North Hertfordshire Homes

Annual Report 2006/07

www.nhh.org.uk

Growing stronger together

Our Mission Statement: T be recognised as a o market leader by listening to our tenants, developing our staff and delivering on our promises.

Contents
Annual report 2006/07

Who we are Welcome Focussing on neighbourhoods and communities Enhancing customer involvement Achieving sustainable growth in our housing stock Improving our existing stock Developing an effective workforce Management Board The Executive Management T eam Financial summary Statistical Information How We Performed

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North Hertfordshire Homes Annual Report 06/07

Who we are
North Hertfordshire Homes (NHH) is the largest registered social landlord in Hertfordshire, providing around 8,200 homes for rent including over 800 units of sheltered accommodation and around 200 temporary and supported housing places. We came into existence in April 2003 to take over and improve the housing stock of North Hertfordshire District Council. Since then we have established ourselves as a high performing and cost efficient association with an expanding development programme stretching beyond the bounds of North Hertfordshire. We have a strong neighbourhood focus and a firm commitment to tenant involvement.

Growing stronger together

Eleanor Lohr NHH Board Chair

Welcome
to the fourth annual report of North Hertfordshire Homes
This has been another successful year with outstanding achievements in all areas of our operations. Our massive five year improvements programme is entering its last year with many parts ahead of schedule. All of the 650 statutorily defective properties which we inherited at transfer have either already been refurbished or are scheduled for replacement with new houses. We have installed 9,500 new security doors, replaced or upgraded 3,500 central heating systems and are on target to deliver a total of 6,000 new kitchens and 7,000 new bathrooms by the end of this year. Our development programme has expanded rapidly over the year with over 100 high quality homes commissioned double the number for the previous year. The figure will continue to grow year by year towards a target of 500 a year by 2011/12. This growth will go hand in hand with an expansion of our geographical area of operation and I am delighted to report that this year we are not only providing new homes for North Hertfordshire District Council, and St Albans District Council but also Stevenage Borough Council. This year we have entered the shared ownership market for the first time. This is an exciting new venture which will extend the range of housing options for people living in our service area. At the time of writing, all of our first new build shared ownership homes have been sold, and more will become available later this year. We are working towards a target of 1/3 of all future development being destined for this or other sections of the intermediate market Resident involvement has always been a cornerstone of our business philosophy and I am pleased to report the successful launch of our Tenant Forum. This is a monitoring and advisory group drawn from the larger consultative group launched last year. This completes our resident involvement structure which plays an important part in ensuring that the services we provide are what our customers want and give them value for money. At a neighbourhood level we have continued to develop both our support for individual tenants and for the communities in which they live. This year we have put in place additional support for vulnerable tenants and added access to low cost loans to our financial inclusion programme for all tenants and leaseholders. We have also passed significant milestones in major community programmes on two of our larger estates including major environmental improvements, a multi purpose sports pitch and support for youth work. We continue to take our responsibilities as a major local employer seriously and this year have further expanded our apprentice programme and developed relationships with local schools, taking part in mentoring schemes and providing places for work experience. Finally we have once again obtained top ratings in our Housing Corporation assessment.

Eleanor Lohr Chair

North Hertfordshire Homes Annual Report 06/07

Focussing on neighbourhoods and communities

The fund can pay for the improvements tenants want which are not covered by mainstream funding. Where possible we establish and support local residents groups and encourage them to take the lead on local issues. They meet regularly with their neighbourhood officer and play a central role in neighbourhood improvement projects. These often involve working with partners such as the local council or other statutory or voluntary agencies who can bring in extra expertise or funding. A current project to build a multipurpose sports pitch and playground next to the local shops in one of our neighbourhoods has benefited from a grant from the Big Lottery fund following a successful television presentation by our partner Groundwork Hertfordshire and winning the subsequent phone in vote. We strongly believe that young people are a key part of our communities and so NHH also supports initiatives to fund local youth workers and the training of residents to become volunteer youth workers.

We believe that a home is not just a building; it is also the community in which you live. We have a responsibility to help create sustainable communities in neighbourhoods where people want to live. Our devolved neighbourhood services structure, and the funds that support it, gives us the means to achieve this. We begin with support for the individual tenant or family through our financial inclusion and tenancy support programmes. We provide free, independent budgeting and debt advice by funding a specialist worker at the CAB and underwrite low interest loans from the local credit union. Our tenancy support is provided by our own staff, in partnership with specialist agencies including Hertfordshire Young Homeless Group and North Herts Minority Ethnic Forum. We take a robust approach to anti-social behaviour and harassment of all kinds extending to repossession action if necessary. However, we also have a number of successful measures in place to engage with offenders and provide them with support to tackle underlying problems and modify their behaviour. We have neighbourhood officers rather than traditional housing officers. They talk to tenants and listen to their concerns and ideas for making neighbourhoods better. As well as influencing the spending on our improvement and maintenance programmes, neighbourhood staff have access to a Neighbourhood Improvement Fund which is overseen by our Tenant Forum.

