Meeting The Scottish Housing Quality Standard
Meeting The Scottish Housing Quality Standard
1. Executive Summary 4
2. Introduction 6
6. Option Appraisal 27
7. Risk Assessment 29
8. Tenant Consultation 30
9. Milestones 31
Appendices
3
1. Executive Summary
This Standard Delivery Plan substantially updates the Council’s original Standard
Delivery Plan, submitted to Communities Scotland in April 2005. It sets out how the
Council proposes to meet the Scottish Housing Quality Standard (SHQS) by 2015.
A summary of the main points of the SDP are set out below:
The Council’s own stock strategy is based on retention of its housing stock.
The principle reason for failure of those properties which do not meet the
Standard is in the ‘Modern Facilities’ category, in particular, in relation to
modern kitchen fittings and modern bathroom facilities.
Other failures are in relation to roof related elements, external wall finishes,
energy efficiency, and safe electrical systems.
The Council will continue to deliver its current capital programme but will
shortly commence a bathroom programme, increase its kitchen programme
and substantially increase its roof and render programme.
While the impact of operational risk is assessed as being high, the Council is
confident that the low and medium assessments of the likelihood of
occurrence will continue to be adequately managed by the Council.
Furthermore, the Communities Scotland Inspection report of East Lothian
Council in 2004 concluded that ELC has maintained its housing stock in good
condition through high levels of investment and that its maintenance
programmes are well planned.
4
The Council continues to work closely with East Lothian Tenants and
Residents Panel in relation to investment and timing of its capital programme,
most recently undertaking extensive consultation to set a standard for a
bathroom replacement programme.
Key milestones have been identified to ensure that progress towards meeting
the Standard is monitored. These include specific milestones in specific years
and annual performance indicators.
5
2. Introduction
2.1.1 In February 2004, the Minister for Communities announced that the
Scottish Executive was setting a cross-tenure Scottish Housing Quality
Standard (SHQS) in line with the commitment in the Partnership
Agreement1 to introduce a decent homes standard.
2.1.4 A target date of 2015 was set for local authorities and registered social
landlords to achieve the Standard.
2.2.1 The purpose of this Standard Delivery Plan (SDP) is to set out how the
Council proposes to meet the Scottish Housing Quality Standard by
2015.
2.2.2 The aims of a Standard Delivery Plan are set out in Communities
Scotland guidance2 and are as follows:
1
A Partnership for a Better Scotland: Partnership Agreement, The Scottish Executive, 2003
2
Scottish Housing Quality Standard: delivery plan guidance and assessment criteria, Communities
Scotland, July 2004
6
To propose a series of milestones against which the plan can be
assessed over time towards 2015 and if necessary adjusted in light
of the information.
2.2.3 This Standard Delivery Plan updates the Standard Delivery Plan the
Council submitted to Communities Scotland in April 2005.
2.3.1 The table below sets out progress against milestones set for Year 0-1
(2005/06) in the Council’s last SDP:
7
2.3.2 Milestones set for Year 1 have been delivered, although slightly out
with the timescale set.
8
3 Local Strategic Housing Context
3.1.1 The 2001 census estimates the population of East Lothian at just over
90,000 and households at 38,000. In 2004, housing tenure in East
Lothian was as follows:
Owner-occupied 66%
Rented from Council 21%
Housing Association 4%
Private rented 5%
Other 4%
3.2.1 East Lothian’s Local Housing Strategy 2003 – 2013 sets out the
housing challenges facing East Lothian.
3.2.3 The features of the housing system that the Local Housing Strategy
presents are that of:
3
Household Projections for Scotland 2004 Based, GROS
9
3.2.4 The key challenge that emerged in the development of the Local
Housing Strategy is the requirement to increase the supply of
affordable housing to meet housing need in the area. The target set of
2750 affordable homes is likely only to replace those sold under right
to buy.
Stock
Percentage of 1980 East Lothian Council Stock sold
House prices
Homelessness Presentations
Income
3.3.4 The key indicators noted above show the following changes over a
four year period:
3.3.5 In summary the indicators show that East Lothian has a falling level of
social rented stock, high house prices, increased homeless applications
and sustained high levels of right to buy although this now shows signs
of tailing off.
10
3.4 Assessment of Housing Need/Demand
3.4.3 The Study also noted that East Lothian Council had experienced a
steady increase in new waiting list applicants, representing a 121%
increase over a five year period to 2003/04. The Council is currently
undertaking a waiting list review which is due to be completed at the
end of 2006. Prior to the commencement of the review, approximately
8000 households were registered on the list.
3.4.4 East Lothian Council has low turnover of its housing stock of about
5%, meaning that only around 400-500 properties become available
each year for all transfer, homeless and waiting list applicants.
3.4.6 Current evidence therefore indicates that the overall need and demand
for social housing in East Lothian remains high.
3.5.1 Low demand did not emerge as an issue in the development of the
Local Housing Strategy or its subsequent updates, nor through the
development of the Council’s Regeneration Outcome Agreement or
Community Plan. There are localised areas within East Lothian that
may experience lower demand than others in the form of a higher
number of allocation refusals, a situation exacerbated by the fact
general waiting list applicants are not currently limited in their number
of refusals. These areas are not, however, low demand in the national
context.
4
http://pear/documents/contentmanage/Lothian HNA - printed version Oct 2005-10797.PDF
5
http://www.eastlothian.gov.uk/CMISWebPublic/Binary.ashx?Document=5851
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3.6 Regeneration and Demolition Strategies
3.6.1 During the development of the Local Housing Strategy and its
subsequent Updates, issues of regeneration and demolition have not
been identified for inclusion.
3.6.2 In July 2004 East Lothian Council reviewed how East Lothian
reflected in the Scottish Index of Multiple Deprivation. The following
was noted:
3.6.3 The three areas identified as being within the most deprived 20% in
Scotland are:
3.6.4 East Lothian Council has been allocated the following monies from the
Scottish Executive’s Community Regeneration Fund over the next 2
years:
2006/07 £101,000
2007/08 £100,000
3.6.5 East Lothian Council has submitted a bid to Communities Scotland for
Housing Estate Regeneration Fund monies to deliver environmental
improvements in Prestonpans. It is understood that the outcome of this
bid will be determined on the submission of this updated Standard
Delivery Plan.
12
Improving educational attainment in East Lothian
The actions noted under the above five objectives are not focused on
physical housing regeneration although some initiatives such as home
security are related.
3.6.7 Low levels of deprivation, the high demand for Council stock and the
low debt status of the authority mean that demolition strategies are not
generally applicable to East Lothian.
3.7 Summary
3.7.1 The key housing issue in East Lothian is one of supply. East Lothian
Council experiences high demand for its housing stock. Issues of low
demand and demolition are not applicable, while deprivation and
associated physical regeneration issues are not as dominant as
elsewhere in Scotland. The projected population growth, high house
prices and increase in homeless applicants mean this demand is likely
to continue.
13
4 East Lothian Council’s Housing Stock
Area No %
14
Table 3: Housing Stock by Date of
Construction
Age No %
15
Table 4: Housing Stock by Property Class /
Level
Style No %
16
Table 6: Housing Stock by
Apartment Size
Apartment Size No %
1 Apt 55 0.66
2 Apt 1590 19.23
3 Apt 4345 52.54
4 Apt 2062 24.93
5 Apt 217 2.62
6 Apt 1 0.02
Total 8270
4.1.5 Garages
Delivering these outputs were key milestones identified for Year 0-1 in
the Council’s first SDP submission.
17
4.2.2 A representative sample of 25% of the Council’s housing stock was
surveyed, stratified by property type, date built and location. The
survey data has been provided to the Council on a bespoke database
fully populated with survey data and cloned data to 100%. The data
can be fully maintained in all respects. Individual properties can be
added or deleted with data added from either survey results or cloned
from a like type property. The database can be interrogated quickly
and easily to provide continuous monitoring and reporting capability to
assess the Council’s position in relation to the Scottish Housing
Quality Standard and inform forward programme planning. (Appendix
2 – Stock Condition Survey Report)
4.2.3 The need for robust and current information on stock condition is
acknowledged by the Council. This up to date condition data is now
available along with the software package to manage and report on that
data. The Council is committed to extending the condition database to
be populated fully with survey data, replacing the cloned data currently
held.
4.2.5 The survey work will be carried out using ‘Palm’ handheld hardware.
Training on how to use the hardware, mobile data and survey
management is to be delivered to East Lothian Council by Savills
Consultancy in mid September 2006.
18
4.3.3 There are 90 two storey houses of Orlit construction which are
designated as defective in terms of the Housing Defects Scotland Act.
These houses are subject to inspection on the recommended 5 year
cycle. Through the most recent structural inspection in adherence with
BRE guidance, they were found not to exhibit any significant structural
deterioration. The Engineer also noted that this may have been aided
by the good condition of the houses in terms that they are double
glazed, centrally heated, are externally insulated and have pitched tiled
roofs. It is assumed therefore that they have at least a remaining 30
year life expectancy.
4.3.4 There are no serious issues concerning the structural integrity of other
non-traditional building forms, which were not examined in detail as
part of a general house condition survey. All non traditional stock has
been modernised in past programmes which included the addition of
external wall insulation.
4.3.5 The Council is therefore not seeking the exemption of any stock type
from the Scottish Housing Quality Standard.
4.4.1 Key findings about the condition of the stock are set out below:
19
provision of extract fans, external lighting and mains wired smoke and
CO detectors.
All properties have central heating and whilst the Council has had a
significant programme of renewing older systems, there remain a large
number of boilers which require renewal in the next 5 years.
4.5.2 The principal area of failure is under the Modern Facilities category
particularly in relation to modern kitchen fittings and modern
bathroom facilities. Other failures are in relation to roof coverings and
related elements, external wall finishes and to a lesser extent energy
efficiency and safe electrical systems. (Appendix 3 – Baseline
Proforma (SDP Guidance Appendix 2) sets out the number of
dwellings projected to fail the Scottish Housing Quality Standard
annually in the absence of capital investment.)
