That’ll do nicely
There’s one sure way to give tenants what they really want from a refurbishment and that is to put them in charge of the procurement process. Lydia Stockdale finds out what happened when a Liverpool housing association tried it
They travelled far and wide to make sure that their homes were the best they could be. Between late 2007 and late 2008, tenants of housing association Liverpool Mutual Homes hired coaches to visit suppliers up and down the country, and even overseas, so that they could scrutinise their wares in person. Between them, they clocked up 10,000 hours on the road, examining tiles and taps, and interviewing contractors.
These tenants, who live in almost 15,000 homes on estates across Liverpool, were the last in the city to have their homes transferred from Liverpool Council to a housing association. By the time the big transfer day came - 1 April 2008 - they were raring to go.
‘The tenants had waited longer than anyone else [for stock transfer] so they wanted to see action on the ground from the first day,’ explains Dave Woods, assistant director of technical services at tenant-led Liverpool Mutual Homes.
‘Our estates were run-down. They had been neglected for 30 years,’ says Ted Higham, a tenant and former LMH board member, who was heavily involved in the procurement process.
‘The first thing we did when we saw suppliers was explain that we wanted the best products and could negotiate on price,’ says Paul Rigby, a tenant board member.
Practical priorities
The trips to see suppliers, known as reality visits, began in earnest in early 2008, with groups of between 10 and 20 tenants travelling to Yorkshire to look at kitchens and to Wiltshire to meet contractors.
The housing association, which has eight tenants on its 15-strong board, received £130 million gap funding from the Homes and Communities Agency to fund the transfer and took out a £190 million bank loan for an initial five-year investment programme to begin refurbishment works.
Suppliers, eager to get potential customers through their doors in the midst of a recession, funded some of the tenants’ trips to view their goods.
During the lead-up to stock transfer, around 100 tenants sat on stakeholder panels, and it was from these panels that the travelling tenant buyers were recruited. They soon became tough negotiators.
‘They became more and more efficient at asking searching questions,’ recalls Mr Woods. ‘We’ve been able to drive for a very high quality standard of materials that was previously unheard of [in social housing].’
Tenants were made aware of the environmental and efficiency properties of the products, but whereas Mr Woods would place emphasis on a bath, sink or shower door’s ‘life cycle maintenance regime’, the tenants would generally focus on more practical, hands-on aspects.
‘They would explain how they would go about cleaning, saying things like, “I can’t get my hand behind there”, and “look at the hinges on these doors, they only open half way”,’ says Mr Woods.
Suppliers liked this level of feedback, and were willing to adapt products to suit their customers. Kitchens that are now installed in Liverpool Mutual Homes’ properties, for example, have 180 degree hinges, making them more practical for tenants and more cost-effective for the housing association as fewer doors will be damaged through everyday use.
For many of the suppliers, this was the first time they had considered the social housing market.
‘They would have their social housing brand, but our tenants said “no, we want high quality, we don’t want that rubbish”,’ says Mr Woods.
And the economic downturn has meant that LMH has been able to negotiate competitive rates. ‘Buying quality now will save money later,’ explains Mr Rigby.
Refurbishment is now well under way, with at least one improvement having been made to more than 6,500 properties - 44 per cent of LMH’s stock. Now the procurement process is over, the next job for residents is to set up a tenants’ inspectorate and focus groups that will oversee the ongoing refurbishment of their homes and make sure the high standards they have established are upheld.
‘We’re working on setting up focus groups with tenants conducting inspections of the work that is being done, and the service they have received,’ explains Mr Woods.
But Mr Rigby says that tenants are keen to push their role even further. ‘[LMH] will generate its own capital,’ he says. ‘And with that, we want to go out there and build some eco-homes - some really savvy stuff that no-one else is working on.’
Going the extra mile
Paul Rigby, a tenant board member, recalls a trip to Germany to meet a bathroom supplier in late 2007.
‘They had invented their own enamelling process which they thought was the greatest thing since sliced bread,’ says the 62-year-old.
‘I asked them to prove it [that it would not crack] and they brought me a lump hammer and a shower plate so I could test for myself. I’m a retired bricklayer so I knew what I was doing. I was blown away by the products’ durability. I said: “We’ll have this.”’
Mr Rigby puts around 30 hours a week into his work as a board member at LMH. ‘It gets you like that,’ he says. ‘I’m terrified of leaving a bad legacy.’ He believes that the effort is worth it however. Tenant rent collection rates have gone up across LMH since the refurbishment began.
‘The quality of the refurbishment really does change their perception of where they’re living and why they live there. People don’t want to get evicted and lose a good house.’
‘It was a wonderful negotiating venture for me,’ Mr Rigby adds. ‘It was good to see what can be done in the business world. I’m excited and passionate about it.’
Buying power
Ted Higham is a tenant and area board member who has been given a new lease of life through being involved in the procurement process.
‘As a council tenant, you didn’t get a say in anything. You plodded along,’ the 76-year-old says. ‘You were given - or not given - what you were offered.’
With LMH ,Mr Higham was heavily involved in visits to suppliers. ‘We interviewed them and then we went to look around their factories,’ he says.
‘We knew what we wanted and I can assure you we selected the best. We gave up our time freely and it was a pleasure to do so.’
After the suppliers, the tenants visited 11 contractors. ‘Again, they had to prove their mettle,’ says Mr Higham. ‘We asked: “How would you approach the job and how quickly would you get on with it?”’
Mr Higham smiles when he recalls how his neighbours reacted when they looked inside inspection units that were set up on the Daneville estate where he lives: ‘They were absolutely delighted,’ he says.
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