Housing asset management strategy

October 2019

‘Better homes, better places, better lives,’our 10-year strategy for investment in

our homes and places

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Housing asset management strategyContentsForeword ....................................................................................................................................... 4

Executive summary ....................................................................................................................... 6

1 Better homes, better places, better lives ........................................................................... 91.1 Introduction to our 10-year housing investment strategy ................................................... 91.2 Scope of our housing investment strategy ........................................................................ 91.3 Strategic asset management and delivering value for money .......................................... 101.4 Some recent notable achievements ................................................................................ 131.5 Engaging and listening to our tenants and key stakeholders ........................................... 14

2 Dudley as a place to live, work and play .......................................................................... 152.1 The Dudley Metropolitan Borough ................................................................................... 152.2 Distinct local communities and housing markets ............................................................. 162.3 Future demographic pressures ....................................................................................... 172.4 A growing regional context and wider investment opportunities ...................................... 182.5 Dudley’s Council existing housing stock .......................................................................... 212.6 Dudley’s Council housing investment challenge ............................................................... 23

3 Strategic Investment Plan 2019-2029 ............................................................................. 283.1 Strategic aims for housing across Dudley Borough ......................................................... 283.2 Strategic priorities for investment in council housing 2019 to 2029 ................................. 283.3 The Dudley investment standard ..................................................................................... 293.4 The Dudley repair standard ............................................................................................. 303.5 Dealing with empty homes .............................................................................................. 313.6 Tackling fuel poverty ........................................................................................................ 343.7 Promoting independent living .......................................................................................... 363.8 Community and estate regeneration ............................................................................... 363.9 Other strategic housing investment programmes ............................................................ 373.10 New council housing ....................................................................................................... 38

4 Delivery of our Housing Asset Management Strategy ...................................................... 394.1 Stock appraisal ............................................................................................................... 394.2 Approved five-year investment programme ..................................................................... 414.3 Medium term investment need and forecast to 2029 ...................................................... 424.4 Long term 30-year investment need and forecast to 2049 .............................................. 444.5 Funding our investment and the 30-year HRA business plan........................................... 444.6 Procurement, sustainability, social housing value & VFM ................................................. 454.7 Action plan, performance management and monitoring .................................................. 464.8 Strategic KPIs ................................................................................................................. 464.9 Responsibility and review of the strategy ......................................................................... 47

Appendix 1 - action plan

Appendix 2 - case studies

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ForewordIn Dudley, we understand the positive impact that good housing and good housing services have

on the health, well-being and living standards of our residents and in creating and maintaining

places that prosper.

This strategy sets out our vision for the investment in, and provision of, affordable council

housing over the next 10 years, from 2019 to 2029. It sets out our continued, strategic

approach to managing and maintaining the properties we own and the local communities we

serve, whilst also delivering and providing new homes and housing solutions to help meet the

projected levels of social housing need across the borough.

Working with key partners, residents and service users at the heart of our strategy, it details our

approach to delivering housing led investment of scale – at least £660 million - over the 10-year

period from 2019 to 2029 and how over the life of this strategy we aim to implement the Dudley

Investment Standard. Looking after the existing stock involves far more than just “bricks and

mortar” and so our strategy also defines a number of key actions that will further improve service

and operational delivery enabling us to deliver Better Homes, Better Places, Better Lives.

We operate in highly uncertain times. We face significant challenges including affordability

pressures as a result of a sustained period of austerity in the UK’s public finances and welfare

reform, pressures arising from accommodating a growing population and other demographic

changes such as the need to satisfy increasing expectations and the need to create a more

sustainable housing and community asset base from which we can deliver much-needed housing

services now, and in the future.

Our 10-year housing asset management strategy, supported by the 30-year HRA business plan,

provides the strategic framework for navigating our way through these uncertain times and

evaluating our plans to ensure that we are meeting our obligations. We have an old and aging

property portfolio and our investment, repairs and maintenance liability over the next 30

years is estimated at around £1.5 billion, with an estimated £33,300 average capital

investment per property over that period. We have a mis-match of supply to demand, with some

types of home simply no longer popular and many with high investment needs.

Whilst the recent announcements regarding the lifting of the HRA cap are very welcome, this new

borrowing should be appropriately split between new build provision and ensuring that as much of

our current stock, as is reasonably possible, remains viable in the longer term.

Servicing existing housing debt of around £470 million currently costs around £18 million

per annum. An ability to increase our current debt cap may allow some additional projects to be

brought forward and delivered where not possible without further funding, but it will not, of itself,

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resolve the housing investment challenges faced across Dudley. It will assist in providing new

housing, but will potentially address some of the estate regeneration needs around our flatted

estates. This blended approach will need to be considered and approved when development and

area based projects are brought forward to be approved by the council.

Guiding principles underpinning the strategy include delivering value for tenants’ rents and

creating a more sustainable housing revenue account. These guiding principles are

fundamental to the successful delivery of the council’s objectives for affordable housing across the

borough including increasing affordable housing supply where and when it is possible and

affordable to do so. I therefore commend this co-ordinated housing asset management strategy

to you.

Mark RodgersChief Officer (Housing)Dudley Council

Tel: (01384) 815076

Email: mark.rodgers@dudley.gov.uk

Website: www.dudley.gov.uk

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Executive summary

This document sets out the Council’s 10-Year housing asset management strategy. IIt details

our continued, strategic approach to managing and maintaining the properties we own and the

local communities we serve, whilst also delivering and providing new homes and housing solutions

to help meet the projected levels of social housing need across the borough. It provides the

strategic framework capable of supporting value for money and developing a more

sustainable housing revenue account.

It also sets out our investment priorities for housing over the next 10 years to 2029. Having

listened to our tenants and residents these reflect the local and national policy context in the West

Midlands, the challenges faced across the borough, a detailed appraisal of our stock at property

level. They are summarised below.

Priorities for housing investment 2019 to 2029

1 Provision of quality affordable housing to provide safe, affordable homes which people want to live in

• Investment in our core stock to an agreed Investment Standard • Tackling empty homes efficiently through an agreed Occupation Standard• Managing our stock through an agreed Repairs Standard

2 Managing our stock strategically to ensure future viability of affordable housing in Dudley• Measuring and identifying stock quality and performance • De-investment, demolition and disposal of non-viable stock

3 Provision of more affordable housing to meet our diverse housing needs • Developing more affordable homes and mixed tenure estates • Improving the offer for supported living to meet the needs of an aging and vulnerable population

4 Addressing the housing and community needs of our residents and estates • Addressing fuel poverty• Promoting independent living• Delivering community and estate regeneration

5 Ensuring value for money through our housing services• Maximising resources• Maximising income • Maximising opportunities for commercialism • Efficient procurement

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Our Housing Revenue Account (HRA) remains extremely constrained over the next 10 years. Every penny spent has to be invested wisely as we do not have unlimited resources and the opportunity cost of not investing well for this and future generations is high.

Delivering value for money including value for tenants’ rents and creating a more sustainable housing revenue account are therefore fundamental guiding principles to the successful delivery of the council’s objectives for affordable housing across the borough including increasing affordable housing supply where and when it is affordable and prudent to do so.

Our SAMS (Strategic Asset Management Appraisal) analysis conducted in 2015 (and updated in 2018) found that doing nothing is not an option for Dudley and the council will have some difficult decisions to take as some of the existing stock is not viable and continuing to invest in those particular properties cannot be justified in value for money terms. Whilst property numbers are expected to decline over the life of this strategy, through right to buy, demolitions and disposals and our own new build programme, we will mitigate this to a point, replacing numbers with new, viable stock, the scale of which will depend on the availability of further grant, or possibly additional borrowings.

The average age of our stock is 65 years and more than 7,000 units (almost 1 in 3) are now more than 75 years old.

The 2018 update found that whilst 79% of the council’s stock works well and contributes positively to the HRA in financial terms, the remaining stock, which is more challenging and includes properties which are no longer viable and for which there is no certain demand, will have to be addressed.

Consequently, we are looking at the longer-term viability of all of our flatted developments with a particular focus on high rise stock, and it is likely that further recommendations on disposal and/or demolition of additional stock will need to be considered alongside opportunities for major regeneration on some flatted estates.

Since 2017, we have rehoused more than 200 tenants from four multi storey blocks and these will be demolished. We have also sold around 44 high investment need properties via auction with £4m capital receipts received and a significant investment of around £1.7m avoided; meaning that we have equivalent funds to replace these units on a 1-1 basis as opposed to the 1:5 ratio where they are funded from right to buy sales. This is because under current Government regulations, after resident allowable discount and payment of receipts to HM Treasury, the council has only around £18,000 per right to buy sale to contribute towards the cost of a new replacement home.

Our strategic analysis highlights that housing continues to face major challenges in the coming years including a reduced rental income stream, significant debt servicing obligations, an aged and aging stock profile requiring higher than average investment

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together with a backlog of outstanding investment need. Our current estimate is that the council’s housing stock investment, repairs and maintenance liability will be some £1.5bn over the next 30 years, with a minimum of £0.660 billion required over the next 10 years.

Additional new pressures are also expected in future years. For example, as changes to welfare benefits start to impact, which will see the payment of benefits for housing costs made direct to tenants. Dudley is now a full service” area for Universal Credit and so our estimate is that by 2020 we will receive around only 20% of our rental income in the form of benefit payments (mostly those on pension credits) with the remainder having to be collected direct from tenants. This is a significant change and represents an increasing housing management and cash flow risk, which will require careful monitoring, active arrears management and use of direct debit and technology, together with suitable bad debt provision.

Likewise, there will also be new opportunities to explore. Removal of the HRA borrowing cap is very much welcome as it will allow some additional strategic investment and regeneration projects to be brought forward or even delivered where not previously affordable. But it will not, in itself, resolve the housing investment challenges faced across Dudley.

Servicing existing housing debt of around £470 million currently costs around £18 million per annum. This is more than £820 per tenancy per year in interest payments alone and would increase for any new HRA borrowing.

Spending any permitted additional borrowing capacity on new build alone will not address the long-term viability of our existing stock, either financially or in terms of its physical condition. To spend all additional borrowing capacity on new build would risk current viable stock becoming non-viable, in addition to the current circa 12% (2,500) non-viable red-flagged units. It would also mean that we would effectively create significant additional debt for a relatively modest amount of new build stock while at the same time not necessarily ending up with more stock in management.

A blended approach to the use of new borrowing capacity will allow us to deliver extra new build council housing while helping address some of the historical investment backlog in existing stock. Done correctly, this will also maximise the overall value of our assets and should therefore create the opportunity to secure further tranches of borrowing in the future. It also provides an opportunity to address wider estate regeneration needs, particularly around our flatted estates where stock is non-viable, being low in demand and requiring investment, providing choices and housing options for all of our residents, together with an opportunity to work with our partners and stakeholders to deliver financial growth, both through grant leverage opportunities and increased revenue from complimentary mixed tenure ‘homes for sale’ developments.

A balanced approach as set out in this asset management strategy, in terms of existing stock appraisal, investment, strategic de-investment and replenishment through new build of a variety of housing options will promote the necessary long term viability of our stock, and is therefore critical to the long term viability of Dudley’s HRA.

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1 Better homes, better places, better lives1.1 Introduction to our 10-year housing investment strategy

In Dudley, we understand the positive impact that good housing and good housing services have

on the health and wellbeing and living standards of our residents and in creating and maintaining

places that prosper. As the major landlord of social housing across the Dudley Borough, the

volume, quality, affordability and performance of our council homes has a significant

impact on the living standards and future prospects of our many and varied local

communities.

This strategy sets out our vision for the investment in, and provision of, affordable council housing

over the next 10 years, from 2019 to 2029. It sets out our continued, strategic approach to

managing and maintaining the properties we own and the communities we manage, whilst also

delivering and providing new homes and housing solutions to contribute towards meeting the

future projected levels of social housing need across the borough. Working with key partners,

residents and service users at the heart of our strategy, it details our approach to delivering housing

led investment of scale – at least £660 million at today’s prices- over the 10-year period from 2019

to 2029.

