Homes for Haringey recognise that great care needs to be taken not to invest in poor performing areas at the expense of others; nor should high risk re-investment occur without due consideration, options appraisal and piloting. Investment will therefore be prioritised with a bias towards those units that are deemed to be of low risk and high demand; stock. ‘core’ 5.1.1 Viability modelling and Options Appraisal Homes for Haringey will assess viability and re-investment priorities using the Stock Viability Model which takes into account a range of factors including demand/desirability and projected costs. The appraisal process results in individual properties being allocated a red, amber, or green status. (RAG) The portfolio is divided into one of three categories: Red those properties deemed to be of high risk (i.e. requiring – higher than average levels of re-investment or cost, in order to maintain them in a good lettable condition), and/or that are in low demand. Amber those properties that offer peripheral performance and – that require further investigation to be reclassified as either red or green Green those properties that are in high demand and that require – average or below average levels of re-investment, or stock’. ‘core Re investment is influenced by these categories as follows: – Red No major expenditure. To be maintained on an only’ ‘essential limited responsive basis, plus essential statutory works e.g. gas – servicing. Options Appraisal to be undertaken. Amber Further investigation required before major investment. Consider options appraisal to assess the impact of any or future works requirements and the likely impact on demand Green Expenditure permitted. – Property in Red or Amber status is to be the subject of further investigation, or review through an options appraisal, until they are either re- classified or until such time as an alternative strategy is agreed e.g. disposal or development. The assessment of cost is made with direct reference to the Asset Management Database and associated reports. Demand has been assessed with reference to housing management perceptions informed by void turnover rates and other factors such as security and levels of anti- social behaviour.
Homes for Haringey recognise that great care needs to be taken not to invest in poor performing areas at the expense of others; nor should high risk re-investment occur without due consideration, options appraisal and piloting. Investment will therefore be prioritised with a bias towards those units that are deemed to be of low risk and high demand; ‘core’ stock. 5.1.1 Viability modelling and Options Appraisal Homes for Haringey will assess viability and re-investment priorities using the Stock Viability Model which takes into account a range of factors including demand/desirability and projected costs. The appraisal process results in individual properties being allocated a red, amber, or green status. (RAG) The portfolio is divided into one of three categories: Red – those properties deemed to be of high risk (i.e. requiring higher than average levels of re-investment or cost, in order to maintain them in a good lettable condition), and/or that are in low demand. Amber – those properties that offer peripheral performance and that require further investigation to be reclassified as either red or green Green – those properties that are in high demand and that require average or below average levels of re-investment, or ‘core stock’. Re – investment is influenced by these categories as follows: Red No major expenditure. To be maintained on an ‘essential only’ limited responsive basis, plus essential statutory works – e.g. gas servicing. Options Appraisal to be undertaken. Amber Further investigation required before major investment. Consider options appraisal to assess the impact of any or future works requirements and the likely impact on demand Green – Expenditure permitted. Property in Red or Amber status is to be the subject of further investigation, or review through an options appraisal, until they are either re- classified or until such time as an alternative strategy is agreed e.g. disposal or development. The assessment of cost is made with direct reference to the Asset Management Database and associated reports. Demand has been assessed with reference to housing management perceptions informed by void turnover rates and other factors such as security and levels of anti- social behaviour.
asset_management_strategy_fv_march_2018_1.docx