Hillingdon Council Cabinet Member and Officer Decisions
Enhancement of the Void Minimal Lettable Standard in Vacant Properties - PART II
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Democratic Services Location: Phase II Ext: 0692 DDI: 01895 250692 CMD No: 629 To: COUNCILLOR EDDIE LAVERY CABINET MEMBER FOR RESIDENTS SERVICES COUNCILLOR JONATHAN BIANCO CABINET MEMBER FOR PROPERTY, HIGHWAYS AND TRANSPORT c.c. All Members of th e Property, Highways & Transport Select Committee c.c. Gary Penticost / Liam Bentley – Place Directorate c.c. Perry Scott, Corporate Director of Place Date: 27 October 2022 Non-Key Decision request Form D ENHANCEMENT OF THE VOID MINUMUM LETTABLE STANDARDS IN VACANT PROPERTIES Dear Cabinet Member Attached is a report requesting that a decision be made by you as an individual Cabinet Member. Democratic Services confirm that this is not a key decision, as such, the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 notice period does not apply. You should take a decision on or after Friday 04 November 2022 in order to meet Constitutional requirements about publication of decisions that are to be made. You may wish to discuss the report with the Corporate Director before it is made. Please indicate your decision on the duplicate memo supplied, and return it to me when you have made your decision. I will then arrange for the formal notice of decision to be published. Neil Fraser Democratic Services Officer Title of Report: ENHANCEMENT OF THE VOID MINUMUM LETTABLE STANDARDS IN VACANT PROPERTIES Decision made: Reasons for your decision: (e.g. as stated in report) Alternatives considered and rejected: (e.g. as stated in report) Signed ………………………………………………………Date…………………….. Cabinet Member for Residents Services / Cabinet Member for Property, Highways & Transport Cabinet Member Report – 27 October 2022 Page 1 Part 1 - Public ENHANCEMENT OF THE VOID MINUMUM LETTABLE STANDARDS IN VACANT PROPERTIES Cabinet Member(s) Councillor Eddie Lavery Councillor Jonathan Bianco Cabinet Portfolio(s) Cabinet Member for Residents’ Services Cabinet Member for Property, Highways & Transport Officer Contact(s) Gary Penticost / Liam Bentley – Place Directorate Papers with report Appendix An Example of void condition and finish provided Appendix B Priority resettlement groups HEADLINES Summary To seek Cabinet Member approval for the enhancement of the minimum lettable void's standards. Putting our Residents First This report supports the Council objective of Strong Financial Management. Financial Cost This report seeks the approval to enhance the minimum lettable voids standard. The estimated additional costs for are £190k for voids redecoration and £368k to introduce an enhanced void minimum lettable standard for specific vulnerable tenants. Overall, these additional costs can be funded from existing 2022/23 budgets (HRA revenue and HRA capital works to stock). Relevant Select Committee Property, Highways and Transport. Current Electoral Ward(s) All wards. RECOMMENDATIONS That the Cabinet Member for Residents’ Services and Cabinet Member for Property, Highways and Transport approve the enhancements to the minimum lettable voids standard (MLS) as set out in the 4 recommendations below and the report: 1. To agree the immediate amendment of the MLS to include the full decoration of the void property where needed, as detailed in the report. 2. T o agree the replacement of Kitchens, bathrooms, boilers, and windows at the major voids stage if they are already listed as scheduled for planned replacement or Cabinet Member Report – 27 October 2022 Page 2 Part 1 - Public beyond reasonable repairs, where this can be contained within the current 20 -day turnaround target. 3. To agree the assessment of properties in line with PAS 2035 for the installation of energy saving measures to increase the energy rating of the property. 4. To introduce an enhanced void standard for specific ‘priority resettlement groups’ as set out in Appendix B and reflected in the report. Reasons for recommendations To enhance the MLS (minimum lettable voids standard) will improve the stock condition and where possible, deal with the backlog of works associated with “Planned works” and “energy performance requirements” whilst the property is void. Currently around 4 i n every 10 voids fall into the major works / essential works categories, therefore the opportunities present to undertake essential and necessary works while the property is void. (Recommendations 1 and 2) In some instances, the improvements to the energy rating of the property may need to be undertaken after the property has been let, however at the voids stage the property could be assessed, in line with the PAS 2035 requirements, to confirm all suitable and appropriate energy saving and carbon reducing measures, i.e., external wall insulations, solar PV, and air to air heat pumps, all as part of a “whole house retrofitting strategy”. (Recommendation 3) Properties could also be assessed to confirm if they are suitable to be extended to increase the number of bedrooms and living space, if appropriate, then