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Refurbishment: Opportunities 

 

The Decent Homes Standard (DHS) provides major contract opportunities for those contractors, consultants and product companies targeting the social housing sector.  The original Decent Homes deadline will not now be achieved and therefore there is still a substantial amount of housing stock within the U.K. requiring an extensive amount of modernisation; the latest figures show approximately 578,000 homes are below the Standard in England alone.

             

Decent Homes Standard: A Long Way to Go

It is by no means too late for companies to become involved in Decent Homes work and take advantage of the largest ever Government funded refurbishment programme in England.

 

  • Since the Government first introduced the Decent Homes programme, around 1.2 million homes have been made ‘decent’ over the past eight years (i.e. at an average rate of approximately 150,000 homes per year).

  • In November 2009, Communities & Local Government (CLG) estimated that 92% of social homes would be made decent by 2010.  This would leave approximately 305,000 properties failing to meet the Standard with the required refurbishment work underway or scheduled to begin.

  • By 2014 the estimated number of homes failing to meet the DHS would be 124,000, with all remaining refurbishment work expected to reach completion by 2018/19

  • The latest figures show approximately 578,000 homes failing to meet the DHS.  95 Landlords have been granted considerable extensions on the original 2010 target date, a number of which are not expected to complete refurbishment programmes until 2016/17.

                                                                                                                  

       

Stock Transfers Set to Continue

 

When Local Authorities transfer housing stock to a Housing Association (HA), it is in order to obtain private finance to purchase and refurbish the homes up to the Decent Homes Standard.  Stock that has transferred to a HA is generally in poor condition, requiring considerable refurbishment work.  Consequently, HAs will seek contractors to achieve the Standard, over say a three to five year period.

 

  • Since August 2008, Local Authorities that originally planned to keep their housing stock, had failed tenant ballots or missed the previous transfer deadline have had the opportunity to re-apply.

 

  • Currently stock transfers are taking place on an ad-hoc basis through the Homes and Communities Agency.  However, as of July 2009, transfer proposals that are not self-financing will not receive financial support from the government.

 

  • A number of Arms Length Management Organisations (ALMOs) are now considering stock transfers as their funding for property maintenance will be insufficient once Decent Homes funding has ceased.  At present two ALMOs have been granted a place on the housing transfer programme while a further two have successfully completed tenant ballots.

 

Restructuring of Local Government

 

Phase I

 

The 2006 Local Government White Paper set out the Government's commitment to invite Councils in shire areas to come forward with proposals for new Unitary structures.  On the 1st April 2009, 44 District, Borough and County Councils were abolished and replaced by nine single tier Unitary Authorities, which are responsible for almost all Local Government functions.

 

 

Phase II

 

In February 2010, the Local Government Minister announced the Government's final decisions on the three Phase 2 Unitary proposals.  Exeter City Council and Norwich City Council were to become Unitary Authorities while either a single County Unitary Authority or two separate Unitary Authorities were to be implemented in Suffolk.

 

Following the election of the Coalition Government in May 2010, the orders that were to create the new unitary authorities of Exeter and Norwich have been revoked and the consultation on the proposed unitary authority in Suffolk has been stopped under the Local Government Bill.