GWSF Tenements pdf April 2015

Our Crumbling TenementsA new approach for the 21st centurySponsored by:April 2015

We thank our members for providing the information used in this report through ourmembers’ survey and interviews. Throughout the report there are short case studiesand photographs highlighting some of the work being carried out by members toimprove sub-standard tenements. These are included as examples of a variety ofapproaches by our members to try to deal with an issue that is having a growingimpact on housing standards and the attractiveness of communities. If you want to findout more please contact:David BookbinderDirectorEmail: david.bookbinder@gwsf.org.ukColleen RowanMembership & Policy OfficerEmail: colleen.rowan@gwsf.org.ukCredits for uncaptioned photographs:Front cover and Introduction - Unimproved tenements in PaisleyRear cover – Before and after of Brucefield Park, Lochfield Park HAWe gratefully acknowledge the help of the following in supplying photographs for use in this publication:• Becky Duncan Photography• Govanhill HA• Linstone HA• Lochfield Park HA• Milnbank HA• Paisley South HA• Queens Cross HA• Williamsburgh HAGWSF appreciates the support provided by Research Scotland in the preparation ofthis report.TC Young are delighted to sponsorthis publication and add our supportto the efforts of our clients in theirattempts to improve the tenementalhousing stock in Glasgow and thewest of Scotland.We have grown alongside the socialhousing movement in Scotlandand have gained an unparalleledunderstanding of the sectorand its challenges. Our firm hasgathered together an unrivalledteam specialising in the delivery oflegal work to the Scottish housingsector. Every member of our teamhas extensive expertise in workingfor housing associations and a deepunderstanding of the particularrequirements of the sector.www.tcyoung.co.ukwww.tcyoung.co.uk/blog2

IntroductionCommunity Controlled HousingAssociations (CCHAs) have a long historyof carrying out comprehensive tenementimprovement, supported by councilsand the housing agencies the threeHousing Corporation, Scottish Homesand Communities Scotland. From the1970s through to the end of the 20thcentury their work brought life and a newsense of identity to tenement areas inGlasgow and towns throughout the westof Scotland.The tenement is a fantastic, but complex,building form. It can provide a verylong life, but it needs all the owners toagree to regular upkeep of the wholebuilding. If any individual part is not wellmaintained, it has an impact on the wholestructure. This needs good management,ongoing maintenance and the plannedreplacement of parts that reach the endof their life. Building standards alsochange over the years (for example inrelation to energy efficiency), so someimprovements are also required. Thisnaturally costs money and needs all theowners to fund their share of the repairsand improvements to the common parts.And when money is not spent for along time, the fabric falls into disrepair– leading to a far greater expense thanwould have been required if ongoingmaintenance had been undertaken.This is why CCHAs have had such animportant role from the 1970s onwards.A large number of tenement propertieswere sadly neglected and neededsubstantial investment (from local andcentral government) to bring them backup to a decent standard. This used anapproach known as ComprehensiveTenement Improvement (CTI), wheregrants were available both to CCHAs tobuy and improve the flats and to ownerswho wished to upgrade their property.This led to the improvement of tens ofthousands of tenement flats. These werepredominantly in inner city areas, but alsoin peripheral estates.3

IntroductionSince the start of the 21st century, thiswork has ground to a halt. This is notbecause the work is finished (far fromit), but because of a series of changes.These include:• lack of financial support forprivate owners, particularly forimprovements;• a changed grant system from theScottish Government, which madeCTI almost impossible;• a new law introducing HousingRenewal Areas rather than HousingAction Areas, with the (relatively)new Housing Renewal Areas neverhaving been used in Glasgow andthe west of Scotland;4

The Scale of the ProblemIt is important to note that in gatheringinformation from GWSF memberswe used the phrase ‘sub-standard’tenements. This is a broad descriptionof tenements which, in an ideal world,would be subject to ComprehensiveTenement Improvement (or similar).There could be many reasons for this,including poor structural condition,lacking basic amenities or havingsevere long term management and/or maintenance problems affecting thefabric of the building.There are sub-standard tenements inall the local authority areas where ourmembers work. There are particularconcentrations in Glasgow andRenfrewshire. In Glasgow, the CityCouncil estimates that there are about7,000 tenement flats which are belowthe tolerable standard. This is 8% of thetotal number and is based on a 2010condition survey.In Renfrewshire, the Council hasestimated that there are about 1,200properties (mainly pre-1914 tenementflats) that did not meet the tolerablestandard. This is based on their mostrecent survey, in 2002.We received 37 detailed responses fromour members to a questionnaire aboutthe scale of sub standard tenementflats in their areas. Of the respondingassociations, almost 60% were able toidentify sub-standard tenements within,or close to, their area of operation. Theseassociations identified 7,354 sub-standardpre-1914 tenement flats and 2,893 substandardpost-1924 tenement flats. Thismakes a total of 10,247 sub-standardtenement flats.If we assume (reasonably) that theresponding associations are broadlyrepresentative of the total membership,this suggests that there are over 17,500sub-standard flats in or close to the areasof operation of CCHAs. Of these, about12,700 are pre-1914 tenements and about5,000 are post-1924 tenements.In most cases, CCHAs have no ownershipinterest in these sub-standard flats,and when they do, it is almost always aminority interest.The maps (of Glasgow and Paisley)indicate the broad distribution and scale ofthe sub-standard tenement flats identifiedby those responding to our survey.6

