Effective Asset Management


18 Νοε 2013 (πριν από 4 χρόνια και 7 μήνες)

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Effective Asset Management

John Holdsworth


Sue Philpott

Effective asset management

What is it?

Why is it important?

What is an Asset Management Strategy

What it is not

An effective AMS should….

Key considerations

So what does this all mean?

Taking a comprehensive approach to managing
the physical assets in order to achieve

best use of these and

value for money.

Understanding and managing the condition,
performance (heat efficiency etc.) of, and risks
presented by your homes and other buildings.

It covers the construction, operation, maintenance,
modification, replacement and disposal of homes
and other buildings.

It includes ensuring that your co
op embraces
energy efficiency and promotes environmental

What is it?

It is a key Management Committee responsibility

Part of a planned, rather then reactive approach to
managing an organisation

Directly links to financial plans and rent setting
strategies, approaches to contract procurement
and aids and adaptations

Maintenance priorities can be set on a fair and
transparent basis

Should lead to improved value for money

Clear priorities for annual budget setting

Why is it important?

What is an asset management


It actively manages the assets of the co

It sets out your understanding of and approach to
long term ‘financial value management’ and the
overall performance of your homes and other

It helps you to make strategic decisions on stock
investment, retention or disposal, and rent levels

and perhaps your involvement in neighbourhood
wide activity.

It provides a framework by which you have:

Effective and transparent stock investment

Active asset management

Support for wider objectives

What it is not……

It is not just about delivering works

It does not mean that all your
properties should remain in your co

It does not mean that your co
op is
always the best landlord to manage
all your assets

An effective asset

management strategy should…

Define your values and strategies and how these relate to the
service and standards of repairs and maintenance and
tenancy management you and your members have set

Understand and take account of the policy environment in
which we live and work

Understand and assess the performance of your homes and
other property, your residents needs and expectations, and
the potential risks involved

Embrace social and environmental sustainability

Be based on option appraisal and financial modelling

Provide an affordable strategy that links to the business
planning process

Key considerations

Are the properties fit for purpose e.g.

are they inefficient and / or costly to maintain?

are they what the members and community

are they too far away to manage well?

Could the equity released be used for other,
higher priorities?

Is the local neighbourhood sustainable?

The balance between investing in existing
and new homes

Cushioning against risk

So what does this all mean?

Planning and delivery of a successful repairs and
maintenance service

Responsive versus planned

Effective and appropriate procurement

Deciding on the service standards and priorities e.g. fixing fast to

Monitoring and management

Having the right data e.g. SAP, costs of repairs and maintenance,
expected life of key components etc.

Meeting your equality and diversity obligations

Take account of the diverse needs of existing and future

Promote positive attitudes and approaches and encourage
participation and access to homes and services

So what does this all mean? (2)

Measuring performance

Actual delivery against the AMS and plans e.g. void turnaround and costs

Appointments kept

Completion times

Resident satisfaction and feedback


what does success look like?

Managing risk

know your housing stock, what you
can afford to do and your current and future
members’ needs and aspirations

Understand current and projected demand for the properties, current
and projected cost of maintaining your homes at current standards,
current and projected income,

Consider energy ratings and efficiency measures, void standards,
approaches to renewing fixtures and fittings, shared accommodation v.
self contained, green v. traditional etc.

So what does this all mean? (3)

Essential that MC members:

have the knowledge to provide an effective strategic
overview of the management of the co
op’s assets and
the repairs service

ensure the asset management strategy, business planning
process, other associated strategies e.g. your contract
procurement, and your approach to risk management and
decision making across the co
op are aligned

scrutinise performance in delivering contracts and services
to meet the asset management strategy

consider issues such as maintaining sustainable assets,
delivery of quality, timely repairs and achieving value for

So what does this all mean? (4)

Members value:

The MC being clear what the co
op can
and will do, when it will do it and what it
will not do

The MC keeps its promises and does what
it says it will do when it says it will.

Members are consulted on key issues and
kept fully informed throughout the process

including when not much is happening.

Case Studies

Case Study 1

Financial Model and Asset Management

ANO Housing Co

Background information

23 Unit Co
op, social rents

No plans to change activities

History of low rent increases

As properties age component replacement
requirements increasing each year

Committee needed robust information
longer term financial plans, rent setting
strategy and asset management

Available Information

11 year old condition survey, not updated

Historic maintenance records

2009 Decent Homes survey summaries

Report from gas service contractor

Annual accounts and financial records

Key issues

Condition of properties was the key issue for

Independent view of priorities needed

All loans repaid by 2022, freeing up cash

Condition data supplemented by selected
site visits

Small Co
op, committee had good
knowledge of the properties

Project findings

Keeping the Co
op’s properties in
acceptable condition achievable but
finances would remain tight

Annual rent increases above inflation
needed for at least the next 10 years

Case Studies

Case Study 2

Financial Model and Asset Management Plan

XYZ Housing Co

Background information (1)

45 Unit Co
op, 40 tenants and 5 leaseholders

Long lease for 35% of Co
op units expiring
and substantial premium needed to renew

Older properties with increasing
maintenance needs

HHSRS issues identified in communal areas

Potential solar panel project at a block of
flats needing substantial investment

Background Information (2)

Empty property which could be sold on a
long lease

Previous condition survey, not regularly

Historic maintenance records, particularly
on boilers and kitchens

Reports from gas service contractor

Annual accounts and financial records

Key issues (1)

Condition of properties was the key issue for

Need to balance different priorities:

* Renewal of long lease

* Investment in solar panel project

* Keeping properties up to standard

* Whether to sell the vacant flat

Key issues (2)

Condition data supplemented by selected
site visits

Committee needed robust financial and
asset management plans so the available
options could be properly considered

Project findings

Solar panel project not achievable in view
of initial investment needed

Loan finance needed to be able to keep
planned maintenance at the required level

Sale of the empty property would reduce
the level of loan needed

Annual rent increases above inflation
needed for at least the next 5 years

General points for Asset

Management Plans

Keep it simple, broad categories not too
much detail

Not an exact science, needs to be
accurate enough to make competent

Plan should be regularly updated as new
information becomes available, reviewed at
least annually