1.2 Scope of our housing investment strategy

Dudley has implemented a number of asset management led approaches to stock management

aimed specifically at delivering the government’s ‘Decent Homes’ Standard and maintaining a

minimum housing standard in a financially constrained environment. This followed the decision by

tenants in early 2002 to remain with the council rather than pursue a Large-Scale Voluntary

Transfer (LSVT) or establish an Arm’s Length Management Organisation (ALMO).

Since then we have had some notable successes (see section 1.4). We took the decision in 2015

to undertake a fundamental revision of our long term approach to asset management. This

was based on a model split between 60% financial measures (Net Present Value - NPV) and

40% non-financial measures in order to shape and inform our investment requirements for new

and existing stock and deliver the best quality housing for Dudley borough residents within

available resources in the medium to long term.

Building on our successes over the last three years, our new 10-year strategy “Better homes,

Better Places, Better Lives” provides the strategic framework for investing in our existing council

housing, new housing supply and the continuous improvement of our housing services. It also

provides the context in which we will tackle failing housing assets that are no longer

value for money and are draining scarce resources from the Housing Revenue Account

(HRA) or which no longer meet the required standards or expectations of modern living,

and provide opportunities to address broader estate regeneration challenges.

It is important we invest wisely to ensure our council housing stock remains fit for purpose and

meets the social housing needs of Dudley’s residents now and in the future, whilst tackling the

very real financial challenges facing the HRA, and ensuring rents remain affordable for

local residents too.

Over the next 10 years we will continue to assess new challenges and pressures, particularly those

arising from the external environment and over which we have no control but which our strategy

will have to address. As examples; the likely prioritisation of fire safety following the Hackitt report ,

the Government’s current review of the Decent Homes Standard with the possible alignment of

private rented sector housing safety requirements with social rented homes (such as fire detectors,

carbon monoxide detectors, electrical inspections) and the possibility of a drive on further fuel

poverty alleviation is likely to involve potentially significant additional cost, which will need to be

funded.

Our 2019 to 2029 Better homes, Better places, Better lives strategy for our council housing:

1 Connects our core investment activity to the broader ambitions of the council, including

investment in local areas so Dudley is a place where people want to live, work and play

as set out in the Dudley Council plan and meets our statutory housing obligations

2 Aligns our core investment activity to the housing investment priorities of our residents

and the investment plans of our key partners (local registered providers and private

developers to deliver an ambitious new build programme, for example) through the

Dudley Housing Strategy

3 Reflects the longer-term projections of affordable housing need and demand within our

local housing markets and wider community as set out in the Black Country Core

Strategy and the West Midlands Combined Authority Strategic Economic Plan

4 Recognises that we have to balance our valuable resources and potential for additional

borrowing, investing wisely in existing stock against replenishing our stock with new build

properties

1.3 Strategic asset management and delivering value for money

In 2015 we recognised that in addition to the traditional bricks and mortar investment

needs, we also needed to consider the broader objectives of the council to provide an

approach which connects our core property considerations, with the area and people as

well as the commitments made by local partners to ensure we meet the specific housing

needs of Dudley’s communities:

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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. By building our evidence base, we will ensure this strategy is based not just on a financial assessment but also on the broader social values that our housing stock provides.

• In 2017/18 we then examined, through phase 2, the capacity of the HRA, assessing 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, addressing additional investment priorities such as new build housing, de-investment and conversions, facilitating independent living for vulnerable people, people with disabilities by adapting properties, and estate-based community improvements to provide sustainable communities for the future.

• In 2018/19, as part of developing the asset management strategy we updated both the 2015/16 SAMS (Strategic Asset Management Appraisal) NPV appraisal and 2016/17 HRA capacity review.

It is fair to say then, that since 2015, our focus has shifted from historic component-based delivery of Decent Homes to proactive strategic asset management with a leaner approach to delivering empty homes, with more efficient planned investment programmes aimed at delivering sustainable housing and places, with a proper return on our investment whilst also considering our social responsibility to provide housing for all.

The “SAMS” assessment completed in 2016 found that doing nothing is not an option for Dudley. It highlighted that we face some key pressures in the coming years as our current housing stock ages and requires additional investment or no longer meets modern standards of living, and the cumulative impact of the UK government’s welfare benefit reforms start to impact year–on-year alongside other pressures.

It also demonstrated that the opportunity cost of investing scarce HRA resources in stock which is either non-viable or not in demand is high, not recommended, and does not deliver value for money to the council or to our residents.

The updated 2018/19 SAMS analysis reinforced the key messages that were established in 2016. Improvements due to the approach adopted over the last 2 years include:

• An increase of more than £8m in the strategic valuation of the housing stock from £525m to £533m, despite continued rent decreases over that period and loss of valuable stock through right to buy sales

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

• Proportionately more of the stock assessed as green (78% compared to 72% in 2016) as a result of current investment programmes and other intensive management initiatives with a corresponding reduction in stock assessed as amber (5% reduction) and red (1% reduction).

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Despite these solid improvements, the 2018 update also confirms continuing and

significant challenges remain:

• Just over 2,250 units (10% of our stock) are assessed as amber and just over 2,500 units (12%)

are assessed as red for asset management purposes. This means that retention on a full

investment basis for some of these units, particularly those with a negative value, is not likely to

be viable for the HRA over the next 30-year period.

• The full estimated capital investment needed for the council’s housing stock is £200m over the

next five years and this cannot all be accommodated within the currently resources of £156m

over that period.

• In addition, almost two in every three units assessed as red have been assessed as being

negatively valued meaning more is required to be spent than can realistically be expected to be

collected back in rents over the next 30 years. The 1966 units assessed as having a negative

valuation require closer consideration in order to tackle their repair liability of £32m.

However, the RAG (red, amber, green) assessment is only a strategic indicator of viability

and does not determine the future for properties in its own right. Whilst ‘green’ rated

properties are identified as ‘core stock’ and appropriate for retention with full investment, the

options for investment in the ‘amber’ and ‘red’ assessed properties requires further, more detailed

consideration over the next 18-24 months before taking any major investment decisions. Once

more, the lifting of the HRA borrowing cap is both welcome and essential as a part of this process..

A key focus over the next 10 years is therefore 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. Our long-term challenge is to

balance our existing portfolio of housing stock equitably across the borough to meet current and

future demand. This, whilst addressing the lower value, poorly performing stock at a pace and

scale that provides investment to maintain condition and value in those properties that are currently

performing, and has sufficient impact to prevent any further decline in those that are not

The Grenfell fire tragedy and a closer scrutiny of fire safety in high-rise blocks of flats

has influenced a closer look at the general performance of property components,

particularly in flatted developments, that play a part in fire safety, such as doors,

windows, external cladding and compartmentation. Whilst we have no high rise with

external cladding similar to Grenfell, this issue will impact further on our appraisals of

stock viability and will make many blocks more expensive to maintain, or potentially

retain, at a time when public confidence in high-rise safety may make them less

desirable places to live.

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1.4 Some recent notable achievements

1 Investment in our existing homes - more than £500m has been invested since 2010/11 on day–to-day repairs as well as improvements such as 9,784 bathrooms and 9,698 kitchens. It also includes initiatives to tackle fuel poverty with the SAP (Standard Assessment Procedure) rating increased to an average of 71 after more than £80m was invested in initiatives such as installing more than 8,000 new modern, efficient heating systems. 98% of homes have an energy rating of D or above with 75 per cent rated C or above. Around £12m of heating and external wall insulation was delivered through energy providers’ funded schemes such as CESP and ECO.

2 Provision of new affordable homes - 320 new affordable homes have been built since 2011, with an approved investment of £25m to build a further 180 homes by 2023. New homes are both new build, and the conversion of redundant existing council assets (Appendix 2 - Stanley Grange Case Study).

3 Supporting independent living - the council won the APSE 2018 Health and Wellbeing Award for its £6.2m upgrade of 92 homes for older people (Appendix 2 - see Margaret Vine and Holloway Court Case Study). The project saw the council secure £2.9m from HCA (now Homes England). In addition, since 2010/11 we have spent £25m adapting council homes for people who have disabilities, this equates to around 3,000 homes, some 14% of our housing stock

4 Improving value for money and investing strategically - a reduction in ad-hoc unplanned expenditure of over £10m per year in empty homes; £0.5m recurring annual savings through improved stores management; a strategic review of the existing housing stock with a sustainability rating applied to all homes (this has led to the successful re-housing of more than 200 households from four high rise blocks, which have been earmarked for demolition, with the land being used for future suitable housing; Oak Lane Travellers site transferred to the HRA with investment planned over the next five years).

5 Estates and communities improvements - More than £11m planned to be spent up to 2022/23 to undertake improvements within estates in consultation with local residents and members through wider partnership working Dudley’s housing services have helped to prevent local homelessness by providing good quality homes at some of the lowest rents in the region thus making them affordable for many low income households and by using its in-house housing stock to provide temporary accommodation units and specialist housing that helps vulnerable people to live independently with support.

6 Good satisfaction standards - the housing satisfaction survey report 2018, carried out by ‘acuity’ identified that 85% per cent of tenants were satisfied with the housing service, 82% cent were satisfied with the overall quality of their home, 79% were satisfied with the repairs and maintenance service and 81% were satisfied with their neighbourhood as a place to live. 81% of residents are satisfied with the value for money for their rent.

7 Tenant engagement is positive and a successful Dudley Housing’s Big Conversation in July 2017 preceded the resident conference in November 2017.

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1.5 Engaging and listening to our tenants and key stakeholders

Engagement and consultation with our tenants, customers, contractors and other

stakeholders sits at the heart of how we design and deliver our strategy. We have a range

of opportunities to enable local people to be involved in a way, and at a level, they feel most

comfortable with.

This ranges from working locally with individual residents and groups to strategic forums such as

our Housing Board and Dudley Federation of Tenants’ and Residents’ Associations (DFTRA). We

also work in partnership with 24 tenants and residents’ associations alongside their umbrella body

DFTRA. This allows us to continually review services, examine performance, policies and strategies

and make recommendations for improvements as well as talk to local people at grassroots level

through roadshows, annual conferences and local consultations about their homes and proposed

new developments.

We also facilitate and work with specialist forums such as the High-Rise Living Forum, Community

Improvement Working Group and Anti-Social Behaviour Focus Group, to tackle specific issues that

are important to local people from across the borough. We also support a group of tenant-led

service inspectors who carry out service reviews.

At the last road show, we were able to speak to 700 people across 29 estates to hear their views

about their homes and estates. A video from the event, Dudley Housing’s Big Conversation can

viewed here https://www.youtube.com/user/dudleymbc.

The future of housing services and the challenges faced by the council are discussed with local

people at our annual housing conference. At these events we look at the range of services

provided by housing, including housing management, letting properties, repairs and investment

priorities. This is done through workshops, presentations and interactive games. At the recent

residents’ conference, tenants identified their repairs priorities as improved grass cutting and estate

management.

We are currently developing an involvement and engagement strategy with tenants and residents.

Fundamental to this strategy will be local engagement with residents, residents groups

and members to facilitate necessary estate based improvements. Local budgets are

already devolved to local stakeholders and wider engagement and consultation is

necessary to deliver estate regeneration that benefits the community.

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2 Dudley as a place to live, work and play2.1 The Dudley Metropolitan Borough

Dudley is a large metropolitan borough in the heart of the Black Country covering 38 square miles on the southeast edge of the West Midlands region of England. It is nine miles west of Birmingham and six miles south-east of Wolverhampton. South Staffordshire and rural Worcestershire lie to the West and West Bromwich and Sandwell to the East.

