Stock Condition Surveys - Part 1 – A Client’s Perspective

Many Client organisations will not have the skills and resources available in-house and will therefore use external consultants for delivery of stock condition surveys due to their scale and complexity.  The choice of consultant is fundamentally important to the success of the survey and clients should be very thorough in their selection and procurement processes

Source: http://www.bsetservices.co.uk/

For many years in my professional career I was responsible for advising, organising and managing numerous large stock condition surveys for a range of Local Authorities and Social Housing Providers. The prime motivation for the stock survey usually revolved around stock transfer, strategic planning related to asset management and business plans, or in the case of schools to follow a prescribed method such as the Department for Education and Skills Asset Management Strategy (now the Department for Education).  My involvement would often include helping each of the various clients to understand what they wanted (as there was generally a lack of real understanding), to set the scope of the surveys, to manage and co-ordinate large survey teams and to present the data in an understandable and useable way. 

If you are currently planning for a stock condition survey or maybe you already have one in progress, then there are many different things you need to consider in order to try to ensure that the data collected and indeed the outputs from these are actually what you intend.  I can think of numerous examples where Clients encountered difficulty in managing/coping with the vast amount of data that was produced, and once received, they were not exactly sure what to do with it.  This is why a successful stock survey requires many months of planning and organising.  From a Client organisation perspective there needs to be a well organised strategic approach, establishing precisely what is required and importantly how this will be achieved. The information below identifies some key issues which should be considered:

What is the purpose of the stock survey?

A very simple question which often produces a variety of different answers. The answer to this will actually set the scope of the survey and will decide what outputs are required, so if there is a lack of clarity at this point then the whole process becomes confused. Therefore, will the data be used to plan future work packages, if so, over what period of time? Will the data be used for strategic planning and be incorporated in a business plan? or maybe assessing current and future repairs and maintenance liabilities, or possibly consider statutory compliance or maybe a combination of these. These examples are not exhaustive, however demonstrate the wide range of possibilities that a stock condition survey could be used to achieve.  It is only possible to move onto the next stage of the process once an Client/organisation can provide a clear answer to this question.  Only then is it possible to start to look at the scope of the survey, the attributes to be recorded, the sample size (will this involve cloning?), the required outputs, deadlines and also the available budget (for the condition survey).

Source: http://cool.conservation-us.org

I remember one particular organisation I was advising, a Local Authority, who required a stock condition survey for their commercial building stock.  This included buildings such as community centres, libraries, leisure centres, offices and numerous other public buildings.  In total this amounted to approximately 400 different buildings, so not a large stock survey, but challenging due to the diversity of the different buildings.  I became involved at a very early stage and it soon became clear that there were differences of opinion in respect of what was required to be achieved within the client organisation itself.  One particular senior manager was insistent that the data collected should be used for strategic asset planning and also to assist with much lower cost day to day maintenance. This manager was adamant that the survey should record things like door handles, hinges, taps, plugs, sealant etc. therefore taking the required attributes to a ‘micro level’.  I highlighted the consequences of this approach in terms of the high cost of each survey due to the amount of time the surveyor would be on site, the difficulty in consistency of recorded information if you provide surveyors with too many choices, and also the limitations of the hardware at the time.  In the end I was able to steer this particular client down a much more sensible road. This demonstrates some of the challenges that may be encountered, through lack of understanding.

Choosing the right people

Many Client organisations will not have the skills and resources available in-house and will therefore use external consultants for delivery of stock condition surveys due to their scale and complexity.  The choice of consultant is fundamentally important to the success of the survey and clients should be very thorough in their selection and procurement processes.  Many consultants advertise their experience and skills in delivery of stock condition surveys, however there are some important factors that should be considered when selecting consultants for this type of work:

Resources – Based upon what you have detailed in your brief, what resources will the consultant provide to the project to ensure that the data collected will be appropriate and consistent and also achieve the deadline that you have set?  It is important to find out precisely who will be carrying out the surveys (ask for CV’s), and who will be responsible for managing/overseeing the survey.  Consultants will usually calculate their fee based upon the amount of time they are likely to spend on the project and the level of staff that will be needed.  For large stock surveys what tends to happen is that less experienced staff (newly qualified, or those undertaking professional qualification such as APC or sometimes agency staff), are used for the bulk of the surveys and a more senior member of staff is used to oversee the project.  This can work as long as the senior member of staff, undertakes robust quality assurance checks of the data being collected and undertakes continual training throughout the process with the surveyors in order to maintain consistency.  The whole process can easily break down if a consultant does not manage the process in this way and will lead to incorrect/inconsistent data being collected.  This should never be allowed to happen and is something that a Client should explore during the procurement process.

