Riverside's Think Homes Strategy for Proactive Repairs and Efficient Asset Management

We have fixed your house now don t Break it Mark Burnett NHMF Conference January 2017

Some Background: Who are Riverside? A charitable RP: established nearly 90 years ago Operating at scale: over 50,000 homes and nearly 100,000 customers. Over a range of housing markets: +160 local authority areas in some of the nation s most challenged communities. With a diverse offer: affordable homes for rent /care and support/ affordable homes for sale for shared owners and leaseholders/ market homes for sale to generate profits for the charity (through commercial companies) Extra services to help sustain tenancies: money advice, employment support, affordable warmth

Riverside Journey

Think Homes Strategy Proactive MOT Repairs Enable Evolve Expansion Improved Asset Data Customer Continuous Planned Works

The Think Homes Benefit Experience Appointment made to fix the repair, not just assess the repair Reduced visits / follow up Proactive repairs service through MOT s Customer Facilities Services (Evolve) Riverside Business Smarter Management of Suppliers Improved Forward planning Improved Data / Management Information (MI) Reduced Costs (VAT, materials, labour) Guaranteed pipeline of work Improved management of workforce Ability to reduce unit costs

Savings in 2015-16 Business Plan 1,020,000 Property MOTs 836,000 Systems / Data Evolve Facilities Management 909,000

Project Alignment to Benefits Customer Proactive Repairs every 4 years Fix before breaking Reduced failure rate Improved communications Alleviate disrepair Property MOTs Improved Information aligned to customer needs / expectations Transparency re: programme information Consistent delivery Improved communication Improved stock (EPCs/Stock Condition/Repairs data) Systems / Data Evolve Facilities Management Responsive Repairs require less visits Do the repair rather than just assess it Empowered operatives Seamless integration Reduced Failure calls

The Red Ribbon concept

What is a Riverside MOT? Property 1)Selection based on both high historic repairs demand & current repair demand (include low demand properties) 2)High repair demand neighbourhoods 3)High repair demand property types People 1)Client team all on message 2)Surveyors fully trained and consistent in approach Contractor supportive of approach & fully mobilised 3)Tenants informed about new approach and the reason for adopting it,influencing behavioural change 4)CSC briefed and advised on what they need to do

What is a Riverside MOT? (cont). Process 1)Define access & no access communications 2)Scope and define end to end MOT model 3)Pre MOT repairs monitoring & action model Heatmap . 4)Post MOT repairs monitoring and action model Price 1)Analyse and model data to define cost saving model

What is the purpose of the MOT? Reduce responsive demand Be proactive for our residents (repairs is a failure demand driven industry) Maximise our productivity (batching repairs by street / neighbourhood) Get to know our assets (aiming for 100% SCD information) Deal with Section 11 and Section 82 issues Get to know our residents (pick up on vulnerability/ sustain tenancies) Culture change

E.g.; upon reviewing the repair history for the past 4 years for 2 properties, the following is highlighted; 12 Smith Street has a constant stream of repairs each year; 10 Smith Street has a high number of repairs one year and minimal/zero repairs for the remainder.

