Agenda item

Under Section 100(a)(4) of the Local Government Act 1972, the press and public may be excluded from the meeting during this item on the grounds that

if they were to be present, exempt information could be disclosed to them as defined in paragraph 3 of Schedule 12A of the Act in respect of Appendices One and Two.

Purpose of report

To seek approval to award a contract to the successful tender to undertake significant improvement works to a number of properties on the Earlesfield Estate in Grantham and recommend to Full Council additional revenue budget allocation.

Decision

That Cabinet:

(1)       Approves the award of a contract for the Earlesfield Estate Capital Works Project for £3.288 million to United Living Group.

(2)       Recommends to Full Council a budget allocation of £1.364 million to be funded from the Housing Revenue Account Improvement Reserve in order to deliver the one-off revenue costs associated with the Earlesfield Estate Capital Works Project.

Alternative options considered and rejected

Alternative options considered and rejected included:

-       Not undertaking improvement and asbestos containing material removal works

-       Undertaking works when properties became vacant due to tenancies ending

Reason for decision

The Council had a clear commitment in its Corporate Plan 2020-2023 to provide ‘housing that meets the needs of all residents’ and the timely delivery of improvements to its social housing stock, which included a significant number of properties on the Earlesfield Estate in Grantham, was a key element to this.

The Earlesfield Estate contained 1,014 Council-owned properties, of which 152 were ‘Wimpey No Fines’ design and represented a post-war non-standard construction archetype. In 2021, the Council identified that these property types contained asbestos containing material and although this did not present immediate risk of harm to residents, it was best practice to remove it. It was noted that there were no other properties in the Council’s housing stock of this archetype.

As part of the project initiation process, a range of actions were undertaken as set out in paragraph 1.4 of the report by a small group of Officers set up as a project team. It was noted that the project team had maintained dynamic risk assessments and appropriate mitigations throughout, and the Regulator of Social Housing had been kept fully informed through the monthly meetings with senior officers and was satisfied with the approach taken.

The asbestos surveys showed that this property type required intrusive works to remove the asbestos containing material and that the works would necessitate the removal of ceilings within the properties. It was also noted that several of the affected properties required replacement kitchens and bathrooms and were also scheduled for electrical, heating and door upgrades through the Council’s usual capital works programme.

Considering the potential disruption and scope of works needed to the properties identified over the next few years, it was considered most practical and efficient to package the works into one contract covering all of the works and to temporarily transfer approximately 112 households during the work being undertaken to their homes. In order to facilitate this, ten properties on the estate had been held as void to provide such provision and one flat had been converted into an estate office to ensure tenant engagement was optimised.

Details relating to the procurement process was set out in the report, together with the financial and budgetary implications which involved a mix of revenue costs and capital costs.

The following points were made by Cabinet Members during consideration of the report:

·         This project should provide existing tenants with an assurance that the Council was committed to improving its homes and providing decent accommodation, delivering numerous benefits to its residents as a consequence

·         The project represented further evidence of improvements that continued to be delivered in the Council’s Housing Department

·         Costs associated with the temporary transfer of households whilst works took place would be met by the Council and not fall on the tenants themselves, which had been included as part of the overall costs associated with the project

·         The Council’s stock condition survey would play an important part in developing a programme of maintenance and repair in respect of its housing stock, continuing to address legacy issues. Short term, medium term and long-term programmes would see such improvements be planned as part of a 30-year overarching programme of works. This would be balanced against the new homes programme

·         More energy efficient provision should be included as part of repair and maintenance programmes for the Council’s housing stock, particularly when the Council from a planning perspective was calling on developers to outline what measures they were putting in place when submitting applications

·         Clarity was sought regarding any limitations on a person’s ability to purchase their Council-owned home through the Right to Buy Scheme

·         The project represented an increase in standards and helped support the improved community feel of the area, which would also benefit wider-Grantham

With regard to energy efficiency and carbon reduction, the maintenance and repair works did not incorporate the introduction of new provision in this respect but would not prevent such provision being introduced in the future. It was noted, however, that replacement boilers would be more energy efficient than those previously installed. It was acknowledged that more could be done to make the Council’s housing stock more energy efficient and sustainable, especially in respect of new-build properties, however, this would require to a multi-million pound investment which the Authority presently could not afford. It was apparent that this could not be achieved without financial assistance from central Government and represented a national issue. The Leader of the Council agreed to write to the Secretary of State for Levelling Up, Housing and Communities seeking confirmation as to the Government’s plans in this regard and how the Government intended to move this agenda forward, offering South Kesteven as a potential trial district for any relevant initiatives, particularly aging Council housing stock.

The Right to Buy Scheme would still provide tenants with the right and opportunity to purchase their Council-owned homes, however, given the significant improvements made as part of this project a cost floor would mitigate any loss to the Council should any of these properties be sold through the scheme.