The Reasons for the Growing ProblemWe asked our members what theythought were the three main reasonsfor properties falling below standard.The three most commonly mentionedreasons were:• Lack of routine and cyclicalmaintenance of the building (75% ofresponses).• Lack of interest from owners (50% ofresponses).• Lack of management of the building(42% of responses).These issues are clearly interlinked.Housing associations found that ownerswere very often unwilling or unableto invest money into maintainingtheir properties. Some owners hadbought under Right to Buy and maynot have realised the costs associatedwith maintaining the common parts oftenements. Owners are often ‘propertyrich but income poor’. Some may havenegative equity. And the requiredinvestment in their property may notlead to an early equivalent increase inproperty value.There has also been a rapid growth inthe size of the private rented sector.Renfrewshire Council noted a growth of50% in the rented stock since 2004 (to7% of the total). While Glasgow recordeda 115% increase in the size of the privaterented sector (to 17% of the total stock)between the 2001 and 2011 Censuses. Ourmembers report that it is often difficult toengage private landlords in discussionsabout the management and maintenanceof the common fabric of the tenements inwhich they own flats. One local authorityinterviewee said ‘... the private sector,including former Right to Buy properties,is now a major time bomb’.Housing associations, where they haveany ownership, are almost alwaysminority owners within these tenements,so are often cautious about committing8expenditure without the agreement of themajority of owners.Statutory powers may not always be usedas this could require councils to spendscarce resources – and there is no supportto owners for improvement work.There may be no agreed process forfactoring the property and no rationalmaintenance plan – and many privatelandlords are unwilling to invest in thelong term future of tenements. It is veryunusual for owners to set aside fundsfor future major repair or componentreplacement, meaning that funds are notavailable when they are required.The constant deterioration of the poorlymanaged and maintained section of thetenement stock not only has an impacton the tenements immediately affected,but on a much wider area. At its worst itcan make the areas concerned feel lessattractive, less safe and more isolatedplaces to live.For this reason 47% of the associationssurveyed had considered taking actionto improve the standards and theongoing management and maintenanceof tenement buildings. But 53% hadnot considered taking action for twomain reasons – it was unlikely to stackup financially (55% of responses) andthey were unlikely to be able to acquireproperties (36%).Of the 47% that had considered takingaction, most had not been able to do so.The main reasons for this were:• Ownership issues (56%).• Not a priority for local authority (44%).• The current financial regime is notappropriate for CTI (33%).Only nine of the responding CCHAs haveundertaken CTI in the last 10 years –and these have generally been ‘one-off’projects. There is some frustration for

associations that a series of changes togrant regimes and ownership patterns hasmeant that their work to eradicate substandardtenement housing located in oradjacent to their area has not been ableto be completed.Two examples demonstrate the difficultiesin carrying out Comprehensive TenementImprovement in recent years. Onescheme (in Queens Cross) is complete– but the other (in Paisley) is still beingdiscussed by the housing association, theCouncil and the Scottish Government tofind a way forward.In 2012, Queens Cross HousingAssociation undertook the improvementof 44 vacant flats in Ancroft Street andNansen Street. These vacant tenementswere previously earmarked for demolitionbut now provide 44 affordable homes– 28 for social rent and 16 sold throughImprovement for Sale. This was thefinal stage of a major redevelopmentof the Garscube area. The associationwas successful in obtaining £1.7 milliongrant funding through the ScottishGovernment’s Innovation and InvestmentFund. The backcourts were also improvedto provide a greener and more welcomingoutlook. Despite the welcome supportfrom the Scottish Government andGlasgow City Council, there remained keyissues in ensuring that all the flats metresidents’ expectations (both flat androom sizes); delivering energy efficiencyto a level expected in new buildings;and dealing with problems of waterpenetration through stonework. Theproject won the Herald Property Award2013 for best affordable apartment anda commendation for best regenerationproject.Before and after improvement, Ancroft Street/ Nansen Street, Queens Cross Housing Association9

