It should be noted that the Housing Service’s capacity to run such a scheme is very limited and as such isn’t recommended.
PROJECTS
In addition to the maintenance of communal areas, there is also a desire to upgrade fencing, paving and undertake essential tree works.
The titles deeds for ex-council properties does not permit Housing Services to compel private owners or landlords to contribute to the costs of these improvements, nor does HRA guidance allow Housing Services to fully fund these works.
The Mixed Team Scheme allows for essential projects to be funded without the need to seek contribution from the private owners.
If this service was to be removed, we would again be reliant on private owners and landlords being willing to pay for external improvement works.
INCOME GENERATION
In addition to the loft insulation scheme, there is an opportunity to undertake charged works for Barrhead Housing Association.
A pilot scheme has been undertaken with a service level agreement being finalised. It is estimated that this will generate an income of £10k per year. Similar to the point made as paragraph 17 the management of services for external organisations can be seen as a distraction for the Housing Service.
The income generated comes at a time and management cost of a Housing Service at full capacity.
SHARED SERVICES
An additional option considered was to consider shared services with Neighbourhood Services.
However whilst this may bring overall departmental savings, it would require the Mixed Tenure Scheme works undertaken for Housing Services, to be reduced. There is no additional capacity at present and the squad have a significant work load.
FINANCE AND EFFICIENCY
The cost of delivering the Mixed Tenure scheme is increasing and is particularly impacted by staffing costs, materials and contractors, as noted in paragraph 14.
Based on the review undertaken it is unlikely that required savings can be made and service levels maintained. In summary;
Service Reduction/Savings
Remove contracted services such as grass cutting and close cleaning –
based on 23/24 forecast budgets, this would deliver savings of £74k but would result in a significant reduction in the condition of mixed tenure communal closes and gardens.
Tenants and owners could be asked to pay for this service to cover costs but this would have to be voluntary.
Remove the budget for projects such as mixed tenure fencing slabbing and tree works
based on 23/24 forecast budgets, this would deliver savings of £5k.
As a result of rising costs, the current 23/24 has been reduced by £36k from the previous year.
This will result in a reduction in the condition of mixed tenure communal closes and gardens.
Tenants and owners could be asked to pay for works as they arise but participation would be voluntary.
The options above would save £79k, £39.5k for the General Fund and £39.5k for the HRA.
Income Generation
Chargeable works for Barrhead Housing Association - £10k per year. Following a small pilot, it was estimated that 2x mornings per week would be required with a daily rate charge of £400.
Chargeable works such as loft insulation undertaken by trainees via employability funding, this could generate £32k of income but is dependent on Scottish Government funding which may not be confirmed until May 2024.
As Scottish Government employability funding from 2024/25 may not been known until May 2024.
This paper can only confirm income generation of £10k from BHA works.
The maximum savings that can be guaranteed for the General Fund is approximately £46,700 without reducing FTE, based on the following;