recommended for major works or development as part of a separate report, with funding from the existing HRA capital internal development budget. Works are also linked to introduce three priority resettlements groups; these groups would attract an enhanced voids standard. (Recommendation 4). The proposed groups are set out below and reflected in Appendix B which are: • single person households entering general needs accommodation (excluding care leavers who receive financial support at the point of access to permanent accommodation), • Where the reason for letting is in association with domestic abuse • and young families based upon an early assessment of exceptional need. Alternative options considered / risk management Carry on with the current MLS which will not improve quality of properties for vulnerable residents. Select Committee comments None at this stage. Cabinet Member Report – 27 October 2022 Page 3 Part 1 - Public SUPPORTING INFORMATION The current MLS allowance only provides funds for statutory compliance certificates, such as Gas, electrical and asbestos management certificates and minor renovation works such as overhauling/repairing interior items. The MLS assumed that all voids are equal and that they will need a minimal amount of works to be relet. In fact, vacant properties require various levels of work which will be dependent on the condition the property when it is returned to the council, in some instances the kitchen, bathroom and windows need to be replaced due to the asset coming to the end of its useful life. As above, currently around 40 % of voids require major works. In some cases, an “ enhanced void standard” is needed to let the property, where decoration and carpets are fitted for certain targeted void sub- groups such as “ Hard to Let properties” which are usually offered to residents who are downsizing. Short Term Lets are normally given to homeless families, and the enhanced voids standard plus the supply of white goods are applied to these void types. Current void Standard definitions: 1. Standard void (MLS) 2. Non – Decent void 3. Major works void 4. Hard to let void. 5. Short term let void. Proposed amendments to the current MLS: The implementation of the MLS + standards will improve the lettings process; it will also improve the condition of the housing stock and help to increase the numbers of Planned works” and “energy performance requirements "within the borough. Full decoration of a void property (Recommendation 1). (I) Where properties require a new bathroom or kitchen, then the whole property should be decorated - walls and woodwork. (II) Properties with “high nicotine” staining throughout, the whole property to be painted. These properties are already highlighted with a priority of Non-Decent Void (NDV) and Major Void (MV) (see appendix A examples). (III) The cost for the full decoration of void properties is estimated to be £190k for 2022/23, based on 132 properties with an average unit cost of £1.4k. Cabinet Member Report – 27 October 2022 Page 4 Part 1 - Public Planned replacement of Kitchens, Bathrooms, Windows, and Boilers when necessary. (Recommendation 2) (i) Where necessary and if the existing kitchens, Bathrooms, Windows, and Boilers are beyond economic repair or they are already scheduled for planned replacement, they would be replaced at voids stage. This will enhance the condition of the property and help to reduce the backlog of planned replacements currently required. (ii) The costs for the planned replacement of Kitchens, Bathroom, Windows and Boilers are included within the current HRA Works to Stock planned programme capital budget under their specified workstreams and are due to be completed as part of those workstreams, however due to the property being vacant it gives the opportunity for those planned works to brought to the forefront of the programme. By undertaking the works while the property is void would lead to time, labour and cost efficiencies compared to completing the separate streams of works in several stages. Assessment of energy performance of property. (Recommendation 3) (I) To agree the assessment of properties in line with PAS 2035 for the installation of energy saving measures to increase the energy rating of the property to a minimum “C” level EPC (Energy Performance Certificate), e.g., External wall insulation, Air to Air heat pumps, heat recovery ventilation systems, solar PV panels, wind turbines etc. (II) This assessment with then inform future investment programs associated with Carbon reduction Specific vulnerable groups. (Recommendation 4) The table below summarises the estimated costs , which total £368k, for introducing the three priority resettlement groups under a revised MLS which is similar to short life accommodation standard. Table 1: Minimum Lettable Standard Costs for Specific Vulnerable Groups Specific Vulnerable New Tenants Estimated Households/ cost per property £’000s Group 1 - Single person vulnerable tenants 125 households @£1.8k (Note 1) 225 Group 2 - Domestic Abuse tenants 3 households @ £2.7k (Note 2) 8 Group 3 - Young Families 