Axe Street regeneration, Barking, East London, supplied by architect bptw partnership 5 We looked closely at how certain DICK MORTIMER balance of achieving customer satisfaction while ensuring that leaseholders pay the right amount for their services. We looked at ways and means of extracting extra capital resources from our existing stock. And we also came up with suggestions for protecting the asset base so that capital income can be generated from future sales, both in terms of value from leasehold properties and longer-term enfranchisement of the properties. The rights and wrongs of stock disposal exercised much of our time. The issue is not about selling highvalue council or housing association property; it’s about recognising that what was good for social housing 50 years ago or indeed 30 years ago may not be what is needed for residents in the future. If we as a sector manage one million leasehold flats, then a calculation which assumes a £40 per week service charge and a failure to collect 2% of those charges could mean we lose over £41m a year. Money which would have been invested in new housing. organisations make decisions on disposals and I hope this will promote fruitful discussion in the sector. ‘More for less’ is a burning topic for us all these days, and there is much focus on how we increase housing supply. But we must not overlook the potential for housing unit growth within our existing assets. There’s money to be found if we get this right. We did not try to put a figure on savings or additional income that good management could generate. But if we as a sector manage one million leasehold flats, then a calculation which assumes a £40 per week service charge and a failure to collect 2% of those charges would mean we lose over £41m a year. Money which could have been invested in new housing. Similarly for existing stock, if we try to maintain properties that cost us £10,000 more than they bring in over a 10 year period, then it only takes 100 properties to lose £1m from the sector. These are difficult issues to solve but I believe our guide offers illumination and valuable pointers for tackling them effectively and fairly. I would like to thank all of the participants from the working group for their help and input. I hope you find the guide useful.
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