North Hertfordshire Homes Annual Report 06/07

...we establish and support local residents groups and encourage them to take the lead on local issues.
North Hertfordshire Homes Annual Report 06/07 5

Enhancing customer involvement

The first major publication worked on by our reading group was our new tenant handbook which, thanks to their involvement is easier to use and more customer friendly than its predecessor. We have held focus groups on subjects including grounds maintenance, the cleaning of communal areas in flats, a tenant reward scheme and methods of rent payments. We have used this activity to establish our Tenant Forum. It meets quarterly and discusses major issues of its choosing with managers. Agenda items have included plans to restructure and improve our sheltered housing provision, monitoring information on service delivery performance and recommendations to award funding from our Neighbourhood Improvement Budget. Training is made available to enhance their skills and make them more effective. A year on the forum is now well established. Its next step is for NHH board members to start attending meetings in the autumn and establish a direct link between tenants and the board.

We believe that our tenants and customers should be at the heart of everything we do. We have been working hard to find ways of increasing their involvement so that they can play a part in the big decisions about the strategic priorities of the organisation and the way it delivers services. Tenants already form a third of our board and have been involved in taking decisions regarding our improvements programme since day one. We also have a leaseholders forum which meets quarterly and support a number of neighbourhood residents groups. Our annual tenants conference in 2006 helped shape our new three year Operational Plan. But we felt we needed a wider and more sustained level of customer involvement in our decision making processes. Eighteen months ago we launched our Have your say initiative with a large advertising campaign and a series of road shows across north Hertfordshire. We have built on the contributions of those who have given us feedback through our service user satisfaction programme by inviting people to join our Tenants Panel. Here they can choose from a variety of more direct ways to get involved. These range from agreeing to complete occasional questionnaires on proposed service improvements, reading and commenting on drafts of new publications, attending focus groups, or joining service reviews. Over one hundred tenants have signed up.

North Hertfordshire Homes Annual Report 06/07

T enants already form a third of our board and have been involved in making decisions...
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Achieving sustainable growth in our housing stock

We take a lifetime view of energy efficiency and so work to minimise wastage during the construction process and use components which reduce the need for future maintenance work. We believe that as a social landlord we have a responsibility to contribute to the creation of financially and socially sustainable communities. Such communities are diverse and residents have a range of incomes and aspirations. This is why we are developing homes with a range of tenures including shared ownership, shared equity and intermediate market rent.

One of the principal reasons for the creation of North Hertfordshire Homes was to increase the number of social rented and affordable homes in the area. Since the opening of our first new houses in 2005, our development programme has expanded rapidly with over 100 new homes commissioned in 2006/7 and a target of reaching 500 new homes a year by 2012. By that time we aim to be a major sub-regional housing provider making a significant contribution to the governments housing objectives for the area. We have already expanded beyond the borders of North Hertfordshire, supplying housing to three local authorities and are negotiating with two more. This wider scale of operation will not only help us find the additional sites we need to reach our target, but also bring us the economies of scale and with them the ability to attract additional development funding. However, we are committed to achieving growth without compromising our ability to manage and maintain both new and existing stock to the highest standards. Each development scheme will be financially viable in its own right and tenants will have accessible customer care and support available to them. We are growing organically outwards from north Hertfordshire but will continue to provide strong community links. Our high development standards ensure that our homes have not just energy and water saving features which make them cheaper to run, but also things like IT infrastructure to enable residents to work or study at home.

North Hertfordshire Homes Annual Report 06/07

...our development programme has expanded rapidly with 100 new homes commissioned...
North Hertfordshire Homes Annual Report 06/07 9

Improving our existing stock

Another challenge has been the replacement of old and sub-standard kitchens and bathrooms, and again we are well on target to complete our five year programme. We have finished approximately 5,100 to date and remain confident that we will exceed 6,000 by the end of 2007/8. All of our homes have now been fitted with double-glazed windows and over 8,500 new doors have been installed out of the 10,000 required. Over 3,500 homes have new or upgraded central heating systems and a further 1,200 have been rewired. Although our original improvements programme has only one more year to run, the task of keeping our properties in a modern state, will never finish. Our continued investment in our planned maintenance and capital works programmes will ensure that we are able to meet this challenge and our properties will remain homes of which we and our tenants can be proud.