50 households @ £2.7k (Note 2) 135 Total 178 households 368 Note 1: This includes full redecoration, carpets, fridge freezer, cooker Note 2: This includes full redecoration, carpets, fridge freezer, cooker, locks, fencing Cost projections associated with proposed changes to the MLS have been brought forward based upon the average annual number of re-lets over a three-year period for group 1 and 2 priority resettlement groups. Cabinet Member Report – 27 October 2022 Page 5 Part 1 - Public Whilst there is a degree of certainty regarding the potential annual number of relets associated with the proposed group 1 and 2 categories, the proposal associated with group 3 [young families] is linked to a tailored approach based upon an early assessment of exceptional need. Total numbers, therefore, are less certain for this category and given that the approach would be delivered via a menu of options rather than a ‘one size fits all’, potential cost projections would be more challenging. Based upon work undertaken by front line staff groups working with new tenants, the total number of annual lettings within group 3 could be in the order of 50. It should also be noted that any support via a tailored menu of options would be in addition to any practical and financial support which is currently available from several agencies, charities, and statutory bodies. The resettlement needs of new single person households are clear and reflect the specification which is in place for ‘short-life’ accommodation. This standard specification includes floor coverings, redecoration and provision of a fridge / freezer and cooker. The average unit costs for one bedroom short-life accommodation based on the schedule of rates from the north and south area void contractors are set out below. It should be noted that these costs exclude any routine voids reservicing costs. The resettlement needs of survivors of domestic abuse can vary widely but could include one or more elements of the short-life specification in addition to improve locks / window locks and boundary fencing. Using a two-bedroom property by way of example, the short-life standard and improved locks and fencing i.e., all elements of the menu on offer would come to a total of £2.7k The numbers of potential cases relating to priority re-settlement group 3 [young families] is more difficult to quantify and the extent of support required via enhancements to the MLS are likely to vary from case to case. Key here will be an early assessment of exceptional practical support measures to ensure timely resettlement without impacting upon re-let times. To secure this outcome a workstream has been initiated to explore the potential for identifying these needs via the [‘upstream’] verification process and as part of preparing households to address their resettlement needs. This will have real potential to bring forward a tailored resettlement plan which can be kept up to date and used to better inform additional works required to specific void properties from a menu of costed options. Financial Implications This report is seeking approval to enhance the voids minimum lettable standard (MLS) , with full decoration of properties with an additional estimated cost of £190k and where possible, deal with the backlog of works associated with “Planned works” and “energy performance requirements” whilst the property is void. This report also proposes to introduce an enhanced void minimum lettable standard for specific vulnerable tenants estimated at £368k. Overall these additional costs can be funded from existing 2022/23 budgets, which includes HRA revenue voids budget of £1,703k; HRA revenue redecoration (painting) budget of £500k and HRA capital works to stock budgets relating to the specified planned works of £11,571k. Furthermore, the costs will be kept under review as part of the monthly budget monitoring process and ongoing budget requirements will be reviewed as part of the wider MTFF budget setting process The redecorations proposal of £190k could be capitalised as part of the wider refurbishment of the void property and contained within the existing HRA Capital Works to Stocks budgets. Where Cabinet Member Report – 27 October 2022 Page 6 Part 1 - Public costs cannot be capitalised, these can be funded from existing 2022/23 HRA revenue repairs budgets e.g., redecoration (painting) budget of £500k. The £386k proposals relating to vulnerable tenants could be capitalised as part of the wider refurbishment of the void property and funded within the approved 2022/23 HRA Works to Stock capital budget of £31,241k. Where costs cannot be capitalised, these can be funded from the existing 2022/23 HRA revenue voids budget of £1,703k. The proposals for the improvements for Kitchens, Bathrooms, Windows and Boiler replacements are essential works which are part of the HRA Works to Stock planned programme and would need to be completed as part of that planned programme, even if the property was not void, however due to the property being vacant it gives the opportunity to bring these properties to the forefront of the