Housing Revenue Account (HRA) Business Plan 2024-2054

4.1 Dwelling stock profile

4.1.1 Profile of the HRA dwelling stock within Gateshead:

Stock by archetype

• bungalow 16.63%
• flat 26.72%
• house 55.5%
• maisonette 1.07%

Stock by neighbourhood

• central 16%
• east 23%
• west 18%
• inner west 16%
• south 27%

Number of bedrooms

• no bed 1.13%
• 1 bed 21.52%
• 2 bed 45.38%
• 3 bed 30.17%
• 4 bed 1.77%
• 5 bed 0.03%

We own over 18,000 homes and provide leasehold services to over 900 properties.

There are over 130 estates managed across five neighbourhood areas.

Our homes are predominantly older style, traditionally built properties.

Homes with three or more bedrooms are in high demand and short supply.

There is low demand for multi-storey flats and larger 2+ bed medium-rise flats.

4.1.2 Accounting for the predicted sales of properties through Right to Buy, the potential impact of stock options and predicted development opportunities, housing stock is predicted to be 15,512 by year 30 of the plan.

4.2 Other HRA assets

4.2.2 The HRA also owns a number of non-domestic assets, which are predominantly made up of garages, lounges, shops, land and play equipment. Reviews of the status of non-domestic assets has commenced. These are exploring how these assets are used and whether disposal, demolition or a change of use would bring more value to the HRA to better help, support and sustain neighbourhoods and communities.

4.3 Investment priorities

4.3.1 The capital investment included in the plan is based on the stock condition surveys of the current stock, and also includes the following:

• progress towards net zero and the mitigation of damp, mould and condensation
• ensuring compliance with building safety measures
• investment in garage sites and the HRA public realm
• investment in IT Infrastructure and digitally enabled blocks
• investment in the commercial stock
• investment in communal areas and the wider environment
• continued investment in disabled adaptations
• support to increase the opportunities for Fostering within the social housing portfolio

4.4 General stock investment

4.4.1 Since the end of the Decent Homes Programme the balance of responsive repairs verses planned works have shifted and excessive responsive repair interventions are being delivered. As part of the Construction Services review work has commenced to address the split between responsive and planned so that more work is delivered in a planned way, ensuring value for money and the efficiencies associated with programmed works.

4.4.2 A tool has been developed that will analyse estate-based repairs to gain insight into the numbers of repairs and the type of work being delivered, then assessing it against stock condition data. This tool will be embedded and used to identify trends and drivers for expenditure to aid planning and deliver an appropriate balance of reactive repairs and planned investment and ensure this is aligned with our understanding of stock condition and asset sustainability.

4.5 Net zero carbon

4.5.1 The HRA will need to invest c.£265 million into insulation measures, ventilation and new heating technologies. Investment costs average around £16,000 property and in some cases are as much as £37,000. The HRA business plan includes some allowances for costs for energy efficiency measures and improvements but support from public funding will be required to meet our obligations around energy improvements and net zero carbon. A Retro-fit Strategy is being developed to steer how, where, and when works are delivered, maximising the impact of work and prioritising the interventions that will have the most impact for residents.

4.6 Building safety measures

4.6.1 The council is committed to ensuring tenant safety and the intention is to ensure that assets meet all applicable health and safety requirements so that all residents and visitors are confident that they are in a safe and secure environment. There has been significant investment into strengthening the safety of our assets over the last two years, and the necessary investment will be maintained to continue to ensure all assets are compliant.

4.6.2 As part of the consolidation of housing services into the council new, strengthened governance and scrutiny processes have been introduced to protect customers and the sustainability of the HRA.

4.6.3 A robust and resourced Building Safety Team continues to be developed to manage the council's approach to this critical area of safety-based work and assurance. Strong condition data, process drive IT systems, robust building assessments and maintenance information will help protect the HRA from unplanned high cost and non-compliance.

4.6.4 As a building owner of higher risk residential buildings, such as high-rise buildings, we will compile and maintain safety case files and have appointed a building safety manager to support the management of our assets.

4.6.5 The council was subject to an external compliance audit (fire, gas, electrical, water, asbestos, mechanical) in June 2024. The council retained its 'Reasonable Assurance' level where there are some non-compliances of a medium or low priority. This is the second highest rating, the highest being 'Substantial Assurance' which is no or very low non-compliances.