4.6.1 In conjunction with tenants, the Council developed a standard for its
properties know as the ‘East Lothian Standard’. The Standard was
initially developed through a Rent Review Group which looked at
property attributes and linked them to a rent structure. This Standard
will continue to be used as the basis for the Council’s capital
programme and exceeds the standard set by the Scottish Housing
Quality Standard. Table 7 sets out on which elements the East Lothian
Standard exceeds the SHQS.
20
Table 7: East Lothian Standard by SHQS Criteria
21
5 Capital Investment and Works Plan
5.1.1 The strategic financial context in which East Lothian Council’s HRA
operates can be summarised as follows:
• Low Debt – as a result of buoyant house sale numbers and high sale
prices East Lothian was able to extinguish its housing debt by the end
of the 2004/2005 financial year. Debt has re-appeared in 2005/2006 as
a result of planned increases in capital work (Kitchen
replacement/Electrical rewires/House Repurchases etc). However, the
absolute level of debt remains low (£4.6 million).
5.2.1 Appendix 4 sets out the Schedule of Rates and Lifecyles used to
generate the 30 year Programmed renewals and Improvement costs
which are detailed in Appendix 5. These cost projections have
informed the Business Plan model. The costs estimated for elements
relating to the Housing Capital Investment Programme are affordable
within the Council’s budget of £13 million for the current year
2006/07 and are sustainable over the remaining life of the plan.
22
5.2.2 The table below sets out the average capital investment over 30 years.
5.2.3 The overall level of housing investment required to meet the Scottish
Housing Quality Standard by 2015 has been assessed at just over £49
million. This equates to an average investment of £6.123 million /
annum in the five years up to 2010 and an average £3.678 million
each year for the remaining period of the plan to 2015. Appendix 6 –
(Appendix 3 of SHQS Guidance) sets out the Capital Investment
proposed to meet the Standard.
5.2.5 The key assumptions underlying the Investment Plan have been
outlined in Appendix 8. The assumptions used in the SDP process in
respect of house sales, capital receipts, rental income, tender prices and
inflation, will be subject to ongoing review in order that consideration
can be given to any necessary adjustments to budget provision or
expenditure plans
23
5.3 Delivering the Scottish Housing Quality Standard
5.3.1 The profile of required investment against the main elements of failure
in relation to the SHQS is set out in Table 9.
5.3.3 The cost of all of the above works is included in the Stock Condition
Whole Cost results. Budget provision is included in the current
investment programme or can be contained within future programmes
over the period of the delivery plan.
5.3.4 From the above table the rate of completions at the current
programmed level for kitchens, heating and electrical rewiring requires
to be sustained at or around the same level to deliver on the anticipated
programme completion numbers. Budget provision for these
programmes has been running at this level over the previous 3 year
period and the cost of continuing these programmes at the required
level are included in forward planned maintenance estimates.
24
5.3.5 Kitchens and rewiring are carried out by ELC in house within the
Planned Maintenance and Procurement section. This work will
continue to be carried out by this team subject to periodic review.
5.3.8 From the table, the programmes for Roofing and External Wall
Finishes require to be substantially increased if the survey estimates
are to be met. Budget provision has been increased in the current
year’s programme to provide for this anticipated increase in demand. It
is likely that the existing contractors will be able to partially absorb
this additional work but in the longer term the Council may look to
spreading the work load using additional contractors.
5.3.9 The survey demand for re roofing and rendering works is not
immediate but it is recognised that there is a need to bring forward
some of these works to more evenly spread the work load.
5.3.10 An allowance has been made for garage maintenance in the survey
summary costs and is included within the heading of Related Assets.
5.4.1 Within the current housing stock there are 3005 house types that are
maisionettes, 4 in block flats and tenemental flats which feature
common or shared elements that involve us in dealing with owner
occupiers or private landlords over shared cost repair or replacement of
these elements.
25
5.4.3 The availability of Repair and Improvement Grant funding has been
the key to obtaining willing participation by owners in maintenance
and improvement schemes such as stair upgrading works. The Council
offers 2 options to owners in a stair:
5.4.4 The maintenance plus improvement work was offered with grant
funding – making it the best value option to owners – and achieving a
high success rate in providing stair upgrading works to satisfy the
requirements of the SHQS by voluntary agreement with all owners.
5.4.5 For certain larger scale shared cost common repair projects the Council
appointed independent Building Surveyors to produce a condition
report on the fabric of the common elements of the building and
provided this to all owners together with costed repair proposals. This
report and proposal would also be presented at a meeting with the
owners and participation in the repair scheme invited. In the absence of
agreement the option of serving statutory repair notice provides a final
step to ensure the completion of necessary repair and maintenance
works to the building.
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6 Option Appraisal
6.6 Background
6.2.2 It concluded that a ‘Retention Plus’ option (i.e. Stock remaining with
the Council and the delivery of an ‘East Lothian Standard’) was most
favourable to enable the Council to meet its housing and broader
corporate and regeneration objectives over the long term. The main
factors which contributed to ensuring that this option was possible
included:
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6.3 Key Changes since 2001
6.3.1 Since the Option Appraisal Study 2001 the following key changes have
occurred:
6.4 Summary
6.4.1 East Lothian Council considers that the main factors that contributed to
ensuring that ‘Retention Plus’ was the favoured option in 2001 remain
to this day. East Lothian is still a low debt authority with affordable
rents. East Lothian Council will however review the requirement to
undertake a new Option Appraisal or refresh the 2001 Option
Appraisal on a regular basis.
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7 Risk Assessment
7.1.1 Appendix 10 contains the risk register which was contained in the
Council’s original Standard Delivery Plan and it assesses the risk in
delivering the Scottish Housing Quality Standard. This identifies the
key risks, analyses the rationale behind them, highlights the key steps
required to manage these risks and notes the responsible person(s)
involved. This risk register needs to be reviewed in light of this
revised Standard Delivery Plan and will be a key action contained in
the Milestones section of this Plan.
7.1.2 The risk register will again be constructed with regard to the Strategic
Risk Register for Community Housing and Property Management.
This strategic risk register identifies the most significant threats to
achieving the objectives contained in the corporate and divisional
business plans. The same methodology and assessment techniques will
be employed for the purposes of this Standard Delivery Plan.
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8 Tenant Participation and Consultation
8.1.1 The Council and East Lothian Tenants and Residents Panel launched
their Tenant Participation Strategy in early 2005. This is currently
under review.
8.2.2 Appendix 11 outlines in full the how the Council has consulted on the
Scottish Housing Quality Standard and Standard Delivery Plan
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9. Milestones
The table below sets out the Milestones against which the Council will monitor
delivery of the Plan.
31
APPENDIX 1
_____________________
(1) In some types of housing, it is not possible to install cavity wall insulation; in other cases installation may
be prohibited by building regulations because cavity wall insulation would lead to other problems such as
water penetration and dampness.
(2) 100mm is the minimum existing insulation, which will meet the standard, but where insulation is being
installed it must meet the standard required by the building regulations.
Housing Quality Criteria definition Criteria elements Failure assessed by:
Criteria
Energy Efficient Efficient Heating • A full house central • Single Element
heating system that has Failure
an acceptable
efficiency rating (3), or
similarly efficient
heating system that is
developed in future
Additional Energy • Additional energy • Single Element
Efficiency Measures efficiency measures Failure where a
where technically necessary
feasible (4), necessary practical measure
to achieving a has not been
minimum NHER rating implemented
of 5 or SAP rating of
50
____________________________
(4) Such measures might include coated double or even triple glazing. It is recognised that it will not always
be technically feasible, without disproportionate costs, to bring certain houses up to the maximum thermal
efficiency standard. Building Standards may be relaxed if it is not reasonably practical to meet the minimum
standards.
Housing Quality Criteria definition Criteria elements Failure assessed by:
Criteria
Modern Facilities Bathroom Condition • Bathroom amenities • Single Element
And Services should include a WC, Failure
bath or shower and wash • An element fails
hand basin in good and where it requires
usable condition repair or replacement
of more than 25%
Kitchen Condition • Kitchen fittings in good • Single Element
and usable condition Failure
• An item fails where it
requires repair or
replacement of more
than 25%
Kitchen Facilities • Adequate kitchen storage • Single Element
to current building Failure
standards where practical
(1m3 within or adjacent
to the kitchen; space for a
cooker and related
activity space in front of
it to allow safe use)
________________________________
(5) In most cases, the insulation will be provided through double or triple glazing.
(6) Existing smoke detectors may be hard wired or battery powered, new installations must be hard wired.
East Lothian Council
Stock Condition Survey – Report
June 2006
EAST LOTHIAN COUNCIL
CONTENTS Page
APPENDIX 1 .........................................................................................................................12
APPENDIX 2 .........................................................................................................................13
APPENDIX 3 .........................................................................................................................14
APPENDIX 4 .........................................................................................................................15
APPENDIX 5 .........................................................................................................................16
APPENDIX 6 .........................................................................................................................19
1.1 In accordance with your instructions we have undertaken a stock condition survey of your
housing stock with a view to assessing the current and future repairs and maintenance
liability. We have surveyed a representative sample of 25% of the Council’s housing stock of
8,344 units based on the different property types and locations.
1.2 Generally the stock is in good condition following a considerable investment programme.
There is however a need to continue with the current programmes to meet the investment
need.
1.3 The majority of properties have pitched roofs which are covered in a mixture of concrete tiles,
natural slates and clay tiles. Whilst the pitch roof coverings are generally in satisfactory
condition we identified a number of properties that will require re-roofing in the short term. The
Council has previously had a significant programme of installing PVCu double glazed windows
and doors and virtually all properties have benefited from this work. Most wall finishes are
either pointed or rendered brick work and although currently in reasonable condition a
significant programme of re-pointing / re-rendering will be required during the next 15 years.
Environmental issues such as paths, fences and boundary walls have not been a priority and
some areas are in need of attention.