programme. Furthermore, by doing the essential works in one go when the property is void, this leads to time, labour and cost efficiencies compared to completing the separate streams of works in several stages or later when the property is occupied. There are no additional costs relating to this proposal due to the planned works cost being included within the approved 2022/23 HRA Works to Stock capital budget of £31,241k, of which £11,571k has been allocated for the planned programmes of the replacement of Domestic Boilers and the Kitchen, Bathroom and Window renewals. The HRA Green Homes Initiatives Programme approved 2022/23 capital budget totals £4,160k, funded through Social Housing Decarbonisation grant of £2,000k and match funding from Council Resources of £2,160k. If the properties meet the grant criteria the appropriate energy saving and carbon reducing measures related works could be met through this funding stream. The Clerk of Works assessment of the property at the point of becoming vacant will identify the specified works required to the property , which will be the point of clarif ication of the funding stream, any works that require capital funding will be subject to the capital release protocol. RESIDENT BENEFIT & CONSULTATION The benefit or impact upon Hillingdon residents, service users and communities? The implementation of the MLS standards will improve the lettings process, the condition of the housing stock and help to increase the numbers of planned works and energy performance requirements, ultimately benefiting residents. Consultation carried out or required None at this stage. CORPORATE CONSIDERATIONS Corporate Finance Corporate Finance has reviewed this report and concurs with the financial implications set out above, noting that the recommendation for enhancements to the minimum lettable standard. This Cabinet Member Report – 27 October 2022 Page 7 Part 1 - Public will include the replacement of Kitchen, bathroom, boiler and windows dependant on the scheduled planned replacement and current condition. The holistic assessment of properties will include energy saving measures to increases the energy rating of the property and is in line with commitments for carbon reduction. Properties could also be assessed for suitability for extensions in order to meet current housing demands. The costs are estimated at £190k and the enhanced void minimum lettable standard for specific vulnerable tenants estimated at £368k. These additional costs can be funded from existing 2022/23 budgets, which includes HRA revenue repairs budgets £500k, HRA revenue voids budget of £1,703k or be contained within the existing HRA Capital Works to Stocks budgets of £11,571k allocated to planned programmes of the replacement of Domestic Boilers and the Kitchen, Bathroom and Window renewals. This will be reviewed as part of the regular monthly budget monitoring process and the ongoing budget requirement will be reviewed as part of the wider MTFF budget setting process. Legal Legal Services confirm that by adopting the enhanced minimum lettable standard for its properties the Council will continue to comply with all legal obligations including the Domestic Minimum Energy Efficiency Standard Regulations 2015 (as amended). BACKGROUND PAPERS NIL. Cabinet Member Report – 27 October 2022 Page 8 Part 1 - Public APPENDIX A- Example of Void condition and finish provided Before: Cabinet Member Report – 27 October 2022 Page 9 Part 1 - Public After: Cabinet Member Report – 27 October 2022 Page 10 Part 1 - Public Cabinet Member Report – 27 October 2022 Page 11 Part 1 - Public Appendix B - Priority re-settlement groups Group 1 Recognise new vulnerable single person households entering general needs accommodation for the first time as a priority resettlement group. This group would include specific transfer cases associated with vulnerability / hardship e.g., Management Transfers but would exclude ‘Care Leavers’ who receive financial support at the point of accessing permanent accommodation and ‘downsizers’ who also receive financial support. Specification to reflect short life standard i.e., floor coverings, decoration, fridge freezer and cooker. Group 2 Where the reason for the letting is associated with Domestic Abuse, recognise the household as a priority resettlement group. Specification to reflect a ‘menu’ which can be offered [subject to the needs of the household] but can include floor coverings, decoration, fridge freezer, additional security works and boundary fencing. Group 3 Based upon an early assessment of exceptional need, recognise some young families as a priority resettlement group Early assessment of practical support measures is key to ensuring timely resettlement without impacting upon re-let times. Exceptional needs will be identified ‘upstream’ during the verification process and as part of preparing households to address their resettlement needs. This has potential to bring forward a tailored resettlement plan which can be kept up to date and used to better inform additional works required to specific void properties from a menu of options.