One of the biggest challenges facing NHH over current years has been the implementation of an ambitious 130 million five-year programme of major improvements to bring all our homes up to modern standards. This was not just about making them more pleasurable places to live, but also about achieving the governments Decent Homes Standard. This included, making them safer, warmer, increasing their thermal efficiency to cut carbon emissions and lower their running costs. After four years we remain on course to deliver the programme on time, meet, and in some cases exceed expectations. Our programme to upgrade and replace up to 650 system-built pre-cast reinforced concrete (PRC) homes, deemed by government to be statutorily defective is a good example of this. Approximately 60 PRC properties have been identified as needing replacing with those remaining, being part of a phased refurbishment programme with an average spend of 40,000 per property. In March this year, we celebrated the completion of the refurbishment of the last PRC home, a full year ahead of our original schedule. Not only are these renovated homes much more comfortable and cheaper to run, their appearance is completely transformed, giving them a more modern feel.

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North Hertfordshire Homes Annual Report 06/07

...in March this year, we celebrated the completion of the refurbishment of the last PRC home........
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Developing an effective workforce

We are especially proud of our Apprenticeship Scheme, which continues to attract increasing numbers of applicants year on year. Apprentices study for nationally recognised qualifications and we have a very good track record of employing apprentices from previous years onto our permanent workforce, who have then gone on to hold supervisory posts. We have recently introduced a management development programme in conjunction with The Chartered Institute of Management. This is a two year course which offers managers the opportunity to obtain a professionally recognised qualification. Our annual staff survey is an invaluable tool in capturing the thoughts and opinions of employees, and measuring our success in achieving our objective of being an Employer of Choice. Recent surveys have shown a steady improvement in staff morale which we believe is a direct result of our commitment to involve, develop and encourage staff.

We recognise that without the skill and dedication of our staff, we would not be able to offer the level of support and service that our tenants, leaseholders and stakeholders have come to expect. Our aim is to nurture talent within the organisation and attract new talent from the wider community. Training is a fundamental part of our culture and we provide an extensive programme of in-house training, ranging from general IT skills to specialist trade and care courses. The choice of courses offered each year is driven by the annual training needs assessment carried out as part of our annual employee appraisals. We also utilise external courses for individual staff where appropriate and support them in studying for professional qualifications. Every new member of staff takes part in our induction day, whether they are a new board member or a new care worker. The day gives everyone an overview of the whole business, a clear understanding of how they fit in and the importance their contribution has to the rest of the organisation. We recognise that we not only need to create a skilled workforce for today, but also for the future. We have therefore built relationships with local schools and colleges, creating mentoring programmes and offering work experience. We have exhibited at career fairs and talked to many young people about the opportunities within a progressive organisation such as ours.

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North Hertfordshire Homes Annual Report 06/07

Training is a fundamental part of our culture and we provide an extemsive programme...

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North Hertfordshire Homes Management Board 2006/07

Eleanor Lohr Chair Independent Board Member

Ralph Kitchener Vice-chair Tenant Board Member

Joan Kirby NHDC Nominee

Ann Gilligan Tenant Board Member

Gordon Johnston Independent Board Member

Santok T akhar Independent Board Member

Pauline Walker Tenant Board Member

Douglas Kell NHDC Nominee

Howard Marshall NHDC Nominee

Heather Wright Tenant Board Member

Patricia Marshall Independent Board Member

Lynda Needham NHDC Nominee

Jackie Thomas Tenant Board Member

David Kearns NHDC Nominee

Cara Gelston Independent Board Member

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North Hertfordshire Homes Annual Report 06/07

The Executive Management T eam

Kevin Thompson Chief Executive Kevin has had a long career in housing, both in the voluntary and statutory sectors as well as with social services, policy and with national and local voluntary organisations. He has worked closely with the housing association sector over 20 years and been Chief Executive of NHH since its inception. Brian Milward Director of Finance Brian is a chartered accountant and has twelve years experience as a Finance Director in social housing. Before moving into social housing, he worked for US multinationals in France, the UK and the USA.

Paul Murtagh Director of Property Paul is a Chartered Surveyor with 26 years experience of working in the property sector of social housing. He has worked both for housing providers and a construction company specialising in maintenance and improvement work Victoria Hisgrove Director of Operations Victoria has worked in housing for 17 years in a variety of roles in both housing management and repairs before joining North Hertfordshire Homes as Director of Operations.

