Housing Issue 3

How do we implement digitalisation in social housing?

to creating a smart city.

digital technology continues to play a crucial role in everyday life, the social housing sector is beginning to respond and create digital strategies, implement IoT devices, and put technology at the heart of improving people’s quality of life.

this issue, we analyse the annual consumer regulation review and explore how we can improve the lives of social housing residents through digitalisation, improving indoor air quality,

the implementation of BIM.

specific focus on how the social housing sector can expand its housing stock faster, Quadrant Housing dives into how non-traditional building materials may help, while having minimal impacts on the environment.

Social Housing Decarbonisation Fund Wave 2 Guidance

After the guidance, application documentation, and clarification period for the SHDF fund wave two have been released, Quadrant Housing gives an overview of what is required for your bid ahead of October 2022.

The second wave of the SHDF allocation is an £800m fund which is part of the 2021 Spending Review Settlement to install energy performance measures for social homes in England.

Part of why the funding allocation came around is to tackle ongoing fuel poverty, which is set to increase as the cost of living crisis grips the whole country but impacts the poorest disproportionately.

Additionally, it is designed to help reduce carbon emissions in the social housing sector, improve the health and wellbeing of residents, and support the growing green economy.

There are multiple delivery and performance considerations before placing bids to the government. Effectively split into three primary considerations; outcome, standards, and types of installers are all critical factors. All buildings should be upgraded to EPC C where possible

Focusing on the required outcomes from the funding allocation, houses will need to be upgraded to EPC C (SAP69) standards, with the exception of EPC F/G homes that cannot reach this level. Instead, they’ll be required to reach EPC D (SAP55).

Despite not being a definitive element of receiving an allocation of funding, consideration for reaching the heating

demand level of 90kwh/m2/year is heavily welcomed.

Regarding standards, bidders must implement PAS2035 specifications to guarantee safety standards and that the quality of work is high. PAS2035 being the specification for whole-house or whole-building retrofit.

After the first wave of funding was announced, changes were made for the second wave. The minimum bid size required is 100 social properties individually owned or as a consortium at EPC D-G.

Secondly, Consortia-Registered Providers no longer need Local Authority (LA)

Lead Bidders, and ALMOs can now apply without LA. On top of this, the project delivery window is two years to 31 March 2025. Tighter deadlines will push the sector to decarbonise faster to meet ambitious climate targets.

With the introduction of cost caps, they are now apparent for both EPC Band and Wall Type.

Renewables have an additional element; however, candidates must prove significant cost savings and deploy a fabric-first approach.

In a significant change to co-funding, it is now 50% overall as opposed to scaled dependent on EPC rating of housing stock. When considering infill properties, 10% of a bid can be EPC C+ providing 90% of neighbouring properties are EPC D-G.

Interestingly, 30 per cent of homes can be non-social, providing the social part of the bid is met. As this scheme is interested in tackling growing fuel poverty issues, income doesn’t have to be under the national median household wage of £30,000 unless non-social. 50 per cent co-funding on measure installation cost with considerations for EPC, Wall Type and Additional Low Carbon Heating  is represented in the table opposite:

Fabric first/renewable-fabric first has been split into wall type and EPC rating with a sliding scale; however, additional low carbon heating can be used (£7k cap) if the fabric has been done prior/sufficient improvements already taken.

Acknowledging that digitalisation is an integral part of retrofitting, 2% of the total bid, which equates to £600k, can be utilised towards the digitalisation of homes. Expanding on where the money can be spent, the guidance is clear that funds can be used alongside ECO, HUG and Sustainable Warmth money. However, successful bidders cannot use it with previous SHDF funding.

Lessons from wave one helped shape the second wave

Sharing best practices and exploring what lessons can be learned is a critical factor in the success of retrofitting the social housing sector.

Firstly, a Resident engagement action plan needs to be written; cold calling/ post will not suffice. This is hoped to build communications and relationships with social housing tenants. Building on this, contingency backup properties to combat resident refusals need to be highlighted. Placing them at the heart of the projects could help improve perceptions of renovation works.

