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L&Q unveils plan to spend £1.9bn on existing homes over next seven years
L&Q has announced that it will spend £1.9bn on improving its existing homes over the next seven years, in what it claims is the largest investment of its kind in the history of social housing.
The 118,000-home landlord said the money will “transform” its stock.
It will include fire safety and decarbonisation work as well as other types of major work, estate improvements and efforts to maintain Decent Homes standards.
The figure does not include spending on routine repairs, void work, overhead costs, or investment in the 9,000 homes owned by L&Q’s subsidiary in the North West, Trafford Housing Trust.
In April, L&Q launched a new five-year corporate strategy placing greater priority on investing in its existing homes as opposed to new build, resulting in a 70% cut to its yearly development target.
The shift in approach came against a backdrop of spiralling fire safety costs in the wake of the Grenfell Tower fire and concern over the quality of services for L&Q residents.
It has already spent more than £100m on fire safety since June 2017 with £250m committed – a figure the organisation expects could rise to £450m in total.
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Fiona Fletcher-Smith, group chief executive at L&Q, said: “This investment is testament to our stronger focus on existing homes, and commitment to the safety of residents.
“I want every resident to be proud of their home, but we know that there are homes which currently fall short of the quality our residents deserve.
“This landmark programme will allow us to make substantial improvements to L&Q homes and neighbourhoods across the country.”
The spending programme will run from 2022 to 2029 as the central plank of its new strategy.
L&Q has appointed specialist consultancy Michael Dyson Associates to carry out a stock condition survey this autumn ahead of the programme starting.
It has also appointed Turner & Townsend to help develop a sustainability strategy, with an ambition to meet Energy Performance Certificate Band C by 2030 and become net zero-carbon by 2050, while 4i Solutions has been picked to consult on procurement and investment planning.
Contracts are expected to be in place from summer 2022, and L&Q is keen to include social impact requirements in the tenders – including training, apprenticeships and community investment.
Gerri Scott, group director of customer services at L&Q, said: “This programme puts much-needed investment into L&Q’s homes and will be driven and overseen by our residents services board.
“They will advocate on behalf of all residents to ensure that the programme delivers to timescale, is value for money and high quality.
“We have already begun informal conversations with potential contractors, so that they are in no doubt that the success of the programme is dependent on the quality of the resident experience.”
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