Source: http://www.kykloud.com/

Procurement – All Clients will have a budget available for a stock survey and in fact this is something that helps define the scope of the survey.  If you want a Consultant to understand what you require and you want a reflective fee for their services then you must ensure that your brief is suitably detailed and clear.  This probably sounds obvious, however I have prepared endless tenders for many different types of work, where there briefs provided are so vague or poorly written that it is difficult to understand exactly what the Client is looking for.

Prior to tendering for the ‘main’ stock survey, my advice would be to invite a number of Consultants to tender for a ‘pilot survey’.  This will enable each Consultant to demonstrate their resources and capabilities for a small number of surveys, as well as finding out what works, or maybe does not work, before ploughing on with the bulk of the surveys.  This exercise could form the first part of the selection process, which should also be preceded by Consultant interviews. This may sound like a lengthy process, however it is extremely important to appoint the right Consultant. This approach may well reduce the possibility of serious issues arising either during the survey process or when you come to rely on the data that has been collected.

Consultant’s Fee – Always analyse precisely what the Consultant has included with their fee.  If your tender documentation, including your survey brief are sufficiently detailed then the Consultant should have provided a fee to reflect what you have asked for.  If not, and the consultant has included their own ‘inclusions or interpretations’ then this will make the fee very difficult to compare with other tenders. This should not happen, as this could invalidate a tender, depending upon the method in which tenders were issued. In any event there needs to be a detailed tender analysis in order for a Client to satisfy themselves that the Consultant can provide precisely what they want for the fee they have provided.  Never be tempted to look at the headline fee alone, as without looking you cannot know what (or what is not) included within that fee.

In next week’s article I will consider stock condition surveys from a Consultant’s viewpoint and provide some examples of how I used to manage large stock surveys.

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Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.

Urban Living v Rural Living – Which is better?

When you live in a City or Town you have access to most facilities and services, which we tend to take for granted and do not really give these a second thought.  It is only when we move from such a place that we realise that these facilities and services are not as readily available and are often provided in different ways or sometimes not at all

Source: http://www.buildstore.co.uk

In the hectic world we live in it is important for us to balance our lives so that we take time to rest, relax and generally re-charge our batteries.  We will all do this in different ways, be it spending quality time with our friends and families with a meal out, a drink at our local, a day trip, weekend away or maybe even a holiday.  The more active and adventurous may decide on something a little more physically challenging, however the point is that it will be something for ourselves that we enjoy.  The thought of planning and doing these things are what often gets us through each working day.  Sometimes this will also lead us to make life changing decisions at certain stages of our lives, where we decide we want to live our lives at a more leisurely pace.  In order to achieve this many will consider leaving the often chaotic, hundred mile an hour pace of cities, large towns and urban areas behind and contemplate moving and living in rural or semi-rural locations.  In fact my family and I recently made such a move, prior to which our entire lives had been spend living in Birmingham.

When you live in a City or Town you have access to most facilities and services, which we tend to take for granted and do not really give these a second thought.  It is only when we move from such a place that we realise that these facilities and services are not as readily available and are often provided in different ways or sometimes not at all.  Therefore, I thought it would be worth discussing some of these points, so that those who may be considering moving to a rural or semi-rural area, have this information available to help them during the process:

Drainage

By the nature of rural areas being more isolated than urban areas it is highly likely that mains sewers and drains will not be available.  The availability will vary depending on the size of a village or community and also its proximity to larger towns and cities, which are likely have these facilities.  Where mains drainage is not available, sewerage is usually managed by either septic tanks or cesspools. 

