken to prevent, reduce or control risks to an acceptable level and reduce the potential for incidents and accidents. We will engage and collaborate with our contractors and stakeholders to ensure their: y Health and safety capability and competence fulfil our health and safety expectations y Health and safety performance is monitored, reviewed and reported y Work activities have minimal health and safety impacts on our residents Following the Grenfell Towers incident there is further impetus to embed our commitment to health safety and compliance through open, transparent and effective communication. Thus encouraging active questioning by our residents and promoting our message through all our work activities, contractors and stakeholders. We will ensure health safety and compliance of our residents and our properties remains of prime importance. 17

19 ENERGY EFFICIENCY Phoenix has already undertaken works to improve energy efficiency in our stock such as boiler replacements, double glazed windows, loft and cavity wall insulation and we will ensure all our homes continue to meet the Decent Homes standard in regard to thermal comfort. Analysis of our SAP data and extrapolation to the rest of the stock suggests an average SAP of 68.5 (band C) which is in line with other social housing providers. We are committed to addressing fuel poverty and will consider other energy efficiency options as per the Phoenix Sustainability Strategy focusing on vulnerable residents particularly those living in less energy efficient homes. We will also look to reduce communal energy requirements through measures such as LED lighting provision. We have set energy standards for our new developments and, where appropriate we will consider options for renewable/ low carbon energy sources for new-build properties. Energy Performance Certificates are undertaken when a property becomes void and we are committed to ensuring all new relets are brought up to a minimum SAP score of 60 either before or shortly after occupation. UNDERSTANDING RESIDENTS EVOLVING EXPECTATIONS AND CONSIDERING THESE WHEN MAKING DECISIONS Board and resident groups have indicated the need to have a consistent standard alongside an understanding of resident diversity and differing needs, and the ability to therefore review on a case-by-case basis within defined parameters. We will ensure asset management decision making reflects this. 18

20 Resident consultation throughout 2017 has suggested that safety and security is seen as very important alongside modern facilities while we should consider additional security features, additional storage space and improvements to outdoor spaces as services we do not already provide. Ongoing resident consultation will be undertaken to further understand resident expectations to enable us to investigate feasibility and consider any potential opportunities to incorporate these into future investment schemes. RESIDENT ALTERATIONS We are aware that some residents have made alterations to their homes including conservatories, loft extensions and lean-tos in order to combat space constraints. These will be investigated and assessed from a health and safety perspective and for potential impact on the Phoenix asset. Recommendations will be made where necessary and in some circumstances formal action may need to be undertaken. Residents considering carrying out alterations to their homes must consult Phoenix to gain permission and ensure building regulations are complied with and planning permission is obtained where required. Phoenix will not be responsible for remedial works to the structure or costs incurred to the Phoenix asset as a result of the alteration. SOCIAL VALUE Phoenix seeks to maximise the positive impact on the community of its investment in the housing stock through a variety of social value incentives. Major and minor adaptations are undertaken on an ongoing basis to enable residents to continue living in their home. Stair lifts and other adaptations are removed from voids and recycled where feasible to ensure value for money. Phoenix also runs an internal decorations scheme that allows residents meeting criteria to receive redecoration of one room within their home every five years, where budgets allow. In the last two years alone, over 80 residents have accessed this assistance. OPTIMISING RETURNS ON ASSETS TO ENSURE MORE RESOURCES ARE AVAILABLE FOR REINVESTMENT IN SERVICES TO RESIDENTS AND DEVELOPING NEW HOMES Our stock viability software provides the detailed analysis to enable an assessment of a property s return to inform future decisions to invest in properties or consider alternative use, including disposal. Disposals and alternative uses for assets will be assessed as part of our options appraisal process. 19