The Recidivist and Somnambulist sound familiar? March March March March March March March March March March March March February February February February February February February February February February February February April April April April March March March March September September September September February February February February April April April April April April April April July July July July 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2011 2011 2011 2011 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 July October October December March August October October June October December December March April November December November November November November June June August October June October November November June November November November December October October October April April April December July July October December October October October October July October December December PLS CHECK ELECS IN KITCHEN MULTI ELECTRICS LOCATE FAULT ON INTERNAL DOOR LEAK FROM WALK IN SHOWER LIFTING THE WET ROOM FLOOR COVERING TAPS LEAKING: KITCHEN SINK KITCHEN SINK: WASTE PIPE:LOCATE FAULT/RECTIFY LOCK: PROBLEMS TURNING WITH KEY POWER:SOCKET OUTLET-GRND FLR. LIGHT: RENEW LAMPHOLDER/BATTEN HOLDER GUTTER: REMAKE JOINT BURST/LEAK: REPAIR LEAKING/BURST PIPE POST/GATE: RENEW/REPAIR ANY FITTING TAP LOOSE/LEAKING TAP:RENEW PAIR BATH PILLAR TAPS. FOW TO 310457072 OUT OF HOURS:TOILET LEAKING ELECTRICS NOT WORKING NOSING: REFIX NON-SLIP TO STEP GARAGE DR:RENEW SPIND/ROLLER/CABLE. SEALANT:APPLY TO WORKTOP/WALL. GUTTER:RENEW N.E 112MM PVC COMPL SLATE MISSING FROM REAR ROOF FAN:OVERHAUL DOMESTIC EXTRACT ON LANDING CEILING DRAIN COVER MISSING NEAR BACK GATE LIGHT HAS GONE VERY DULL IN BATHROOM CISTERN:RENEW BALLVALVE. FOW TO 320411017 LIGHTING: LOCATE FAULT/RECTIFY BACK DOOR IS L;EAKING AND DIFFICULT TO OPEN AND CLOSE COOKER: REMOVE/REPAIR/REFIX/RENEW REPAIR KITCHEN DRAWER. HEAT DETECTOR ABOVE COOKER BEEPING UNIT:RENEW DRAWER COMPLETE WASTE:RENEW 40MM PIPE/TRAP-SINK. WATER HEATER:SERVICE/OVERHAUL ANY TYPE. FAN:PLEASE SURVEY FOR EXTRACTOR FAN IN BATHROOM POSSIBLE DAMP IN BEDROOM - UNSURE OF SOURCE DOWNPIPE:RENEW PVC - NE 2 STOREY FOW 320429428 BURST/LEAK: REPAIR LEAKING/BURST PIPE WATER PENETRATION: REPAIR/TEST BURST/LEAK: REPAIR LEAKING/BURST PIPE GATE:REPAIR/EASE/ADJUST GATE. - METAL GATE - TILE/SLATES:RENEW/REFIX HANGING ANY TYPE. STEP:RESTORE DAMAGED CONCRETE. GUTTER:RENEW N.E 112MM PVC COMPL FOW 320424349 FAO LINSEY M LAMP:RENEW 28 WATT 2.D.LAMP. CISTERN: REFIX WC CISTERN OOH MAKE SAFE ELECTRICS RECTIFY FAULT ON SHOWER S/DET:INSTALL MAINS OPTICAL TYPE FOW 32043006 TAP: OVERHAUL ANY TYPE OF TAP MANHOLE:REBED/RELAY COVER/FRAME OUT OF HOURS ELECTRICS TRIPPING POWER:LOCATE FAULT/RECTIFY FOW 320437204 34.43 37.53 34.92 10.52 48.02 33.87 62.41 26.23 48.34 11.97 34.71 42.72 39.5 106.67 42.74 42.74 8.83 66.31 13.12 431.24 17.1 14.46 449.7 51.49 33.87 34.43 155.89 29.2 21.12 93.34 104.09 43.94 20.17 14.46 24.94 98.7 34.71 66.49 34.71 11.39 3.33 8.45 330.74 65.4 33.87 42.74 79.12 91.05 37.89 142.29 42.74 53.25

Colour Chaos and the Repair Heat Map - Noted that numerous properties had reported high repairs for several years, often with the same trade operatives attending Each property was tracked to show the chaotic repair activity and listed in a repair heat map based on activity A way of monitoring and targeting the heaviest repairs consumers Aims to reduce annual repair figures and average repair costs A shift from a reactive to a proactive service Grouped high repair activity by neighbourhood, targeting full areas in one approach - - - - -

MOT / Stock Condition Survey - Carried out by local divisional MOT Officers - Delivered on a rolling 4 year cycle to target repairs and pick up detailed stock condition data - 70% of each years programme targets a planned neighbourhood approach with the remaining 30% of visits based on the heat map - Captures all actual and prospective repairs - Re-inforce the tenant responsibilities and our repair obligations - Records data on property attributes and component data allowing for accurate property data and investment forecasting