1.4 Internally, there has been an on going modernisation programme which has concentrated on
the replacement of kitchens, bathrooms and associated works. There is however a need for
the current programme to continue to ensure all properties meet the Scottish Housing Quality
Standard by 2015. All properties have some form of central heating and whilst the Council has
had a significant programme of renewing the older systems, there remain a large number of
boilers that will require renewal in the next 5 years. Additionally there are a small number of
properties which have a partial heating systems that would benefit from been upgraded to full.
1.5 We have made an assessment of the total repairs and maintenance costs of the stock for the
next 30 years. The total cost per unit on repairs and maintenance is £47,729. These costs
are based upon today's prices. They are inclusive of preliminaries but are exclusive of
professional fees, VAT, management and administration costs, or any decanting costs in the
event that this is necessary.
1.7 As part of the survey we have assessed the properties against the Scottish Executive’s
Scottish Housing Quality Standard. The standard was issued in February 2004 with the
intention that all properties in Scotland meet the Standard by 2015. The Standard sets out
clear criteria that a property needs to meet in order to be classified as meeting the standard.
To meet the Standard a property must:
1.8 In accordance with a strict interpretation of the Scottish Housing Quality Standard,
approximately 90% of the stock currently fail the standard and the majority of the remainder
will fail between now and 2015 without sufficient investment. The investment programme we
have identified will ensure that all properties are brought up to the Standard and are
maintained at the standard for the next 30 years.
1.9 All information recorded during the stock condition survey has been loaded onto a Microsoft
Access database and this has been used as the basis for analysing the data and producing
the cost reports. This database has been provided to the Council.
2.1 In connection with East Lothian Council’s evaluation of the investment requirements of it’s
housing stock, we were asked to submit a proposal for a Stock Condition Survey in June
2005. Our proposal submitted in July 2005 and following various discussions was
subsequently accepted.
2.2 We have undertaken a representative sample of 25% of the main housing stock to provide
reliable information on costs and programming of works. We worked with the Council to
obtain the information we required, such as address lists, location plans, details of
construction types, etc.
2.3 The survey work was undertaken during October, November and December 2005 and the
survey data was subsequently loaded onto our computer system. A summary of all costs is
included at Appendix 1, and a detailed elemental cost break down at Appendix 2.
2.4 The primary purpose of the Stock Condition Survey has been to assess the cost of the work
required to bring all properties up to the Scottish Housing Quality Standard within the next 10
years and then to maintain them at that standard for 20 years thereafter.
3.1 A database of properties was provided by the Council which was used as the basis to select
the sample and to extrapolate the costs from the survey. Great reliance has therefore been
placed on the contents.
3.2 The housing stock totals 8,344 dwellings, which we have broken into the following archetypes:
Total
Archetype Stock Surveyed
4.1 The purpose of the sampling process is to present a representative financial picture of the
maintenance requirements of the stock using detailed surveys of a limited number of
properties. The most straightforward approach to this is a simple random sample, however
where characteristics are known in advance, there is benefit in creating a “stratified” sample.
Typically, maintenance requirements will correlate closely with the characteristics of the
sample data, thereby increasing the reliability of the results from a limited sample.
4.2 The properties within the archetypes within the areas are relatively similar and, as such, the
sample survey has enabled us to produce an accurate financial picture of the repairs and
maintenance liability of the stock as a whole.
5.0 METHODOLOGY
5.1.1 The Savills team specialising in planned maintenance and stock condition surveys undertook
the survey. The team of surveyors, all of whom are Chartered Surveyors or staff of similar
standing, have extensive experience in mass survey projects and were fully briefed on the
requirements of the survey before any inspections were carried out on site. The survey team
was based in the area whilst the on site inspections were carried out.
5.2.1 Prior to survey commencement, a pro-forma was devised which was used for data collection.
The information was gathered using handheld computers and later transferred onto our
computer database for it to be checked, collated and validated. The methodology and survey
objectives were shared and tested by the Savills survey team and the Council ’s house
condition surveyors during a days pilot survey held prior to the commencement of the main
survey
5.2.2 In addition to a comprehensive briefing of all surveyors prior to commencing the inspections,
de-briefing meetings were held with all surveyors at the end of each day to enable queries to
be dealt with immediately. Spot checks were also made on site of completed surveys to check
compliance with the agreed methodology.
5.3.1 Once the surveys were completed, they were loaded onto our computer database and
extensive validation was undertaken electronically to check for anomalies and inconsistencies.
6.1.1 These are defined as “the provision, which should be adequate to cover the periodic overhaul
/ refurbishment / renewal of the building components and landlords’ fixtures and fittings, to
keep the property in lettable condition”.
6.1.2 All building elements have a natural life expectancy, at the end of which they have to be
replaced. The life expectancies used in generating costs were based on the following:
• Industry standards.
• RICS and BRE publications: “Life Expectancies of Building Components”.
• The Council’s experience.
• Our experience.
6.1.3 Our surveyors used their professional judgement to establish when a building component
requires replacement and inserted the appropriate year on the survey form. For older building
components or those which we believed to have a limited remaining life, our assessment was
based on the condition as found on site during our survey.
6.1.4 We have only recorded those items that will require renewal within the next 30 years and
those items falling outside that period have not been subject to a replacement cost within our
report.
6.2 Improvements
6.2.1 Improvement work generally involves the installation of components that do not currently exist
at a property but would enhance the property. We set out below a list of the improvements
that we have assessed as part of the survey:
6.2.2 We have profiled the improvements identified over the first 5 years following discussions with
the East Lothian Council Officers.
6.3.1 Contingency major repairs are defined as repairs of a kind, which cannot be specifically
foreseen and may arise from latent defects in construction. We have allowed a provision of
3% on catch-up repairs, improvements and programmed renewals over the 30-year period.
6.3.2 The allowance is specifically in respect of unforeseen work that has not been identified
elsewhere in the survey but, from both our experience and that of East Lothian Council, can
be predicted as likely to occur. Examples include but are not limited to, cavity wall tie failure,
uninsured subsidence/settlement, general structural defects, drainage failure and latent
defects in construction.
6.4.1 As part of the stock condition survey we have undertaken an assessment of the Councils
financial obligation to maintain the stock’s related assets. These would generally include but
are not limited to garages, unadopted roads and footpaths, play areas, hard standings and
shops.
6.4.2 We have reviewed current Council expenditure and have allowed a provision of £419,550 per
annum for the 30-year cost profile. This cost is exclusive of VAT and administration charges.
We have assumed that miscellaneous works required to the various assets will be picked up
as part of the day to day maintenance budget.
6.5.1 We have not undertaken a detailed asbestos survey as part of this exercise. However based
on our experience elsewhere we have made a total provisional of £6,282,000 per annum for
asbestos over the next 10 years to coincide with the programmes of work that we have
identified. This cost is purely for the over and above costs associated with the removal of the
asbestos and does not take into account the replacement of the component removed, making
good, decanting costs or the potential related management costs of any asbestos.
6.6.1 Responsive and Void property maintenance is defined by the OPDM as “maintenance arising
from the landlord’s obligation to carry out repairs to a property, either upon a tenant’s request
or arising from staff inspection or in connection with the re-letting of a property”.
6.6.2 The Council provided us with information on the levels of expenditure currently being
experienced for both responsive and void property maintenance. We have analysed this
information and have made an allowance of £2,931,600 per annum for the 30 year period.
These costs are exclusive of VAT and administration charges.
6.7.1 Cyclical Maintenance is defined as “maintenance and servicing, generally similar to that stated
for programmed repairs”. However, it is more specifically identified as various items recurring
on an annual basis and the servicing of installations.
6.7.2 For cyclical property maintenance we have reviewed the information supplied by the Council
and allowed a provision of £1,465,800 per annum for the 30 year profile. This cost is exclusive
of VAT and administration charges.
6.8.1 Following discussions with the East Lothian Council, we have made an allowance of
£4,188,000 over the first 10 years in respect of general Environmental Improvement works.
This will cover work not identified in the stock survey such as additional fencing, landscaping,
lighting, enhanced security measures etc. There is almost limitless work that could be
undertaken in this regard but the provision we have made is to cover the areas in most need
of this type of work.
7.1 As part of our survey we have made an assessment of the level of non-compliancy in the
housing stock against the Scottish Housing Quality Standard. This assessment has been
measured in accordance with the guidelines set out by Scottish Executive at Appendix 4.
7.2 We have identified that approximately 90% of properties fail this assessment, however, of
more concern is that we predict the remainder of the stock will fail the standard by the year
2015 if the work we have identified is not undertaken.
7.3 The works identified in the first 10 years of our costs will bring the currently non-compliant
properties up to the standard and prevent further properties becoming non decent. The works
identified in the following 20 years will ensure the properties will not fall below the standard
during this period.
7.4 A home that meets the standard, as described by Scottish Executive, is one must meet the
following criteria:
The Tolerable Standard was defined in Section 86(1) of the Housing (Scotland) Act 1987 and
updated in Section 6 (102) of the Housing (Scotland) Act 2001. A dwelling meets the Standard
if it:
• is structurally stable;
• is substantially free from rising or penetrating damp;
• has satisfactory provision for natural and artificial light, for ventilation and for heating;
• has an adequate piped supply of wholesome water within the property;
• has a sink provided with a satisfactory supply of both hot and cold water;
Failure to meet any of the standards above results in the dwelling being declared Below the
Tolerable Standard (BTS). The number and location of BTS dwellings is a topic of
considerable policy importance and it is therefore very important that an accurate assessment
of tolerability is undertaken.
It should be remembered that a property which passes the standard is not necessarily a
desirable dwelling or one in a good state of repair, but that dwellings must be lacking in basic
amenities, or be in an extremely poor condition, to actually fail.
Dwellings which fail to meet this criterion are those where either:
• one or more of the primary building components needs replacing or major repair; or
• two or more of the secondary building components needs replacing or major repair.