The Reasons for the Growing ProblemIn Paisley, five closes in OrchardStreet and Causeyside Street werepart of a wider strategy to undertakecomprehensive improvements to the poorquality tenement stock in and adjacentto Paisley Town Centre (part of which is aconservation area). A design team for theproject was appointed by Paisley SouthHousing Association in October 2007. Afeasibility study including Orchard Streetwas completed in 2008. The associationowns just one of the 54 flats involved.Awaiting improvement, flats in Orchard Street, PaisleyHowever, the Association withdrew fromthe project in October 2011 because theybelieved that the project was not feasibledue to significant changes in the fundingregime for Comprehensive TenementImprovement. In April 2013, discussionswere resumed with RenfrewshireCouncil, with the Council underwritingdevelopment costs because of thestrategic importance of Orchard Street.By November 2014, there was agreementabout the levels of funding that both theScottish Government and RenfrewshireCouncil would commit.In January 2015, the Associationconsidered the funding package and hascome to the conclusion that the schemeis too risky to take forward under theproposed financial arrangements. Theyare concerned that:• the subsidy level from the ScottishGovernment is based on new buildschemes and does not take accountof the complexity and ‘unknowns’involved in tenement improvement;• subsidy levels are reducing year onyear;• it is difficult to estimate the numberand cost of acquisitions; and• some owners would be unlikely toagree to participate.All parties still hope that a solutioncan be found which would allowthe Association to proceed. But, inthe meantime, the condition of theproperties continues to worsen.10

New ApproachesMilnbank Housing AssociationMilnbank HA has identified over 800sub-standard pre-1914 flats adjacent totheir current stock. Their experience isthat many of these tenements could bebrought up to an acceptable standard formodest levels of grant to support homeowners carry out essential repairs. So farthe Association has been asked to takeover factoring by more than 300 ownersin 34 tenements where the Associationhas no ownership.The Association insists on the propertiesbeing brought up to their ‘FactoringStandard’. The common repairs requiredare normally in the region of £10,000 perflat. Glasgow City Council Developmentand Regeneration Services (DRS) havebeen providing a financial contributionto owners (through their ‘Stitch inTime’ programme) and the Associationassumes the factoring role with an agreedmaintenance plan as part of the service.This can be a slow process, but theAssociation has empirical evidence thatthe scheme works and stops propertyfalling into disrepair. They feel thatthis preventative work should be a keypart of the local strategy – althoughthere are some tenements that requiresubstantial investment and will need a CTIprogramme being re-introduced in somelocations.CCHAs are well placed to get involvedin this work. It should be noted thatMilnbank HA through its factoringsubsidiary has made a conscious decisionto increase its property managementactivity. The rationale behind this isthe detrimental impact private sectorproperty falling into disrepair would haveon the Association’s neighbouring stock.Milnbank common closes, beforeand after factoring agreement11

New ApproachesGovanhill Housing AssociationFor some time, partners in the GovanhillPartnership have identified 13 tenementblocks in south west Govanhill as a priorityfor action. In December 2013, GlasgowCity Council officers were instructedto develop an implementation strategyfollowing negotiations with the ScottishGovernment and Govanhill HousingAssociation. The key outcomes included:• promoting a sustainable tenurebalance;• stabilisation of problematic groupsof tenement blocks by addressingovercrowding and poor condition;• introducing a programme ofpreventative maintenance bypromoting factoring services andmaintenance plans; and• reduction and eventual elimination ofpoor landlord practice.An early action programme focuses onan initial four tenement blocks containing579 properties. The Scottish Governmenthas committed £4.3 million between2014 and 2017 to cover Govanhill HA’sacquisition costs, and the costs of internalimprovement and external repair works tobe carried out by the Association to bringthe flats back to a lettable standard. OverPoorly maintained housing and environmentalproblems in the area covered by Govanhill’s earlyaction programme.this period a further £3 million has beenearmarked from the Council’s AffordableHousing Programme. In addition, theCouncil has earmarked £2 million PrivateSector Housing Grant.Property management is key to the longterm future of the tenement properties,so the aim is to minimise the number ofnon-factored closes within two years. TheAssociation will take on the factoring oftenements where majority ownership canbe achieved. Where a majority cannot beachieved the Council will offer supportthrough maintenance plans or its MissingShares Initiative.Southside Housing AssociationSouthside HA was one of a number ofCCHAs which were allocated fundingduring 2014/15 by Glasgow City Council topurchase strategically located tenementflats. In the case of Southside, this willallow them to acquire over 40 flats. Theaim is to consolidate the Association’sownership in blocks where they holda minority interest. This will allow theAssociation to have greater control overeffective management and maintenanceof these closes. The initiative relies on12owners being willing to sell – but it offersthe opportunity of the Association beingable to ‘protect’ future standards in thesetenements.Although the scheme is intended as aone-off opportunity, a modest resourceto allow future strategic purchases wouldhelp give CCHAs the opportunity toimprove management and maintenancein key tenements in their area – and allowtheir existing tenants to benefit from aplanned maintenance programme.

