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Click here to download the SOCIAL_HOUSING_CROSSWORD_PUZZLE.pdf

The future of social housing was prudently addressed, following a riveting conversation held by Theresa Mays former chief of staff Nick Timothy at one of our own board awaydays, back in January.

Many believe that social housing is nearing the bottom of the agenda when it comes to the implications of Brexit and is being heavily overlooked.

Arguable, the main issue that the social housing sector is going to face is the logistical changes to supply chains. With materials like timber being heavily imported from the EU, many merchants have already begun contingency planning to maintain their sustainability, and have adopted the approach of stockpiling materials; however, it’s a very temporary solution

The overcomplicating of importing materials is set to have some implications on the affordability of social homes, whether this is going to be for the good or bad of renters in the UK.

But the question is, does anyone know what they are doing? Planning for the unknown is an impossible feat in all walks of life, let alone when looking to mitigate the effects of Brexit on an entire industry.

The potential knock-on effects are endless with the immediate ones possibly the most damaging. Will we begin seeing more or less jobs in the construction industry? Half of construction workers in London come from the EU and many have already gone back to avoid being ‘stuck’.

The effects that deal or no deal Brexit could be endless from temporary purchasing alternative materials to a complete logistical change, steering away from current just in time solutions.

Going from a blanket agreement to, well, who knows what, is going to be a huge change regardless of the specifics and the social housing market is inevitably going to learn to adapt no matter what comes its way; Deal or No Deal is just the beginning of something bigger.

With every future deal coming from UK Parliament, surely our government will do what is best for UK citizens? It is no secret that the UK has been in a housing crisis for some time now with the publication of reports like the Shelter’s “vision for social housing”.

Although the UK is going Brexit crazy, there’s no need to panic. CHIC has been actively collaborating with its members / suppliers to gather intel on what is the best course of action to mitigate the amount of disruption to the supply chain. 95% of Manufacturers and Distributors have already plans in place to mitigate for a No deal vote with the large majority being determined as low risk. (Testimonial from a supplier)

CHIC has engaged with it’s supply chain to ensure that members have contingencies in place for every aspect of property maintenance requirements.

CHIC’s Merchant Services Manager (maybe change it to Supply chain manager) is of the opinion that: “The worst thing that we in the social housing industry can do right now, is to put our heads in the sand and hope that this storm will pass us by. The first thing that will be affected will be supply chains, as we see in other sectors such as the automotive industry. Arguably if housing associations engage with purchasing groups, in respect of their suppliers, trends will be noticeable which means that steps can be taken to mitigate negative effects.”

As rightly pointed out purchasing groups such as CHIC, are better positioned to notice trends in the market that individual housing associations cannot see, and this is purely down to the number of suppliers each engages. Having a pool of suppliers providing the same type of service, normally via a framework, will allow members that purchase through that group a better understanding of where the market is going.

In these trialling times, co-operation is key, and instead of we can do it better, we need to do it better together.

The question is then, what has your association done to ensure that services will not drop.

Quote from Bournville to come: - need to chase giles again today.

If you are worried about the Brexit impact on your organisation, please give us a call.

Update from CHIC Board’s Quarterly Meeting

Background

CHIC’s Board represents all CHIC members, to ensure the consortium delivers both the services members want and to the standard they can expect. The Board consists of up to 11 directors, at least 8 of whom must be member representatives. The Board is chaired by an independent director, selected by the Board.

The Board meets quarterly and reviews progress against CHIC’s business strategy, as well as monitoring operational performance delivered through its Agency Services Contract with ARK Consultancy.

This article summarises the issues reviewed by the Board on behalf of all members.

Governance Issues

David Wells, a member representative from Wrekin Housing Trust (Executive Director of Operational Services) has served since 2017 as Deputy Chair. Due to his own work pressures David stood down as Deputy Chair although he will stay on the Board as a member representative director. The Board thanked David for all his work in the Deputy Chair role, acknowledging his immense contribution during the growth and development of CHIC.

The Board appointed Ian Davies, a member representative from EMH (Group Director of Property) as the new Deputy Chair with immediate effect.

The Board has one current vacancy and another will occur when the longest serving Board member, Mak Akinyemi, must stand down at the end of the year having completed 3 terms of 3 years on the Board. Accordingly, the CHIC Board had invited applications for two vacancies.

Five applications had been received and the Board agreed that the Chair and Deputy Chair would review these applications and meet with the applicants. They will then compare the strengths of each candidate to the current skills matrix for the Board and determine who best to propose be appointed to fill the director vacancies. Appointments will be reviewed and ratified at the Boards next quarterly meeting in December.

Annual Accounts and External Audit

The Board reviewed and approved the Annual Accounts and Director’s Report for the financial year 2023/24 (CHIC’s year runs from 1^st July to 30^th June). The Board was pleased to note that CHIC had had another successful year. Although it is a not for profit consortium, it has continued to strengthen its reserves commensurate with the scale of turnover growth.

The Board reviewed the Annual Audit Report from UHY Hacker Young, which was positively received.