Septic tank – In simple terms a septic tank is a watertight ‘box’, usually concrete, which is buried in the ground just outside the home. The size of the tank is determined by the size of the home, however typically this will have a 1000 gallon liquid capacity. Foul water from toilets, baths, showers, sinks, washing machines, etc flow into the tank. The heavier solids fall and settle at the bottom, while the relatively clear water rises to the top where it is drained off into the earth. Any solids left in the tank are mostly broken down by bacteria, something know as anaerobic action. Not all the solids will be broken down so occasionally the tank must be emptied before it reaches capacity.  There will be a cost attached to maintenance and emptying of the tank and this should be investigated during the conveyance process.

Cesspools – Also referred to a cesspits, these are basically underground storage tanks made of brick, concrete or nowadays glass reinforced plastic (GRP). These will have a much a larger capacity than a septic tank, typically 18000 litres or above.  Cesspool act as a catchment/storage facility only and require emptying on a regular basis, which will also have a cost attached.  It is an offence Public Health Act 1936to allow a cesspool to overflow or leak.

Fuel and energy

The Department of the Environment, Food and Rural Affairs (DEFRA), Statistical Digest of Rural England 2013 states: ‘Households in rural areas are more likely to be off the gas grid (i.e. not connected to mains gas), and hence reliant on potentially more expensive fuels. In 2010, 36% of households in rural areas overall were off the gas grid compared with 8% in urban areas and 13% across England. The majority of urban homes use gas as their main fuel type. However in rural areas, particularly Villages and Hamlets, a large proportion of households use oil fired heating systems’.

Fuel costs are currently increasing at an alarming rate, and this is a serious consideration when considering the purchase of a new home.  It is true to say that gas in expensive wherever it is available, however the cost of using an oil fired heating system in a rural or semi-rural area is equally expensive and does not just include the cost of oil alone, but will also include delivery and maintenance of an oil storage facility.  This could prove to be a very expensive ongoing cost that will need to be factored into future financial planning.

Accessibility

During the warmer months of the year when the days are long, living in a rural or semi-rural environment is extremely enjoyable, often idyllic.  Beautiful countryside, fresh air (sometimes very fresh if you live near a farm!), a variety of wildlife, fantastic walks, in fact I would suspect that it is these things that draw many to the countryside.  The flip side of this of course is that these types of communities can often become very isolated when the colder, darker nights commence and when winter really sets in.



Source: http://mylongwalk.com/

Rural roads are often narrow and poorly lit (or not lit at all).  A sharp frost or even a light covering of snow will make these roads hazardous. Even a short trip to the local shop or a journey to work will be made much more difficult when the weather changes and the nights start to draw in.  For those viewing properties in the summer months these considerations are rarely thought about, because dark nights and poor weather are probably the furthest things from people’s minds at that time.

Public transport  - ‘DEFRA’s Statistical Digest of Rural England 2013 states: In 2009 42% of households in the most rural areas had a regular bus service close by, compared to 96% of urban households’. As can be seen the level of service for public transport in rural areas is inconsistent at the very least. Many people may not expect to rely on public transport if they have their own transport however, always bear in mind that circumstances can change and that this may be something worth thinking about, rather than ignoring it. Even if public transport is available, the distance to the nearest bus stop could still be a lengthy one, especially in isolated areas. 

Broadband

Referring again to DEFRA’s Statistical Digest of Rural England 2013: ‘Average broadband speeds were slower in rural areas than in urban areas and a higher proportion of rural households have slow or no broadband. 8% of households in England have access to no or slow broadband. Sparse Hamlet and Isolated Dwellings had the highest proportion of households with no or slow broadband in 2010, 47%’.

Broadband will not be seen as essential by some, however if like my family you are used to high speed broadband, then once it is taken away it is something that you really notice.  Although we booked our broadband installation for our new house a number of weeks before we moved in, we still had to wait a further four weeks before it was actually installed.  As we rely on broadband for many different things, those four weeks were actually extremely difficult.  When the broadband was installed in was useable, but nowhere near the speed we had enjoyed at our previous house.  Also, we have noticed that we also get much more ‘outage’ in our new house, as the service seems to go down more often.  This again is something worth knowing if you too currently enjoy high speed broadband but are considering moving to a rural or semi-rural area.

