Agenda item

(i)        Report of the Director of Transformation and Partnerships.

(ii)       Presentation by Bill Fullen, Chief Executive, County Durham Housing Group.

 

The Chairman introduced the Chief Executive of the County Durham Housing Group (CDHG), Bill Fullen who was in attendance to give an update presentation as regards the CDHG (for copy see file of minutes).

 

The Chief Executive, CDHG reminded Members of the background to the CDHG, with transfer of around 18,500 properties to the CDHG from the Council on 13 April 2015.  It was added that £150 million of finance had been secured from Barclays Bank and M&G Investments with good long-term fixed interest rates, giving a stable financial position. 

It was explained that the homes transferred were already at a standard higher than the national Decent Homes Standard (DHS), and the CDHG transfer was the first post-DHS transfer.

 

The Chief Executive, CDHG explained that subsequent to the General Election, the new Government imposed a 1% rent cut for four years and this had an impact of a £21 million loss in terms of cash over those four years, impacting upon the non-allocated resource of £70 million.

 

The Committee were reminded of the transfer Offer Document that had been developed in consultation with key stakeholders and set out the promises to tenants in relation to: extra investment in existing homes; better quality neighbourhoods; new jobs and apprenticeship; more varied services; and new homes.  It was noted that there were quarterly meetings with the Council’s Head of Economic Development and Housing, Sarah Robson to monitor progress in this regard and that of the 80 promises set out in the Offer Document, currently 76% were being provided in full, 21% were partially provided or in progress, with 3% yet to commence.

 

The Chief Executive, CDHG added that in terms of investment in the stock: £37 million of investment had been made since April 2015 resulting in the delivery of over: 1340 kitchens; 1110 bathrooms; 1020 rewires; 1300 new boilers; 1400 new roofs; over £2.8 million on disabled adaptations.

 

Councillors noted that in connection with repairs and maintenance, during 2016/17: 97.5% of responsive repairs were completed within target; 99.2% of responsive repairs appointments were made and kept; and 90.6% of customers were satisfied with the repairs and maintenance service.

 

It was explained that the Handyperson service was now available across all three landlords and Dale and Valley Homes (DVH) and Durham City Homes (DCH) had reduced their external painting programme from a 7 year cycle to a 5 year cycle, with East Durham Homes (EDH) terms to be looked at when the service goes back out to tender in 2019.

 

Members noted that in terms of better quality neighbourhoods, a Neighbourhood Quality Standard (NQS) had been approved in March 2016, which sets out what tenants could expect, and also what was expected from tenants.  It was noted that, since transfer, there had been an investment of £18.8 million through the neighbourhood investment programme.  Councillors noted that this included: safety improvements at Sherburn; sporting groups; local school projects, such as healthy eating and reading clubs; local mother and toddler groups; and community events to enhance social inclusion.

 

The Chief Executive, CDHG noted that in terms of new jobs and apprenticeships in 2016/17 the group supported, 24 customers into employment; 3 into apprenticeships; and 43 customers through training.  Members noted that the CDHG had also had 13 apprentices across the group.

 

Members noted that it was an aspiration for the CDHG to build 700 homes, with 44 new homes secured via Section 106 monies, 18 of which had been completed. 

 

 

The Chief Executive, CDHG added that the Homes and Communities Agency (HCA) grant allocation would allow for 195 new homes to be delivered, with a total of £8.6 million in terms of funding secured.  It was noted that DCHG had achieved Investment Partner status with the HCA and this allowed for direct bids to access funding.

 

It was explained that tenants wanted more varied services, these included: a new single website, launched in April 2017; welfare benefits advice; energy advice; digital inclusion; a new Universal Credit Team; and social media.  Councillors noted that looking at digital inclusion trends, it was clear there was a need to help enable people to access these services, for example Universal Credit being managed online, and use of IT being a requirement in many jobs.  The Chief Executive, CDHG noted that a lot of people under-claimed and CDHG helped around 1,400 customers resulting in approximately £3.3 million in additional benefits gained.  It was noted in terms of energy advice, 1,400 customers had been advised and £105,000 in Warn Homes Discount had been awarded, along with £14,000 in energy grants.