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Executive Decision Notice – 28 December 2022 Page 1
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
OFFICIAL EXECUTIVE DECISION NOTICE
PUBLISHED BY DEMOCRATIC SERVICES
Notice is hereby given that the following decision(s) have been made today by Cabinet
Members at the London Borough of Hillingdon:
Title of decision
ENHANCEMENT OF THE VOID MINUMUM LETTABLE
STANDARDS IN VACANT PROPERTIES
Reference No. 629
Date of decision Wednesday 28 December 2022
Call-in expiry date Thursday 5 January 2023
Relevant Select
Committee
Property, Highways and Transport Select Committee
Relevant Wards All Wards
Decision made
Cabinet Members
making the decision
Councillor Jonathan Bianco - Cabinet Member for Property, Highways
and Transport
Councillor Eddie Lavery - Cabinet Member for Residents’ Services
Approved
That the Cabinet Member for Residents’ Services and Cabinet
Member for Property, Highways and Transport approved the
enhancements to the minimum lettable voids standard (MLS) as
set out in the 4 recommendations below:
1) Agreed the immediate amendment of the MLS to include
the full decoration of the void property where needed, as
detailed in the report.
2) Agreed the replacement of kitchens, bathrooms, boilers,
and windows at the major voids stage if they are already
listed as scheduled for planned replacement or beyond
reasonable repairs, where this can be contained within the
current 20-day turnaround target.
3) Agreed the assessment of properties in line with PAS 2035
for the installation of energy saving measures to increase
the energy rating of the property; and,
4) i ntroduced an enhanced void standard for specific
‘priority resettlement groups’ as set out in Appendix B and
reflected in the report.
Reason for decision
The implementation of the MLS standards will improve the lettings
process, the condition of the housing stock and help to increase the
numbers of planned works and energy performance requirements,
ultimately benefiting residents.
Executive Decision Notice – 28 December 2022 Page 2
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
Alternative options
considered and
rejected
Carry on with the current MLS which will not improve quality of
properties for vulnerable residents.
Classification Part 1 – Public
Link to associated
report
Link
Relevant Officer
contact & Directorate
Gary Penticost / Liam Bentley – Place Directorate
Any interest declared
by the Cabinet
Member(s) /
dispensation granted
N/A
Implementation of decision & scrutiny call-in
[Internal Use only]
When can this
decision be
implemented by
officers?
Officers can implement Cabinet Member decision in this notice only
from the expiry of the scrutiny call-in period which is:
Thursday 5 January 2023
However, this is subject to the decision not being called in by
Councillors on the relevant Select Committee. Upon receipt of a valid
call-in request, Democratic Services will immediately advise the
relevant officer(s) and the decision must then be put on hold.
Councillor scrutiny
call-in of this
decision
Councillors on the relevant Select Committee shown in this notice may
request to call-in this decision. The request must be before the expiry
of the scrutiny call-in period above.
Councillors should use the Scrutiny Call-in App (link below) on their
devices to initiate any call-in request. Further advice can be sought
from Democratic Services if required:
Scrutiny Call-In - Power Apps (secure)
Further information These decisions, where applicable, have been taken under The Local
Authorities (Executive Arrangements) (Meetings and Access to
Information) (England) Regulations 2012.
This is the formal notice by the Council of the above executive
decision, including links to the reports where applicable.
If you would like more information on this decision, please contact
Democratic Services on 01895 250636 or email:
democratic@hillingdon.gov.uk.
Circulation of this decision notice is to a variety of people including
Members of the Council, Corporate Directors, Officers, Group
Secretariats and the Public. Copies are also placed on the Council’s
website.
Democratic Services
Executive Decision Notice – 28 December 2022 Page 3
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
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