C – It is energy efficient
• effective insulation;
• efficient heating;
• has additional energy efficiency measures (where technically feasible) to ensure that the
property must achieve a minimum NHER rating of 5 and SAP rating of 50.
• a bathroom, that would include a WC, bath or shower and wash hand basin in good and
usable condition;
• a kitchen in good and usable condition;
• the kitchen must have reasonable facilities, these being;
Full details of the Scottish Housing Quality Standard are included at Appendix 3.
8.1 As part of the stock condition survey, we have undertaken an assessment of the energy
performance of the properties by carrying out an NHER Enhanced Level 0 survey. The data
collected has been processed by our energy consultants, Powergen Energy Solutions, and
they have analysed the results and prepared a report with their findings. A copy of this report
is included at Appendix 6.
9.1 The work recorded as part of the Stock Condition Survey has been priced using a Schedule of
Rates, a copy of which is included at Appendix 4. The Schedule has been based on the
Council’s experience of letting contracts locally and our experience with other Local
Authorities with similar numbers and types of property. If the work is planned and procured
correctly, we believe that the unit rates identified can be achieved. However, poor
planning/procurement could result in large volumes of work put on the market at the same
time resulting in “overheating” and cost increases as a consequence.
10.1 We have made an assessment of the total repairs and maintenance costs of the stock and a
summary of all costs is included at Appendix 1 and an elemental breakdown of costs is
included at Appendix 2. All costs are exclusive of management and administration charges,
professional fees, any decanting costs and VAT. All costs are on a day one basis and take no
account of future inflation.
11.0 DATABASE
11.1 In the first instance, we have loaded all survey data into our own specialist software to enable
us to validate the survey results, undertake the necessary analysis and produce the cost
reports. The completed survey database has been provided to the Council in Microsoft
Access 2002.
12.1 The inspections and report are subject to the limitations set out at Appendix 5.
Grand Total
All costs are exclusive of Professional Fees, VAT, management and administration costs and are based on today's prices. Costs are inclusive of preliminaries.
June 2006
APPENDIX 2
Programmed Renewals
All costs are exclusive of Professional Fees, VAT, management and administration costs and are based on today's prices. Costs are inclusive of preliminaries.
June 2006
savills
Programmed Renewals
All costs are exclusive of Professional Fees, VAT, management and administration costs and are based on today's prices. Costs are inclusive of preliminaries.
Improvements
June 2006
savills
All costs are exclusive of Professional Fees, VAT, management and administration costs and are based on today's prices. Costs are inclusive of preliminaries.
June 2006
APPENDIX 3
_____ _____
Dear Colleague
The Minister for Communities has made an announcement today about the Scottish Housing Quality
Standard in a statement to the Scottish Parliament. This gives details of the content of the Standard
and sets a target date for bringing houses in the social rented sector up to this Standard.
The Scottish Executive’s consultation paper “Modernising Scotland’s Social Housing”, issued in
March 2003, set out proposals for a national standard based on a minimum set of quality measures
for all houses in the social rented sector (at the time this was referred to as the Scottish Social
Housing Standard). In the meantime, Scottish Ministers announced that, following recommendations
of the Housing Improvement Task Force, they would bring in a cross-tenure Scottish Housing
Quality Standard in line with the Partnership Agreement to introduce a decent homes standard.
Decisions on the final version of the Standard have taken account of the responses to the consultation
and a summary of the responses is available from the Executive and on the Executive’s website –
www.scotland.gov.uk/consultations/housing/mssh04-00.asp. Account has also been taken of the
results of the Scottish House Condition Survey which was published in November 2003.
The intention has been to define a standard which is relevant to the 21st Century and is consistent
with views on what constitutes acceptable, good quality housing. It differs from the statutory
Tolerable Standard (a very basic standard of acceptability) and the Building Standards as they apply
to new housing.
As initially proposed in “Modernising Scotland’s Social Housing” the Standard is based on a number
of broad quality criteria. To meet the Standard the house must be:
abcdefghij
1
• there is now an explicit requirement for the required full central heating system to be energy
efficient;
• although there is not a standard requirement for double glazing, this may be necessary in certain
houses if there are problems with external noise or to ensure that the house meets the thermal
efficiency standard;
• there is a requirement for adequate noise insulation where there are problems with external noise
(the possibility of having a noise insulation standard for noise generated within the building was
considered but rejected on grounds of practicality);
• mechanical ventilation should be provided in either the kitchen or bathroom, or both, if there are
persistent problems of condensation dampness;
• the suggested requirement for a second WC in houses with 3 or more bedrooms has been dropped
because of the practical difficulties of adapting existing houses to add an additional WC;
• there is a requirement to ensure that common areas and facilities linked to the house but external
to the dwelling are in good and safe order with adequate lighting.
Careful consideration was given to whether the Standard should include accessibility requirements.
There is an existing ‘visitability’ standard for new build properties that aims to make it much easier
for disabled persons to visit the house in question. A higher standard is promoted by Communities
Scotland for new build socia l housing in accordance with the ‘Housing for Varying Needs’ design
guidance based on the ‘barrier free’ concept. As well as containing many similar features to the
‘visitability’ standard, it provides for additional specifications to help disabled occupants.
Many respondents commented that these standards could not be realistically applied to all existing
properties. There were concerns that it could give rise to significant rebuilding at disproportionate
cost. It was also recognised that different occupants have different needs and that many houses
which could never be adapted to provide suitable housing for persons with disabilities, nevertheless
provide quite satisfactory housing for most households. Whilst the Executive has, therefore, decided
not to include any accessibility requirements in the Standard itself, it fully recognises the need to
ensure that there is suitable housing for persons with disabilities. The Executive expects each local
authority, through the process of preparing Local Hous ing Strategies, to identify, over time, the scale
and nature of these needs and to draw up proposals for meeting any shortfall.
The intention is that the Scottish Housing Quality Standard is relevant to the housing stock as a
whole. Its application will, however, vary according to tenure.
In the social rented sector, the Minister has made it clear that she expects local authorities and
registered social landlords to ensure that their stock meets the standard by 2015. However they will
be able to set the ir own milestones for progressing towards the 2015 target date, taking account of
their local circumstances. They will also be expected to prepare Standard Delivery Plans for
submission to Scottish Ministers by April 2005 at the latest; these will be assessed by Communities
abcdefghij
2
Social landlords may, following consultation with their tenants, wish to augment the Standard with
additional local specifications. The Executive has no difficulty with this providing there are clear
plans for achieving the national Standard and the additional resources are available.
In the private sector, aside from instances where owners may be required to, for example, bring
properties up to the Tolerable Standard or rectify serious disrepair that has been subject of a statutory
notice, it is ultimately a matter for individual owners to decide whether to make improvements if
their properties do not meet the Standard. However, local authorities will wish to take account of the
Standard in monitoring the condition of the private sector housing stock in their areas; they will need
to consider what measures might be adopted to encourage private owners to undertake relevant
works and to report on this in future Local Housing Strategies.
If you have any queries on the Standard, please contact Mary MacDonald (tel: 0131 244 5569)
(e-mail [email protected]) or Helen Jones (tel: 0131 244 5570)
(e-mail [email protected]) in the first instance.
Yours sincerely
MIKE NEILSON
abcdefghij
3
Housing Quality Criteria Criteria definition Criteria elements Failure assessed by:
COMPLIANT WITH THE The Tolerable Standard Below Tolerable Standard Single Primary Failure
TOLERABLE STANDARD
FREE FROM SERIOUS Primary Building Elements Wall structures Single Primary
DISREPAIR Internal floor structures Element Failure.
Foundations An element fails where
Roof structure it requires repair or
replacement of more
than 20%
Secondary Building Roof covering Failure by two or more
Elements Chimney stacks elements.
Flashings An element fails where
Rainwater goods it requires repair or
External wall finishes replacement of more
Access decks/ balustrades than 20%.
Common access stairs /
landings, pathways within
the curtilage of the
dwelling
Individual dwelling
balconies / verandas
Individual dwelling,
attached garages, internal
stairs
Damp Proof Course
Windows/ doors
Common windows/ roof
lights
Underground drainage
ENERGY EFFICIENT Effective Insulation Cavity insulation where Single Element Failure
technically feasible and
appropriate1
100mm loft insulation
where appropriate 2
Insulation of hot water
tanks and pipes (and cold
water tanks as an ancillary
measure)
1
In some types of housing, it is not possible to install cavity wall insulation; in other cases installation may be
prohibited by building regulations because cavity wall insulation would lead to other problems such as water
penetration and dampness.
2
100mm is the minimum existing insulation which will meet the standard, but where insulation is being
installed it must meet the standard required by the building regulations.
abcdefghij
4
3
An inefficient central heating system is defined here as being:
• a solid fuel boiler with an annual seasonal efficiency of 55% or less
• a natural gas boiler with an annual seasonal efficiency of 55% or less
• an oil-fired boiler with an annual seasonal efficiency of 65% or less
• a gravity or semi-gravity heating system more than 20 years old.
4
Such measures might include coated double or even triple glazing. It is recognised that it will not always be
technically feasible, without disproportionate cost, to bring certain houses up to the minimum thermal efficiency
standard. Building Standards may be relaxed if it is not reasonably practical to meet the minimum standards.
abcdefghij
5
5
In most cases, the insulation will be provided through double or triple glazing.