Annual Performance Reports

Under the formal contract with ARK, the Board has a duty, on behalf of members, to review performance on an annual basis. This is against targets in CHIC’s business strategy, specific performance targets for the Agent and assurance around company secretarial responsibilities. The Board was pleased to note that all targets had been met or exceeded.

An annual report for publication for CHIC for 2023 was reviewed and approved. An annual social value report for CHIC and its associated charity, CHIP, was also reviewed and approved. Reports will be made available both electronically and in hard copy to all CHIC stakeholders (access included in this issue of CHIC CHAT).


Business Operations

CHIC’s risk register was reviewed in detail. This sets out the dozen key risks that affect CHIC’s activities and how these are mitigated. In order to ensure that business risks are adequately scrutinised the Board agreed to establish an Audit and Risk Committee. The terms of reference and membership for this will be considered at the next meeting.

The Board then reviewed CHIC’s forward programme of work and risk factors applied to different types of projects in business plan forecasting. Some changes were agreed to ensure that financial forecasting for the consortium’s own business plan is properly informed and accurate.

Acknowledging that CHIC is still growing, the Board reviewed a business case from the Agent to increase the team dedicated to CHIC’s service delivery. Some new posts were agreed for appointment over the next few months. In addition, further roles were considered in principle which may be required if expected growth continues.

Other Issues Reviewed

ARK had sponsored an MBA student to undertake an objective competitor analysis for CHIC, in relation to other consortia operating in the housing sector. The Board reviewed the outcomes and conclusions, which were positive in terms of CHIC’s market position.

Next Meeting

The Board meets again in December and a further update will follow in the January CHIC CHAT.

CHIC Annual Team Awayday 2024

On the 15th and 16th of October, the CHIC team came together for our annual awayday, where we focused on key discussions and activities to strengthen our services for members. We reviewed CHIC’s Commercial Business Model, reviewed our current 5-Year Business Strategy (2021–2026) and examined our Procurement Process, including updates prompted by the new Procurement Act.

We also took the opportunity to explore what changes the Board might consider for the next business strategy, to ensure it continues to meet our members' needs for cost efficiency and added value. The team then enjoyed some team building events, to ensure that the whole team is aligned to deliver the best possible service for our members.

New starter to the data team

We welcome Rahul Rahul as our new Data Coordinator. In this role, Rahul will support CHIC’s Business Intelligence Manager in administering catalogue management, materials ordering and reporting processes through the COMS system, while also serving as the first point of contact for CHIC members and suppliers.

JCT Contracts Training with Trowers

CHIC and Trowers & Hamlins came together to host a training session which covered the intricacies of using JCT Contracts for CHIC members.

Over 200 CHIC stakeholders joined Katie Saunders from Trowers & Hamlins who provided a comprehensive overview of the JCT contracts, including best practices for their application. She delved into the amendments and changes introduced in the 2024 suite of contracts, highlighting those most appropriate to social housing.

Following this, CHIC’s Commercial Coordinator, Kieran Waud-Shaw, discussed when the contract changes will come into effect through CHIC frameworks and how they will be applied.

You can find a recording of the webinar here.

If you would like any more information about JCT Contracts, a bespoke training package tailored to your needs or know more about the webinars that CHIC run, please contact enquiries@chicltd.co.uk

Warm Homes: SHF Wave 3 Opportunities for Social Landlords

Stephen Sharman, CHIC’s Director of Member Services is delighted to join the panel of speakers for the Livgreen Webinar on SHF funding. This informative webinar taking place on Friday 8^th November is tailored specifically for social housing landlords focusing on the Warm Homes: SHF initiative. This session will explore the application processes, offering a comprehensive step-by-step guide to help you effectively navigate the system.

The panel will share key lessons learned from previous applicants, emphasising best practices and common challenges faced by social housing providers. Learn how recent changes in the Standard Assessment Procedure (SAP 10) and Energy Performance Certificate (EPC) ratings can impact your properties’ eligibility and funding access.

Register Here

 

 

 

Procurement Update for CHIC Members

Our procurement team is actively working on several key routes to market to ensure that CHIC's frameworks and DPS continue to meet the needs of our members. Below is an update on the programme of our current procurement activities.

Fire & Building Safety FrameworkCurrently being evaluated, this framework covers a broad range of fire prevention services. This includes for the remediation, installation, servicing, and maintenance of both passive and active fire safety systems, ensuring compliance with safety standards and the requirements under the new Building Safety Act.

Mechanical and Electrical FrameworkCurrently out to tender for a Mechanical and Electrical Services Framework, available across the UK. This framework will secure partners for the installation or replacement of heating systems, electrical and ventilation installations, as well as periodic testing and servicing of these systems. Access the Tender for this framework here

Multiple Elements Framework & Merchant and Materials FrameworkWork is progressing on procuring these frameworks, which will be executed under the new Procurement Act 2023 regulations.

Renewal Procurements

We are also beginning to plan for several upcoming renewal procurements, including:-   Energy Supply-   Risk Assessments-   Asbestos Abatement-   Lifting Equipment & Mobility Aids-   Consultancy

These initiatives reflect our commitment to providing the best possible services for our members. We will keep you informed as we make progress.