Figure 1: Map of Dudley Metropolitan Borough

Dudley is known as the historical capital of the Black Country. Over the years, the local economy has undergone some significant change.

Originally a market town and one of the birthplaces of the Industrial Revolution, it grew into an industrial centre in the 19th century with its iron, coal, and limestone industries before their decline and the relocation of its commercial centre to the nearby Merry Hill Shopping Centre in the 1980s. Tourist attractions include Dudley Zoo and Castle, the 12th century priory ruins, and the Black Country Living Museum.

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2.2 Distinct local communities and housing markets

The borough is made up of several distinct communities, each having its own character, identity

and housing market challenges and opportunities. The main town centres are Dudley in the north

east of the borough, Sedgley in the north west, Stourbridge in the Southwest, Halesowen to the

southeast, and Brierley Hill in the middle of the Borough.

Demographic drivers:

• Dudley’s population is 316,464 residents in 129,867 homes and whilst the overall socio-

economic profile and levels of deprivation are similar to the national average, there are wide

variations within the borough. Between 2016 - 2031 the Borough’s population is expected to

increase by 13,990 residents (4.4%). Most of the increase is in the 65+ age group.

• Dudley’s population is on average older than that for England, with a higher proportion of the

population aged over 45.

• Within the Borough the age profiles differ within the township areas. Halesowen is generally

reflective of the Borough as a whole. Dudley Central has the youngest population with a greater

proportion of under 35s. Dudley North, Brierley Hill and Stourbridge all have older age profiles.

• The largest ethnic group in Dudley is White British with 277,050 residents (88.5%) of the

population compared to 79.8% for England. The second largest ethnic group is Pakistani with

3.3% of the Borough population.

Housing:

• The majority (82%) of Dudley’s housing stock across all tenures is in a good state of repair and

would meet the Decent Homes Standard.

• There is a higher level of owner occupation in the Borough 68.7% compared to 63.4% in

England overall.

• There is a higher level of social rented homes in the Borough at 19.8% compared to 17.7%

nationally.

• The Dudley MBC owned social housing stock is spread throughout the Borough. The homes

are not distributed evenly throughout the wards. The smallest supply being 157 homes in the

Halesowen South ward with the largest being 1723 homes in the Brierley Hill ward. The council

is the major owner of social housing across the borough. . Just over 3,000 homes are owned by

Registered Providers (housing associations). Approximately 1 in every 5 households live in social

housing.

• There is a lower level of private renting at 8.4% in Dudley compared to 15.4% in England.

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Affordability:

• The average house price in the borough is £170,126 as at April 2018 .

• The ratio of median house price to median (gross) annual salary in the borough is 5.91 .

• Median gross monthly salary in the Borough is £2,100.

• In 2015/16 the borough had an unemployment rate of 6.7%. This is markedly higher than the national rate for England of 5.0%.

• Within the borough 17.1% (54,124) of the population live in an income deprived family. Income deprivation measures the proportion of the population experiencing deprivation relating to low income. The definition of low income includes both people who are out of work and in work but have low earnings and satisfy respective means tests.

• It is estimated that 11.7% of households are ‘fuel poor’, compared to 10.9% of households in England.

Providing a suitable range of homes that provide a good choice of housing across the borough and meet the specific needs of families, older people, people living with disability, young single households and many more is important and involves long-term planning to balance both supply and demand pressures, optimising the scheduling of scarce housing resources.

2.3 Future demographic pressures

As a major housing provider, we need to consider emerging future demographic changes as these will impact on the suitability of our housing stock portfolio. For example:

• Dudley Borough’s population is forecast to increase by 13,990 (or 4%) households by 2031. This means new housing supply is required to house a growing population. The largest growth is predicted to be in single person and lone parent households. This will mean an increased demand for smaller sized units, especially 1 and 2 bedroom homes. But currently, most of the family housing stock is three bedroomed homes.

• We also have a growing ageing population. The number of people aged 65 and over is growing and there is predicted to be an increase in the 80+ age groups as people are living longer and the life expectancy of people with profound disabilities is increasing. These demographic changes need to be considered as part of our plans for stock investment so that people in the borough can live independently for longer, in addition to addressing the current under provision generally of affordable housing for older people and specialist or supported accommodation across the borough.

• There is a mismatch between housing supply and demand for older people looking to move home in the borough because 23.5% of current households are aged 65+ and many of this age group are living in the owner-occupied sector . At the moment, however, more than 80% of the specialist housing (mainly older persons housing) in the borough is rented housing . There is scope to develop specialist housing for sale that could cross subsidise other new housing schemes in the future.

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2.4 A growing regional context and wider investment opportunities

The borough is an attractive place that people want to move into and the regional economy and

population is growing and will continue to grow.

The council plan also sets out Dudley Council’s alignment with the shared vision for the borough of

Forging a future for all which is built around seven aspirations and developed with key partners

and stakeholders.

Forging a future for all

In 2030 we would like the Dudley borough to be . . .

1 An affordable and attractive place to live with a green network of high quality parks,

waterways and nature reserves that are valued by local people and visitors

2 A place where everybody has the education and skills they need, and where outstanding

local schools, colleges and universities secure excellent results for their learners

3 A place of healthy, resilient, safe communities with high aspirations and the ability to

shape their own future

4 Better connected with high quality and affordable transport, combining road, tram, rail,

and new cycling and walking infrastructure

5 Renowned as home to a host of innovative and prosperous businesses, operating in

high quality locations with space to grow, sustainable energy supplies and investing in

their workforce

6 A place to visit and enjoy that drives opportunity, contributing to its ambitious future

while celebrating its pioneering past

7 Full of vibrant towns and neighbourhoods offering a new mix of leisure, faith, cultural,

residential and shopping uses

The council’s ambitions for the borough are set out in the council plan which is illustrated in Figure

2 and which confirms our one council ethos to build an effective and dynamic organisation aligned

to our three core priorities to:

• Grow the economy and create jobs

• Create a cleaner and greener place

• Support stronger and safer communities

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Figure 2: The Dudley Council Plan 2019/22

Alongside other important services like education and social care, housing plays a key role in

meeting the council’s ambitions for the borough and that Dudley is a place where people want

to live. The council plan highlights three significant contributions from housing including:

1 Providing excellent services for tenants: ensuring efficient and effective services that provide

best value for tenants.

2 Offering high quality housing: implementing a 30 year Asset Management Strategy to ensure a

viable business for current and future tenants.

3 Supporting vulnerable people: working in partnership with others to ensure that anti-social

behaviour and appropriate joint service interventions are in place to support communities.

Dudley has identified that it has the potential land capacity to deliver around 17,400 new

homes by 2026 including many new homes for social/affordable housingvi. The Metro

extension routes and regeneration corridors that run throughout the borough present significant

strategic opportunity for housing growth.

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Alongside this, Dudley is part of the West Midlands Combined Authority’s (WMCA)

Second Devolution Deal commitment to deliver 215,000 homes by 2030/31. This would

require a delivery of around 16,000 homes per year, again including many homes for

social housing. The WMCA and government have agreed a series of support/funding

commitments to drive this ambition forwardvii.

Growing housing marketsThe government and the West Midlands Combined Authority agree that there is unmet

housing need and the current supply of new housing is not sufficient to meet forecasts of

future housing need. This strategy sits within this wider strategic context. Three of the key

strategies are summarised below.

West Midlands Combined Authority (WMCA)The West Midlands Combined Authority is a collaboration of 18 Local Authorities and four

Local Economic Partnerships who have received devolved powers from Central

Government. They are working together to deliver £8 billion of investment over a 30-year

period. Their priorities for investment are set out in the Strategic Economic Plan. The Plan

identifies eight priority issues including housing. The aim being to accelerate the delivery

of current housing plans, to increase the level of house building to support increased levels

of growth. WMCA also oversees strategic transport development alongside key

regeneration and development functions.

Black Country Core Strategy The Black Country Core Strategy covers the 1.1 million population who live in the four

adjoining Black Country local authority areas of Sandwell, Walsall, Wolverhampton and

Dudley. The current strategy proposes 22,000 additional new homes with the growth being

channelled primarily through a growth network of 16 regeneration corridors. Six of the

corridors run through Dudley Borough albeit this document is currently being reviewed.

Alongside the need for new homes, significant physical infrastructure developments for

improved transport, economic growth, job creation and social infrastructure such as

schools, health services, recreation facilities and other services will be required.

Dudley Health and Wellbeing Strategy 2017 - 2022 Key aims of the strategy are promoting healthy weight; reducing the impact of poverty;

and, reducing loneliness and isolation.

Ensuring access to affordable good quality housing has been identified as playing a role in

reducing the impact of poverty, as well-maintained housing usually reduces expenditure on

household fuel bills, helps to promote mental wellbeing and helps people to feel a part of

their local community.

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2.5 Dudley Council’s existing housing stock

An overview of the council’s existing housing stock by type, tenure and age across the entirety of the borough, as at September 2018, is provided in tables 2-4. This shows the wide variation in the nature and type of stock across the borough.

Sheltered stock is defined as housing for older people, provided within defined accommodation based schemes, with dedicated support services and communal facilities.

Supported housing is defined as housing for people with specific health or social care needs, where care and/or support are provided in order to enable independent living within the community.

The remainder of general needs stock is housing provided for any resident, currently subject to our designations policy, which restricts certain housing for certain age of resident.

Table 2: Overview of the Council’s housing stock typeHouse type Brierley Hill Dudley Halesowen North Dudley Stourbridge Grand total

Houses 2,655 4,551 1,581 2,132 1,350 12,269

Bungalows 646 420 366 328 268 2,028

High rise flats 492 236 282 191 1,201

Low rise bedsits 92 100 45 97 334

Low rise flats 446 1,609 518 1,374 1,322 5,269

Low rise maisonettes 127 28 275 89 127 646

Hostel unit 2 7 1 10

Grand total 4,460 6,944 3,029 3,969 3,355 21,757

Table 3: Overview of the Council’s housing stock by tenureTenure Brierley Hill Dudley Halesowen North Dudley Stourbridge Grand total

General needs 4,422 6,852 2,907 3,878 3,309 21,368

Supported housing 7 14 12 8 41

Sheltered housing scheme

31 78 122 79 38 348

Grand total 4,460 6,944 3,029 3,969 3,355 21,757

Table 4: Overview of the Council’s housing stock by sizeBedrooms Brierley Hill Dudley Halesowen North Dudley Stourbridge Grand total

0 92 108 45 97 342

1 1,282 1,620 695 1,123 1,114 5,834

2 1,529 2,120 937 972 872 6,430

3 1,449 2,843 1,323 1,710 1,222 8,547

3 104 241 73 117 43 578

4 127 28 275 89 127 646

5 3 6 1 7 17

6 1 6 7

7 2 2

Grand total 4,460 6,944 3,029 3,969 3,355 21,757

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Table 5 provides the age profile of the council’s stock. Whilst the average age of Dudley’s stock is 64.4 years, 98% were built before 1980, and 86% before 1970. The largest build programme was in the 1960’s, when over 5,500 homes (26%) were built, including our 1,200 remaining high rise (after demolition at Netherton). Starkly, this reinforces the age of the stock, with many properties already meeting their existing design life and crucially, only 2% of our stock (around 337 homes) were built after the year 2000. The lack of new homes investment from the 1970s is one of the principal reasons for our current level of disrepair and aging, non-viable stock.