6
Existing smoke detectors may be hard wired or battery powered; new installations must be hard wired.
abcdefghij
6
Central heating boiler Gas warm air Per Prop 15 £900 £900 £900
Central heating boiler Elec warm air Per Prop 15 £900 £900 £900
Central heating boiler Solid fuel Per Prop 15 £900 £900 £900
Central heating boiler Communal Per Prop 15 £900 £900 £900
Central heating boiler Other Per Prop 15 £900 £900 £900
Central heating carcass Radiators Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Storage Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Gas warm air Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Elec warm air Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Solid fuel Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Communal Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Other Per Prop 30 £1,800 £1,800 £1,800
Room heating Gas fires No 15 £300 £300 £300
Room heating Elec fires No 15 £150 £150 £150
Room heating Solid fuel No 60 £250 £250 £250
Electrics CCU Rewireable Per Prop 30 £500 £500 £500
Electrics CCU MCBs Per Prop 30 £500 £500 £500
Electrics wiring01 PVC Per Prop 30 £1,750 £1,750 £1,750
Electrics wiring01 Rubber Per Prop 30 £1,750 £1,750 £1,750
Electrics wiring01 MICC Per Prop 30 £1,750 £1,750 £1,750
Gas/Oil systems Unsafe Info only 50 £1,000 £750 £500
Electrical systems Safe Info only
Electrical systems Unsafe Info only 50 £1,000 £750 £500
Internal lead pipework None Lm
Internal lead pipework Yes Lm 30 £50 £50 £50
Ext ent doors 01 Timber solid No 30 £500 £500 £500
Ext ent doors 01 Timber single glazed No 30 £500 £500 £500
Ext ent doors 01 Timber double glazed No 30 £500 £500 £500
Ext ent doors 01 PVC solid No 30 £500 £500 £500
Ext ent doors 01 PVC single glazed No 30 £500 £500 £500
Ext ent doors 01 PVC double glazed No 30 £500 £500 £500
Ext ent doors 01 Aluminium single glazed
No 30 £500 £500 £500
Ext ent doors 01 Aluminium double glazed
No 30 £500 £500 £500
Ext ent doors 01 Composite solid No 30 £500 £500 £500
Ext ent doors 01 Composite single glazed
No 30 £500 £500 £500
Ext ent doors 01 Composite double glazed
No 30 £500 £500 £500
Ext ent doors 02 None No
Ext ent doors 02 Timber solid No 30 £500 £500 £500
Ext ent doors 02 Timber single glazed No 30 £500 £500 £500
Ext ent doors 02 Timber double glazed No 30 £500 £500 £500
Ext ent doors 02 PVC solid No 30 £500 £500 £500
Ext ent doors 02 PVC single glazed No 30 £500 £500 £500
Ext ent doors 02 PVC double glazed No 30 £500 £500 £500
Ext ent doors 02 Aluminium single glazed
No 30 £500 £500 £500
Ext ent doors 02 Aluminium double glazed
No 30 £500 £500 £500
Ext ent doors 02 Composite solid No 30 £500 £500 £500
Ext ent doors 02 Composite single glazed
No 30 £500 £500 £500
Ext ent doors 02 Composite double glazed
No 30 £500 £500 £500
Secure front door No Info only 30 £200 £200 £200
Secure front door Yes Info only 30
Secure rear door Not applicable Info only 30
Secure rear door No Info only 30 £200 £200 £200
Secure rear door Yes Info only 30
Entry phone None Per Prop 15
Entry phone Yes Per Prop 15 £700 £700 £700
Smoke detectors None No
Smoke detectors Battery No 15 £150 £150 £150
Smoke detectors Mains wired No 15 £150 £150 £150
Extract fan kitchen None No
Extract fan kitchen Yes No 15 £150 £150 £150
Extract fan bathroom None No
Extract fan bathroom Yes No 15 £150 £150 £150
Extensive condensation/damp None Info only
Extensive condensation/damp Yes Info only 15 £500 £500 £500
Internal floor structure Solid M2 50 £55 £55 £55
savills
East Lothian Council
Schedule of Rates
1.1 Repairs and replacements have been costed on a “like for like” replacement basis, with
improvements and contingency works dealt with as a separate exercise where they do not
clearly form part of the repair process. In the event of remedial works requiring vacation of the
property, no allowance has been made in the costings for such relocation.
1.2 Savills have not undertaken structural surveys of the properties and have not inspected
woodwork or other parts of the structure, which were covered, unexposed or inaccessible. It is
therefore not possible to report that such parts are free from defects.
1.3 Inspections have not been made of flues, ducts, voids or any similarly enclosed areas, access
to which was not readily available at the time of our inspection and we are therefore unable to
report that such areas remain free from defect.
1.4 No specific inspection or specialist testing has been undertaken to establish whether high
alumina cement concrete, calcium chloride additives, woodwall slab permanent formwork
construction, asbestos or other deleterious materials are present within the construction.
1.5 No samples have been taken nor any analysis made of the sulphate content of the load
bearing sub-soil adjacent to the foundations.
1.6 No testing of electrical, mechanical, water, drainage, air conditioning, lifts or other services
have been undertaken by Savills.
1.7 Savills have not made any formal enquiries in respect of existing user rights, town planning
and road widening, legal interests, fire certificates, effluent agreements, party wall
agreements, prescriptive rights, easements, wayleaves, statutory consents or contaminated
land.
1.8 We have not included in our calculations any costs or fees incurred which might arise from the
application of the Party Wall Act 1996.
1.9 We have not inspected areas of the property/structure which are covered, unexposed or
inaccessible and we are, therefore unable to report that any such part is free from asbestos.
1.11 It is known that asbestos materials are frequently concealed within the fabric of buildings or
within sealed building voids so that it is not possible to regard the findings of any survey as
being definitive. It must always remain a possibility that further asbestos containing materials
may be found during refurbishment or demolition activities.
1.12 This type of survey does not include for the accessing of cavity wall voids, ceiling voids, risers,
ducts or concealed spaces in the fabric of the building, where access would require the use of
specialist equipment or tools, or where inspection would cause damage to redecoration,
fixtures, fittings or the structure of the building. Areas will not be inspected which require the
removal or relocation of carpets, furniture, fixtures or fittings unless specifically requested by
the Client.
ENERGY SURVEY
Energy
Efficiency
report for the housing stock
of East Lothian Council
Contents
Section Description
1.0 Executive summary
2.0 Introduction
3.0 The measures of performance
Appendix
A Individual national home energy ratings
The report has been produced using the National Home Energy Rating Scheme (NHER). This
measures the energy efficiency of a home on a scale of 0-10. A house scoring 0 would have
very high running costs and very low levels of insulation. A house scoring 10 would be built
to Scandinavian levels of insulation with a very efficient heating system and very low running
costs. The average score of a house in the UK is approximately 5.0 . A house built to 1995
building regulations would score around 7.0.
A sample of two thousand and eighty seven properties of the housing stock was surveyed by
Savills Commercial Limited. The information was subsequently entered into the ProBase
Database Management System. This is a system, which holds a unique record for every
individual property yet enables you to look at the energy efficiency of large numbers of
properties all at once.
Through the continued use of the ProBase Database Management System and utilising the
information contained in this report, East Lothian Council will be able to look at the
effectiveness of various improvement options and aid in the planning of maintenance
programs by applying measures where they are most needed and prove most cost effective.
It is essential that an energy policy is developed in order to set targets and to set out how
those targets are going to be achieved. It is recognised that the commissioning of this report
is a step in the right direction.
The surveys were carried out to NHER enhanced level 0. This is the most basic level of survey
and includes floor areas.
The average values stated in this report for the NHER, Standard Assessment Procedure (SAP)
and Building Energy Performance Index (BEPI) are calculated from the raw data for the
individual properties and have not been rounded down.
The results show that the housing stock has an average NHER of 6.1; which is higher than
the Social Housing average of 6.0. The average SAP rating of the stock is 63.0; this is higher
than the national average of 51.
The National Home Energy Rating is the country's leading provider of energy labels. The
scheme is administered by National Energy Services Limited, part of the National
Energy Foundation, an educational charity dedicated to the promotion of energy
efficiency.
Most of the country's Local Authorities and Social Housing Providers are members of
the scheme and it is the biggest provider of energy labels in the social housing sector.
The survey data was then entered into the ProBase Database Management System.
This allows all the energy information on the surveyed properties to be stored. There is
a unique record for every property.
Once 2087 of the housing stock records were complete, the files were processed in
order to create an energy rating for each property. The ratings produced were NHER,
BEPI, SAP and Carbon Dioxide.
The NHER is a score of a homes energy efficiency on a scale of 0 to 10. The rating is based on
total running costs per square metre of floor area under standard occupancy conditions.
A home scoring 0 would be very energy inefficient and consequently very expensive to run. A
home scoring 10 is very efficient and cheap to run. Most homes in the UK score about 5.0; while a
house built to current building regulations would score between 8 and 9 on the scale. The average
of East Lothian Council's properties is 6.1.
The BEPI is a measure of the performance of the fabric of the building, independent of the
heating system. It's based upon the calculation used in the energy target method of meeting the
1995 Building Regulations.
A score of approximately 120 means that the insulation in the building will meet the requirements
of the 1995 Building Regulations.
A score of 150 means that the insulation in the house is 25% better than the 1995 Regulations.
The average BEPI of the housing stock is 94.1.
The SAP is the Government's preferred energy rating initially introduced as a way to compare
different energy labels being delivered within the UK.
The SAP is a subset of the NHER and uses simplified versions of the same algorithms. The
simplifications have been made so it conforms to the requirements of the Building Regulations.
The main differences between the SAP and the NHER are that the SAP is independent
of location and does not take into account energy used by lights and appliances.
The average SAP for the housing stock is 63.0, which is higher than the national average of 51.
CO2 emissions
The CO2 emissions are those calculated for the fuel used in the dwelling under standard
occupancy conditions.
The calculated emissions include upstream effects associated with fuel conversion, refining
and delivery.
This proforma should capture the number of dwellings you project will fail the Scottish Housing Quality Standard in the absence of your capital works investment,
which you should set out in appendix 3.
