Asset Management Five Year Investment Plan
2018/19 to 2022/23
Introduction
This document sets out a plan for capital investment in the HRA housing stock
over the next five years. Since 2008 investment has largely been targeted at
renewal of components which are included within the scope of the
Government’s Decent Homes Standard. With the end of Government funding
for Decent Homes, and the introduction of HRA self financing, there is now
more flexibility in how and where we direct investment in our stock.
Whilst the Decent Homes Programme has enabled Haringey to carry out
important improvements across the stock through the renewal of key
components such as windows, roofs, kitchens, bathrooms, heating systems
and wiring, it is recognised that there has been less investment in communal
and estate works. As such a new approach that takes a more holistic
approach to stock investment is to be adopted. This wil entail three main
streams of work:
1. Internal works (heating, wiring, kitchens and bathrooms). Note that
boiler & heating distribution renewal wil primarily be delivered
through the gas servicing contracts.
2. External, Communal and Estate works (a holistic programme dealing
with all external and communal building component renewal, estate
improvements and complex mechanical and electrical works)
3. Essential Health and Safety Works and Lifts (works that would not
necessarily be able to be deferred while waiting for an estate to be
included in the main programme)
The intention is to fully implement this new approach from 2019/20 onwards
(years 2-5 of the plan) with 2018/19 (Year 1) being a transition year to finish
works from the 2017/18 major works programme and to begin the design and
mobilisation process for the new programme.
In putting together the programme a ‘worst first’ approach has been taken to
ensure that those homes with the greatest need are prioritised.
Asset Management Five Year Investment Plan Feb 2018
Resources Required Over next 30 Years
The affordable investment standard that has been developed sets out the
investment required in the stock over the next 30 years. This is set out in the 30-
year business plan cost tables. A summary of the capital investment
requirement over the next 30 years is shown in the table below:
Years 1-5
Years 6-10
Years 11-30
Total
Capital
Investment
£248.310m
£167.148m
£626.229m
£1,041.687m
required
To complete the works required over the next five years the investment
needed is £248.310m. As well as the cost of works, the above figures also
include al owances for fees at 5% and salaries at £2.000m per annum.
Investment Profile Years 1-5
The following table shows the draft capital budget for stock investment over
the next five years:
Year 1
Year 2
Year 3
Year 4
Year 5
Total
2018/19
2019/20
2020/21
2021/22
2022/23
Years 1-5
£45.310m
£50.000m
£53.000m
£50.000m
£50.000m
£248.310m
The above profile is required to complete a full cycle of works in the
programme period and achieve full decency (barring any dwel ings where
investment is restricted due to regeneration or options appraisal etc.).
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Year 1 2018/19
Year 1 wil be an interim year comprising a reduced works programme to
allow time to undertake the detailed feasibility, design, resident engagement
and procurement required ahead of full implementation of the new
approach and standard in 2019/20. The total amount required for 2018/19 is
projected to be £45.310m which includes commitments from 2017/18 for
Major Works Schemes which wil continue into, and complete, within 2018/19.
The programme also includes provision to tackle the issues with gas on the
Broadwater Farm Estate. The works planned are set out in the table below.
Years 2-5 2019/20 to 2022/23
From 2019/20 we wil be delivering the major works programme in line with the
new approach described in the introduction to this report. In putting together
the programme from 2019/20 onwards, the following assumptions have been
made:
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Funds available are as per resources profile and total £203.000m for
years 2-5.
Scope of works and costs used in putting the programme together are
based on the current version of the ‘affordable standard’ which has a
mix of survey and desktop costs.
Work on the Noel Park Pod properties is to be completed over the first 3
years of the new programme. The total estimated cost of this work is
£12.000m. There is £3.000m allocated to this work in the year 1
(2018/19) programme leaving £9.000m of work remaining to be split
across years 2 and 3 (2019/20 and 2020/21). This cost is based on
Keegans options study and recommendations. If alternative solutions
are considered these may have different costs associated with them.
In putting together the programme, the stock has been prioritised using the
following criteria:
High Need – Decent Homes Elements Only (e.g. roof, windows, etc.)