I have to say that living in a semi-rural area is really nice and I am really pleased that my family and I decided to make the move.  If you are thinking about making a similar move then hopefully I have given you something to think about, particularly if you currently live in a large town or a city.  Rural living is lovely, however it is very different from urban living, which I suspect is why people decide to make the move, but as I have pointed out there are some possible downsides, if of course you decide to see them that way!

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Mobile Technology in Surveying - Could this be the end for paper based surveys?

Guest article from Edwin Bartlett, Chartered Surveyor and Managing Director of Kykloud

‘Far from stifling the role of the surveyor, software should enhance and improve what he/ she can offer.  Feedback from our clients say it does just that; the right technology forces consistency across multiple surveys and surveyors, which in turn dramatically improves the quality of data extracted across building portfolios and estates’

When we were told by the late Steve Jobs of Apple and others in the know that the technology we had in the palms of our hands would quite literally transform our lives, some of us dismissed the bravado, whilst others embraced this new mobile technology and began downloading hundreds of apps….   Let’s face it, for most of us, the world of ‘apps’ consisted of little more than Angry Birds to entertain the kids and fat face booth to make already unflattering photos appear significantly less attractive. Thankfully, fast forward only a few years and we’ve now ventured way beyond this frivolous and seemingly pointless fun and mobile technology has most certainly began to transform our lives – not only on a personal level, but it has slowly but surely crept in to the way in which we do business too. In fact, I recently read an article from Harry McCracken, the editor of Time Magazine who claimed that he could run his entire business on the increasing number of great apps for business (link)

The surveying industry has not escaped the infiltration of mobile technology with an increasing number of us (said to be about 10-15% of surveyors) now turning to our iPads and mobile phones to carry out elements of our jobs, often more quickly and efficiently than we did with traditional methods.  However, the use of such technology, whilst embraced by some, is still met with resistance from others in the industry. Having spent the past two years preaching about the benefits of mobile technology and the capabilities of software such as Kykloud (which allow surveyors to use their iPads to conduct detailed condition assessments), I have also listened with interest to the challenges that some in our profession believe it to pose.

50% time saving

Whilst the cost and time benefits of adopting mobile technology in surveying are increasingly well documented, with our clients alone reporting a 50% time saving, the concerns raised are nonetheless still very valid and worthy of debate. By far, the greatest perceived challenge is that of data security – where does our data go? Who has access to it? How will this impact on things such as compliance and PI insurance if we don’t keep onsite notes or store our data?

Where does the data go?

Data goes ‘in to the Cloud’ - that seemingly mythical place where data is stored or in the case of Kykloud and some other web based software providers, data is backed up to secure storage vaults in UK based 'G-Cloud' and ISO27001 accredited data centres.  It’s the cloud but it’s actually just 'up the road' and sometimes explaining that can immediately put surveyors at ease.

Impact on PI Insurance?

Most RICS approved PI insurance policies will not cover loss of documents 'that are stored on a computer system unless those documents are duplicated on at least a daily basis, with the intention that the duplicate can be used to restore the documents in the event of loss or damage'.  This is definitely an area to watch closely for surveyors as there are a number of technology providers offering mobile technology and reporting solutions that do not back-up the data. For added peace of mind, backup data should be replicated between geographically diverse data centre facilities.

Access to Data?

As for access, imagine these data vaults to be like vaults in a Swiss bank with named key holders only granted access. Only defined users can access the data and all information related to user access to data is encrypted by 'SSL', which guarantees that only authorized people can retrieve the data.

Data will then sit there permanently and will never be deleted unless instructed to do so, which in terms of compliance and Professional Indemnity insurance is better protection than any handwritten document that may have once been produced on site.

Dumming Down the Industry?