Criteria NOW 2008 2009 2010 2011 2012 2013 2014 2015
Tolerable Standard 3 3 3 3 3 3 3 3 3
Free From Serious Disrepair 1026 2123 3036 3796 4464 5087 5414 5591 5653
Energy Efficient 4303 4755 5189 5610 5796 5935 6054 6207 6369
Modern Facilities 4167 4592 4984 5350 5548 5760 5947 6115 6320
Healthy Safe and Secure 5483 5483 5483 5483 5483 5483 5483 5483 5483
Technical Notes
1. The Standard criteria (Tolerable Standard, Free from Serious Disrepair, Energy Efficient, Modern Facilities and Services and Healthy, Safe & Secure)
Landlords should record the number of properties under each of these categores for each year. If a property fails on more than one category (e.g. Tolerable Standard and Energy Efficient), please record that
property under every category on which it fails the Standard. Please also note that the Free from Serious Disrepair category is subject to pass/fail rules that are different from the pass/fail rules for the other
categories of the Standard. Landlords should refer to the Scottish Executive's letter of definition on the Standard, issued in February 2004, for guidance to help them determine whether a property passes or fails
the Standard. They might also wish to refer to a clarification letter on the Standard, issued in July 2004.
2. Total Stock Number
The total stock number is taken as at the end of the financial year, which is assumed to be 31 March. If the year end is not 31 March, please make this clear on the form.
East Lothian Council Savills
Draft Schedule of Rates
Central heating boiler Gas warm air Per Prop 15 £900 £900 £900
Central heating boiler Elec warm air Per Prop 15 £900 £900 £900
Central heating boiler Solid fuel Per Prop 15 £900 £900 £900
Central heating boiler Communal Per Prop 15 £900 £900 £900
Central heating boiler Other Per Prop 15 £900 £900 £900
Central heating carcass Radiators Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Storage Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Gas warm air Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Elec warm air Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Solid fuel Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Communal Per Prop 30 £1,800 £1,800 £1,800
Central heating carcass Other Per Prop 30 £1,800 £1,800 £1,800
Room heating Gas fires No 15 £300 £300 £300
Room heating Elec fires No 15 £150 £150 £150
Room heating Solid fuel No 60 £250 £250 £250
Electrics CCU Rewireable Per Prop 30 £500 £500 £500
Electrics CCU MCBs Per Prop 30 £500 £500 £500
Electrics wiring01 PVC Per Prop 30 £1,750 £1,750 £1,750
Electrics wiring01 Rubber Per Prop 30 £1,750 £1,750 £1,750
Electrics wiring01 MICC Per Prop 30 £1,750 £1,750 £1,750
Gas/Oil systems Unsafe Info only 50 £1,000 £750 £500
Electrical systems Safe Info only
Electrical systems Unsafe Info only 50 £1,000 £750 £500
Internal lead pipework None Lm
Internal lead pipework Yes Lm 30 £50 £50 £50
Ext ent doors 01 Timber solid No 30 £500 £500 £500
Ext ent doors 01 Timber single glazed No 30 £500 £500 £500
Ext ent doors 01 Timber double glazed No 30 £500 £500 £500
Ext ent doors 01 PVC solid No 30 £500 £500 £500
Ext ent doors 01 PVC single glazed No 30 £500 £500 £500
Ext ent doors 01 PVC double glazed No 30 £500 £500 £500
Ext ent doors 01 Aluminium single glazed No 30 £500 £500 £500
Ext ent doors 01 Aluminium double glazed No 30 £500 £500 £500
Ext ent doors 01 Composite solid No 30 £500 £500 £500
Ext ent doors 01 Composite single glazed No 30 £500 £500 £500
Ext ent doors 01 Composite double glazed No 30 £500 £500 £500
Ext ent doors 02 None No
Ext ent doors 02 Timber solid No 30 £500 £500 £500
Ext ent doors 02 Timber single glazed No 30 £500 £500 £500
Ext ent doors 02 Timber double glazed No 30 £500 £500 £500
Ext ent doors 02 PVC solid No 30 £500 £500 £500
Ext ent doors 02 PVC single glazed No 30 £500 £500 £500
Ext ent doors 02 PVC double glazed No 30 £500 £500 £500
Ext ent doors 02 Aluminium single glazed No 30 £500 £500 £500
Ext ent doors 02 Aluminium double glazed No 30 £500 £500 £500
Ext ent doors 02 Composite solid No 30 £500 £500 £500
Ext ent doors 02 Composite single glazed No 30 £500 £500 £500
Ext ent doors 02 Composite double glazed No 30 £500 £500 £500
Secure front door No Info only 30 £200 £200 £200
Secure front door Yes Info only 30
Secure rear door Not applicable Info only 30
Secure rear door No Info only 30 £200 £200 £200
Secure rear door Yes Info only 30
Entry phone None Per Prop 15
Entry phone Yes Per Prop 15 £700 £700 £700
Smoke detectors None No
Smoke detectors Battery No 15 £150 £150 £150
Smoke detectors Mains wired No 15 £150 £150 £150
Extract fan kitchen None No
Extract fan kitchen Yes No 15 £150 £150 £150
Extract fan bathroom None No
East Lothian Council Savills
Draft Schedule of Rates
APPENDIX 5
Grand Total
All costs are exclusive of Professional Fees, VAT, management and administration costs and are based on today's prices. Costs are inclusive of preliminaries.
Programmed Renewals
All costs are exclusive of Professional Fees, VAT, management and administration costs and are based on today's prices. Costs are inclusive of preliminaries.
Programmed Renewals
All costs are exclusive of Professional Fees, VAT, management and administration costs and are based on today's prices. Costs are inclusive of preliminaries.
Improvements
All costs are exclusive of Professional Fees, VAT, management and administration costs and are based on today's prices. Costs are inclusive of preliminaries.
This proforma sets out the capital investment that landlords propose in order to meet and maintain the Scottish Housing Quality Standard
Landlords may find that remedial works might cover more than one category. For instance repairs to ensure the property meets the Tolerable Standard might also improve the bathroom. Where this is
the case, landlords should take care to record the cost only once. For more information on this part of the Standard delivery plan, please see paragraph 4.22 in the delivery plan guidance. For more
information on the categories that make up the Standard, please see appendix 1 in the delivery plan guidance, or consult the Scottish Executive's letter of clarification from July 2004.
Note: All figures include preliminaries, but exclude contingencies and fees.
YEAR
Criteria NOW 2008 2009 2010 2011 2012 2013 2014 2015
Tolerable Standard £0 £0 £0 £0 £0 £0 £0 £0 £0
Secondary Building Element - Roof Covering £113,100 £269,185 £264,245 £234,425 £667,985 £793,770 £836,510 £861,010 £770,015 £722,935
Secondary Building Element - Chimney Stacks £9,792 £6,250 £0 £0 £7,500 £0 £5,000 £7,500 £6,250 £6,563
Secondary Building Element - Flashings £21,131 £13,650 £23,438 £23,063 £76,931 £100,160 £98,375 £85,729 £110,700 £83,731
Secondary Building Element - Rainwater Goods £69,500 £378,764 £383,911 £370,876 £208,145 £196,113 £214,770 £216,979 £181,822 £49,780
Secondary Building Element - External Wall Finishes £214,860 £277,320 £260,580 £306,350 £644,970 £558,510 £464,640 £593,910 £521,190 £1,221,930
Secondary Building Element - Access Decks / Balustrade £5,400 £6,450 £750 £0 £1,300 £850 £850 £4,000 £3,500
Secondary Building Element - Common Access Stairs £150 £2,280 £3,335 £2,200 £16,595 £4,460 £9,405 £9,425 £10,525 £6,875
Secondary Building Element - Pathways £621,488 £220,338 £222,398 £195,763 £225,920 £285,326 £257,694 £249,997 £261,098 £683,529
Secondary Building Element - Balconies / Verandas £770 £1,680 £2,660 £1,520 £2,710 £1,750 £1,610 £410 £1,490 £1,340
Secondary Building Element - Attached Garages £235,230 £50,432 £37,912 £34,112 £39,076 £50,406 £65,708 £42,366 £56,882 £37,410
Secondary Building Element - Internal Stairs £4,000 £0 £0 £0 £0 £0 £0 £0 £0
Secondary Building Element - Damp Proof Course £0 £0 £0 £0 £0 £0 £0 £0
Secondary Building Element - Windows £27,900 £10,850 £17,360 £18,290 £25,730 £61,380 £62,000 £36,270 £11,780 £426,084
Secondary Building Element - Doors £15,600 £0 £6,500 £0 £2,600 £1,950 £0 £6,500 £10,400 £68,900
Secondary Building Element - Common Windows / Roof Lights £0 £0 £0 £0 £0 £0 £0 £0
Secondary Building Element - Underground Drainage £3,600 £0 £0 £0 £0 £0 £0 £0 £0
Serious Disrepair - Secondary £1,337,120 £1,236,148 £1,228,789 £1,187,348 £1,918,162 £2,055,125 £2,016,562 £2,110,946 £1,946,151
Modern Bathroom - Full Bathroom Amenities £1,690,100 £835,200 £891,900 £896,200 £375,200 £331,800 £409,200 £451,000 £380,600 £962,600
Facilities &
Services
Modern
Modern Kitchen - Kitchen Fittings £7,960,500 £1,597,500 £1,603,000 £1,471,000 £909,500 £983,000 £920,000 £918,000 £938,000 £581,000
Kitchen Facilities - Adequate Kitchen Storage £11,500 £0 £0 £0 £0 £0 £0 £0 £0
Kitchen Facilities - Safe Working Arrangements £420,000 £0 £0 £0 £0 £0 £0 £0 £0
Kitchen Facilities - Sufficient Power Outlets £160,400 £0 £0 £0 £0 £0 £0 £0 £0
Modern Facilities £10,242,500 £2,432,700 £2,494,900 £2,367,200 £1,284,700 £1,314,800 £1,329,200 £1,369,000 £1,318,600
GRAND TOTAL £17,083,725 £4,543,748 £4,553,089 £4,434,848 £3,565,962 £3,699,825 £3,672,062 £3,828,946 £3,622,051
Name of local authority: East Lothian Council Name of contact: Anthony Gillespie
Phone: 01620-827702
SCOTTISH HOUSING QUALITY STANDARD (SHQS)
Financial summary worksheet 3 of 3 - CAPITAL SUMMARY
Note: these figures should be in nominal terms. In other words, they should not be adjusted to take account of inflation.