THINK HOMES COMMITTED SAVINGS FEB 2015 Built into Business Plans Figures as per Nov 2015 Delivering Workstream / Project LOL SLIDES Category Description Total Value TOTAL VALUE 2014 / 15 2015/16 2016 / 17 2017/18 Property MOTs Responsive Repairs Reduced Responsive Repairs resulting from Property MoTs. Budget reductions were 2015/16 - 1% 2016/17 - 2% 2017/18 - 5% 0 282,520 706,300 1,412,600 2,401,420 Reduced VOID costs as a result of MOT'd properties. MOTs will ensure more proactive repairs, which will lead to a reduction in the duration of the VOID & hence cost of the VOID. Assumed VOID turnover 8.5% & 25% of properties would be MOT'd, leading to app Property MOTs VOIDS 0 237,500 237,500 237,500 712,500 Property MOTs Surveys Stock Conditioned Survey's In House (consistency & quality) 0 270,000 270,000 270,000 810,000 Property MOTs EPC Surveys Property MOTs Clerk of Works Fees Reduction in Clerk of Works Fees by Energy Performance Surveys In House, by retraining staff and cancelling VIBRANT 0 95,310 102,090 110,000 307,400 introducing internal QA staff & self assessment by Evolve / Riverside team 0 135,000 1,020,330 135,000 1,450,890 135,000 2,165,100 405,000 4,636,320 Mechants/DATA Cancellation of current arrangement and move to Fusion 21 In>Form system for planned maintenance. Removal of obsolete IT systems Asset Data 9,000 9,000 836,000 836,000 836,000 836,000 836,000 836,000 2,517,000 2,517,000 Planned Works Continuous planned Works (New kitchens, bathrooms, windows / doors) (5%) Full intergration and VAT savings Evolve 0 0 909,154 909,154 1,932,425 1,932,425 4,219,315 2,723,500 2,723,500 5,724,600 5,565,079 5,565,079 12,718,399 TOTAL 9,000 2,765,484

Additional Business Plan Challenge Target Savings NOV 2015 Delivering Workstream / Project Description TOTAL VALUE 2016 / 17 2017/18 2018 /19 2019/20 Responsive Repairs Reduced Responsive Repairs budget by additional 5% rising to 7.5% by 2017/18 2016/17 - 5% (additonal 3% on top of TH savings 2017+ - 7.5% (assitional 2.5% on top of TH savings) SPONSOR - MARK BURNETT 350,000 700,000 700,000 700,000 2,450,000 Additional target VOID cost reduction by 1000 / VOID. (VCRP) - Reduce VOID work content - New approach for high costs VOIDs (over 5k) - Revised target for same day lets - Reduce turnaround time by 1 week SPONSOR - IAN GREGG VOIDS 1,900,000 2,600,000 3,200,000 3,800,000 11,500,000 Property Disposals Strategy Project (PDSP) - will pick up the high costs VOIDs (over 5k) will seek disposal - new timescales for disposal process SPONSOR - JAMES HILL DISPOSALS 200,000 200,000 200,000 200,000 800,000 2,450,000 3,500,000 4,100,000 4,700,000 14,750,000

LOL SLIDES GENERAL NEEDS APRIL 2016 - MARCH 2017: MOT's, NEW LET MOT'S ALL COMPLETE D MOT WORK / REPAIR VALUE (STAGE 82/99) 217,868 390,162 471,753 360,344 1,440,127 COMPL ETED MOT'S (STAGE 82/99) NUMBER OF PROPERTIES SURVEYED FOR MOT COMPLETED MOT VALUE (STAGE 82/99) MOT: AS OF DECEMBER 2016 MOT ACTUAL versus TARGET ACTUAL UNIT COST MOT TARGET BUDGET UNIT COST MONTHLY TARGET VARIANCE CARLISLE MERSEY NORTH MERSEY SOUTH NORTH GROUP TOTAL 795 1500 1459 824 4578 596 1125 1094 618 3434 579 1067 1072 712 3430 -17 -58 -22 94 -4 432 602 756 577 2367 217,868 281,548 304,709 319,824 1,123,948 504 648 624 625 608 750 850 900 800 825 - - - - - 246 202 276 175 217 COMPL ETED NEW LET MOT'S (STAGE 82/99) 233 228 233 105 799 NUMBER OF PROPERTIES SURVEYED FOR NEW LET MOT COMPLETED NEW LET MOT VALUE (STAGE 82/99) NEW LET MOT: AS OF DECEMBER 2016 MONTHLY TARGET NEW LET MOT'S TARGET NEW LET MOT'S ACTUAL versus TARGET ACTUAL UNIT COST BUDGET UNIT COST VARIANCE CARLISLE MERSEY NORTH MERSEY SOUTH NORTH GROUP TOTAL 583 806 715 526 2630 437 605 536 395 1973 264 273 285 136 958 -173 -332 -251 -259 -1015 15,843 43,825 42,958 19,382 122,007 68 192 184 185 153 250 300 300 250 275 - - - - - 182 108 116 65 122