Value for money service

Providing on site services is expensive even though building, cleaning and landscape maintenance have got cheaper over the years due to a general trend towards reducing pay at or slightly above minimum wage.

The extended scope of legislation combined with the increasing complexity of buildings impacts on the true costs of running a scheme. All blocks need regular fire safety inspections, water tanks require legionella testing, contractors must conform to health and safety legislation and mechanical ventilation systems require regular servicing.

In the recent past a service charge of £1,000 per annum was considered by most housing associations to be high. Within new large developments this figure is now unrealistic.

We also need to factor in the need for major replacements without having to impose large levies on leaseholders. This requires that adequate sinking funds are established. For instance, just to replace a lift in an eight-storey block means that at least £125k must be raised every 25 years.

In future, there needs to be a realistic re-assessment of the costs of these buildings. Secondly, HAs need to ensure that their tendering processes are producing the most competitive prices. Thirdly, property managers need to engage early in the design process to ensure that the doors, lifts, floor coverings and wall finishes are as durable and easily maintained as possible.

The mantra for housing managers is keep it simple and make it strong.