Planning Permission LA’s need to be consulted at the earliest opportunity to manage project delivery deadlines better. Bidders can even contact local authorities before bid submission to further cut down time for projects.

The industry is also encouraged to engage with the supply chain earlier to better understand market price and timelines, which is one of the most integral parts of retrofitting the housing stock in a faster, more efficient, and cost-effective way.

Analysing The Annual Consumer Regulation Review

The Regulator of Social Housing has recently published a review of its consumer regulation work between 1 April 2021 and 31 March 2022.

RSH received referrals from tenants, registered providers of social housing and other sources relating to its standards on homes, neighbourhood and community, tenancy or tenant empowerment and involvement.

In a breakdown of how local authorities can improve, the report highlighted five core lessons for the sector. They were lessons on governance and leadership being vitally crucial to good quality service, effective engagement with tenants helping landlords prepare for proactive consumer regulation, and Landlords providing quality accommodation that is safe and well managed.

Additionally, other lessons entailed landlords needing reliable data and clear oversight of compliance and local authorities must also comply with the consumer standards.

Good governance and leadership are vitally important to good quality service

The report explained: “The link between well-governed providers with effective leadership and good quality service delivery has been a consistent theme over the last decade, but never more so than this year.”

All of the non-compliant decisions made this year included a failure to have appropriate oversight and understanding of compliance and performance. It is the responsibility of governing bodies to ensure that their organisations meet the regulatory standards.

Effective engagement with tenants will help landlords prepare for proactive consumer regulation

This year the government found a breach of the Tenant Involvement and Empowerment standard. In this case, the local authority had failed to treat its tenants with fairness and respect, and in other cases that we reviewed, they saw failures to understand or respond to tenants’ concerns.

Continuing, the report highlighted: “With proactive consumer regulation coming soon, providers must continue preparing to deliver the needed changes. Providers are expected to provide good quality homes and services to their tenants.”

The upcoming regulation changes will emphasise the importance of tenants being listened to and holding their landlord to account.

Landlords must provide quality accommodation which is safe and well managed

Meeting statutory health and safety obligations is essential to ensuring tenants’ homes are safe. In all of the regulatory notices published this year, the government concluded that providers had breached the Home Standard due to not meeting legal requirements on fire, electrical, water, asbestos or lift safety.

Further findings in the report stated: “We also found a breach of the standards where there were systemic failings in the repairs and maintenance services provided to tenants. In this case, we saw tenants living in properties severely affected by damp or mould, and which in some cases were uninhabitable, with a detrimental impact on tenants’ health and quality of life.”

Landlords need reliable data and clear oversight of compliance

Interestingly, several providers had selfreferred to the government because they

could not be assured they had carried out all of the health and safety checks they needed to. This highlights the importance of having accurate, up-to-date, complete and reliable data.

“It is vital that providers and their governing bodies have access to data they can trust so they have oversight of their organisations and can be confident they are meeting all relevant legal health and safety requirements,” the report said.

Local authorities must also comply with the consumer standards

The consumer standards apply equally to all types of registered providers, including local authorities. Elected officials and senior leaders in local authorities have a responsibility to ensure their organisations are meeting consumer standards.

With the process of introducing proactive consumer regulation underway in parliament, the report suggests that landlords who engage with tenants effectively now will be better prepared for the forthcoming changes.

Kate Dodsworth, Director of Consumer Regulation at the Regulator of Social Housing, said: “Our consumer regulation work over the last year has provided an important safeguard and helped keep thousands of local authority and housing association tenants safe.”

“Our cases show that no social housing landlord can afford to remain complacent. The critical difference between landlords who provide good services and safe, decent homes and those that don’t is often whether they listen to tenants and really hear what they have to say.”

