Page 11 - 21817A Southway
P. 11

need. The focus is on providing smaller homes, supporting downsizers whilst making better use of
the existing housing stock and increasing the range of housing the Trust can offer to older people.

FFuuttuurereInIvnevstemsetnmt ePlnatnsPlans

A new Development Strategy for 2016-2021 was approved by Board in March 2016. It sets out
plans to deliver more than 750 additional homes over the next five years. All new properties are to
be built to prevailing design and energy efficiency standards.

The programme includes two large extra care schemes which support Southway’s Age Friendly
Strategy, 56 and 105 homes respectively in Burnage and Gorton. Grant funding of £8.5m has
been secured to support this investment. It is intended these projects will commence when the
Government has completed its review of the funding arrangements for supported housing in
March 2017. The proposed introduction of a rent cap, limiting housing benefit to the level of the
Local Housing Allowance, may compromise the viability of these two schemes – alternative
delivery possibilities are being sought should this arise.

The new Development Strategy recognises a move towards affordable home ownership, with 50%
of the future development programme anticipated to be of this tenure; 30% of the programme is
intended to be affordable rent supported by receipts from Right to Buy Sales; and 20% of the
programme is to comprise market rent properties.

A £2m market rent project has recently commenced, with £0.67m spent on investment properties
at the year end. The pilot will be evaluated to ensure an appropriate level of return can be
delivered. Following that evaluation, the introduction of market rent in larger volumes would take
place via the new subsidiary, Southway Plus Limited, thereby enabling a more effective focus on
commercial risk and return. Profits generated are to be returned to Southway Housing Trust via
gift aid to support its wider charitable and community objectives.

The Development Strategy identifies an expanded area of operation which includes additional
Manchester City Council wards and the adjoining local authorities of Stockport, Trafford and
Tameside. Further commercial development opportunities will be pursued to enable additional
value to be generated which can then be directed towards Southway’s core area to support
affordable rent projects.

IInnvveesstitninggininouor uhoruHsionugssitnogckStock

Between 2007 and 2014 Southway invested £116m in the stock transferred from MCC, spending
just under £20k per property. Since completion of the home improvement programme the
investment required to maintain both 100% Decent Homes and Southway Improvement Standards
has been modest. This pattern is likely to continue for the next few years. The improvement works
carried out during 2015/16 included:

Kitchen Renewals – 50 installed. These kitchens were installed prior to the stock transfer and fell
below the Southway Improvement Standard in respect of design and layout.

Boiler Renewals – 75 replaced. As part of our strategy to improve the thermal performance and
fuel efficiency of our homes, replacement boilers installed are ‘A’ rated. Standardising the heating
components in Southway homes helps the Trust carry out more efficient maintenance, servicing
and ensures engineers have the right levels of stock available on their vehicles to enable works to
be completed on the first visit.

Southway Housing Trust  2015 - 16 Annual Accounts 11
   6   7   8   9   10   11   12   13   14   15   16