Modern Maintenance: Raising the standard The Hyde Quality Standard - James Shaw Director of Property Services

Modern Maintenance:
Raising the standard

  The Hyde Quality
     Standard
      James Shaw
 Director of Property Services

What drives your decision to replace
something in your home?

For example; your central heating…
Reasons for replacement;
• It’s unsafe
• It’s broken and can’t be fixed
• Its beyond economic repair
• It’s unreliable
• It’s no longer fully functioning
• It’s inefficient
• There’s a newer model with whizzy controls
• It’s old (at the end of its lifecycle)

What drives your decision to replace
something at work?
The Decent Homes Legacy;
Lifecycle replacement
• Kitchen 20 years
• Bathroom 30 years
• Windows 25 years
• Doors 40 years
• Rewire 25 years
• Heating system 15/30 years
• Roof 60 years

Introducing; Demand Led Replacement(DLR)
• ‘When am I due a new kitchen’?

• Just in time, Just on time, Just out of time! (JIT JOT JOOT)
• Refocus your supply chain on agile working
• Agree volumes with contractor but not addresses

How we adopted a DLR approach…
• Conducted a stock condition survey
• Set the baseline as if we were applying lifecycles
• Committed to out perform the baseline budget
• Set a minimum standard (Decent Homes)
• Set up a referral system
• Sat back and waited for the phone to ring
• Carried out validation surveys on every component replacement request
• Replaced only those beyond economic repair
• Monitored demand, identified trends and repeated

Savings

• On Capital expenditure we out performed our financial plan by 25%

• £22m savings over three years – more for less

• No increase in revenue repairs

• Non-decency remains at 0% after 3 years

Everything to gain, nothing to lose
• Are we storing up trouble for the future?
Collateral replacement
• No more over programming
The end of early replacements
• Are tenants less satisfied?
No more ‘computer say no!’
• What about tenants who look after their homes?
The Hyde Quality standard – no modernisation if you’re in rent arrears,
ASB, or overdue gas safety check

The Hyde Quality Standard (HQS)
• Introduced in 2015 – with more than 3,000 happy customers to date
• Need to be more efficient and get more for less
• Real game-changer giving residents unprecedented choice when their
  homes are being modernised
• HQS involves residents fully in the replacement of their bathrooms,
  kitchens, electrical upgrades and doors and windows giving wider choice
  and allowing payment for upgrading certain items or to supply their own,
  fitted at no extra cost – the labour is paid for
• An innovation, cleverly designed to provide Residents with a wide range of
  choice plus savings to Hyde

Programme Generation
• We don’t have a programme but we cater for an assumed
  volume where all works are validated - Property pool
• Move from In-House surveys to Contractor inspections at no
  extra cost – validation surveys
• Photographs and surveys
• Resident Liaison Officer provided by contractor

Exclusion Checks
Targeted investment - where tenancies have been maintained
Modernisation will not take place if:
1. There is an outstanding Notice of Seeking Possession (ASB or arrears)
2. There are outstanding rent arrears (not applicable where full HB received)
3. There is an outstanding right to buy or right to acquire application;
4. Access to the property for the purpose of undertaking essential
   maintenance, including compliance checks (gas) has not been given.
5. The property is being assessed for disposal
6. Where a replacement component is needed as a result of resident
   neglect or damage. We will recharge residents for the cost of these items

HQS – How the choices work
1. High level base specifications

Residents add their personal touch at no cost, with
a wide choice of fixtures and fittings available,
kitchen worktops (with mason mitres) and bathroom
taps, tiles
2. Adding that personal touch - Co-specification
Residents supply their own items or materials, such as tiles, taps, kitchen
sinks and bathroom suites – all installed at no cost to them. For instance:
Wall tiles, paint, taps, extractor fans, blinds

HQS – How the choices work (continued)
3. The chance to enhance - Right to upgrade

Residents pay for higher specification options,
including whirlpool baths, heated towel rails and
full height wall tiling, saving the cost to Hyde of
what was going to be fitted

Kitchen - Tall larder units, wine racks, chrome
sockets, under-unit lights
Bathrooms - Whirlpool baths, vanity units,
heated towel rails

HQS Kitchens

HQS Kitchens

HQS Bathrooms

Windows, doors and electrical upgrades

HQS – Aftercare film

HQS - Benefits to date
• Unprecedented levels of choice for residents
• Reduction in void turnaround, costs and number of recorded new voids
• Properties are now seen as more desirable than others
• More than 3000 residents have benefited from HQS to date
• Rental income has increased where previously arrears were present
• Clear evidence of residents taking great pride in their new installations has
  contributed to a reduction in routine repairs
• Embraces our partnership approach with contractors

HQS Savings and Efficiencies

• Savings resulting from move to Open book rates - £580K pa
• Shared savings resulting from Open Book Audits - £30K pa
• Material Savings resulting from HQS Choices - £30K pa
• Savings made from contractor self validations - £60K pa
• Recovery of arrears from tenancy checks - £100K pa
• Voids – average reduction in void costs of around £500 per property
  representing a predicted 10 year saving of £500K
• Savings made from DLR approach - £1M
              • Overall financial savings to Hyde: £2.3M pa

Awards , Compliments & Resident
Satisfaction
Finalists – NHMF – Best Customer Impact Awards
2016 and 2017

Finalists – UKHA – Outstanding Approach to
Repairs & Maintenance 2017

Independent resident satisfaction of 4.5 out of 5 -
residents are extremely happy with their new
installation and the service provided

Thank you
       James Shaw
Director of Property Services
James.shaw@hyde-housing.co.uk
    www.hyde-housing.co.uk