housing stock transfer initiative

ARGYLL AND BUTE COUNCIL STRATEGIC POLICY COMMITTEE
DIRECTOR OF COMMUNITY SERVICES
4 SEPTEMBER 2003
HOUSING STOCK TRANSFER INITIATIVE:
DISRUPTIVE SURVEY WORK TO INFORM THE INDEPENDENT
VALUATION
1.
2.
SUMMARY
1.1
This report reminds Members of the arrangements for the conduct
of the disruptive survey analysis that is necessary to inform the
development of the Independent Housing Stock Valuation.
1.2
It outlines the number of tenants that are likely to be affected and
explains the arrangements that have been made to provide advice
of the necessary procedures. Finally, it advises Members of the
measures for compensating tenants. These have already been
agreed in consultation with the Council Leader and Spokesperson
for Housing and Resources on an emergency basis in view of tight
timescales for completion of this exercise.
RECOMMENDATIONS
2.1
3.
Members are asked to note:
(a)
the arrangements that have been made for the conduct of
the disruptive survey work.
(b)
the measures that have been established for compensating
affected tenants in consultation with the Council Leader and
Spokesperson for Housing and Resources.
DETAIL
3.1
Background: Members are reminded that Margaret Curran,
Minister for Communities, has granted her permission for the
Council to move forward to the final implementation phase of the
Housing Stock Transfer Project. Her permission was granted on
the strict understanding that the Council would take early steps to
reach agreement with the Scottish Executive Appraisal Team on
the Independent Stock Valuation.
F:\moderngov\data\published\Intranet\C00000188\M00001243\AI00011564\08CRSTOCKTRANSFERDISRUPTIVESURVEY1
640.doc
3.2
Work designed to achieve this outcome is already in progress in
that the Council has commissioned DTZ Pieda Consulting to
update the House Condition Survey and Independent Valuation.
Their work will be informed by the results of structural and
environmental risk assessments. All of these commissions will
ultimately be financed through New Housing Partnership funding
to be drawn down from the Scottish Executive.
3.3
Structural Risk Assessments: Following a competitive
tendering exercise, the firm of A.J. Balfour has been appointed to
conduct the structural risk assessments. At the first stage, their
work has taken the form of desktop consideration of data on
property conditions supplied by the Council together with a visual
inspection of the housing stock. This, however, now has to be
followed up by varying degrees of disruptive inspections, to
investigate the integrity of the wall ties in traditionally built houses
and structural members in non-traditional properties.
3.4
Most of this work can be carried out externally and will simply
involve contractors breaking into cavities for inspection purposes.
Thereafter, the fabric of the buildings selected for investigation will
be patched. Tenants should experience minimal disturbance from
this and will not have to remain at home during the works.
3.5
Non-traditional Property Surveys: The consultants have
indicated that higher levels of disruptive surveying will be required
on approximately 72 non-traditional properties. Of this, 11 shall be
conducted on Blackburn houses and should be less intrusive in
nature. With respect to these properties, the surveys should be
restricted to openings being cut or drilled in external walls to allow
inspection of the wall ties as indicated in the section above.
However, internal inspections will also be necessary but they will
be limited to non-disruptive visual inspections of both the property
interior and attic space.
3.6
Regrettably, all other non-traditional forms of property will require a
higher degree of inspection. While the survey work will vary
slightly from one property type to another, it will generally include
openings being cut or drilled into external walls to allow inspection
of the structural members. In some cases, samples of concrete
may be removed for testing but they shall be reinstated by the
consultant and his contractor on completion of their checks. A
non-disruptive visual inspection shall also be undertaken of both
interior and attic spaces. Additionally, areas of walls, floors, or
ceilings may require to be removed to allow an inspection of the
structural members. This will necessitate the removal of
plasterboard from walls or ceilings. Every effort will be made to
ensure that this is restricted to unobtrusive areas such as in
cupboards or behind kitchen appliances but this may not be
possible in all cases. There may also be the necessity to lift
F:\moderngov\data\published\Intranet\C00000188\M00001243\AI00011564\08CRSTOCKTRANSFERDISRUPTIVESURVEY1
640.doc
carpeting and floorboards. However, all disturbed areas will be
reinstated by the consultant and his contractor.