Year 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 TOTAL
£000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s
Capital investment to meet SHQS 6,123 6,123 6,123 6,123 6,123 3,678 3,678 3,678 3,678 3,678 49,005.0
Other capital investment 5,268 5,268 5,268 5,268 5,268 3,213 3,213 3,213 3,213 3,213 9,173 51,577.0
Total Capital Investment 11,391 11,391 11,391 11,391 11,391 6,891 6,891 6,891 6,891 6,891 9,173 100,582.0
FINANCED BY1…
Year 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 TOTAL
£000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s
Capital funded from current revenue2 0 2,000 2,000 1,750 1,400 1,219 1,219 1,219 1,219 1,219 1,500 14,745.0
Capital borrowing 3,829 1,829 2,774 3,969 4,319 0 0 0 0 0 2,001 18,721.0
Income from Right to Buy receipts 7,562 7,562 6,617 5,672 5,672 5,672 5,672 5,672 5,672 5,672 5,672 67,114.9
Other income (please specify) 0 0 0 0 0 0 0 0 0 0 0 0.0
Total Funding 11,391 11,391 11,391 11,391 11,391 6,891 6,891 6,891 6,891 6,891 9,173 100,580.9
MANAGEMENT OF DEBT
Year 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
£000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s
Opening debt 4,604 8,216 9,740 12,143 15,642 19,367 20,013 19,346 18,701 18,077 17,475
New borrowing 3,829 1,829 2,774 3,969 4,319 0 0 0 0 0 2,001
Debt repayment 217 304 371 471 593 646 667 645 623 603 616
Debt carried forward3 8,216 9,740 12,143 15,642 19,367 20,013 19,346 18,701 18,077 17,475 18,860
Stock number at end of financial year4 8097 7937 7797 7677 7557 7437 7317 7197 7077 6957 6837
Debt per house5 1,015 1,227 1,557 2,037 2,563 2,691 2,644 2,598 2,554 2,512 2,759
Technical notes
1 How the landlord will finance the total capital investment.
2 This figure should match the figure provided on appendix 5, sheet 1, "Assumptions".
3 Debt carried forward = (opening debt + new borrowing) - debt repayment
4 This figure should be the same as that quoted in appendix 5, sheet 1, "Assumptions".
5 Debt per house = debt carried forward/total stock numbers at the end of the financial year
APPENDIX 8
KEY ASSUMPTIONS UNDERPINNING INVESTMENT PLAN
Description Assumption
House Valuations The assumed figures for house valuations are based
upon the average District Valuer valuations, net of
discount, over the past two years. The figure in the
Updated SHQS Delivery Plan is £47,264 which is
a 23% increase from the assumption in the original
plan.
House Rents Rental income within the various appendices is
based upon the average rent for ELC properties as
calculated for the CIPFA Rents and Service
Charges return for 2006/2007. East Lothian
Council has had a rent ‘freeze’ for the past two
years and the Updated rent figures will be the same
as those originally submitted.
House Sale Numbers Revisions have been made to these assumptions in
the Updated Delivery Plan. House Sale numbers
for 2006/2007 within the financial model now total
160 for the year. This is close to the actual number
achieved during 2005/2006 and is a significant fall
from the figures in previous years. However, this is
predicted to remain relatively stable for the next
five years with a declining trend thereafter as more
tenants move over to the new Scottish Secure
Tenancy and new RTB entitlements. An impact is
also noted from the reducing pool of stock and
tenants who wish to purchase their properties.
Government Grants The updated Financial Model assumes zero income
from Government Grants. This is in line with the
ending of Secure Tenancy Grant.
This form sets out a 10 year 'projected position statement' to show how the pattern predicted in the baseline pro forma is likely to change as a result of the capital
programme that you propose in your Standard Delivery Plan. For more information, please
Technical notes
1. The Standard criteria (Tolerable Standard, Free from Serious Disrepair, Energy Efficient, Modern Facilities and Services and Healthy, Safe & Secure)
Landlords should record the number of properties under each of these categores for each year. If a property fails on more than one category (e.g. Tolerable Standard and Energy Efficient), please record that
property under every category on which it fails
Ref Objective/Aim of Strategic Operational Risk Description Risk Key Planning Process to Process Owner
Delivery Plan Risk Score Manage the Risk
Description
1 To demonstrate clearly Option Appraisal • Planning Data and Assumptions 8
and robustly, using is unsatisfactory Turn out to be Inaccurate
adequate and up-to-date
information, the extent to - All assumptions • HRA Financial Model • Head of Corporate
which the stock complies Finance, Head of CH&PM
with the Standard • Methodology in accordance • Head of CH&PM, Finance
with professional guidance Manager
• Independent corroboration of • Head of CH&PM
data and analysis
• Sensitivity Analysis • Finance Manager
• Contingency Planning/BCP • Head of CH&PM
• Annual review of criteria • SHQS Working Group
• Budget monitoring of actual • Head of CH&PM, Budget
income/spending versus Adviser
budget, including
investigation of reasons for
variances
2 To set forth a programme Failure to • Changes in Level of Demand 6 • ELC Local Housing Strategy • LHS Stakeholder Steering
of works (including repair, respond to the cannot managed Group
improvement and demand for local • Lothian Housing Needs • Head of CH&PM
demolition) which will housing Assessment 2005
bring the stock above the • Waiting List Review of All • Service Manager – CHPM
standard Applicants
• Investment decision in light • LHS Stakeholder Steering
of Housing Needs Group
Assessment
3 To set forth the level of Failure to deliver • Income and Expenditure levels are 6 • Budget allocation and • Head of CH&PM/
investment required to capital not achieved due to pressures in the monitoring Financial Adviser
carry out the programme investment system • Improvement and repair • Service Manager – HSD
of works and the intended programme grants
source(s) of revenue • Rent setting process • Council Executive
• Rent arrears and collection • Head of Revenues & IT
Failure to make accurate predictions and allocate the necessary resources, will have a significant impact on the lives of people, families,
parents, staff and the local community. Ultimately, this could threaten ELC’s ability to fulfil its statutory obligation under the Housing
Act (2001) to deliver housing services. The assumptions and data collection will directly impact the strategic path of ELC. This is
because the data and assumptions will ultimately influence the option appraisal decision (i.e. the decision to retain, partially or fully
transfer housing stock) and the subsequent management of that delivery method. It will thus directly influence:
If assumptions are incorrect, or change and are not adjusted for, much time and effort would be required to resolve the problem, resulting
in resources being diverted away from ongoing service delivery.
Likelihood M Perfect forecasting accuracy is unachievable, although there are many ways of making forecasts as accurate as possible. Demographic
changes are a constant feature in many parts of East Lothian. A wide range of issues will have a bearing on strategic planning in the
region, both in the immediate and longer term. These factors are constantly changing and the ELC may have little direct influence over
these. This makes forecasting and planning more complex:
The Communities Scotland Inspection report of East Lothian Council in January 2004 concluded that a fair property management service
is provided. ELC has maintained its housing stock in good condition through high levels of investment and its maintenance
programmes are well planned. However, while the Council provides an accessible repairs service, its performance at completing
response repairs on time was found to be very poor.
In recent years, there have been important internal and external drivers that have shaped the repairs and maintenance framework,
including:
• Tenant satisfaction and demands for more tenant involvement in standard setting and monitoring,
• Tenant-landlord statutory and contractual obligations,
• Pressures to demonstrate Best Value (which has been translated in to doing more, to a higher standard, with less resources)
coupled with increased expectations from tenants,
• Unpredictable factors such as sudden and/or prolonged bad weather can also have a significant impact on the service (e.g.
property damage as a result of flood, storm, water penetration of structural damage),
• The changing policy and legislative environment within which services are provided.
The environment is therefore one of constant change, which will have a resultant effect on stock condition information.
The need for investment in housing needs to be recognised alongside other community priorities such as transport, education and health.
There is also a need for working with other services within the framework of the Community Plan to make sure there are adequate
schools, buses, trains, shops, community centres and other public services to make successful communities. Attitudes towards the
relative importance of these competing priorities will have a knock on effect on the ability to deliver the SHQS plan (e.g. within housing
itself, there are several competing housing needs and objectives such as homelessness, particular needs, sustainable communities and
housing standards). Moreover, the introduction of Proportional Representation in the 2007 local government elections could impact the
strategic direction of the authority (e.g. the consequences from a new political climate).
RTB assumptions
It is widely acknowledged that the Right to Buy (RTB) legislation has allowed many households on lower incomes to access the owner-
occupied market, primarily through the operation of the discount system.
It is clear that the RTB resale market has increased the range of choice in the second-hand market in East Lothian. Because resale prices
are relatively high, however, it has been less successful in widening access to owner-occupation. Entry prices appear to be well beyond
the financial capacity of current applications on the waiting list.
There are 3 factors affecting the pressure for change in how all Council services are delivered, including:
- The duty to secure Best Value under the Local Government in Scotland Act 2003,
- The replacement of Compulsory Competitive Tendering (CCT) legislation with Trading Operations,
- The legal requirement to improve workforce equalities.
The intention of this new legislation is to remove barriers to innovation within a framework that secures Best Value, including
accountability for the use of public assets and public funds, provided the Council stays within the parameters set by competition law and
state aid rules.
accountability for the use of public assets and public funds, provided the Council stays within the parameters set by competition law and
state aid rules.
CH&PM has 2 significant trading operations of note, both of which spend large sums of money. Building Services (former DLO) need
to demonstrate that external charges cover their costs and the Housing Revenue Account is a long-standing trading operation based on
legislative requirements and has to demonstrate that rents cover costs without subsidy from the taxpayer.
One key requirement is that the finances of each trading operation must at least break-even over any three-year period, which is intended
to demonstrate that public funds are not being used to distort competition. Failure to achieve this is very likely to be interpreted by
External Audit as evidence that Best Value has not been achieved.