Lochfield Park Housing AssociationBrucefield Park is an area of 216privately owned former council flats inEasterhouse. The properties had beensold in the 1980s by Glasgow City Councilthrough the “Homesteading” initiative asa means of increasing home ownershipinto the area.Initially the scheme was very popularproviding low cost homes for ownership.However, priority changes meant thatBrucefield Park was left to its owndevices with no proper factoring or estatemanagement. Brucefield Park changedfrom a relatively desirable part of the areato the least desirable.Sale values in Brucefield declined toa point where some properties wereessentially abandoned and others werepurchased at extremely low values (someas low as £1,000) by the private rentedsector, which has a 50% presence in thearea. The poor standard of managementdelivered by many of these landlordsincreased the spiral of decline in the areaand created increasing problems of crimeand anti-social behaviour.Lochfield Park HA was able to takeaction in 2010 with the introduction ofthe Scottish Government’s UniversalHome Insulation Scheme and increasedfunding available through the CommunityEnergy Saving Programme (CESP). Thisled to a project funded by the ScottishGovernment and Glasgow City Counciland managed by the Association whichtransformed the area and improved thelives of those living there.Works included new roofs, downpipesand gutters; over cladding with insulatedrender system; new double glazedwindows and energy efficient centralheating systems; new front and backclose doors and significant environmentalimprovements. It also began to tackle the50 or so empty homes.Brucefield Park before and after improvement, LochfieldPark Housing AssociationSo far 23 empty homes have beenidentified, acquired and renovated byLochfield Park HA and let under ScottishSecure Tenancies. Private sector landlordsare now engaging with the Council andthe Association on factoring and estatemanagement. And house values in thearea have improved significantly as adirect result of the Empty Homes Initiativeand associated works.13

A Way Forward for the 21st CenturyIt is important to bear in mind that there is a wide range of sub-standardtenements. Some are slipping into substantial disrepair as a result of lackof management and maintenance and may be turned around by innovativework by CCHAs and relatively modest levels of support from councils or theScottish Government. At the other end of the spectrum are tenements whichrequire comprehensive improvement, with the risk that they may require to bedemolished if appropriate solutions and funding cannot be found.This suggests that there should be a moveaway from a ‘one-size fits all’ approachto repairing and improving sub-standardtenements. For those with less severeproblems some solutions would be:• sharing learning about the initiativesthat are being undertaken by CCHAswith councils and the ScottishGovernment just now (such as theapproaches highlighted in the previoussection);• an appropriate priority being given bythe Scottish Government and councilsto sustaining the supply of housingby interventions of different scales insub-standard tenements – this shouldtake account of the local heritage andthe impact of neglect on the widercommunity;• working towards clear and enforceablelegal responsibilities for all owners intenements to share maintenance costs,coupled with greater use of long terminvestment plans to allow funds tobe built up over time to meet majorcomponent replacement (such as roofrenewal and stone repairs);• support from councils to underwritethe costs of missing shares, where asmall number of owners are preventingmajority agreement to carry out repairs;• improved access to information andadvice for owners, including privatelandlords;14• availability – probably through anational scheme – of equity loansfor owners, where repayment is notrequired until sale of the property; and• a joined up approach to fundingfor repairs and funding for energyefficiency improvements.Additionally, for tenements withpotentially terminal problems there is anurgent need for a strategic programmeincluding:• a (relatively modest) fund from theScottish Government’s housing budgetto be ring-fenced for more intensiveCTI schemes – and an appropriateassessment mechanism and costyardsticks, based on the fact that theseschemes are more complex than newprovision and that contractors nowhave less experience of the flexibilityrequired for this work;• appropriate financial support in thesecases from councils for repair andimprovement for private owners andfor environmental works; and• a review of the legislation on HousingRenewal Areas to make it fit forpurpose and to ensure that thereare legal remedies to halt the rapiddecline in tenement buildings whereprivate owners are not meeting theirresponsibilities to carry out repairsand component replacement to thecommon parts of tenements.

Backcourt before and after Ancroft Street/ Nansen Street, Queens Cross Housing Association15

Published by GWSF, April 2015