Upgrading Existing Technology To Improve Indoor Air Quality Changes

Seeking to empower residents to create safer and healthier homes, Aico, the European Market Leader in Home Life Safety has launched the third iteration of the HomeLINK App for Residents.

Adding constant improvements to their digital infrastructure is an important measure to ensure technology can change and adapt as social residents needs change.

Aico, an Ei Company, are the European market leader in home life safety, pioneering new technologies and offering high-quality alarms developed and manufactured in Ireland.

The app provides an innovative solution to some of the housing sector’s biggest challenges, such as dampness and mould and poor indoor air quality, allowing residents to take the first steps in improving their home’s health.

The app is a complementary addition to Aico’s HomeLINK IoT platform, which includes a network of fire and carbon monoxide alarms, environmental sensors and the Ei1000G Gateway that connects them all.

Designed to provide residents with detailed information about the health and safety of their home, the app offers users hints, tips, and recommendations to improve their home’s indoor environmental conditions, improving their own health and wellbeing.

Managing landlord/resident relationships is a core social value policy

It helps tackle often difficult relationships between social housing residents and landlords, with technology acting as a ‘middleman’ between the two. For example, with the improved core features, residents will receive notifications and recommendations detailing how to reduce the risk of allergens, mould, and indoor air pollution besides fire alarm testing reminders.

Through real-time information, residents will see a breakdown of carbon dioxide, temperature, and humidity conditions within each room, followed by educational details to understand their home better.

Extending app users will improve wellbeing and peace of mind

A game-changing new feature with the opportunity for enhanced care allows residents to invite others to the app so that their family members, carers, or friends can also access the information to support the resident in following the healthy home recommendations.

Many people in social housing are considered vulnerable, so giving family, friends, carers and residents confidence and reassurance through digitalisation is a big step forward for local authorities.

Aico and HomeLINK sensor technologies aim to provide a return of investment for local authorities who will ultimately improve the quality of their homes, keep costs low with preventative maintenance, and ensure they comply with Fitness for Human Habitation legislation (Homes Act 2018).

Remarkably, per household, the NHS spends £500 over ten years treating patients with an illness caused by poor indoor air quality.

One of the reasons indoor air quality has reduced over recent years is that houses are increasingly becoming more energy efficient. Once insulation and double glazing are installed into homes, the house becomes more airtight. This often leads to problems such as damp and mould, which damages the health of the resident.

With this in mind, we ensured elements of the new user experience were fun, exciting and light without taking away from the seriousness of the information.

Amrita Poptani, Product Manager at HomeLINK explained: “One of the things we noticed early on was how the tiniest thing could affect the moods, perceptions and overall mental health of the resident when using the app.”

To date, Aico have brought their HomeLINK connected, smart home solution to over 22,000 socially rented homes in the UK and this number is set to increase through the use of user-friendly digital technology.

Improving The Lives Of Social Housing Residents Through Digitalisation

For local authorities, improving the day-to-day lives of vulnerable people in social housing is a core policy. A good digital strategy is one of the cornerstones in enhancing the quality of life for residents across the UK.

The growth in digitalisation across the world has been astronomical, and the housing sector is no exception. From IoT, sensors, Ai, 5G and more, the technology options for local authorities to implement are almost limitless.

However, for many local authorities and housing associations, knowing how to build a successful digital strategy to improve the lives of social housing residents can be extremely difficult.

Highlighting how local authorities acknowledge the need for a digital strategy, 51 per cent of leaders in the Scottish housing sector think digital is a strategic priority, according to the SFHA report on Digital Maturity.

One of the core aspects to consider when planning and implementing a successful digital strategy is the interdependencies between people, process, data, planning and control.

Thinking on a broader scale, these separate considerations paint a bigger picture of how local authorities can explore the opportunities related to digital activities, governance, risk management and becoming a smart city.

Key differences between ICT and digital strategies

Many local authorities may already think they have a digital strategy which is, in fact, more of an ICT strategy. An ICT strategy generally identifies the issues associated with technological infrastructure currently in place and being developed with more of a holistic approach.