21 Phoenix has a fairly low loss of social housing provision through Right to Buy and Right to Acquire sales. Lewisham Council agreed an amendment to the original transfer agreement to allow Phoenix to retain the net proceeds from these sales for the provision of replacement social housing in so they can be invested in new homes. Opportunities for increasing rental income will be considered for example parlour type properties will be converted at low cost while void to create an additional bedroom also helping provide housing for larger families. All investment shall be subject to rigorous appraisal for both financial and sustainability implications before being committed to for either new build or redevelopment. All opportunities to realise grant funding will be sought for schemes such as affordable homes and energy efficiency upgrading. Residents will be fully involved in the development of all new build and redevelopment that is planned. In 2016 the Board approved the Development Strategy to build an additional 200 new homes including 100 for shared ownership and 30 for private sale to provide cross subsidy for social rent. The Development Strategy involves total additional capital expenditure of 55 million, which will be partly funded by anticipated grant, private sale receipts and first tranche shared ownership proceeds, as well as additional funding through private finances. The additional funding required will be secured before any contractual commitments are made. Development will increase revenue and reduce management costs per unit over time. EFFICIENT PROCUREMENT AND DELIVERY OF WORKS AND SERVICES The Asset Management team will ensure data required for future works programmes is provided to the Contract Delivery team in a timely manner to ensure well planned procurement processes in collaboration with staff across the organisation and our residents. The current major works contract in place will cover works identified to 2020 to ensure continued compliance with the Decent Homes Standard. The Group Procurement Strategy will be followed for all procurement activities, keeping in mind the three aims within the policy: y Delivering social value and sustainability y Value for money, efficiency and savings through procurement activity y Using best practice, systems, processes and expertise to procure contracts in the most efficient and compliant manner. All contracts will include social value contributions which may be sponsorship, job opportunities/ work experience placements and/or community improvement. 20

22 All contracted planned works will be procured using the process detailed within our new Procurement Strategy, the main objectives of which are: y Delivering social value and sustainability y Value for money, efficiency and savings through procurement activity y Using best practice systems, processes and expertise to procure contracts in the most efficient and compliant manner Responsive repairs and work to empty homes will continue to be carried out by our in-house contractor PRS. Staffing structures will be monitored and appropriate resource allocated. Property and New Business team responsibilities and task ownership will be clearly defined and there will be a division between planning and delivery of major works. 21

23 What will we aim to achieve by 2020 RESIDENT LEADERSHIP AND MEMBERSHIP y Working parties set up with residents for Major Works scoping and programming as with Meadows y Continue consultation activities to ensure resident views are heard and incorporated into future plans y Standards revisited to inform residents of our decision making processes and repairs and maintenance responsibilities New Phoenix Standard for homes Resident Consultation Programme and Communication Plan developed to further understand resident needs and aspirations Resident Expectations document produced EXCELLENT SERVICES DELIVERED EFFICIENTLY WITH EMPATHY AND FUN y Understand the demographics of our community and how our property portfolio meets their needs y Develop and document all property-related data processes and decision-making processes for property investment y Continue to develop our Asset Management Database to hold all property-related data and be actively updated and utilised across the organisation y Improve data visibility internally for more informed asset-based decision making y Support the Digital Together project and ensure through the Customer Relationship Management system all staff have access to relevant property data Asset Data Strategy written and implemented alongside a full suite of processes and procedures Asset Management induction process set up for new staff, involved residents and Board members Asset Management Database Review and Improvement Group implemented 22

24 SUSTAINABILITY-FOR OUR BUSINESS AND OUR COMMUNITY y Further embed a strategic approach to delivering value for money in managing our assets y Look to demonstrate potential cost savings to the business across Major Works and Repairs through the better use of data, not through a reduction in the Standard we offer y Integrate our Asset Management Principles and Strategy into business-as-usual practices across the organisation y Maintain our properties to a safe and quality standard y Support Phoenix s Sustainability Strategy and improve energy efficiency in our homes y Continue to comply with statutory and regulatory compliance and health and safety y Review approach to Fire Safety in response to conclusions from the Grenfell Tower public enquiry 100% Decency maintained across the stock External cyclical programme planned and procured Minimum SAP rating of 60 established in relet of homes Asset Management Strategy redefined for Fire Safety Strategy and Management Plan developed Repairs data analysed to identify trends and properties with high repairs reported 23

25 GROWTH IN NEW HOMES AND OPPORTUNITIES y Take a holistic, place-based approach to investment across all areas of Phoenix assets y Appraise all growth opportunities using our asset data y Investigate opportunities in existing stock to support housing needs and aspirations (extensions, bathroom pods, parlour type properties) Programmed delivery of 200 new homes through the Development Strategy Place-based local area plan piloted All non-property asset data recorded on Keystone Stock Profiling software developed to include socio-economic weighting Short term plan for bathroom pods agreed and implemented GIS (mapping) software developed As set out in our corporate priorities we will seek to embed Value for Money, innovation, communications and equality and diversity into all of these projects. 24

