Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Written Evidence


Supplementary memorandum by the Housing Corporation (DEC 66(a))

DECENT HOMES RISK REGISTER

  The Committee asked for further briefing on the Housing Corporation's Decent Homes Risk Register. This identifies those associations where there is potentially cause for concern about their ability to reach the 2010 target.

  Drawing up the register was a two stage process. The initial list, mentioned in our oral evidence, consisted of some 70 associations identified from our Asset Management Database. These were associations that, according to their annual returns, had a higher than average percentage of homes failing to meet the standard, coupled with a planned forward spend that was below our estimates of average amounts needed to bring properties up to standard.

  The list has been refined in the light of local knowledge of regulators in our field offices, taking into account matters such as the nature of the stock, the criteria on which failures are based, demand levels and plans for sale or demolition. Some associations have been removed: in some cases the required works are of a minor nature so the planned spend is sufficient, in others regulatory action has already resulted in a robust plan being drawn up. Some associations, however, have been added: sometimes this is because of lack of confidence in the figures provided, sometimes because, in spite of relatively low percentage failure rates, the regulators are not fully satisfied that the association has a workable strategy in place.

  The resulting register is in two parts. Part A comprises 40 associations where there are significant concerns and asset management reviews will be carried out by regulators over the next 12 months. This will result in an agreed plan for further work to ensure the association is on target.

  Part B consists of 44 associations where regulators will be actively monitoring asset management plans and raising the issue with the executive in the course of their normal regulatory activities. Where the Corporation is not satisfied with the responses the associations will be included in next year's A list for a full asset management review, although in some cases a full asset management review is being carried out this year, for reasons other than concerns about decent homes—for example because of demand issues or poor performance on repairs. Seven associations are on the B list because they are included in the Liverpool low demand project.

  The lists are based on provisional evidence. Because of this and the reliance of associations on private finance it would not be reasonable to make their names public at this stage. After regulatory investigation and subsequent necessary action has been taken, any remaining concerns about an association's ability to meet the target within the time frame will be reflected in its individual Housing Corporation Assessment, available on our website.

ASSOCIATIONS ON THE RISK REGISTER

  The 40 associations on the A list are, taken together, responsible for some 180,000 homes of which on average 28.1% failed to meet the target as at 31 March 2003. The 44 associations on the B list are responsible for some 150,000 homes with an average failure rate of 20.2%.

  The geographic breakdown is as follows:

Decent Homes Risk Register—National Analysis

A List

Field
Count Stock Percentage Failure

Central
1672,466 36.6%
London531,761 24.7%
North721,734 19.9%
South1253,720 20.6%
Sum:40179,681


B List


Field
Count Stock Percentage Failure

Central
637,359 26.6%
London644,756 20.4%
North2458,542 15.9%
South88,713 8.0%
Sum:44149,370





 
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