4.7 Garage sites

4.7.1 Garages make up the largest proportion of non-domestic assets. These are assets that are formed of blocks or individual units that are not tied to or let as part of a domestic tenancy.

4.7.2 There are just over 3,600 garages currently in the HRA making up 510 garage block sites. All garage blocks have been stock condition surveyed and sites have also been appraised to assess their potential future use. Almost £1 million has been allocated in the business plan to start delivering on the garage review over the next five years. The first phase of non-viable sites have been decommissioned and demolished, work on phase two is underway. Work is also progressing with an external partner to explore the prospect of changing the use of some sites to provide domestic accommodation.

4.8 Investment in IT infrastructure

4.8.1 The current IT systems are structurally fit for purpose; however, there is insufficient interfacing or linkages to ensure a 360 view of all business intelligence. To strengthen the approach to data and ensure a robust and resilient approach a systems a review has been undertaken. It has assessed the existing IT strategy and future organisational need. The recommendations from the review are now being worked through to ensure the HRA is supported by a robust IT infrastructure.

4.9 Investment in commercial stock and the wider environment

4.9.1 There are also a small number of fixed play equipment sites that fall within the management of the HRA. These sites carry with them inspection and compliance requirements as well as ongoing maintenance costs. In partnership with communities these sites will be reviewed.

4.9.2 It is recognised that there is a need to review the status of non-domestic assets to explore how they are used and whether a change of use would bring more value to the HRA and better help support and sustain neighbourhoods and communities.

4.10 Disabled adaptations

4.10.1 The council recognises its social responsibility to support vulnerable and disabled residents to remain independent in their home. There is an annual budget for the provision of minor works, like handrails, through to major work such as adapted bathrooms or property alterations.

4.10.2 Demand for adaptations in council homes remains high, with a large proportion of residents defining themselves as having a disability. The approach to adaptations must remain sustainable and viable, make the 'best use' of our stock by ensuring that properties are allocated appropriately, that investment is only made into sustainable adaptations, and that value for money is achieved.

4.11 Stock options

4.11.1 High-rise blocks

1. The analysis of the future pressures on the HRA highlights high rise blocks as a key area of concern. The high-rise stock is commonly characterised as a liability to the HRA resulting from high investment cost, low demand and high management requirements.
2. Redheugh and Eslington Courts were deemed unviable and are currently being decommissioned, with residents being decanted, and will be demolished when empty.
3. Warwick Court is undergoing a decommissioning process and a review of potential alternative uses for the block is being established.
4. Decommissioning work in Sir Godfrey Thomson Court and Crowhall Towers is progressing well. Demolition work should begin during 2024/25.
5. The strategic roadmap, subject to the decision-making process and consultation, is to undertake further options appraisals in line with the priorities laid out in the HRA Asset Strategy 2022-27.
6. Following a detailed options appraisal on investment and sustainability East Street Flats were deemed unviable and will be decommissioned as part of a scheme to develop 100 new council homes in the area around the town centre.

4.11.2 Older persons' housing

1. Gateshead has seven older persons' purpose-built housing blocks. They include over 200 sheltered 1-bedroomed and 2-bedroomed flats. Angel Court is the only modern purpose-built scheme.
2. There is also a disproportionate spread of blocks across the borough. The East, Central and West Neighbourhoods have one block each, while in the South there are four schemes. It is proposed to undertake a specific older persons' purpose-built block review starting in 2023.
3. Analysis of stock performance has also highlighted challenges with some flats and smaller bungalows reserved for older persons. Further analysis will be carried out to assess the opportunities for change of use or conversion to higher demand property archetypes.

4.12 New development

4.12.1 The plan includes the continued development and acquisition of new social/affordable housing units to reach 400 by 2033 as from 2022/23 and it has been assumed that the Treasury share of Right to Buy receipts and any accrued 1-4-1 receipts will be used to fund the units first and then there will be an opportunity to bid for Homes England grant funding to support the delivery of the remaining units not funded from the receipts.

4.12.2 The proposals for new development include the development/acquisition of a range of homes to include one-bed apartments through to four-bed family homes, across a range of sites within the borough.