Map 1 Stock profile

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Table 5: Overview of the Council’s housing stock by decade builtYear built House Bungalow High rise flat Low rise flat Grand total As %

Pre-1900 50 1 51 0%

1901 to 1910 1 1 0%

1911 to 1920 246 246 1%

1921 to 1930 2,530 9 2,539 12%

1931 to 1940 3,931 204 10 4,145 19%

1941 to 1950 1,124 58 307 1,489 7%

1951 to 1960 2,833 521 1,195 4,549 21%

1961 to 1970 771 690 1,201 2,903 5,565 26%

1971 to 1980 516 374 1,621 2,511 12%

1981 to 1990 70 140 114 324 1%

1991 to 2000 1 12 25 38 0%

2001 to 2010 56 6 62 0%

2011 to present 140 28 69 237 1%

Grand total 12,269 2,028 1,201 6,259 21,757

As % 56% 9% 6% 29% 100% 21,757

2.6 Dudley Council’s housing investment challenge

A total investment of a minimum of £660 million has been identified as required over the

next 10 years. This includes £305 million as per the current approved five-year programme to

2022/23 and a further £355 million for the following five years from 2023/24 to 2028/29.

The total investment required over the next 30 years is estimated at £1.5 billion. A

breakdown of the approved five -year programme is summarised in section 4.

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Whilst the broader investment context presents many considerable long-term opportunities for

housing across the Borough, Dudley’s Housing Revenue Account has been severely

constrained and so financial capacity will have to be created from optimising the use of

the HRA’s scarce resources and demonstrable value for money. Key pressures on the

council’s HRA include, but are not limited to:

• Significant rent loss each year due to rents constrained by a real term decrease of -1%

each year since 2016 due to government policy. By 2019/20 the gross rental income is

expected to be just over £84m which is a reduction of £10m from the £94m received in

2014/15 and a total loss to the HRA of £36m up to 2020. That is £10m less each year,

every year, for the next 30 years (before allowing for any growth from inflation). This is

in addition to the loss of potential income each year due to a lack of a service charging

regime. Not passing on service charges, including maintenance costs, to tenants puts extra

pressure on the HRA

• Further significant rent loss each year due to low demand in some specific locations

and for some specific types of stock which have become empty (typically first, repeatedly

and then long term). The results of the recent South Staffordshire and Black Country Strategic

Housing Market Assessment appears to confirm that there is a housing need for affordable

housing stock more generally across the borough, which in turn, leads to valid concerns

regarding the quality of the affordable housing product on offer by the council and the

lack of choice available to tenants in some locations across the borough. The Council is

currently reviewing the designations of its stock in an attempt to address issues of low demand

being linked to location, type of stock and affordability. For example, where two bed high rise

flats are unaffordable for singles often because of welfare reform impacts or rent levels, yet in

many instances this is their only realistic prospect of securing a property at the moment. There

is also a general lack of housing for under 30s, which the council will have to address.

• Loss of good quality, in demand, housing stock as a result of Right to Buy (RTB) sales.

A total of 1,071 properties were sold through RTB since January 2012. The sales of RTB

across the Borough over the last 18 years (from 2001) are summarised in map 1 below.

However, it should be noted that RTB sales commenced during the 1980s and there are

a further 20 years of sales in addition to the mapped data.

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Map 2 Heat map of RTB from 2001

As with the experience of historical Right to Buys, these sales included the council’s more desirable

properties in good locations being sold at heavily discounted sums making it extremely challenging

for the council to replace the properties that are being lost. Under current government

regulations, after resident allowable discount and payment of the Treasury Share of

capital receipts to the government, the council has only around £18,000 per RTB sale to

contribute towards the cost of a new replacement home, the remainder having to be topped

up from HRA resources. It has also added real pressure to the balance of housing supply

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and demand across the borough, for example in higher value areas like Kingswinford,

and for particular property types e.g. many more houses have been sold than flats.

With substantial debt payments of around £18m each year required to repay our

historical debt, and with falling rent income, it means around £1 in every £5 collected in

rent is required to service existing debt. This is likely to become an increasing burden over

time as inflationary pressure and interest rates rise, as they are expected to do, from their current

historically low levels. It is also worth noting that the HRA has operated at its debt cap in

recent years and is servicing debt on an interest only basis.

The removal of the HRA cap is welcome, but any new money borrowed will add to these

debt repayment costs. However, it will allow some additional strategic investment and

regeneration projects to be brought forward or even delivered where not previously affordable. It

will not however resolve the housing investment challenges faced across Dudley.

Spending any permitted additional borrowing capacity on new build alone will also not

address the long term viability of our existing stock, either financially or in terms of its

physical condition. It would also mean that we would effectively create significant

additional debt for a relatively modest amount of new build stock while at the same time

not necessarily ending up with more stock in management.

Higher investment requirements as a result of the age, type and condition of the council’s stock

means that the investment required is more challenging than say other registered providers which

tend to have newer and more traditional stock types which, on the face of it, are likely to be in

better condition. The English Housing Condition Survey 2016 reported amongst other things that:

“Nationally, just 8% of local authority stock was built after 1980, compared with 37% of housing

association homes and high-rise flats more common in local authority (7%) than housing

association (3%) stock. For DMBC only 3% of the stock was built after 1980 and 6% of the stock is

high rise; As already highlighted the average age of the stock is 64.4 years with most of it built in

the 1950s or before and is therefore old stock not built to meet current, modern standards or

residents’ aspirations.”

• Damp, condensation and mould is much more prevalent in local authority stock compared

with housing associations (due to age and construction type) and therefore ongoing maintenance

costs are higher, and health issues are worse (though both are better than in the private rented

sector).

This does pose a significant issue and exploring options and solutions through new technology

and smart monitoring devices may provide an opportunity for identifying early warning triggers

and behavioural and condition based archetype trends.

• Our own appraisal of the stock found that for some property types already reaching the

end of their expected lifespan, repairs and improvements are not always feasible, and

not all of the current housing stock is capable of providing a further 30 years lifespan at

a reasonable cost to the HRA. Not all existing stock can be retained and it is likely that

even with significant increases in new council house building with the lifting of the HRA

cap RTB losses, combined with addressing non-viable stock, we are likely to see a

reduction in stock numbers over a number of years whilst these viability issues are

addressed.

• Around 9% of the stock is identified as being negatively valued (liabilities) and requiring

more to be spent than can reasonably be collected back over the next 30 years. Whilst

as a social landlord of scale and with a social responsibility, carrying some unviable

stock to provide unmet housing need is inevitable, this needs to be managed at a

responsible level so as not to undermine the financial viability of the remainder of the

performing stock within the HRA.

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3 Strategic Investment Plan 2019-20193.1 Strategic aims for housing across Dudley Borough

The council plan sets out the council’s commitment to making Dudley Borough a place that people

want to live in. The specific aim for housing set out in the draft Housing Strategy is to

“enhance our housing offer for local residents so that people can live in a good quality

home that they can afford and is suitable for their needs” and this applies across all

housing tenures, including, importantly here to the council’s own housing stock and

future housing supply.

The strategic objectives for housing are also drawn from the draft Dudley Housing Strategy and the

Council’s Medium-Term Financial Planning Strategy for housing.

Strategic objectives for Dudley Council owned housing in Dudley Borough

1 Provide a wide range of quality affordable housing that meets the housing needs of

all of our residents over the next 10 years; and recognises and responds to future

demographic changes

2 Develop effective communications with our tenants and other stakeholders and to

continuously challenge and improve delivery of all of our housing and housing services

3 Improve the customer experience, whilst maximising our income, managing our debt

effectively and promote our services so that we can provide more and better for less

4 Develop our own workforce so they are skilled and empowered to deliver quality and

efficient housing services throughout the borough

5 Help to promote local business and small and medium enterprises (SMEs) through our

spend, using ‘social value’ procurement to add benefit from local labour, apprenticeships

and training

6 Help to deliver new homes to increase council tax and new homes bonus revenue for the

council’s general fund

3.2 Strategic priorities for investment in council housing 2019 to 2029

Having established our evidence base over the past 3 years we have then set out our investment

priorities having reflected on the local and national policy context for housing in the West Midlands,

the challenges faced in Dudley, a detailed appraisal of our stock and having listened to our tenants

and residents.

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Priorities for housing investment 2019 to 2029

1 Provision of quality affordable housing to provide safe, affordable homes that

people want to live in

• Investment in our core stock to an agreed Investment Standard

• Tackling empty homes efficiently through an agreed Occupation Standard

• Managing our stock through an agreed Repairs Standard

2 Managing our stock strategically to ensure future viability of affordable housing in

Dudley

• Measuring and Identifying stock quality and performance

• De-investment, demolition and disposal of non-viable stock

3 Provision of more affordable housing to meet our diverse housing needs

• Developing more affordable homes and mixed tenure estates

• Improving the offer for supported living to meet the needs of an aging and vulnerable

population

4 Addressing the housing and community needs of our residents and estates

• Addressing fuel poverty

• Promoting Independent living

• Delivering community and estate regeneration

5 Ensuring value for money through our housing services

• Maximising resources

• Maximising income

• Maximising opportunities for commercialism

• Efficient procurement

3.3 The Dudley Investment Standard

The Decent Homes Standard (as originally conceived) is now more than 15 years old. We are now

working with customers to agree a “Dudley Occupation Standard” which meets the Decent

Homes Standard and a Dudley Investment Standard which we hope will exceed the Decent

Homes Standard, where improvements can be made, that are both reasonably practical and

affordable, and which can be delivered on a planned basis.

In addition to the standard component replacement programmes including kitchens, bathrooms,

windows, doors, electrics and roofing our Investment Standard involves aiming to go beyond the

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minimum standard, with a continued and sustained focus on fuel poverty, health and wellbeing, and home safety. There is also more emphasis with the Dudley Investment Standard on

addressing the specific housing needs of our older and more vulnerable residents including those

with disability, allowing them to live independently for longer. Aiming to do the best possible for our

tenants rather than just the minimum tolerable is a key objective.

The Decent Homes Standard was achieved for more than 99% of our homes in 2010. However, meeting the standard was not a one-off target just for 2010 and since then we have continued to strive to maintain this standard as more of our homes continue to fall into non-decency and require ongoing investment. We have continued to address this, but we

recognise we do have an underlying 0.5% to 1% rolling level of non-decent stock relating mainly to

high-rise properties, but also including relatively low numbers of high investment need homes

(mainly pre-war) where previous tenants refused improvement works. These homes continue to

require significant investment, the timing of which is often unplanned and ad-hoc. It is many of these homes that are potentially non-viable and individual detailed appraisals will need to be undertaken to determine if they are viable and to be retained, or if disposal is more appropriate after considering our social responsibility to meet local housing demand.

3.4 The Dudley Repair Standard

In addition to ongoing planned investment need, we provide responsive repairs, statutory

maintenance, servicing and safety works that ensures essential repairs are carried out, and that

safe living conditions are provided for our residents.

Some of our key repairs statistics include:

• 3.64 responsive repairs per property at an average cost of £95.20 per repair

• 79,859 responsive repairs completed, 29,785 (26%) treated as an emergency

• 91% of non-emergency jobs were undertaken by appointment, and 97.88% of repair

appointments were kept

• 96% of all repairs were completed within target time, and 97% of emergency repairs

• routine repairs were completed on average in 9.38 days

• 26% of properties received more than four maintenance visits

• 71 types of repair are our responsibility, with 19 being the responsibility of residents, both

fairly typical compared to other landlords

• 46% of properties have a valid Energy Performance Certificates

As a responsible landlord, ensuring the health and safety of our residents in our homes is a priority.

The standards required of landlords are rightly increasing year on year and our ‘safety first’ culture

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ensures that we proactively maintain our homes and that we more than meet our compliance

obligations, including the recommendations within Dame Judy Hackitt’s report ‘Building a Safer

Future’, which was commissioned by thegovernment following the Grenfell Tower fire to ensure the

future regulatory system is working to ensure the buildings that people live in are safe, and that

they remain so.

Currently our big five compliance programmes include annual gas safety works, five yearly periodic

inspections for electrical installations, asbestos management, water hygiene and fire risk

assessments. There are also responsibilities for a wide range of further specialist systems in our

homes and flatted developments. For example, ensuring lifts are serviced and maintained to allow

residents safe access to and from their homes and fire and smoke protection systems are safely

maintained.