It creates the foundations for technology and digitalisation to be rolled out. Still, a digital strategy highlights how the ICT strategy can be implemented and specific areas to focus on/types of technology to use.

An essential part of building a digital strategy is to embed a roadmap/ priority list of projects that need completing. Prioritising which projects need completing, the significance of each project and balancing the ‘quick wins’ with long-term strategies is key to implementing a successful digital strategy.

Many local authorities and housing associations are split into multiple departments, which can make collaboration difficult. Tackling this issue allows digital strategies to have cross-sectional synergy and a higher chance of scalability.

Organisation-wide conversations need to be had

To do this, authorities and associations must have organisation-wide conversations rather than departmental conversations about the benefits specific technology can have for them.

Naturally, these strategies will differ for each authority and housing association as certain areas may have different age demographics, all with unique and varying needs that specific technologies may not be helpful for.

Some key considerations to make when discussing digital strategies, as set out by Golden Marzipan in its framework of digital strategy components, are as follows:

• How is the sector changing because of digital?

• How do you use the information to control the business better?

• What new capabilities and organisational structures are required?

• How can digitalisation help you attract and keep the best talent?

At the beginning stages of building a digital strategy, it is essential to identify gaps in operations. However, this can only be achieved if authorities can reach the synergy mentioned above. A lack of critical conversations and collaboration will make gap analysis almost impossible.

How Can Building Information Modelling Help Associations Manage Housing Stock?

With housing associations aiming to manage their housing stock more efficiently through digitalisation, BIM may be the missing link.

Building Information Modelling is a process for creating and managing information throughout the lifetime of a building through digitalisation.

Managing the buildings becomes a lot easier by providing a record of information about every component of housing stock in one place.

Housing associations can use this tool to identify common maintenance issues and better manage tenants’ health and safety. This can save time and costs when upkeeping existing stock.

Looking to the future, it may also be adapted to analyse and maintain retrofit projects. Associations across the UK will be able to see what the most effective retrofit practices are for specific buildings.

BIM4HAs were created to implement digitalisation faster

Established in 2018, BIM for housing associations (BIM4HAs) was developed to provide a free toolkit and help implement the process more effectively across the sector. Additionally, it has support from the NHF.

The BIM4HAs toolkit provides mechanisms for housing associations to digitise their development and asset information. Doing so allows them to manage vital information about their buildings.

Since the release, there has been an updated toolkit which includes a new Asset Information Model to further support the digital strategy of housing associations and day-to-day asset management.

Sharing best practices is a common theme in the housing sector, especially over the last decade. Acknowledging the need for this to continue, the updated toolkit offers a forum where associations can share their experiences, ask questions, and provide feedback.

The toolkit can be broken down into eight core principles

Eight of the core solutions the BIM4HAs can provide include Scopes of Services, a matrix of tasks that helps define strategies and describes who needs to do what and when. The matrix is written and designed to be inserted into appointments and contracts.

Building from this is a section to input Asset Information Requirements (AIR). Developing an AIR allows housing associations to define at the outset what they will need to know in the future for safety, compliance, asset management and repairs.

It even includes an example Construction Operations Building information exchange (COBie) sheet, which provides asset information for buildings and components in a transferable format.

Exchange Information Requirements (EIR) set out how information needs to be delivered on a project and includes an example Master Information Delivery Plan (MIDP.) This sets out what level of information is required, who provides it, and when.

Organisation Information Requirements (OIR) are also included in the toolkit and describe the high-level information required by an organisation for asset management systems and other functions.

Two new features in the recent BIM4HAs update include the already discussed Asset Information model and a Housing Association Data Dictionary.

Housing associations must be on the same page

The dictionary has been created to produce a set of agreed terms for the critical data housing associations need about the components in their buildings.

To guide associations even further, there are also clear outlines on how to use the items in the toolkit, coupled with the forum to share best practices.

