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 | 16 | 72,466
| 36.6% |
| London | 5 | 31,761
| 24.7% |
| North | 7 | 21,734
| 19.9% |
| South | 12 | 53,720
| 20.6% |
| Sum: | 40 | 179,681
| |
B List
|
| | |
Field | Count
| Stock | Percentage Failure
|
Central | 6 | 37,359
| 26.6% |
| London | 6 | 44,756
| 20.4% |
| North | 24 | 58,542
| 15.9% |
| South | 8 | 8,713
| 8.0% |
| Sum: | 44 | 149,370
| |
| |
| |
|