3.5 Dealing with empty homes

Properties which become empty represent a significant financial risk to the HRA. They do not

generate any income for the period the property is empty and generally repair work, often

extensive, is required before the property can be re-let. There are also costs from the requirement

to pay council tax on empty homes, and in 2017/18 this cost was more than £650,000.

In Dudley, there are specific challenges on re-let performance due to the time taken to

complete repairs and also the low demand for certain types of home. Each of these issues

will be tackled as a priority as we lag behind the national average. We will therefore be working

hard to minimise the time taken to re-let council homes, which become empty and where

this is not possible, we will consider alternative options for these empty properties to

minimise the risk and demonstrate value for money for the HRA and tenants.

In 2017/18 we had 1,504 re-lets and the average time taken to re-let was 74 (calendar) days.

Whilst there was an 18% improvement on the previous year, there is still some way to go to be

where we want to be. This includes some hard to let properties which took up to 118 days to

re-let. The average cost of repairing a void property before re-let was £4,231. For routine voids it

was £1,745 per property and for a void with major works required it was £6,520.

Table 6 highlights the significant variation in void re-let performance across the stock

with houses taking 33.5 days to re-let on average for a routine void and upper high-rise

flats taking 267.7 days on average where major works (i.e. major components such as

new kitchens, bathrooms or rewiring is required). There are also significant variations by

location with the average time taken to re-let flats in Dudley being 149.3 days compared to 30

days for a bungalow in Brierley Hill.

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Whilst the above table highlights an overall picture of performance, looking at the various

processes from inspection, works and letting provides the following:

• 6 days from keys received to repairs issued;

• 50 days between the day an inspection is required to works being completed (this reflects 34

days for routine voids, reduced to 27 days if high rise flats are excluded). This work period is

increased to 64 days for all voids (routine and major work voids), which reduces to 61 days on

average excluding high rise

• The time from repairs completed to offer accepted is 32 days, but again this includes low

demand, ‘hard to let’ properties such as high rise (118 days) and bedsit flats (93 days). However,

correspondingly some types of home are more in demand and easier to let, such as houses

(taking 9 days) and bungalows, (14 days).

We are currently taking positive measures to improve this performance, which is critical

to securing the long term viability of the HRA; both improving our income stream and

providing homes more efficiently. These include:

• Undertaking a process review of how we deliver the voids and lettings service (completing

Summer 2019)

• Prioritising ‘in demand’, routine voids ahead of properties with known low demand

• Addressing performance and delivery issues with our supply chain by procuring a number of

small and medium enterprise contractors to provide more flexibility and capacity to support

internal resources in our housing maintenance contractor

Table 6: Average time to re-let (routine and major voids)Year built House Bungalow High rise flat Low rise flat Grand total As %

Pre-1900 50 1 51 0%

1901 to 1910 1 1 0%

1911 to 1920 246 246 1%

1921 to 1930 2,530 9 2,539 12%

1931 to 1940 3,931 204 10 4,145 19%

1941 to 1950 1,124 58 307 1,489 7%

1951 to 1960 2,833 521 1,195 4,549 21%

1961 to 1970 771 690 1,201 2,903 5,565 26%

1971 to 1980 516 374 1,621 2,511 12%

1981 to 1990 70 140 114 324 1%

1991 to 2000 1 12 25 38 0%

2001 to 2010 56 6 62 0%

2011 to present 140 28 69 237 1%

Grand total 12,269 2,028 1,201 6,259 21,757

As % 56% 9% 6% 29% 100% 21,757

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• The proposal to dispose of non-viable high cost empty homes so that resources can be targeted

to provide new, modern, warm, affordable homes on a 1 for 1 basis

• The council is also currently reviewing its designation policy which currently restricts certain

groups of residents to certain types of home. This is following a consultation and engagement

process which commenced in early 2017

By example, we have 5,815 low rise flats and maisonettes across the borough excluding

sheltered and supported housing and high rise flats. The total currently designated for each

age group and household type are set out in table 7. This highlights the lack of choice and

accommodation for certain age groups, and why some properties are hard to let, supporting the

review of designations from both a housing choice perspective, and to make best use of our

housing stock.

Table 7: Designations by area and householdYear built House Bungalow High rise flat Low rise flat Grand total As %

Pre-1900 50 1 51 0%

1901 to 1910 1 1 0%

1911 to 1920 246 246 1%

1921 to 1930 2,530 9 2,539 12%

1931 to 1940 3,931 204 10 4,145 19%

1941 to 1950 1,124 58 307 1,489 7%

1951 to 1960 2,833 521 1,195 4,549 21%

1961 to 1970 771 690 1,201 2,903 5,565 26%

1971 to 1980 516 374 1,621 2,511 12%

1981 to 1990 70 140 114 324 1%

1991 to 2000 1 12 25 38 0%

2001 to 2010 56 6 62 0%

2011 to present 140 28 69 237 1%

Grand total 12,269 2,028 1,201 6,259 21,757

As % 56% 9% 6% 29% 100% 21,757

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In addition, of our 21 remaining high-rise blocks after demolition at Netherton:

• Two blocks are designated to residents of any age with no children

• Two blocks are designated to young single people only (no children)

• Four blocks are for residents aged 30+ with no children

• 13 blocks are for residents aged 40+ with no children, in two of which the lower floors are for

elderly residents aged 60+.

There are three drivers for a review of the designation policy:

• Lettability - there is a lack of demand for the number of flats we have available for people aged

over 30 and over 40, and the SAMS review recommended that designations in general should

be removed. Rent loss on all mature flats (40plus) including high rise in 2017/18 amounted to

£515,463, and 225 low rise mature flats advertised for letting received an average of less than

three bids each.

• Customer choice - we have low rise flats in all five areas of the borough, and should therefore

be in a position to allow our customers who are in housing need a good choice of

accommodation. However, the restrictions imposed by age designations, and then overlaid with

those that arise through accessibility, pet policies, availability of gardens and parking etc, mean

that in practice real choice is extremely limited

• Equalities - single people under 30 have the least choice of all, because they are excluded from

the majority of our stock. Apart from a handful of high-rise blocks, unpopular duplex flats and a

small number of new build apartments, young single people are only considered for a tiny

proportion of low-rise flats in a very few areas of the borough. Elsewhere this has been

challenged as discriminatory and needs to be addressed.

3.6 Tackling Fuel Poverty

This strategy recognises the health and wellbeing benefits of providing homes that people can

afford to live in, and has been committed to delivering improvement programmes to reduce fuel

poverty. Across the borough despite significant investment in replacing central heating systems as

part of the Decent Homes programme there remain more than 3,000 homes with a gas central

heating system installed prior to 2000, and still around 300 unheated homes where residents have

persistently refused heating.

98% of our homes have an energy rating of D or above with 75% C or above rated, and it is an

aspiration for all of our homes to be at least D rated or higher.

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Within existing approved budgets 5,000 boilers will be replaced in the first five years of our

strategy, but there will be a strong commitment to ensure investment increases to continue to

ensure modern, efficient and affordable heating is provided in our homes, and that replacement

programmes continue to target fuel poverty. Homes are insulated and advertising campaigns have

continued to target insulation in homes.

The housing stock is now fully double-glazed, which contributed to reducing fuel poverty, but with

this programme initially commencing in the mid-1990s a strategic second-generation replacement

programme is expected to commence later in the first five years of our current five year plan. Whilst

this will not have the same fuel poverty impact as the first generation double glazing replacement

programme, residents are expected to see some benefit.

A significant resource of around £12m was obtained through Energy Company Obligations (ECO)

and the Community Energy Savings Programme from 2012 to 2015, which funded external wall

insulation, loft top-ups and heating in hundreds of homes. Whilst expensive external wall insulation

remains an aspirational standard, especially for solid wall pre-war homes, this is unlikely to be

deliverable without more external funding opportunities. Nevertheless, this strategy is committed to

seeking out funding for energy efficiency related improvements to supplement our commitment to

reducing fuel poverty.

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3.7 Promoting independent living

Across the entirety of the borough there is a shortfall of adequate accommodation for older and vulnerable residents. It is currently estimated that an additional 554 units of specialist accommodation (sheltered housing) may be required by 2036.

Following the successful refurbishment of Holloway Court and Margaret Vine Court, an initial

appraisal of all of the sheltered housing schemes has been undertaken. This has highlighted what

is achievable as a sheltered housing standard, and there is an aspiration to improve or re-provide

existing schemes to ensure our provision for elderly vulnerable residents meets our new Dudley

Investment Standard with modern facilities fit for the 21st Century capable of supporting

independent living. Modest financial provision has been made in the first five years, but this will not

meet our aspiration unless we continue with a sustained, robust and strategic approach to asset

management. Furthermore, the removal of the HRA borrowing cap and options to access Homes

England grant does provide more opportunities to deliver an improved sheltered housing offer

through both new build and through significant refurbishment and conversions. Opportunities to do

more are outlined in section 4.

There is an opportunity to develop specialist housing that would be attractive to older home

owners looking to live independently in specially designed homes to meet their needs in their later

years. The build and sale of private sale homes could help cross subsidise this housing, which we aim to explore. We have previously entered into partnerships with registered providers

to provide this within the borough. However, it is a type of housing provision that we may consider

building ourselves in the future.

This strategy also considers how best to continue to support existing council residents to live independently in their own homes. Adaptations for people with disabilities has long

been a key priority for housing, assisting with the health and wellbeing of residents, allowing them

to live longer and safer in their homes and reducing the burden on public health and the NHS. The strategy is intended to retain around £3m per year spending on adaptations, which is just meeting current demand. Future need for an increasingly elderly population may be a future pressure.

It is also important to note that the investment outlined in this strategy sits alongside other investment and services delivered by housing. This includes assisting private sector home owners, particularly by providing advice and access to funding opportunities for elderly or disabled households to make best use of funding such as the council’s Housing Assistance Scheme, Disabled Facilities Grants, and Winter Warmth, all of which contribute to independent living.

3.8 Community and estate regeneration

Over the next 10 years we will also be considering the nature and extent of the community and estate regeneration issues locally and will assess, through a structured appraisal process, the likely strategic impact of investment and potentially other

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investments to ‘lift’ an area or not. The development of local estate based intelligence

through housing ‘patch portraits’ involving sufficient estate consultation and

engagement with design options (where appropriate) will be undertaken throughout the

term of this strategy.

The council will identify specific areas of priority for wider estate or regeneration

interventions where the strategic challenge requires action which is more than the bricks

and mortar investment and is linked to housing market imbalance. For example, oversupply

of (typically flatted) council housing in a particular location causing lack of housing market choice.

Wider estate regeneration initiatives may include thinning out (or reducing the number of

homogenous homes where we have over supply and low demand for a particular type of home)

and introducing alternative house types and/or new tenures.

Further development of our patch portraits and an area based approach should sit at the heart of

the communication process and over time these should be developed to their full conclusion i.e.

local asset management plans fully integrated with the wider strategic framework for each area.

Examples for this may be supporting key council strategic investment areas such as Brierley Hill,

Lye and Netherton, but any proposals around this area based regeneration would be delivered

following robust appraisal and full council support.

3.9 Other strategic housing investment programmes

Over the next 10 years the council will consider projects which remove considerable long-term net

financial liability from the HRA and/or contributes to the thinning out of flatted areas where

oversupply of mono-tenure is a key characteristic of failed or failing blocks/estates, also allowing us

to tackle other place based challenges such as garage sites and car parking.

Our approach is market facing - focussed on matching supply and demand for the council’s

affordable housing - and we will seek out opportunities for projects which can be self-funding in a

reasonable period. These may involve coordinating with other strategic investments in an area and

working in partnership with other council departments or other stakeholders like local registered

providers or other public agencies such as the West Midlands Combined Authority, Local

Enterprise Partnership and NHS estates.