3.7
Reinstatement and Compensation: While the appointed
contractors will carry out basic repairs, this will not include full
redecoration as the process is being funded from the Scottish
Executive’s New Housing Partnership Initiative. Regrettably,
funding is not available from this source for redecoration as this is
viewed to be a Council responsibility.
3.8
In recognition of the fact that at least some of the tenants of the 72
non-traditional houses selected for investigation, may experience
high levels of disturbance, I have discussed potential options for
compensation with the Council Leader and Spokesperson for
Housing and Resources. Arising from this, it has been agreed that
each affected house should be subject to a post survey check by
area housing staff, and where necessary, enhanced levels of ex
gratia payments should be offered. It has been agreed that this
assessment should be based on a room by room inspection, with
ex gratia payments being offered as outlined in the following table.
Enhanced Ex Gratia Payments:
Room
Highest amount
payable under
current policy
Living Room
Hall/Stair
Kitchen
Bathroom
Bedroom
£55
£55
£40
£35
£25 each
Enhanced
amount to be
paid where this is
assessed as
being necessary
£110
£110
£ 80
£ 70
£ 50 each
3.9
The additional funding required to resource this exercise will be
drawn from the Housing Revenue Account. However, Members
should note that the enhanced payments will only be made
available for the purpose of this exercise and that the normal ex
gratia policy will apply for all other qualifying works in the future.
3.10
Information to Tenants and Members: The disruptive property
survey is scheduled to run over the next 8 weeks. Properties are
currently being selected for investigation and letters will shortly be
sent out to the affected tenants to highlight the nature and reasons
for the work being undertaken. They will also be advised of the
arrangements for reinstating any disturbed areas, together with the
available compensation packages. Members will also receive
notification of this work as it impacts on the areas that they
represent.
F:\moderngov\data\published\Intranet\C00000188\M00001243\AI00011564\08CRSTOCKTRANSFERDISRUPTIVESURVEY1
640.doc
4.0
5.0
CONCLUSION
4.1
In taking forward its Housing Stock Transfer Initiative, the Scottish
Executive have obliged the Council to update the independent
valuation. This necessitates a degree of disruptive surveying,
particularly affecting around 72 non-traditional properties. The
information gained from this will permit contingency allowances to
be removed from the valuation as it exists to be replaced by actual
costs.
4.2
In recognition of the level of disturbance that affected tenants may
experience, enhanced levels of compensation have been agreed
following consultation with the Council Leader and Spokesperson
for Housing and Resources.
IMPLICATIONS
5.1
Legal – The Council has no legal obligation to compensate tenants
but agreement has been reached on enhanced ex gratia
payments to take account of the disturbance that they will
experience.
5.2
Financial – Funding for the enhanced compensation package
will be drawn from the Housing Revenue Account.
5.3
Personnel – Area housing staff will be asked to formally assess
entitlement to ex gratia payments on a house by house basis.
5.4
Equal Opportunities - Nil
5.5
Policy – The Council has established an overall housing goal to
enable the provision of an adequate supply of good quality,
affordable housing to help sustain the communities that we
serve. Ultimately, stock transfer will assist the Council in
addressing this goal as it will secure delivery of necessary
repairs and improvements within the context of an affordable
rent regime. It also complies with the Scottish Executive policy
of extending opportunities for greater community ownership.
Douglas Hendry
Director of Community Services
28 August 2003
For further information contact: Mr Malcolm MacFadyen,
Head of Planning and Performance 01546 604146
Background Papers:
Housing Stock Transfer – A report by the Director of Housing & Social Work –
May 2003
F:\moderngov\data\published\Intranet\C00000188\M00001243\AI00011564\08CRSTOCKTRANSFERDISRUPTIVESURVEY1
640.doc