26 Planned Investment Profile The major works projections in the business plan are currently based on the independent stock condition survey by Mazars in 2013, taking into account actual major works undertaken since the survey. For budget setting purposes, the business plan major works projection for each year is then compared to the Keystone projection for that year to ensure there is adequate provision to address newly arising non-decent properties requiring works. It is intended that by the end of 2018/19 the major works projections in the business plan will be driven from Keystone. Our aim is for 100% surveyed blocks and 60% surveyed dwellings by this date and this data will be extrapolated for the remaining properties. To provide assurance for the extrapolated date we will undertake a comparison between this data and the Mazars survey results. March 2019 March 2020 March 2021 Blocks 100% 100% 100% Dwellings 60% 80% 100% Provision for other improvements e.g. bathroom pod structures will be assessed through the corporate planning process via business cases demonstrating costs and benefits and to ensure that the improvements can be accommodated within the financial plan projections. There is provision in the Business Plan to invest 17 million in our existing homes in the next five years. 25

27 Strategy Consultation There has been significant consultation carried out in reviewing the Asset Management Strategy. This was to encourage participation in the development of the strategy and to ensure we are focused on the right tasks and deliver a sustainable approach to the Strategy both internally and with residents. Stakeholder Residents Resident Gateway Committee Asset Management Working Group Board steer Internal staff Involved residents Executive Team steer Influence Resident survey to begin to understand future needs online SurveyMonkey, Chat and Chips events, Phoenix Festival, joint events, Digital drop-ins Feedback on strategy aspirations and progress Ongoing discussions Discussion on priorities and steer for the strategy Workshops to set aims and objectives Workshop to set aims and objectives Presentation and discussion Delivering and Monitoring the Strategy DELIVERING THE STRATEGY The Asset Management team will lead on the delivery of the Strategy Action Plan. Sufficient team resources will be maintained and reviewed to enable effective delivery and all staff within the team will be recruited and assessed in line with the PCH Asset Management competency framework (to be developed). Staff buy-in from across the organisation and ongoing resident involvement will be obtained through ongoing Asset Management Communications Plan activities. 26

28 HOW WILL WE MEASURE SUCCESS? y Ongoing evaluation and review at the Asset Management Working Group y Internal audit reports y Resident feedback through ongoing consultation at Community events y The STAR survey to measure resident satisfaction and quality of services y Internal assurance through monthly and quarterly Key Performance Indicators and regular review and improvement plans y Annual review and reporting process with the Executive Team and Board - review of action points to ensure they remain relevant and fit for purpose, and to reprioritise for year ahead. Assess that we are still able to respond effectively to emerging sector changes (in legislation, regulation or best working practices) and internal changes in ways of working (including financial challenges etc.) through the Strategy. Reviewing of progress against targets y Annual review with residents to check we are doing what we said we would and updating the action plan y Benchmarking. The Regulator of Social Housing publishes a cost per home analysis of all registered housing associations annually. We will use this to reassess our costs in relation to other social housing providers. We are also a member of a benchmarking group (Housemark), which provides more detailed comparative information on costs and performance. This information allows us to compare ourselves against our peers, identifying areas of our business where costs appear high or performance is low and further analysis is needed. We will use this comparative information to assess our progress and target further improvements. For effective risk management the Asset Management Risk Register will be continually updated and reviewed identifying risks and controls in line with the organisation s risk appetite. Monthly and quarterly KPI reporting will take place alongside a rolling internal audit programme and all key processes and procedures will be documented and agreed by relevant parties. GOVERNANCE ARRANGEMENTS The Board is responsible for overseeing the delivery of this strategy. The ownership and implementation of this strategy rests with the Director of Property and New Business. 27

29 Supporting Documents Asset Management Principles Document Value for Money Strategy Development Strategy Sustainability Strategy ICT Strategy Communications Strategy Risk Management Strategy Community Empowerment Strategy Procurement Strategy Corporate Plan Business Plan 28

30 Definitions Term/acronym Resident SAP EPC PRS GIS CPI RSH Universal Credit GDPR NPV Star Survey BS18001 Description Includes tenant, freeholders and leaseholders Standard Assessment Procedure (method used to score properties for energy efficiencies on EPCs) Energy Performance Certificate Phoenix Repairs Service Geographic information system, a system for storing and displaying data on a map Consumer Price Index Regulator of Social Housing Government payment to help with living costs General Data Protection Regulation Net Present Value Satisfaction survey of tenants and residents British Standard for occupational health and safety management systems 29