We are also mindful of the need to consider decisions to retain some poor performing stock in areas where the sale of such properties may lead to them being acquired and re-let without any improvement works being undertaken by private landlords, thus leading to the deterioration of local housing market conditions.

A feasibility study across the high rise and low demand flatted developments is currently underway which will include an assessment of the full cost of the option of viable (i.e. in demand) retention by the council, both before and after any mitigating regeneration focused expenditure. We are also establishing a medium-term holding programme to deal with stock identified in the SAMS analysis as currently under-performing but which

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is not a priority (for the current strategy period) and where further review and/or

monitoring is required to establish the long-term view of the stock. Holding stock would

receive no major investment whilst they are being examined further other than to fulfil all

health and safety or other statutory obligations.

3.10 New council housing

The current approved five-year programme includes the provision for around 60 new homes each

year by the council, although there may be potential to increase this through removal of the HRA

borrowing cap and Homes England grant. This potential to deliver new housing through

additional borrowing opportunities will be explored. It is recognised that additional

borrowing for new build alone is unlikely to deliver the wider housing priorities and

objectives that this strategy supports, it could adversely affect the long term viability of

our HRA and is therefore not recommended. This is outlined more in Section 4.

The council will continue to explore how the net additional need target of 216 units per year, as

suggested by the South Staffordshire and Black Country Strategic Housing Market Assessment,

will be met across the borough and this will be explored as an early priority. Accessing additional

grant, the use of HRA and general fund prudential borrowing will be considered where appropriate

and/or provision of housing for sale to cross subsidise other social housing provision.

The age profile of the stock, and diminishing numbers through Right to Buy emphasise

the priority to build more modern, efficient homes that are affordable to live in and will

meet current and future housing needs. This is unlikely to be met by our current stock

profile.

In addition to the core investment programme a number of supporting interventions focused on

continuous improvements in respect of service delivery will be undertaken.

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4 Delivery of our Housing Asset Management Strategy

4.1 Stock appraisal

The council takes a strategic approach to the management of social value with the HRA . This strategy together with the SAMS approach ensure the council’s assets and resources are used economically, effectively and efficiently to improve outcomes for our customers and other stakeholders. The pressure on the HRA is significant and resources will have to be allocated to create and support value for money.

Our stock, as at April 2018, has an open market value of some £2.2 billion, in open market vacant possession terms. Even after discounting is applied to reflect that our stock is tenanted, the value (Existing Use Value - Social Housing (EUV-SH)) is still some £860M.

These external valuations reflect market expectations of the transaction value that would be exchanged on the basis of a willing buyer and a willing seller for an arm’s length transaction motivated by normal business considerations. These valuations make maximum use of market inputs and rely as little as possible on council specific costs.

The valuation for strategic asset management purposes is £533m. This reflects the internal valuation of the stock and what it contributes as an income generating asset, or not, to the performance of the Council’s HRA over the next 30 years.

The EUV-SH and SAMS valuation are both based on the same discounted cash flow valuation methodology. The reason they vary is that the EUV-SH reflects market expectations and measures of risk and return, whereas the SAMS valuation is a measurement based on the entity specific, DudleyCouncil, performance, cost of service delivery and future expenditure plans. The SAMS valuation will be lower than the external valuation because it is based on the council spending and investing more on service delivery and maintenance of the stock and this results in a lower internal valuation of the stock.

The stock is appraised in both financial and non-financial terms. The financial appraisal is measured by the Net Present Value (“NPV”) over 30 years of the net rental income stream compared against management, maintenance and investment costs, and accounts for 60% of the appraisal. The non-financial appraisal (comprising 40%) takes into account a range of indicators focussed on assessing the ‘Prospects and Performance’ of the stock, including demand.

The stock performance model was well established from 2015, rating properties on a red, amber and green basis for stock investment purposes. In 2015/16, a total of 22,471 properties were reviewed. The latest update reflects the stock movement since then including properties sold through RTB and the high cost void disposal programme, properties taken out of management pending demolition and new properties completed and brought into housing management and now forming part of the appraisal.

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The 2018 update assessed 21,757 properties and found some notable improvements due to the approach adopted over the last two years, including:

• An increase of over £8m in the strategic valuation of the housing stock from £525m to £533m which is an increase of 1.5%, despite continued rent decreases over that period and loss of valuable stock through right to buy sales

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

• Proportionately more of the stock were assessed as green (78% compared to 72% in 2016) as a result of current investment programmes and other intensive management initiatives and a corresponding reduction in stock assessed as amber (5% improvement) and red (1% improvement).

• Despite these solid improvements, the 2018 update also confirms continuing and significant challenges remain.

• Just over 2,250 units (10% of our stock) are assessed as amber and just over 2,500 units (12%) are assessed as red for asset management purposes. This means that retention on a full investment basis for some of these units, particularly those with a negative value, is not likely to be viable for the HRA over the next 30-year period.

• Of the 2,500 red rated units:

• 915 are high rise flats, with the remaining 215 being amber rated

• 1,001 are low rise flats (almost 1 in 5 of our low rise stock)

• 351 are houses and bungalows, representing 2.5% of all of our houses and bungalows, with 627 (4%) being amber rated, although it should be noted that whilst assessed at a property level, NPV properties ratings are significantly affected by the timing of expenditure.

The graph below highlights the RAG ratings of properties by archetype.

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• The full estimated capital investment need for the council’s housing stock is £200m over the next

five years and this cannot all be accommodated within the currently available resources of

£156m. The shortfall in funding in the HRA has, for many years, been managed through

prioritisation and scheduling of works programmes. However, pressure is mounting as the back

log of investment need continues to grow including partly because of the age of the council’s

housing stock. It is also notable that the average age of DMBC’s stock is 64.4 years and

more than 7,000 units (almost 1 in 3) are now more than 75 years old, built in the early

1940s or before.

• In addition, almost 2 in every 3 units assessed as red are negatively valued, which

means that more money will need to be spent than can realistically be collected back

in rents over the next 30 years. The 1966 units (9%) assessed as having a negative valuation

require closer consideration in order to tackle the liability of £32m identified within the Council’s

housing stock.

Options appraisals are also conducted and may lead to a more detailed investment appraisal and

consideration of alternative options:

• to consider the sustainability of a property or group of properties by looking at the maintenance,

cost of repairs, cost of operation, demand and the effects of the property within the community

(e.g. flatted developments and estates).

• To consider non-viable properties (particularly when they become empty) where there is likely to

be excessive investment need and/or low demand.

The long-term investment options are considered as part of the stock condition survey process

with lifecycles aligned with component accounting expectations. This is based on broad

assumptions and often upon cloned data and proposals need to be checked at individual property

level.

4.2 Approved five-year investment programme

The approved five-year programme to 2023 is summarised overleaf. This is already very much

focussed on the thematic priorities identified in this strategy, and shows a total capital expenditure

of £188.6m is planned in the first five years to 2023 and £117m revenue repairs over the same

period.

Table 8 also shows around 62% of the planned expenditure is capital investment and 38% is

revenue. The proportionate split is summarised in the chart opposite. For example, around 31% of

the capital investment planned is required to maintain existing homes and includes major

component replacement works (kitchens, doors, windows etc).

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The 5 year programme is funded as follows.

4.3 Medium term investment need and forecast to 2028

Section 4.2 highlights the current approved resources to 2023, the first five years of this strategy,

with £305m committed to investment in new and existing stock alongside ongoing repairs and

maintenance

Over the following years 6 to 10 of the strategy, to 2029, we expect to have available a

further £355m (before any potential for additional borrowing is considered).

This £355m is expected to continue the strategic thematic approach addressing our key priorities,

but with an additional £50m available over and above existing levels of approved expenditure. The

£355m of resources to 2029 will need to be formally approved through the council’s future budget

setting process, but the proposed medium-term strategy provides the opportunity to continue to

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Table 8: Approved 5 year programme 2018/19 to 2022/23

AMS programmesTotal

budget2018/19

Totalbudget2019/20

Totalbudget2020/21

Totalbudget2021/22

Totalbudget2022/23

Totalbudget2018/19

to 2022/23

Maintaining existing homes

£9,980 £10,026 £13,170 £12,754 £12,849 £58,779

Major works to empty homes

£6,336 £6,433 £6,478 £6,527 £6,575 £32,348

Fuel poverty £3,646 £3,700 £3,728 £3,757 £3,785 £18,615

Independent living £4,762 £4,712 £4,749 £3,778 £3,806 £21,808

Community and estate regeneration

£2,681 £3,155 £1,911 £1,926 £1,940 £11,614

Strategic stock management

£2,462 £2,371 £2,328 £2,905 £2,927 £12,994

New council housing £8,458 £7,102 £5,368 £5,746 £5,750 £32,425

Capital total £38,325 £37,499 £37,732 £37,393 £37,632 £188,582

Revenue £22,926 £23,266 £23,446 £23,624 £23,799 £117,062

Grand total £61,252 £60,675 £61,178 £61,017 £61,432 £305,644

Table 10: 5-year funding profile

Funding of capital expenditure

2018/19£000s

2019/20£000s

2020/21£000s

2021/22£000s

2022/23£000s

Totalbudget2017/18

to 2022/23

Borrowing £0 £0 £0 £0 £0 £0

Major repairs reserve £23,113 £23,451 £23,920 £24,398 £24,886 £119,768

Revenue contribution to capital

£5,000 £1,800 £2,800 £3,200 £3,500 £16,300

Useable capital reciepts £7,787 £11,841 £11,012 £9,795 £9,246 £49,681

Grants £2,425 £407 £2,832

Total £38,325 £37,499 £37,732 £37,393 £37,632 £188,581

deliver this strategy and to realise plans to deliver real choice and improvement in the quality and

type of accommodation available to residents.

The resources will allow our council house building programme to continue and grow, with a target

of delivering a further 500 new homes. As we have already identified, a review of sheltered

accommodation has highlighted significant shortcomings in the quality of accommodation we

provide, and there is an emerging strategy to ensure sheltered schemes provide modern

accommodation and facilities that elderly residents aspire to and deserve. The recent refurbishment

and remodelling of sheltered accommodation at Margaret Vine Court and Holloway Court has set a

new standard of sheltered accommodation for our elderly residents, and re-providing out-dated

sheltered accommodation with modern, light, airy, digitally facilitated accommodation is an

aspiration that is achievable and deliverable if the strategic approach to asset management

outlined in this strategy is maintained.

The potential for additional borrowing will help to ensure that the appropriate blend of

additional investment is used to leverage in external resources and maximise both the

additional housing units delivered and housing estates regenerated. Using additional

borrowing for new build in isolation and not considering the wider stock investment and

estate regeneration needs (particularly around flatted estates in parts of the borough) will

impede the development and delivery of the long-term sustainability of the HRA that this

asset management strategy seeks to address. A combination of making sites and

development opportunities available through a strategic approach to stock management,

remodelling of viable flatted developments and sheltered schemes, re-provision elsewhere, and

maximising potential from new build development cross-subsidy will help to achieve this objective.

It is important to note that the above investment and outcomes are only possible, other

things remaining equal, such as income and expenditure being in line with estimates, for

example:

• Rents on existing properties should be kept under review annually as required by statute. The

approved HRA reflects the government policy to decrease rents by 1% until 2019/20 and

thereafter increase at CPI at 1 %. Where costs are increasing ahead of underlying general

inflationary pressure, then our analysis suggests further corresponding real term increases are

likely to be required to rents.

• Non-viable stock continues to be adequately addressed as set out within this strategy.

Additional borrowing will increase available resources for investment, however, it also

carries additional risks which would have to be fully assessed within the context of this

strategy, particularly in respect of the guiding principles of value for money and the

sustainability of the HRA.