If you have any feedback or suggestions, or if you'd like more information about CHIC's upcoming framework procurements, please feel free to contact Sam Domican at tenders@chicltd.co.uk.

The social housing sector lies at the heart of the UK’s transition to low carbon heat but the ambition to reduce emissions must be carefully balanced with preventing tenants from falling into fuel poverty. Here, Rob Pearse, distribution sales director at Baxi, discusses possible approaches to lowering the carbon footprint of the UK’s social housing stock.

First: fabric

Identifying fabric improvements and carrying out upgrades should always be a consideration at the beginning of any decarbonisation journey to reduce heat losses and energy demand. Examples of fabric-first changes include upgrades to windows that help keep heat inside the building. Similarly, ensuring rooms are draft-free will prevent heat from escaping, reducing the energy and economic costs involved in keeping residents warm.

Another change available to social housing providers includes switching outdated radiator valves for thermostatic radiator valves (TRVs) that allow for greater temperature control. Taking time to introduce tenants or end users to TRVs will ensure they understand how to use them safely and effectively for lowering energy.

When looking at upgrades, along with retrofitting, creating homes that are affordable for residents to maintain and pleasant to live in should also be a key focus.

Facing the future

With fabric considered, many social housing providers will be aware of the requirements of Part L of the Building regulations. Properties can be future-proofed in line with these standards with relatively small improvements. This approach will not only boost the energy efficiency of the building but also lay the groundwork for larger upgrades that may be wanted later. It is at this point that social housing providers will likely benefit from consulting with heating experts, such as those at Baxi who can offer specific advice tailored to the building, budget and heating requirements in question.

Along with future-proofing changes, it is important that residents are well informed on the actions they can take to keep household energy expenditure down. As an example, the Energy Saving Trust estimates that a 1°C decrease in thermostat temperature equals a 10% saving on heating bills.

Introduce innovations 

Bringing in add-ons that require no maintenance can be an easy and effective way of improving a system’s energy performance. Devices such as a flue gas heat recovery (FGHR) system can enhance the cost-effectiveness of a building’s energy use by capturing heat that would have been lost via the flue and repurposing it to pre-heat hot water.

The addition of a FGHR to a Baxi Assure 500 Combi 2 boiler in a three-bed semi-detached house, for example, may reduce yearly carbon emissions by as much as 268kg. It can also save between 37% and 50% of the gas used to generate hot water each year. Inventive solutions like these can reduce overall emissions and bring down costs while increasing the quality of living for tenants.

Continue with collaboration

Larger upgrades will eventually be needed as the nation continues to decarbonise. These upgrades may include the installation of air source heat pumps, introduction of heat networks for multi-occupancy properties and exploration of hybrid systems. Each property is different and so are their heating and hot water requirements, therefore collaborating with experts in the field is key to ensuring the right combinations are selected for optimal energy use.

Working closely with manufacturers that offer energy efficient and low-carbon heating solutions is key for the critical evaluation of options. A collaborative effort means that social housing specifiers have the correct solution ready for each individual property and project.  

Heating and hot water specialists such as those at Baxi can provide social housing decision makers with invaluable help. Our own managing director, Jan Rijnen, believes that decarbonisation needs to happen at a rate of 200,000 houses per year for the UK to hit the 2050 net-zero goal. It is no coincidence that Baxi’s experts stand ready to assist.

Applying the latest techniques and technologies to the twin concerns of cost and carbon reduction will allow leaders in social housing to lower their stocks emissions while keeping their tenants comfortable and their bills low.

For further information about the decarbonisation of heat in social housing, download Baxi’s guide, Decarbonisation and affordability of heat.    

 

CHIP’s work in supporting Local Employment Groups (LEGs)

As part of CHIC’s commitment to delivering social value, we actively support local groups that help people gain employment. Since CHIP’s launch two years ago, we have partnered with a variety of organisations that assist individuals in accessing recognised qualifications, certificates of achievement, and a range of short courses and life skills support. This work helps break down barriers to employment, empowering people from diverse backgrounds.

Our goal is to assist individuals such as NEETs (Not in Education, Employment, or Training), older adults, victims of modern slavery, people living with disabilities, ex-offenders, homeless individuals, and ex-armed forces personnel. In 2023-24, CHIC’s donation to CHIP enabled support for 96 individuals—an increase of 66 from the previous year.

This year, CHIP has also expanded its efforts by establishing new partnerships, including a collaboration with The Guinness Partnership to support 18-25-year-olds into employment. Through this initiative, CHIP is working with the Rio Ferdinand Foundation to provide young people with financial advice, social inclusion programmes, training and qualifications, ultimately leading to sustainable employment. While Guinness has a long-standing relationship with the foundation, this new project in London is where CHIP expects to make a meaningful impact.

Looking ahead, CHIP is committed to strengthening and expanding our partnerships to support more individuals, helping to bring about positive changes in their lives.
If you know or work for a Local Employment Group and want to find out how CHIP can support, please get in touch with Emma Macaulay at emacaulay@chipcharity.org.uk a list of our other partners can be found on our website at https://www.chipcharity.org.uk/employment-sponsorship/