Some also argue that the use of mobile technology will stifle the job of a surveyor and will negatively impact on the overall quality of surveys produced. A common gripe is that the technology means that surveyors spend too much time ‘looking down and not up’ but I would say that an iPad is no different to a notebook from that perspective except that with drop-down fields, inbuilt camera and touch screen technology, surveyors spend less time looking down, giving them more time to observe the assets they are surveying.

Building surveyors, for example, are highly skilled, well educated professionals, who have trained over a number of years to be able to assess and manage property portfolios and this knowledge and expertise will never be replaced by a piece of software and an iPad? The use of mobile technology will always require the knowledge and experience of a trained surveyor, but the ability to produce data led reports at the touch of a button allows surveyors and asset managers to make detailed recommendations based on factual data and statistics in a fraction of the time.

Far from stifling the role of the surveyor, software should enhance and improve what he/ she can offer.  Feedback from our clients say it does just that; the right technology forces consistency across multiple surveys and surveyors, which in turn dramatically improves the quality of data extracted across building portfolios and estates. To date, the changes in mobile surveying technology have been device manufacture driven.  However, now this technology is in the hands of more and more surveyors, it will be interesting to see how the industry will drive the technology forward. 

Edwin Bartlett, Chartered Surveyor and Managing Director of Kykloud - www.kykloud.com

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Building Regulations v Planning Permission – The Silent Conflict!

If we try to impose modern alterations and additions to all listed buildings then surely we are taking away the very thing that legislation such as the Town and Country Planning Act 1990 is trying to protect?  

Source: http://www.stroudopenhomes.org.uk

In an age where we are already seeing the significant impact of climate change on our planet, there is a real urgency to find alternative ways of creating and saving energy in ways that will not only provide the capacity we need, but also reduce greenhouse gas emissions.  Reduction of greenhouse gas emissions from buildings has been a major focus of the UK Government over recent years who have primarily used Building Regulations Approved Document L as a vehicle for imposing change.  Recent revisions to Approved Document L have introduced much stricter criteria in respect of reducing thermal heat loss, improved air tightness, space heating controls, low energy fittings, to name but a few examples.  Meeting these regulations in new buildings is achievable, as the requirements can form part of the design, however, this poses a whole new set of challenges for works to existing buildings and in particular those that are Listed (protected). 

 

Over the years I have worked on numerous projects which were either Listed Buildings or those within Conservation Areas, or sometimes both.  Anyone who has been involved in such project will understand the often sensitive and sometimes complex issues that arise, particularly when there is a conflict of opinion between the Building Control Officer and the Planning/Conservation Officer.  It is important to understand that each of them have a very different agenda and it is hardly surprising that on occasions that their views will collide.  The Building Control Officer wants to ensure that the works are undertaken in a safe manner to comply with Building Regulations, whereas the Conservation Officer will be looking to maintain the appearance and characteristics of a Listed Building or within a Conservation Area.

Source: http://www.sunday-bnb.com

I remember one project in particular where I was Project Manager for the refurbishment of a grade II listed Georgian Town House on the outskirts of Birmingham City Centre.  After I had prepared and submitted  applications for Building Regulations and Listed Building Consent, there was a difference of opinion between the Building Control Officer and the Conservation Officer in respect of balustrade on a first floor landing.  The Conservation Officer wanted to maintain the existing detail, which was 800mm high and a gap of approximately 150mm between the spindles.  The Building Control Officer insisted that this did not comply with Approved Document K of Building Regulations (Minimum height of 900mm with a maximum 100mm gap between the spindles) and therefore needed to be replaced. The Conservation Officer insisted that this was an original feature of the building and therefore must not be removed!  After unsuccessfully trying to resolve this over numerous telephone conversations,  I arranged for both of them to meet me on site to discuss the matter.  I wondered whether they would bring their own boxing gloves, but either way I was looking forward to the meeting.  After much discussion a compromise was reached which meant that we would keep the existing balustrade detail, however we would also install a new balustrade in front of the existing to comply with Building Regulations.  This satisfied the Building Control Officer and the Conservation Officer who was happy to add this new feature as it was ‘reversible’ and in her words ‘did not detract from the original character of the building’.  The end result was necessary in order to obtain both statutory approvals, however it looked awful, and in my words, ‘made the landing look like a dog’s breakfast’!