Having assessed the capacity for debt repayment, any additional borrowing would therefore be

used alongside existing resources to provide match funding leverage for grant funding. It would be

used to support a strategic approach to investing in new stock and improving long-term viability of

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existing stock through targeted wider estate based regeneration projects. This will ensure that the

value of every pound borrowed is maximised to deliver more than it’s worth, and whilst this cannot

be precisely quantified at this point, it would be expected to deliver additional resources over and

above additional borrowing.

The current flatted estates review and collaboration with partners, stakeholders and wider council

departments will provide and influence the wider opportunities available for members to consider.

Therefore, the potential for additional resources through borrowing and grants which may become

available, and the HRA resources to deliver the remainder of the 10 year programme post 2023,

will be subject to approval by the council, through the cabinet and full council.

4.4 Long term 30-year investment need and forecast to 2049

This 10-year strategy outlines our principles and approach to around £660m of

investment in our assets and people to 2029 (before any additional borrowing and grant

opportunities are factored in) and has allowed us to model a 30 year plan. This underpins

the strategic approach, considering the long-term viability of our assets in financial and non-

financial terms. A total of £1.5 billion capital and revenue expenditure in our stock over the full

30-year period to 2049 is envisaged. This model is flexible and adaptable to any additional

monies via grant or new borrowings, which at the point of writing have not crystallised.

Consequently this current model is deliberately conservative in approach. It can be

updated to reflect both new monies and/or changing attitudes to risk from key

stakeholders, including in particular, our elected members and so at this juncture should

be viewed in this context.

Around 90% of this is likely to be required for repair, maintenance and continual improvements to

maintain a viable housing stock and HRA for the future. Our estimate is that we require at least

£725m of capital investment over the next 30 years, an average of £33,300 per property, and at

least £675m to maintain stock, and this will only increase where we aspire to improve our aging

and underperforming stock to modern standards.

This highlights that whilst we may face opportunities and choice in the next 10 years, the

implications and impact of those choices remain to be funded over the following 20

years, and we are compelled to get it right. Continuing to invest in poor, non-viable stock

will only increase this future burden, and it is important that the right decisions are taken

through this 10-year strategy.

4.5 Funding our investment and the 30-year HRA business plan

Housing is a long-life asset involving long term funding. The council has therefore developed a

30-year HRA business plan which forecasts the financial performance of the HRA over the longer

term. It incorporates the current approved five-year programme to 2023 and provides indicative

provisions of capital and revenue repairs, maintenance and investment works thereafter. It is

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derived from our 30-year forecast of investment need from the stock condition survey which is

maintained in our asset management software system, Keystone.

Overall the 30-year income/expenditure is demonstrated in the following graph. The cash

balance is particularly tight in the first decade.

4.6 Procurement, sustainability, social housing value and value for money

We recognise we have a social responsibility to provide quality, affordable housing to meet needs

and aspirations of current and future generations. We also have an obligation to deliver value for

money for our residents.

The Public Service (Social Value) Act 2012, which requires all public bodies to be proportionately

committed to promoting enhanced social, environmental and economic values through the

procurement of goods and services and as such, “social value” is the term used to describe the

positive outcomes created by the day-to day-activities.

Delivery of both responsive and planned works will be supported by an efficiently procured effective

supply chain delivered by a procurement strategy, managed and controlled by housing services.

This ensures that adequate expertise and resources are readily available to target and achieve the

key priorities outlined within this strategy to provide the necessary certainty of delivery of housing

and council wide priorities for the borough. Continued development of the housing services’

procurement strategy will focus on achieving the desired maintenance, investment and

sustained financial growth within the HRA, and also ensuring that the principle outcomes

deliver quality, value for money homes and services, with significant social, economic

and environmental benefits.

Core repair and maintenance activities such as reactive repairs, void works and rolling planned

maintenance provides an opportunity for business continuity and growth through our in-house

service which can deliver effective outcomes and provide opportunities for local people through

apprenticeships, training and jobs through longevity of employment for local people.

45

46

Ensuring the business activities and capacity of the in-house contractor meets the needs

and priorities of Dudley’s housing will be a key priority. Dudley housing services has the

benefit of an in-house housing maintenance contractor which can operate and deliver key streams

of work ranging from responsive repairs, planned maintenance, capital and void works. With

effective management this provides an opportunity to utilise a dedicated, well trained, local

workforce to deliver business critical services with continuity, focussed on excellence and

efficiency, without the unnecessary risk flowing from excess use of private contracting.

Crucial to any delivery and supply chain will be ensuring that our investment and projects

support training and employment initiatives for local people, providing much needed

support to addressing skills shortages in maintenance and construction, and providing

real, sustainable job opportunities for local people. This will be extended wherever

reasonably practicable throughout the supply chain to support local businesses, small

and medium enterprises (SMEs) and ultimately to help support and sustain our local

economy and diverse and valued communities.

We will seek to evaluate the social value outcome of larger projects and use those outcomes to

plan new initiatives.

4.7 Action plan, performance management and monitoring

The range of actions required in order to deliver this strategy are set out in an action plan, found in

appendix one, it will be regularly reviewed and updated. The action plan is part of the chief officer

service plan 2019/22, which is consistent with the council’s corporate priorities, and details the

tasks required to be undertaken under each of the strategic priorities for housing investment.

In addition, it is important that performance management processes are put in place.

These need to be explicit and an integral part of delivering the strategy The performance

management processes will be designed to illustrate how the performance of the

council’s housing assets are improving over time.

Key risks within the strategy are also outlined in the chief officer service plan.

4.8 Strategic KPIs

The principal way in which the council measures its performance in achieving the strategic

objectives set down in the strategy will be to use KPIs (key performance indicators). KPIs are

quantifiable measures, agreed beforehand to reflect the critical success factors of an organisation.

Thus, the KPIs will be aligned to the strategic priorities set out in the strategy and designed to

effectively capture and measure progress in meeting them over time.

Current KPIs will continue to monitor the key themes from this strategy, in line with the council’s

and housing services’ performance plans. KPIs will cover the areas of:

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• Stock performance to underpin our investment - decent homes, SAP (energy), investment

requirements, viability and demand

• Safety and compliance - gas servicing in particular but also compliance and safety measures

that emerge from the recent Social Housing green paper - a new deal for social housing such as

electrics and fire safety

• Voids - performance, cost and income/rent loss

• Housing outputs (new homes) and changes in stock numbers

• Outcomes from investment, such as increasing/improving independent living and fuel

poverty

• Wider Economic and Social Value indicators such as jobs and training

In addition, to the KPIs we will aim to compare projects to create a better return on investment.

This also enables the council to track all completed and planned investment works in a co-

ordinated approach, irrespective of cost or scale of works. Our SAMS/NPV appraisal will be

updated annually to ensure we continue to maintain an appropriate evidence base to support good

investment decision making across the borough.

The council will work actively with involved residents to scrutinise, monitor programmes against

targets and work in partnership to drive forward performance improvements.

4.9 Responsibility and review of the strategy

Our chief officer for housing has overall responsibility for the ongoing development of this strategy

and ensuring the successful completion of the action plan.

The strategy will be formally reviewed on an annual basis in consultation with tenants and

leaseholders.

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Appendix 1 - action planPriority: A cleaner and greener place to live

Goal: Widen the ‘housing offer’ and diversify the borough’s housing stock including the delivery of new homes

Objective: To diversify the range of housing that is available in the borough

A.3085 To provide a range of specialist housing Apr 2019 Mar 2022

Draft Housing Strategy

Asset Management Strategy

Head of Housing Strategy

Paul Griffiths

A.3089 To contribute to the regeneration of areas and estates Apr 2019 Mar 2022

Draft Housing Strategy, Asset Management

Strategy, Local Area Action Plans

Head of Housing Strategy

Paul Griffiths

A.3098 Introduce intermediate housing for young people (18-34) Apr 2019 Mar 2022

Draft Housing Strategy,

Homelessness Strategy

Sian Evans

A.3106 Work with Dudley Council to deliver at least 1 older persons housing scheme by 2022 Apr 2019 Mar 2022 Housing Strategy

Head of Housing Strategy

Priority: A cleaner and greener place to live

Goal: Providing excellent services for tenants

Objective: Ensuring efficient and effective services that provide best value for tenants

A.3116 Undertake a review of voids and lettings and implement Action Plan Apr 2019 Mar 2020

Paul Griffiths Sian EvansIan Gardner

A.3117 Undertake a Review of the Council Housing Allocations Policy Apr 2019 Mar 2021

Draft Housing Strategy

EIASian Evans

A.3118 Undertake a review of compliance to ensure the Health and Safety of residents in their homes Jun 2019 Dec 2019

Paul GriffithsIan Gardner

A.2071 Undertake an options appraisal to determine the optimum delivery of gas servicing and maintenance Apr 2019 Mar 2020

Capital Programme and Investment

EIAIan Gardner

A.2893 Review fleet operations to optimise efficiency and service flexibility Apr 2019 Mar 202

Capital Programme and Investment

EIAIan Gardner

A.1549

To improve efficiency in income collection, including making best use of automation and technological developments, to maximise income brought in and also to support sustainment of tenancies

Apr 2019 Mar 202Catherine Ludwig

A.3119

To work collaboratively with colleagues across the Council and in other agencies to support tenants impacted by welfare reforms, including Universal Credit and the benefit cap, to maximise income, sustain tenancies, and support tenants with the changes

Apr 2019 Mar 202Catherine Ludwig

A.1535Implementation of findings from review of Re-Chargeable Repairs to maximise income and ensure that the process is efficient, effective and economical

Apr 2016 Dec 2019 Link to Housing Board

Robert Murray Catherine Ludwig

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Priority: A cleaner and greener place to live

Goal: Offering high quality housing

Objective: Implement a 30 year Asset Management Strategy to ensure a viable business for current and future tenants.

A.3122

Complete review of flatted estates and high rise stock to inform estate based regeneration of non-viable and viable stock Progressing Community and Estate Regeneration projects where it is affordable and possible to do so, acting locally to explore and deliver wider estate and township regeneration

Apr 2019 Sep 2019 Housing Asset Management Strategy

Paul Griffiths

A.3123

Develop 10 year investment housing programme following approval of the Housing Asset Management Strategy (including proposals for additional borrowing and maximising Grant Funding)

Apr 2019 Feb 2020Housing Asset

Management Strategy MTFS

Paul Griffiths

A.3124 Identify and address failing stock through rolling appraisal and progress appropriate de-investment and disposal Apr 2019 Mar 2022

Housing Asset Management Strategy

MTFSPaul Griffiths

A.3125 Complete review of designations of flatted stock, and implement any changes Apr 2019 Mar 2020

Housing asset Management Strategy

Draft Housing Strategy

Homelessness Strategy

EIA

Sian Evans

A.3128 Deliver investment in our viable core housing stock - capital programme Apr 2019 Mar 2022

Housing Asset Management Strategy

Housing Capital Programme

Paul Griffiths

A.3129 Increase our supply of new affordable council housing to meet growing local needs and demand Apr 2019 Mar 2022

Housing Asset Management Strategy

Housing Capital Programme

Paul Griffiths

Priority: A cleaner and greener place to live

Goal: Supporting vulnerable people

Objective: Working in partnership with others to ensure that anti-social behaviour and appropriate joint service interventions are in place to support communities

A.3130 Complete delivery of the Action Plan for the Council’s Sheltered Housing Apr 2019 Mar 2022

Housing Asset Management

Strategy Housing Capital

Programme

Sian Evans

A.3131Provision of more and better quality housing for older people and other vulnerable groups in need of sheltered or supported accommodation (social housing)

Apr 2019 Mar 2022

Housing Asset Management

Strategy Housing Capital

Programme

Paul Griffiths

A.3132Implement new integrated service for assessing adaptations and/or offering other housing options to Council and Housing Association tenants