Another important pressure is the impending implementation of the new pay and grading system for all former APT&C and Manual staff
as part of Single Status. This is part of a wider requirement across local authorities to improve workforce equalities. Cross-assessment
of jobs could lead to some services being adversely affected by down-grading of staff that have historically been overpaid relative to
other jobs in the Council. This could likely affect predominantly male manual jobs, many of which are in former DLOs. In these
services, wages and terms & conditions may have to worsen even though they are sustainable and representative of the labour market
within which they operate. However, most of the workforce is excluded from Single Status, which means the cost of this service is
unlikely to change significantly. Moreover, there are well-established processes for operating Property Maintenance/Building Services
DLO as part of the wider property maintenance market. The practice of obtaining competitive quotes for this work is familiar although
the challenge will be to develop and modernise the established DLO processes in conjunction with the development of housing services
to tenants.
However, one management cost that ELC may be exposed to (and unable to control) is the consequential costs from the construction
industry. Recent trends in real tender prices (as reported by the Scottish Executive) demonstrate the increasing costs facing local
authorities in this field. Unexpected cost inflation is a further pressure.
Overall Assessment 8
Source(s): Option Appraisal Study : Final Report : April 2001. Report by DTZ Pieda Consulting
Communities Scotland Pathfinder Inspection Report of the Housing Service, January 2004
Community Housing and Property Management Strategic Risk Register, March 2004
Waiting lists for Council houses and other standards of the housing service are typical measure by which Councils are compared and
criticised. Housing is a highly emotive process which can have consequences if fairness and probity are not exercised. If there is a
perception that the Council houses or intends to house people who should not be at the top of the housing list, this will result in
complaints and potential challenges.
In the longer term, failure to provide an effective service within acceptable timescales and to required standards is likely to result,
following a further inspection by Communities Scotland of the homelessness services, in a second D (the lowest) grade. Communities
Scotland might then consider the need to take enforcement action.
Lack of affordable housing also contributes to social exclusion and hinders integration. Lack of housing tends to have a negative effect
on the under privileged and socially/economically week groups in the society. Every home not built means another family remaining
homeless, overcrowded, or in sub-standard housing conditions.
Likelihood L East Lothian’s population is predicted to grow significantly in the next decade. More households mean increasing demand for homes
(and other public services, e.g. repairs and maintenance). Whilst the number of households increases, household sizes are set to
decrease, including a growth in single-person households. This is a particular challenge to the Housing Sector as single-income
households generally have lower disposable incomes, and there may be problems with affordability and access to a relatively high-priced
owner-occupier market.
There is also a growing number of low-paid workers which has the associated problems of affording homes, particularly given recent
price trends in the Scottish housing market. Affordable housing options need to be made available to households in low paid sectors who
contribute to the local economy and delivery of key services, services where demand for workers will increase (e.g. to deal with the
substantial predicted growth in the number of elderly people and also young families).
There is also the potential large implications from the relocation of the new higher education facility from Edinburgh (QMC) on the
housing system in East Lothian.
The high demand for the Council’s houses is a major challenge, with the lack of affordable housing a central issue for East Lothian as a
whole. In many areas of the region, it is the result of a combination of the high cost of housing to buy, and a low level of alternative
provision in the social rented sector. Moreover, stock turnover is relatively low and there are no difficult ‘To Let’ areas in the region.
Therefore it is evident that a significant stream of applicants join the housing list every year providing further additions to the large
number of people seeking social rented housing in East Lothian. At present demand for housing far exceeds supply. This trend is
predicted to continue in the medium term at least.
number of people seeking social rented housing in East Lothian. At present demand for housing far exceeds supply. This trend is
predicted to continue in the medium term at least.
Overall Assessment 6
Source(s): Communities Scotland Pathfinder Inspection Report of the Housing Service, January 2004
East Lothian Local Housing Strategy, ELC 2001
“A Smart, Successful East Lothian”, ELC Economic Development Dept, October 2002
Risk: 3 Income and Expenditure levels are not achieved due to pressures in the system
Impact H The ability to achieve SHQS targets will largely be influenced by the ability to maximise revenues and effectively allocate the allocation
of these monies.
Maximising rental income and minimising void losses & bad debts within a local context is of fundamental importance, as it effectively
determines ELC’s spending capabilities. Housing rents represent a significant proportion of HRA income and the provision of cyclical
and responsive maintenance services is therefore dependent on securing high collection levels. Poor performance in collection could
mean key services do not receive the monies they could otherwise have been allocated. This has obvious consequences for the ability to
deliver good housing standard services.
Likelihood L There are many volatile pressures to the financial viability of the delivery plan, including:
Revenue Account
- Rent Levels
The average weekly rent charged to tenants in East Lothian is one of the lowest local authority rents in Scotland and below the Scottish
average. There are pressures to sustain these rent levels, limiting the scope for significantly improving income generation. Moreover,
the Council has historically not dealt effectively with serious rent arrears or arrears for former tenants. Performance indicators have also
shown there is scope for improving the re-letting ratio of empty houses, therefore voids may be an important factor in income generation.
ELC continues to face real challenges in delivering national initiatives such as Supporting People, whilst remaining within budget.
Escalating demand for both new and increased care packages, including housing support, will threaten the risk of an overspend. Recent
spending on Supporting People activities has been in line with the amount of Supporting people grant. The planned reduction in the
level of this grant by the Scottish Executive in future years will have important budget and service implications for the authority.
The average weekly rent charged to tenants in East Lothian is one of the lowest local authority rents in Scotland and below the Scottish
average.
Pressures include the funding of the private sector grants budget to assist RTB owners to contribute to shared costs. ELC is increasingly
being faced with the threat of imposing charges on properties for common repairs carried out but where the bill has not been settled.
This can represent a large amount of lost income.
Any legislative changes will have a direct impact on the support offered to, and income generated from, tenants.
Capital Account
There are also pressures on the capital investment programme, although the low debt position and the premise that ELC will not borrow over the
remaining timescale of the Delivery Plan and will match capital receipts and CFCR contributions with capital spending on the stock. The Prudential
Code will also provide a challenge and opportunity for the capital programme.
Overall Assessment 6
Source(s): Communities Scotland Pathfinder Inspection Report of the Housing Service, January 2004
East Lothian Local Housing Strategy, ELC 2001
High 4 7 9
Medium 2 5 8
Probability
Low 1 3 6
Impact
It is worth noting that the risk scores identified are the Gross Risk Scores, i.e. before considering how well placed the Council is to
manage these risks. As the Corporate Risk Assessment framework progresses, an overall assessment of the adequacy of the internal
control environment will become possible and thus a Net Risk Score can be arrived at. In the meantime, while the operational risks have
been assessed as being High, senior staff within the CH&PM department are confident that these can be adequately managed by the
Council in light of the favourable context of East Lothian’s Housing circumstances and the procedures, checks and reviews already in
place.
6.3.2. The following abbreviations have been used in the documents above
Tenant Consultation
Following the introduction of the Scottish Housing Quality Standard (SHQS), it was
discussed at the April 2004 East Lothian Housing Forum. The workshop discussed the
following issues:
The workshop was summarised in the June LHS Bulletin, which is on East Lothian
Council’s web site http://www.eastlothian.gov.uk/content/0,1094,428,00.html.
The discussions on the Scottish Housing Quality Standard continued after the April
East Lothian Housing Forum at the LHS Stock Management and Standards Group. In
August 2004 the Stock Management and Standards Group received a briefing paper
on the Scottish Housing Quality Standard. This was followed by updates on progress
at subsequent meetings. In 2005, a review of groups set up to support the LHS
process was carried out. The outcome of this was that the Stock Management and
Standards Group ceased to exist.
In January 2005 the Head of Community Housing and Property Management gave a
presentation to the East Lothian Tenants and Residents Panel on the Scottish Housing
Quality Standard. The presentation gave information on the Standard and then went
onto discuss data collection, options appraisal, East Lothian Council’s project plan
and East Lothian Council’s HRA Business Plan.
A meeting was held in August 2005 with East Lothian Tenants and Residents Panel
(ELTRP) specifically to discuss the Scottish Housing Quality Standard and the
Council’s Standard Delivery Plan. A Briefing Note was produced for this meeting
and was reproduced in East Lothian Tenants and Residents Panel’s ‘Panel News’ in
September 2005.
Following the appointment of Savill’s to carry out the Council’s stock condition
survey, a representative of Savill’s attended a meeting of ELTRP to give a
presentation on how they were going to carry out the stock condition survey and how
the results could be used.
Savill’s presented the results of the stock condition survey on 7 June 2006. ELTRP
were invited to attend this meeting.
At the Housing Strategy and Development Unit’s quarterly liaison meeting with
ELTRP on 29 August 2006, the key aspects of the revised SDP were discussed.
APPENDIX 11
East Lothian Council and East Lothian Tenants and Residents Panel launched the
Tenant Participation Strategy in February 2005. The Strategy makes reference to
consultation on capital programming and developing the East Lothian Standard.
There has been extensive participation and consultation on property standards through
the Capital Programme Group (referred to in the main report) and the Rent Review
Group.
The Rent Review Group operated until last year and was remitted with proposing and
implementing a new rent structure. The membership of the group included Council
officers and representatives of East Lothian Tenants and Residents Panel. The Rent
Review Group considered property attributes and linked them to a rent structure. As
part of this work the Group also approved a draft East Lothian Property Standard,
now used as a basis for the Council’s Capital Programme.
In 2005 a service review of the voids process commenced. As part of the review a
Voids Implementation Group was established, which includes tenants representatives.
The Group aims to develop guidance to staff on void management which will improve
re-let times and ensure consistency of practice across area offices. Part of the Group’s
work will involve looking at property standards and what constitutes a lettable
property.
A quarterly meeting is also held between East Lothian Tenants and Residents Panel,
councillors and senior officials. The issues discussed at these meetings are wide
ranging and include the Scottish Housing Quality Standard and other stock standard
issues.