Sample Control 946:
Programme of disposals of poorly-performing assets

The organisation's Asset Management and Development Strategies include a material programme of stock disposals, with these properties replaced by new homes built to high environmental standards.  It prioritises for disposal the worst-performing assets and those where investment to current standards, including a high level of energy efficiency, cannot be justified.  This will have the following benefits, which are communicated with all stakeholders, including the local authorities concerned:

  • Ensuring that every tenant's home meets current standards
  • Assisting the organisation with meeting its net zero carbon target by 2050
  • Ending the ownership of assets that are obsolete or for which there is low demand
  • Generating increased capacity for future development to modern standards, including much higher levels of energy efficiency
  • Increasing the overall housing stock in the area
  • Reducing the unit cost of maintenance by maintaining the average age of the stock at a reasonable level
  • Improving the quality and energy efficiency of the portfolio
  • Reducing running costs for residents and thus fuel poverty
  • Creating more balanced communities
  • Ensuring that properties sold under the Right to Buy can be replaced within the three-year deadline
  • Maintaining the expected revenue from the sale of existing assets despite the reduction in Right to Buy discounts effective from 21st November 2024
  • Enabling the organisation to maintain a reasonable rate of development.

The organisation has considered targeting such disposals at first-time buyers to reduce pressure on the private rented sector in the area.

The organisation has also considered other strategies for dealing with poor-performing assets, including major refurbishment programmes, reconfiguring buildings to better meet current needs, or demolition and replacement with new homes to modern standards.  The latter approach would avoid the cost of land on which to build new homes.