Apr 2019 Mar 2022

Health & Well Being Strategy

Housing Asset Management

Strategy

Sian Evans

A.2033Promoting Independent Living to Support Vulnerable Residents through adapting homes - deliver public sector adaptations programme of works

Apr 2019 Mar 2022

Housing Asset Management

Strategy Housing Capital

Programme

Paul Griffiths

50

Priority: A cleaner and greener place to live

Goal: Developing green space

Objective: Provide a framework of good quality and accessible community space, parks & nature reserves with interconnecting green networks

A.3137

Managing our housing estates to provide cleaner, greener, safe, sustainable places ensuring that no estate suffers the blight of low demand, problematic empty housing creating local socio-economic problems

Apr 2019 Mar 2022 Robert Murray

Transformation and performancePriority: ONE COUNCIL – Building a dynamic sustainable organisation

Goal: Digitalising services

Objective: Using technology to enable better choice, access and service performance, improving the customer experience at lower cost

A.3138 Reviewing and delivering digital potential to improve safety of residents in their homes Apr 2019 Mar 2020 Paul Griffiths

A.3139 Developing a strategy for roll out and delivery of analogue to digital Telecare services Jun 2019 Mar 2020

Paul GriffithsCatherine Ludwig

A.3140Implement new integrated service for assessing adaptations and/or offering other housing options to Council and Housing Association tenants

Apr 2019 Mar 2022

Housing Asset Management

Strategy Housing Capital

Programme

Paul Griffiths

A.3141Promoting Independent Living to Support Vulnerable Residents through adapting homes - deliver public sector adaptations programme of works

Apr 2019 Mar 2022 Paul Griffiths

Transformation and performancePriority: ONE COUNCIL – Building a dynamic sustainable organisation

Goal: Developing our organisation

Objective: Attracting, recruiting, developing and equipping our workforce with the skills and knowledge to deliver the needs of the council

A.3142 Developing our workforce through recruitment and devel-opment of Management Trainees Apr 2019 Mar 2020 Heads of Service

A.3143 Encouraging use of the Apprenticeship Levy to train and develop employees Apr 2019 Mar 2020 Heads of Service

Commercial and procurementPriority: ONE COUNCIL – Building a dynamic sustainable organisation

Goal: Maximising value from procurement

Objective: Implementing a clear procurement structure, policies and procedures to ensure leaders are maximising value from procurement

A.3145 Deliver 2019/21 Procurement HA&D Plan Apr 2019 Mar 2021Capital Programme

and InvestmentEIA

Paul Griffiths

A.2892 Deliver 2019/21 Procurement HMT Plan Apr 2019 Mar 2021Capital Programme

and InvestmentEIA

Ian Gardner

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Commercial and procurementPriority: ONE COUNCIL – Building a dynamic sustainable organisation

Goal: Delivering social value

Objective: IMoving towards a more sustainable Budget and Medium Term Financial Strategy

A.3146Promoting Economic Growth in our Local Economy - using our spending power to deliver Social Value to benefit local businesses, the environment and our Communities

Apr 2019 Mar 2022 Social Value Strategy

Paul Griffiths

Commercial and procurementPriority: ONE COUNCIL – Building a dynamic sustainable organisation

Goal: Delivering social value

Objective: Moving towards a more sustainable Budget and Medium Term Financial Strategy

A.3147

Strategic Management of our Housing Stock across and within estates to deliver all housing and housing led investment in our local communities providing both Value for Money for the council and affordable housing for our tenants and other housing service users

Apr 2019 Mar 2020 Paul Griffiths

A.3148

Tackling Non-Viable Stock through a range of investment and de-investment solutions to improve VFM, financial capacity and long-term viability of the Housing Revenue Account

Apr 2019 Mar 2020 Paul Griffiths

A.3149Maximising use of capital receipts, grants and revenues from private sales development to increase resources and improve the housing offer to our residents

Apr 2019 Mar 2020 Paul Griffiths

A.3150

Efficient Re-letting of Core, Viable Empty Homes through so that all homes can be let within a reasonable time frame, are safe and meet as a minimum the decent homes standard

Apr 2019 Mar 2020Paul GriffithsSian Evans

A.3151

Develop a financial strategy to support the best use of the additional flexibility for the HRA on borrowing, making best use of resources, increasing the rental income stream and safeguarding the short- and long-term financial stability and security of the HRA

Apr 2019 Mar 2020 Catherine Ludwig

Educational outcomesPriority: Growing the economy and creating jobs

Goal: Raising skills, educational and work potential

Objective: Improve the educational attainment level; increase skills for people and support wider apprenticeships and skill development for all

A.1495Provide opportunities for Apprenticeships, either employed by the Council or its partners, and encourage the local community to access construction based training

Apr 2016 Mar 2022

Council PlanCapital Programme

and InvestmentEquality Strategy

Ian Gardner Paul Griffiths

Children’s social carePriority: Stronger and safer communities

Goal: Building strong partnerships

Objective: Work with statutory and voluntary sector partners to ensure safe and high quality care for children

A.3155 Provide a high standard of housing options advice and accommodation and support options for Care Leavers Apr 2019 Mar 2020 Childrens Services

Improvement PlanSian Evans

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Adult social carePriority: Stronger and safer communities

Goal: Maximising independence

Objective: Increase the number of independent children and adults with disabilities living in the Dudley borough

A.3157Providing housing advice and support to assist children and adults with disabilities to live independently in Dudley Borough

Apr 2019 Mar 2020 Paul Griffiths

Adult social carePriority: Stronger and safer communities

Goal: Delayed transfers of care

Objective: Deliver more safe and effective discharges from hospital; get people home quicker having spent less time in hospital

A.3159 Deliver cross tenure Adaptations and DFGs to facilitate effective discharge from hospital Apr 2019 Mar 2020 Paul Griffiths

Adult social carePriority: Stronger and safer communities

Goal: Delayed transfers of care

Objective: Deliver more safe and effective discharges from hospital; get people home quicker having spent less time in hospital

A.1084 Approve and implement Fuel Poverty Strategy Apr 2019 Mar 2020Head of Housing

Strategy Heads of Service

A.3161Addressing Fuel Poverty through improving the energy efficiency of our council stock and ensuring homes are affordable for residents to live in

Apr 2019 Mar 2020

Housing Asset Management

Strategy Housing Capital

Programme

Paul Griffiths

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Appendix 2 - case studiesCase study 1

Supporting independent living

Lea Bank Road - now Murray Grey Mews

The challenge and the opportunity

A dis-used former garage site on Lea Bank Road was identified as a potential for housing redevelopment and potentially a location suitable for residents with additional support needs.

Working with Dudley & Walsall Mental Health Trust and the council’s adult social care team, the site was redeveloped to provide 10 new homes specifically built for people with mental health needs; an apartment block of eight one-bedroom units with a designated carer’s pod and two four-bedroom homes to accommodate seven residents with a commissioned care and support package.

The impact and outcomes

This scheme enables people with care and support needs to receive help in the community and without the need to move out of the borough. This reduces costs to health and social care services for out of borough placements, reduces NHS bed blocking and keeps people closer to their family and support networks which enhances their wellbeing.

It also contributes towards addressing the lack of suitable affordable housing and specifically the shortage of accommodation for residents with additional support needs to live independently within the community.

It also removed the blight of the old disused garage site on the area and a Brownfield Land Grant of £280,000 was secured to support the overall scheme costs of £1.6M, the balance of which was met from the HRA.

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Case study 2

Provision of new affordable housing

Beech Road, Kingswinford

The challenge and the opportunity

A number of former shops on Beech Road were empty, due to a lack of demand for retail units

in that particular location. The boarded-up shops were attracting huge anti-social behaviour

issues in an otherwise very popular area.

The five maisonette properties above the shops were also in need of significant investment

and so the site was identified as having redevelopment potential.

Working with the local community, the shops and the maisonettes were demolished and work

began to build a block of 16 apartments with level access and lift in October 2017, completed

late 2018.

The impact and outcomes

This scheme provides much needed additional affordable housing in Kingswinford. It

contributes towards addressing the lack of suitable affordable housing in the borough with

targeted lets to release three bed family properties which are currently under occupied by

elderly residents.

A Brownfield Land Grant of £450,000 was secured to support the overall scheme costs of

£1.6M, the balance of which was met from the HRA.

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Case study 3

Use of garage sites and wider asset to add value

Ketley Hill Road (Golden Eagle Rise)

The challenge and the opportunity

The garages on Ketley Hill Road were not used and in need of significant investment.

The impact and outcomes

The garage site was redeveloped to provide 20 new homes including eight dormer bungalows

with level access. One home was purpose built to suit a family with specific housing needs

that could not be delivered from within the existing housing stock. Local labour was used on

the site with local trades people who lived on the estate.

This development provides much needed affordable family housing and level access

bungalows for people with additional support/mobility needs. A Brownfield Land Grant of

£234,000 was secured to support the overall scheme costs of £3.2M, the balance of which

was met from the HRA.

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Case study 4

Recycling for future housing investment

Doing more with less -disposal of long-term voids

The challenge and the opportunity

Unfortunately, some of the council’s existing properties are long term void and are not lettable

in their current state either because there is no demand and/or because the cost of bringing

those units back into a lettable standard are excessive and unaffordable to the council’s HRA.

Some of the council’s long-term void properties were empty for two years or more.

Appraisal as part of the SAMS review in 2015 identified that some of these properties would

be suitable for sale on the open market and that this would enable the council to free up its

past investment in these properties and recycle the cash proceeds back into the HRA for

future reinvestment in the council’s homes and housing services.

The impact and outcomes

The disposal of 44 properties has generated just over £4m to date, with an average of

£90,000 per property sold. As well as generating £4m in new sales proceeds for the HRA,

which can be used for future investment, the disposal of these properties has also removed an

estimated liability of £1.7m which would otherwise have to be spent on these properties. The

HRA is therefore £5.7m better off to date as a result of this initiative.

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Case study 5

Supporting Independent Living

Margaret Vine and Holloway Court

The challenge and the opportunity

Like a lot of original sheltered schemes across the UK, the council’s sheltered housing at

Margaret Vine Court and Holloway Court was out-dated and required much needed

investment to bring it up to a modern-day standard.

The impact and outcomes

The scheme was refurbished and remodelled to provide 92 units and has set a new standard

of sheltered accommodation for our elderly residents with the provision of modern, light, airy

and digitally facilitated accommodation. The standard achieved has been externally recognised

with the scheme winning the APSE 2018 Health and Wellbeing Award.

We secured £2.9m from the Homes and Communities Agency (now Homes England) to

support the overall scheme costs of £6.2M.

Following the successful refurbishment of Holloway and Margaret Vine Court an initial appraisal

of all of the sheltered housing schemes has been undertaken. This has highlighted what is

achievable as a sheltered housing standard, and there is an aspiration to improve or re-provide

existing schemes. This will ensure our provision for elderly vulnerable residents meets our new

Dudley Investment Standard, with modern facilities fit for the 21st Century, capable of

supporting independent living. Modest financial provision has been made in years 1-5, but this

will not meet our aspiration unless we continue with a sustained, robust and strategic

approach to asset management.

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References

i Independent Review of Building Regulations and Fire Safety 17 May 2018

ii Social housing green paper - a new deal for social housing 14 August 2018

iii Strategic Housing Market Assessment Part 2 - Objectively Assessed Need for Affordable Housing - HDH Planning and Development Ltd June 2017 Page 83 para 6.3

iv Strategic Housing Market Assessment Part 2 - Objectively Assessed Need for Affordable Housing -HDH Planning and Development Ltd June 2017 Page 185 Table 6.2a 2014 profile

v Dudley Council Plan 2016/19

vi Dudley Borough Development Strategy - Adopted March 2017 Page 60

vii https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/689710/W_ Mids_overview.pdf