North Hertfordshire Homes Annual Report 06/07

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Financial summary
for year ending 31 March 2007
Consolidated income and expenditure account for our fourth year of trading. Social Housing Lettings 000s 32,222 (19,230) 12,992 ------------------Other Social Housing Activities 000s 1,315 (1,785) (470) -------------------

Total 000s Income Operating costs Operating surplus Net sale proceeds from sales of houses Operating surplus Net interest Net Surplus in year Our income of 33,769,000 was received from the following sources: 82% 14% 2% 1% 1% General Shelter housing Temporary housing Other social housing Other 33,769 (21,094) 12,675 576 13,251 (7,948) 5,303

Other 000s 232 (79) 153 -------------------

Our total costs were 21,094,000 and 91.2% of these were in respect of social housing lettings. Operating costs were spent in the following areas: 53% 23% 21% 2% 1% Maintenance and repairs of properties Services Management Depreciation of properties Bad debts

Income

Operating Costs

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North Hertfordshire Homes Annual Report 06/07

Statistical Information
Our housing stock as at March 31st 2007 General needs housing 7035 Housing for older people 842 Supported housing (including temporary accommodation and a small number of units leased to specialist support agencies) 218 Shared ownership 75 Leaseholders 542 TOTAL 8712
*Does not include 6 former wardens homes awaiting development

How We Performed
Repairs & maintenance Emergency repairs completed within 24 hours Urgent repairs completed within 7 days Routine repairs completed within 31 days Repair appointments kept Achieved 98.6% 96.6% 95.3% 99.4% Target Met 98.2% 95.5% 95.5% 98.2%

Average rent levels (all general needs tenants) Bedsit 1 Bed 2 Bed 3 Bed 51.84 58.64 65.87 69.71 Who we housed in 2006/7 (general needs and housing for older people) 1.Type of accommodation Bedsit 1 Bed 2 Bed 3 Bed 4 Bed 28 210 145 102 7
General needs and housing for older people combined

4 Bed 75.57

Total 492

Economic circumstances of our tenants (head of household) Gen Supp Circumstances needs Housing Working full-time 35.7% 14.6% Working part-time 11.5% 7.9% Govt training/new deal 0.0% 0.4% Job Seeker 8.4% 11.0% Retired 5.5% 36.2% Not seeking work 25.6% 11.8% Full-time student 0.9% 1.6% Long term sick/disabled 10.4% 13.0% Other (adult) 2.0% 0.0% Household composition Gen Supp Composition needs housing Single older person (60+) 2.6% 26.2% Older couple (at least one 60+) 3.5% 4.7% Single adult (16-59) 35.4% 39.8% Two adults (16-59) no children 6.9% 6.2% One adult + at least one child <16 20.2% 14.3% Two (or +) adults + at least one child<16 23.9% 7.2% Other 7.5% 1.6% Ethnic origin Lettings to BME groups Achieved Target (general needs & sheltered housing) 13.5% 6-10%

Property improvements Upgrading/installing 994 800 central heating New kitchens 778 +12 refusals 800 New bathrooms 766 +34 refusals 800 Reinstatement of statutorily defective properties (prc) 147 +8 sales 155 demolitions Roof replacements - dwellings 228 180 Voids Average re-let time for dwellings (general needs properties) 17.0 days 19.0 days Average re-let time for dwellings (supported housing properties) Arrears % of rent due uncollected Complaints and compliments Area of service Repairs Voids Heating Property Service Charges Improvements Neighbourhood services Lettings Supported housing Leaseholders Right to buy Temporary accommodation Miscellaneous Total Number 59.0 days 53.0 days 2.09% 1.75%

Complaints Compliments 25.0% 47.4% 2.8% 0.0% 8.3% 5.3% 11.1% 9.9% 1.4% 0.0% 12.7% 15.1% 18.1% 8.5% 0.0% 1.3% 13.9% 5.9% 0.0% 0.7% 0.0% 0.7% 2.8% 3.3% 0.0% 2.0% 72 152

North Hertfordshire Homes Limited Registered Office Rowan House Avenue One Letchworth Garden City Hertfordshire SG6 2WW Registered Auditors Grant Thornton UK LLP Daedalus House Station Road Cambridge CB1 2RE Solicitors Winckworth Sherwood 35 Great Peter Street London SW1P 3LR Bankers Barclays Bank Plc 1 Churchill Place London E14 5HP North Hertfordshire Homes is an Industrial & Provident Society with charitable rules. Registration Number: 30003R North Hertfordshire Homes is registered with the Housing Corporation Registration Number: L4370 Further copies of this report may be obtained from: John Knox Performance and Quality Manager Rowan House Avenue One Letchworth Garden City Hertfordshire SG6 2WW Telephone: 01462 704107 E-mail: john.knox@nhh.org.uk
Designed and produced by pma* 01462 433203

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