Focusing on future and existing buildings, there is a dedicated space to access a report by asset managers on digitising existing asset information.

Delivering 184 Affordable Houses In Milton Keynes Through The CBRE Affordable Housing Fund

Launching the Affordable Housing Fund in 2019, CBRE Investment Management has entered a forward funding deal with a developer in Milton Keynes to build 184 affordable houses.

With £123bn of assets at the end of March 2022, CBRE IM is well placed to implement the building of affordable housing at the velocity required to ease the housing crisis the UK faces.

Determined to focus on improving the housing stock in Milton Keynes, they have since signed numerous deals, including an agreement with Thrive Homes to deliver 1000 units by 2027. This will be done through a long-term risk-sharing structure to ensure the finances are in order.

Godwin Developers to build in Central Bletchley

The affordable housing will be developed by Godwin Developers, focusing on the building in central Bletchley, and will be named Bletchley View. Covering a total of four acres, the scheme will provide a mixture of affordable and shared ownership properties.

They include one and two-bedroom flats and 12 three-bedroom houses. Breaking the specifications down further, the scheme will have 74 shared ownership homes, 76 affordable rent homes, and 34 attainable market rent homes.

CBRE IM, the independently operated affiliate of commercial real estate services firm CBRE Group, acknowledges that more housing estates should cater to a growing demand for affordable homes, particularly from young people and families.

Ensuring sustainability is at the heart of these projects moving forwards, air source heat pumps will be implemented across the buildings, which have been split into one with six stories and the other with five.

Additionally, a mechanical ventilated heat recovery system will also be in use for residents.

Build with sustainability now, and reap the rewards in the future

It is vital that developers work with a future-proofed mindset to ensure environmental and economic costs are not high.

If the sector would need to retrofit new build houses within the next three decades, they should focus on fabric first and save time and costs earlier in the life cycle of the stock.

Winvic Construction has been appointed as the main contractor for the scheme, and the development is expected to be finalised by the end of Q2 2024.

Speaking separately, Andrew Davey, Head of Liability-Aware Strategies and Affordable Housing at CBRE IM, said: “We are particularly proud of our partnership with Godwin as it demonstrates the commitment, we have to providing affordable homes where they are needed most. Our business plan proactively manages the scheme by setting rent levels and shared ownership prices to meet the specific affordability requirements of the local population."

We look forward to working with all our partners on this development and are excited to be delivering affordable, sustainable homes to the community of Bletchley.

Adding to this, Stuart Pratt, Founder and Development Director at Godwin Developments, added: “With its proximity to Milton Keynes, the UK’s newest and fastest-growing city, Bletchley has significant potential to become a modern, thriving urban destination as outlined in the plans for its regeneration.

“We are therefore thrilled to have partnered with CBRE IM in delivering the first major new residential scheme in the area, which will ensure local and new residents have access to a range of quality affordable homes.”

Changing The Mindset Regarding Traditional Building Materials

With the housing sector responding to climate targets, housing associations and local authorities might consider looking at non-traditional building materials as we ramp up affordable housing projects in the UK.

Construction is one of the largest sources of GHG emissions, making it an essential part of the social housing sector's climate objectives. Part of this is finding new types of materials and adopting new building practices to modernise the housing stock and decarbonise the sector.

Flinders University, based in Australia, has developed a new type of polymer derived from industrial waste. If rolled out on an international scale, the UK housing sector could reduce waste, emissions and costs, the holy trinity for the industry.

Bonding bricks without mortar can reduce costs and environmental impacts

These polymers can easily be formed into bricks that bond together without needing any mortar. Cutting down the use of mortar will mean that considerably less cement will be used in the building sector.

According to the Cement Manufacturing Enforcement Initiative, the cement sector is the third largest industrial source of pollution, emitting more than 500,000 tons per year of sulfur dioxide, nitrogen oxide, and carbon monoxide.