The above scenario demonstrates the constant conflict between maintaining the character of a Listed Building or maybe within a Conservation Area and also achieving the various requirements of Building Regulations.  This is actually not that surprising when you think that the Conservation Officer and the Building Control Officer are trying to achieve completely different outcomes.  The problem however is that both of them could insist that their individual requirements are met, so if an impasse is reached, how is this resolved?  You would hope that commonsense would prevail, however sometimes it is difficult enough getting a response let alone contemplating a solution that would satisfy both!

Now, let us consider adding enhancements to a Listed Building and also trying to achieve the requirements of Building Regulations at the same time.  How is it possible to achieve both in every circumstance?  In fact should we really want to achieve both when you think that the majority of modern additions/enhancements to a Listed Building are likely to take away or affect it’s character. Think about insulating the walls of a listed building.  The chances are that you won’t be permitted to do this externally, because that would cover and hide the original structure and/or features of the building.  The same could also be said of insulating internally, if for example a dry lining system is proposed.  Therefore unless the Building Control Officer and the Conservation Officer are both open to compromise it is likely that the requirements of both statutory consents will be difficult to meet.

Source: http://www.dailymail.co.uk/sciencetech/article-1298244

I would therefore suggest that if we are serious about preserving our heritage in the UK, then surely, we should not try to force significant alterations/enhancements when works are proposed to Listed Building and also those within Conservation Areas, even if that means there may be occasions when certain parts of Building Regulations may not be met.  When these buildings were originally constructed they would have been no consideration or requirement for them to meet any future standards, and in fact in most cases it is this lack of modern detail and requirements that often gives these buildings their unique charm and character.  If we try to impose modern alterations and additions to these buildings then surely we are taking away the very thing that legislation such as the Town and Country Planning Act 1990 is trying to protect?  I am not suggesting that all works to Listed Buildings or those within Conservation Areas should be exempt from Building Regulations approval; however, I am suggesting that we take a more pragmatic approach and in some circumstances accept these types of buildings for what they are, which are examples of our historic past.  If we try to impose too many ‘modern’ requirements onto these types of buildings then we what is the point in trying to protect them in the first place?

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Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.

Bedroom Tax – Is the gain really worth the pain?

It seems that tackling overcrowding and the shortage of social housing are just a smokescreen for using bedroom tax as a way of reducing the welfare budget. If the Government do not have a radical re-think (and quickly), then this is something they could live to regret

Source:http://www.coalitionwatch.info

The much publicized ‘Bedroom Tax, was introduced on 1^st April 2013 under the Welfare Reform Act 2012. The new rules restrict the amount of benefit a claimant can make for each bedroom, if they are renting their home, and is based upon the number of people in the household. A reduction of 14% of the rent is applied for one ‘spare’ bedroom and a higher reduction of 24% of the rent is applied for two or more spare rooms. The ‘under occupancy’ changes mean that housing benefit can only be claimed for one bedroom for each person or couple living as part of the household, with a number of exceptions: Children under 16 of same gender are expected to share; children under 10 are expected to share regardless of gender; a disabled tenant or partner who needs a non resident overnight carer will be allowed an extra bedroom. The Joseph Rowntree Housing Trust, provide the following examples in their Welfare Reform Information Sheet:

Stuart and Isobel live in a four bedroomed property and have three children – Jenny who is 12, Max who is 9 and Alice who is 6. Under the rules, the parents (Stuart and Isobel) would be entitled to Housing Benefit for a three bedroomed property (one room for Stuart and  Isobel, one room for Jenny and just one room for Max and Alice to share). 

Sonia is a single parent and lives in three bedroomed property with two children, Rachel who is 11 and Peter who is 9. Under the rules, Sonia would be entitled to Housing Benefit for a three bedroomed property (one room for Sonia, one room for Rachel and one room for Peter. As Rachel is over 10, she would not be expected to share with Peter).

