Decent Homes
Since 2005, PowerPlus has been involved in the Decent Homes project in and around London for end user Local Authorities such as Ealing Homes, Newham Homes, Lambeth Homes, Croydon Council and Housing Trusts such as Nottinghill and Peabody.
During the course of the project, we have carried out full rewires, existing electrical installation upgrades, and fitted new Kitchens and Bathrooms to thousands of properties.
What is a Decent Home?
By 2010, 95% of social housing will meet the ‘decent homes’ standard of being warm and weatherproof with reasonably modern facilities.
Decent homes are important for the health and well-being of those living in them. Poor housing helps an area to get a bad reputation. That makes it an unpopular place to live, which in turn may lead to the breakdown of communities.
Communities and Local Government (CLG) is improving the living conditions of social tenants across the country by challenging all councils and housing associations to deliver decent homes by 2010.
In 1997 there were 2.1 million houses owned by local authorities and housing associations that did not meet the decent homes standard. Local authorities had a 19 billion pound backlog of repairs and improvements.
One million of these have already been raised to a decent standard and most of the improvement has taken place in deprived areas.
Many local authorities are delivering decent homes using existing resources and retaining both ownership and management of their housing stock.
By 2010 ninety five per cent of all social housing will meet a decent standard.
The Government believes that everyone should have the opportunity to have a decent home. It is aiming to make all council and housing association housing decent and also wants to improve conditions for vulnerable households in privately owned housing, particularly those with children.
How is the Government helping?
For those that need extra funding to meet the required standard, the Government has outlined three options which aim to deliver improved performance and services ensuring the extra money is spent cost effectively.
The three options are:
Option 1: Setting up an Arm's Length Management Organisation (ALMO)
An ALMO is a company created by the council to manage its homes and make them decent. Although the council still owns the homes it is free to focus on more strategic housing functions. If the Housing Inspectorate rates the ALMO as 'good' or 'excellent' the Government makes extra money available in order to make the homes decent.
Option 2: Using Private Finance Initiative (PFI) to encourage extra private sector investment
PFI enables the Government to provide financial support for partnerships between the public and private sectors. Typically, PFI contracts last for thirty years. Although the council still owns the homes, in most cases, the private sector partner will provide the management services.
Option 3: Transferring all or some of the stock to a Registered Social Landlord (RSL)
RSLs or Housing Associations can borrow money from banks and building societies in order to make the transferred houses decent. The council is free to focus on more strategic housing functions.