Despite concrete being one of the most versatile materials in the construction industry, it is responsible for roughly 8 per cent of CO2 emissions caused by humans. Using waste materials, such as the polymer created by Finders University, emissions could be slashed in a short space of time.

The polymer is made by mixing sulfur with varying ratios of canola oil and dicyclopentadiene (DCPD). Both being byproducts of petroleum refining that currently go to waste, the polymer set the benchmark for reducing industrial emissions. Using waste materials is another environmental benefit

Additionally, canola oil can be sourced from kitchen waste. The polymer is heated, molded, and cured into bricks, with the whole process consuming far less energy than cement production. While not offering a net zero solution, reducing emissions in certain areas while eradicating them entirely in others is an important factor we must acknowledge.

Building on the research conducted in Australia, using waste like wood, tyres, binders, and brand-new materials can help the sector be more environmentally friendly while ensuring safety standards are met.

Innovation breeds innovation, and research results on new polymers are welcomed across the social housing sector.

The most impressive part of this project is how bricks stick together with immense structural strength, ensuring environmental savings do not come at the cost of safety standards. This is an important factor for local authorities to manage the perception of new building materials on safety.

How To Boost Social Housing Completion Percentages Across The UK

The housing association, L&Q, announced an increase in completions of 29 per cent in the first quarter of 2022.

Unaudited figures released for Q2 performance highlighted that the housing association completed 1295 homes in the first quarter of the year, up from 1003 in the previous year for the same period.

Focusing on the social housing sector specifically, they increased completions to 807, up from 646 from the same period last year. Additionally, the market sale delivery rose from 357 to 488 units.

Setting the benchmark for the rest of the sector by delivering this level of housing stock has been well received by the industry. Despite the cost of materials, Covid delays, and the rise in fuel prices, L&Q are still delivering for social tenants across the country.

Sights are firmly set on breaking housebuilding records by 2023

The record for social housing homes completed in one year currently stands at 4157, delivered in 2021/22. L&Q, responsible for 119,000 social homes across the UK, has its sights firmly set on breaking this record for the second year in a row.

While dropping the 10,000 homes a year target, L&Q is expecting to complete 4,000 homes in 2022/23. They decided to scale back production to focus on essential issues such as fire safety and retrofitting existing housing stock.

Distributing funding evenly to tackle different issues the sector faces sets L&Q up to be an industry leader in all areas of social housing sector. Focussing on current tenants and their safety is as much of a priority as producing more new affordable housing.

Speaking previously, Waqar Ahmed, group director of finance at L&Q, said: “Our focus remains on the delivery of our strategic objectives, which prioritises investment in safety and the quality of existing homes and services."

Continuing, Waqar stated: “We continue to make strong progress against our building safety inspection programme and have completed safety inspections on 556 buildings, including a full intrusive inspection on all 192 buildings that are above 18 metres in height.”

L&Q determined to push on with building social housing

Despite the optimism around the delivery performance by L&Q, the recent trading update showed a 15 per cent drop in turnover and a higher 20 per cent drop in operating surplus.

Insisting they are on course to meet its expectations in the future, L&Q have forecasted a surplus of between £260m and £280m post-tax for the financial year.

If this comes to fruition, it will exceed the £208m recorded in 2021/22. While many issues surrounding materials, fuel, and costs are up in the air, L&Q are determined to push on with the social housing agenda.

Creating Sustainable Homes for the Future

6 October, 2022 The Bridgewater Hall, Manchester

Why Smart Housing?

Housing is an integral part of the evolution of the Smart City. Never has it been more important to create sustainable urban areas which are designed for the future, whether that be retrofitting existing homes, achieving net zero carbon emissions, to smart placemaking.

By utilising the Smart Housing mindset, the entire housing sector can come together to deliver the urgent need for more sustainable homes, designed for future generations to live and work together.

Join us on 6 October 2022 at The Bridgewater Hall, Manchester , where housing leaders, experts and innovators will be discussing what is needed right now to drive meaningful change and create communities for the future.

Join the conversation #SmartHousing