 

Members learned that CDHG had helped customers in terms of Universal Credit, with around 200 new claims.  It was noted the Development Team were working closely to understand the impact and learn in advance of the full roll out of the benefit.  Councillors noted that in was important to encourage people to pay their rent and to not underestimate what the impact of Universal Credit would be, noting there were areas where the impact would be more likely.  It was added that work is being undertaken to raise awareness of the support available via social media and the use of a single website.  The introduction of the single website had resulted in a 13% increase in the number of hits to the CDHG’s website in May 2017.

 

It was explained that the achievements of the group had resulted in added value including: grounds maintenance savings of £63,000 per annum; staff savings of £481,000; increase in commercial rents; £75,000 saving from updating communications; and £30,000 of external funding to expand employability and training support.

 

The Chief Executive, CDHG explained that in terms of the future for CDHG, there would be investment in existing homes, with over £64 million through their investment scheme: £20 million in 2017/18; £22 million in 2018/19; £22 million 2019/20.  It was explained that the Group Property Services would be expanded, from April 2018 they would deliver the repairs and maintenance service to all Dale and Valley Homes tenants for a 2 year period.

 

It was noted that in terms of new homes, there were plans approved and funding in place for the delivery over the next four years, with 98 bungalows for elderly and disabled people.  Members noted a mix of developments funded by s106 and CDHG funds in Crook, Rookhope and Pity Me.  Members noted that funding had been secured from the Homes and Communities Agency (HCA) in terms of delivering 121 “Rent to Buy” (RTB) properties.

 

The Chief Executive, CDHG asked Members to note that since 1996, the number of under 35 year olds owning their home had fallen from around 50% to 25% while the number in private rented accommodation had risen from around 20% to 54%.  It was added the number in social housing had remained around 20% over this time.  The Chief Executive, CDHG added that he felt that by 2020 this would change, and Members were reminded of the impact of welfare benefit changes on those under 35 years old. 

 

He added that while the majority of private rented accommodation was good, it was known that some private rented accommodation was of a poor standard and it would need to be known why people do not move into the social rented sector.  It was noted that the new RTB provision would be targeting those under 40 years old, in work, and with the option to buy after 5 years of affordable rent.  It was reiterated that how to market these effectively would be key.  He added that for those under 35 years old, and not working, other options such as shared tenancies could be looked at.

 

The Chief Executive, CDHG explained that in respect of better quality neighbourhoods a single housing operations directorate had been established, delivering more joined up services to customers.  It was added that this allowed for more resources to be invested in frontline services and local neighbourhood teams were in place to be able to enforce all elements of the Quality Standard, responding to environmental issues.  It was noted that a new group grant scheme was launched in July 2018 and a three year growth programme was developed to increase the number of apprentices across the group to 23 in 2017/18. 

 

The Chief Executive, CDHG added that there would be provision of more varied services, with: a single housing management system will deliver a more modernised service to customers, accredited in-house money and debt advice service; a group-wide Occupational Health service; and tenancy sustainment, including pre-tenancy support.  Councillors learned that the CDHG had restructured its governance arrangements and as part of this process had established VOCAL (Voice Of the Customer and Leaseholder).  VOCAL would form part of the governance structure, with up to 12 members being a mix of residents from across the County.  It was noted that VOCAL would play a key role in reviewing and shaping CDHG services giving customers a much stronger voice. 

 

The Chief Executive, CDHG concluded by noting that: significant progress had been made over the last two years; 76% of the elements within the offer document were being delivered; plans were in place to ensure progress is made on the remaining offers over the next five years; and the continuing focus would be on added value.

 

The Chairman thanked the Chief Executive, CDHG and noted the impact of Universal Credit and asked whether the support in terms of this was from a central location or whether there was outreach into communities.

 

The Chief Executive, CDHG noted there were a number of strands, there was a central Universal Credit Team and while the numbers currently effected were small, around 200 customers, there was negotiation with the Department of Work and Pensions (DWP) as regards whether it would be possible for rent to be paid directly to CDHG.  He added that this would help at an early stage as regards any rent arrears in order to help sustain a tenancy.  The Chairman asked, with Universal Credit requiring access to IT equipment in terms of payments and queries, how tenants would be supported in this regard.  The Chief Executive, CDHG noted that this was within the wider digital inclusion element of the support provided, with local hubs offering support.  He added that issues of connectivity were more problematic in rural areas, such as the Durham Dales, however the CDHG would try to help customers get online to be able to deal with the DWP.  Members noted that a survey of customers had noted that 64-65% had no internet provision in their homes, however the majority did own a smartphone and therefore this may be the best approach. 

