Osprey Group Corporate Plan

Transcription

1 Osprey Group Corporate Plan

2 Contents 1. Introduction 2. Executive Summary 3. Osprey Housing Group Who We Are 4. Our Vision, Mission & Values 5. Strategic Context 6. Our Ambitions & Principles 7. Risk Management 8. Delivering the Corporate Plan 9. Reviewing the Corporate Plan 10. Strategic Framework Appendices Staff Structure and Profiles SWOT/PESTLE Analysis Autumn 2016 ARC Return Five year financial forecast Strategic Ambitions Action Plan Development Programme Affordability Summary Slides Strategic Risk Matrix 2

3 1 Introduction Corporate Plan This Corporate Plan will take us through to the end of our second decade. We re proud of what we ve achieved and are determined to make a positive difference to the lives of our existing tenants, future tenants and other customers. Osprey Housing Group which brings together the combined forces of Osprey Housing, Osprey Housing Moray and Osprey Initiatives operates throughout the three local authorities in the North East of Scotland. In addition to the services we provide to our tenants we have built a reputation for providing excellent services to others and we see this as increasingly important over the life time of the Plan. Geographically we cover a vast area which comprises over 10% of the land mass of mainland Scotland. With 1600 properties in ownership and management the Group has properties in many communities, large and small including all the major towns and cities as well as a number in remoter areas including the Cairngorm National Park. The Plan also sets out our ambitions to develop in excess of 350 new affordable housing properties throughout the North East, good progress has already been made in this respect and we are confident that we will achieve our target over the next few years. We recognise that excellent governance is a requirement to support the realisation of the Group s ambitions. To this end the governing bodies have established a streamlined governance structure that enables strategic overview, a focused approach to performance, value for money and affordability with specific consideration of Scottish Social Housing Charter requirements, risk and risk mitigation and corporate matters including HR, ICT and Health & Safety. Our staff team is based at our headquarters located in Westhill, Aberdeenshire and Lossiemouth from where services to our tenants in Moray are provided. The Corporate Plan reflects the Scottish Housing Regulator s Recommended Practice (Dec.2015) and has been discussed in detail with Osprey Tenants & Residents Association (OTRA) the Registered Tenants Organisation. The Group carried out a Tenant Satisfaction Survey in 2015/16 and the Plan reflects the key results from the survey. The Plan also identifies the significant changes that are taking place at local, regional and national level as factors including the decline in the energy industry, the opportunities and risks arising from the UK Referendum decision to leave the European Union and closer to home the significant emphasis on the provision of new affordable housing by the Scottish Government. This document details how we plan to deliver the priorities we have identified, with our tenants and stakeholders, in a manner which is affordable, sustainable and makes best use of our resources. 3

4 2. Executive Summary The Corporate Plan sets out Osprey s Vision, Mission and Ambitions up to The Plan explains the Group Structure and operating environment specifically identifying the challenges facing the North East s economy, Brexit and the continuing high level of demand for affordable housing. Our focus on maintaining and improving our financial viability is bearing fruit and will continue through the Plan period, we will continue to work hard to achieve sustainable efficiencies and value for money for our tenants and other customers, throughout the organisation. At the same time we are acutely aware of the need to meet our customers priorities and will work resolutely with Osprey Tenants & Residents Association (OTRA) to achieve these. OTRA s wholehearted engagement in scrutiny has rightly achieved recognition across Scotland and the Group s relationship with them is highly valued. The document sets out our targets for growth which include a substantial investment in the development of new affordable housing throughout our areas of operation. We will deliver these new homes, as we always do, in partnership with local authorities, the Scottish Government, our private lender and developer partners. Investment in new houses is mirrored by a fully funded repairs, maintenance and improvement programme and our Asset Management Strategy provides for continuing achievement of SHQS and compliance with Energy Efficiency Standards in Social Housing. The Plan also illustrates how we will go about achieving our ambitions, it sets out how we will invest in and develop our people, staff and governing body members. The Plan confirms our guiding principles of: Value for money Compliance with regulatory and legislative obligations That our governance arrangements will meet others and our own expectations That we will be aware of risk (but not risk adverse) That we ll commit to complete what we set out to do Finally by working as a team, being resourceful and empowering people we are determined to achieve our ambitions. 4