In July 2012 Minister for Welfare Reform, Lord Freud claimed that bedroom tax will ease overcrowding and help tackle the shortage of social housing. The article makes interesting reading (Extract):

‘The policy is estimated to affect 660,000 households, who will lose £14 a week on average.  Lord Freud said: ‘Nearly a third of working-age social housing tenants on housing benefit are living in accommodation which is too big for their needs, in spite of the fact of severe overcrowding…..We are stopping the practice of the state paying for rooms beyond claimant needs, and that should go in some way to help tackle the social housing shortage that has been blighting too many lives.’  

Source: http://www.taxresearch.org.uk/

Sometimes you look at something and wonder what on earth was in the minds of the people who thought it up.  Based upon Lord Freud’s statement above, the government think that bedroom tax is something that will relieve overcrowding and tackle the social housing shortage! Last week I watched an interesting interview on BBC news with a Chief Executive of a North West Housing Association who was being asked about the introduction of Bedroom Tax.  He questioned the government’s motives for its introduction and went onto to say; ‘people’s lives cannot be managed by what appears at the bottom of a column on a spreadsheet’.  This demonstrates well how detached politicians often are when they pay little regard to the reality of their decisions.

It is no secret that the UK welfare bill is haemorrhaging money at an alarming rate and this a particular burden to the treasury.  The government expect annual savings of nearly half a billion pounds as a result of welfare reforms from a current annual cost of £200 billion pounds a year, of which £48 Billion is spent on benefit payments to unemployed and low income claimants (link). Even though we need to significantly reduce benefit payments, the savings made as a result of bedroom tax are a mere drop in the ocean.

Therefore, is the introduction of bedroom tax a way of tackling overcrowding and the social housing shortage as Lord Freud suggests or is it a pitiful attempt to save money?  Well, let’s look at overcrowding.  For this to reduce it would obviously require larger families to live in larger accommodation.  For this to happen it would need those who are 'over occupying' to move into smaller accommodation, thereby freeing up this larger accommodation. The problem with this is that even if over occupiers wanted to move social housing providers do not have a ready made supply of smaller accommodation for them to move into.  Construction output is currently low so we are not building new accommodation in any volume. While supply remains low with high demand, there will be limited new additional social housing to be of any help to the overcrowding problem.  Therefore bedroom tax will have limited to no impact on overcrowding.



Barclay’s, UK Social Housing Sector third quarter review for 2012 (link), identifies that demand for social housing continues to grow with over 1.8 million households in the UK currently on social housing waiting lists. It also makes reference to the fact that the social housing budget was cut by more than 50% in the Comprehensive Spending Review in 2010 which was a key factor in the fall in social housing provider’s new developments.  It seems a little contradictory that Lord Freud suggests that bedroom tax can help to tackle the social housing shortage when he is part of a government that have pulled the rug from under the feet of social housing developers by halving their budget.  Will bedroom tax have any positive impact on the social housing shortage?  I cannot see how, can you?

The conclusion therefore has to be that the introduction of bedroom tax will result in unnecessary hardship for many who are currently on welfare benefits, which is completely disproportionate to the savings/benefits that will be made.  In real terms what is likely to happen is an increase in rent arrears, particularly when housing benefit is paid directly to the tenants when Universal Credit is introduced later this year in October.  This will ultimately result in an increase in evictions and undoubtedly also increase homelessness. 

Chief Executive of the National Housing Federation, David Orr, provides an appropriate conclusion for this article:

“The bedroom tax is an ill-conceived policy which will hurt the most vulnerable people in our society. It will cause financial hardship for hundreds of thousands of families and cause huge upheaval around the country........The government’s assumed savings are questionable and this policy could ultimately cost the taxpayer more in the long term. It takes no account of the fact that there are not enough smaller homes in the social sector available for people who are under-occupying to move into. For them, the only options will be to take the financial hit or to move into a smaller home in the private sector, which could lead to higher housing benefit claims. The real solution to the housing crisis is to build more homes and bring down the cost of housing to reduce the benefits bill”

No-one will really know the true motives of those who came up with the idea of bedroom tax. It seems however that tackling overcrowding and the shortage of social housing are just a smokescreen for reducing the welfare budget. I am sure that if the Government do not have a radical re-think (and quickly), that this is something they could live to regret.

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