 

The Chairman asked Members for their questions on the progress report and presentation.

Councillor E Adam noted that since 2015, there had been some positive impact in terms of the stock transfer and establishing the CDHG.  He added he was interested in terms of the DWP and changes to buying/rent, and also noted the challenge of Universal Credit and asked were there other challenges. 

 

Councillor E Adam asked in terms of issues that related to parking and footpaths, was there work undertaken in conjunction with Durham County Council (DCC) in terms of additional land or funding, or indeed work with local Town and Parish Councils.  Councillor E Adam also asked, as regards energy costs, was there plans to invest in new technologies in order to try and help address fuel poverty.

 

The Chief Executive, CDHG noted there were several challenges, with Universal Credit being the biggest risk, however another challenge was that of delivering against demand.  He explained that is some areas some types of property struggled to be let, with some 3-bed properties being subject to the spare room subsidy.  He added that this low demand in some areas led to a need for a fundamental look at asset against liability, and whether it would be better to dispose or demolish a property and build a better product.

 

The Chief Executive, CDHG explained that in respect of parking issues, a lot of footpaths, roads and hardstandings were transferred to the CDHG from DCC and the group had allocated up to £1 million each year to be invested in these areas, working with DCC Engineers as regards schemes of works and to get areas up to an adoptable standard.  In respect of new technologies and fuel poverty, the Chief Executive, CDHG explained that photovoltaic cells had been an attractive option, however, the changes made in terms of the feed-in tariff had now meant this was not as good an option.  Members noted the CDHG would look to try and secure and EU funding, while this was still possible, to look for imaginative ways to help with energy conservation/sustainability works.

 

The Chairman noted all Members would know of instances in their local areas as regards parking issues and for the need to create sufficient parking, including when looking at planning.

 

Councillor J Maitland noted that the new properties at Murton were appreciated and she was glad there was development within the village.  She added that around half were bungalows, a good option.

 

Councillor J Atkinson noted that maintenance contracts were very important and asked how vigorous had the process been in terms of assessing whether the companies had been able to do the work required and to the necessary standard.  He asked what plans were in place to tackle the outstanding jobs as tenants pay for this service as part of their rent.

 

Councillor P Jopling left the meeting at 10.20am

 

The Chief Executive, CDHG explained that this was a very important point.  He explained that around 10-15 years ago repairs were contracted out, however in the last 2-3 years many Housing Groups were bringing such services back in-house as this allowed for greater control.  It was noted that when monitoring contracts, there was a need to monitor very closely the performance.

 

Councillor J Atkinson asked as regards the £63,000 saving in terms of grounds maintenance and the Chief Executive, CDHG noted this had been achieved by using a more programmed scheme.

 

Councillor A Reed noted work she had undertaken in her electoral division with tenants looking at issues of repairs and anti-social behaviour and thanked the CDHG staff for their hard work in helping to resolve issues. 

She added that new homes for Crook would be welcomed and added that there would be a need to look at the types needed in the area, for example bungalows, and asked if there were details available of the proposed housing mix for Crook.  She added that when looking at Durham Key Options (DKO) there appeared to be few bungalows.

 

The Chief Executive, CDHG noted that he did not have the details to hand, however, he would get them for the Member and respond in due course.  He added that one scheme at Willington was exclusively bungalows, some with adaptations.

 

The Housing Manager, Marie Smith noted that there were issues in terms of demographics and that the County Durham Plan (CDP) would be the way to address this, with the details from DKO in terms of demand being provided to Spatial Planning for their use in the development of the Housing Strategy.  It was added that once need was identified, then you would need to look at how you provide against that need, noting that bungalows were not always the only options and that there was a need to have a longer term understanding of housing need.

 

Resolved:       

 

(i)            That the Economy and Enterprise Overview and Scrutiny Committee note and comment on the information provided in the CDHG’s Annual Report and the presentation provided.

 

(ii)          That the Economy and Enterprise Overview and Scrutiny Committee schedule into the Committee’s 2018/19 Work Programme consideration of the County Durham Housing Group’s Annual Report together with detail of the progress made by the group in 2017/18.