High Need – Non-Decent Homes Haringey Standard Elements Only
(fascias & gutters, private balcony, communal HFH items)
High Need – Non-Haringey Standard Elements Only
(fences/walls/paths etc, communal kitchen/bathrooms etc)
Years Since Worked On.
Average Repairs Cost over the last three years
The following has been included in the overal 5 Year Investment Plan but
currently not programmed within the earlier years:
Sheltered housing pending outcome of current review
Stock subject to regeneration plans/options appraisal
Stock which has been in the most recent years of the Decent Homes
programme
Stock ranked in the bottom half for need with respect to Decent
Homes items
Years 2-5 Internal Works
Internal works wil cover Kitchens, Bathrooms, Heating and Wiring. £3.500m per
annum has been al ocated to boiler and heating distribution renewal. This wil
be largely reactive and carried out through the existing gas servicing
contracts. Of the remaining items, stock condition data indicates £22.317m is
needed to complete all internal works required across the stock in the
programme period. Therefore £5.600m has been al ocated in each year for
the internals programme. This gives a total of £9.100m per annum for all
internal works in years 2-5.
An address list of the 13,547 properties requiring internal works in the Years 2-5
programme has been produced, a summary of which is shown at Appendix
1. These addresses are not yet allocated to a specific year.
As we are planning to complete the first cycle of internal works over the next
5 years there wil be some addresses within this list that have been in recent
years of the Decent Homes programme. These properties are included as
they require additional internal work over the next 5 years which was not
Asset Management Five Year Investment Plan Feb 2018
completed when they were in the Decent Homes Programme. These
properties wil be al ocated to the later years of the internals programme.
Years 2-5 External, Communal and Estate Works
From the draft budget, £9.100m per annum is allocated for internal works
(including boilers & heating), £2.000m is al ocated for salaries and £1.400m is
allocated for disabled adaptations. The remaining budget per annum is
allocated for external, communal and estate works. This sum also covers the
Health and Safety and Lift works which are likely to be delivered separately to
the main externals programme.
Year 2
Year 3
Year 4
Year 5
2019/20
2020/21
2021/22
2022/23
Total
Budget Available for
£37.5m
£40.5m
£37.5m
£37.5m
£153.0m
Ext/Comm & Estate Works
A detailed programme has been put together for years 2 and 3 only. This
does not include stock that has been earmarked for regeneration, nor the
sheltered stock (which is subject to a current review). Programming only years
2 and 3 wil give time to consider appropriate investment plans for these parts
of the stock before committing to programme plans for years 4 and 5.
£4.500m per year has been al ocated in Years 2 and 3 to complete works on
the Noel Park Estate which wil include tackling the pods. The remaining
budget has been al ocated to other estates and scattered dwellings.
A Summary of the proposed Year 2 and Year 3 External, Communal and
Estates programme is shown at Appendix 2.
Years 2 to 5 Costs
The scope of works has been determined by using the current version of the
affordable standard and has been costed using data from the 2011 and 2015
stock condition surveys and desktop provisions made in the 30-year business
plan cost tables for non-surveyed items.
The following table shows a summary of the planned Year 2-5 Programme:
Asset Management Five Year Investment Plan Feb 2018
As non surveyed items are based on desktop costs/assumed al owances, the
precise scale and cost of these items for a given scheme of works may not be
known until detailed surveys are carried out. These items average out at
£10.991m per annum over the period 2019/20 to 2022/23 (years 2-5). The table
below shows a breakdown of these costs:
In addition, an allowance of £2,000 per property has been made for
Decorations/Planned Preventative Maintenance as per the Business Plan cost
tables.
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Appendix 1 Years 2-5 (2019/20 to 2022/23) Internal Works
£22.317m
HORNSEY
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NORTH TOTTENHAM
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SOUTH TOTTENHAM
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WOOD GREEN
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HOSTELS
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SHELTERED & GOOD NEIGHBOUR
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Appendix 3 Proposed Years 2 & 3 (2019/20 & 2020/21)
External, Communal and Estate Works
Year 2 (2019-20) Estates and Scattered Dwellings
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Year 3 (2020/21) Estates and Scattered Dwellings
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