5 3. Osprey Housing Group Who we are The Osprey Group incorporates Osprey Housing, Osprey Housing Moray and Osprey Initiatives. Osprey Housing and Osprey Housing Moray are registered social landlords with charitable status with objectives based on providing and managing high quality affordable housing across the North East of Scotland. Osprey Initiatives Ltd is a subsidiary company of Osprey Housing Ltd. Osprey Initiatives Ltd is primarily engaged in the management of mid market housing. The Group structure is displayed in the diagram below: Osprey Group Structure Osprey Housing Osprey Housing Moray Osprey Initiatives We are a dynamic enterprise with a clear social responsibility committed to providing quality affordable housing. We generate and reinvest surpluses in order to build and manage homes across a range of tenures and for a range of income groups. While we do have a particular focus on trying to help those in the greatest need we also work to help respond to demands across all parts of the housing market. The Osprey Group strives to manage our businesses imaginatively and inventively to benefit our tenants; future tenants and communities through our own activities and effective partnership working. We are accountable to members and tenants, who live in or have other interests in the communities and places in which we operate. Our governing bodies are independent, voluntary, protect our reputation and as trustees help to ensure our long term viability. Regulation of the sector in which we operate is carried out by amongst others The Scottish Housing Regulator and the Office of the Scottish Charity Regulator (OSCR). 5

6 4. Our Vision, Mission and Values Corporate Plan Our Vision Making a difference every day Our Mission To provide high quality affordable housing and services to people in the communities we serve. Our Values 6

7 5 Strategic Context The UK and Europe is facing momentous change resulting from the result of the EU Referendum in June The impacts on the financial and wider environment including the mobility of labour is yet to be seen they are however likely to be fundamental and long lasting. In the north east of Scotland and beyond the energy industry has, over the past five decades, had a major impact on the economy, employment and wealth of the area. The impact of the world downturn in energy prices has had and is likely to continue to have a transformational change to the social and economic fabric of the area. Major initiatives including the City Region Deal which encompasses large scale infrastructure projects are spearheading a collective response to the downturn, the results of these initiatives will play a significant role in the future of Aberdeen & Aberdeenshire in particular. In the broader, Scottish context the Government published, in 2011, its strategy Homes Fit For The 21 st Century The document setting out the Government s stall included the following key themes: A home for all that is warm, comfortable and affordable and meets people s particular needs Flexibility of provision catering for all needs, enhancing economic growth, social mobility and strengthening communities. Over the decade to 2020, the Government s stated intentions were to achieve the four major housing-related targets set by the Scottish Parliament or the Scottish Government: o By December 2012, all unintentionally homeless households will be entitled to settled accommodation; o By April 2015, all social landlords must ensure that all their dwellings pass all elements of the Scottish Housing Quality Standard; o By November 2016, so far as is reasonably practicable, nobody will be living in fuel poverty in Scotland; and o By December 2020, improved design and greater energy efficiency in housing will have made a contribution to Scotland's commitments to reduce our energy consumption by 12% and our greenhouse gas emissions by 42%. Many of these objectives have been progressed, not least in relation to the condition affordable housing throughout the country; many objectives however remain a challenge. 7

8 In June 2016 Government published its More Homes Scotland Strategy which sets out the Government s ambitions, during the lifetime of the Parliament, for: The delivery of 50,000 affordable homes More mid-market homes More properties for rent in the private rental sector (PRS) including supporting through a Rental Guarantee Scheme Supporting home ownership including Help to Buy. Supporting the provision of infrastructure, land and housing delivery. A more effective planning system. The target of delivering new affordable homes has led to an increased provision of grant and other funding and the table below indicates the sums available in the north east for the period to 2019/20. Local 2016/ / / /20 Authority Aberdeen 10,956 9,945m 9,945m 9,945m Aberdeenshire 17,176m 15,555m 15,555m 15,555m Moray 7.6m 5.52m 4.14m 2.76m Rural Fund* 25m In addition to the mainstream grant funding referred to above the Government has introduced two additional funding streams to support the development of new affordable homes, these are: The Rural Housing Fund - 25m across Scotland Infrastructure Fund - 20m Our engagement with Scottish Government staff is critical to us and we enjoy excellent relations with the More Homes Divisions in Dundee and Inverness both in connection with the delivery of the Affordable Housing Supply Programme and through the provision of aids and adaptations for existing tenant s homes. 8

9 Local Authority Context Corporate Plan This map shows the North East of Scotland geographic area defining the region of Moray, the 6 regions of Aberdeenshire and the City of Aberdeen. The Group owns properties in each of the highlighted towns and villages across the area. Moray The Osprey Group, through Osprey Housing Moray is committed to supporting the local authority and its key strategic partners including the Scottish Government and Moray Health & Social Care Partnership to deliver their priorities which are set out in the following: a)the Moray Economic Strategy (2012) identifies the challenges the Council and its partners are facing recognising that the area is significantly reliant on the public sector (including Ministry of Defence) and world renowned, but relatively low wage, companies involved in food, drink, clothing and tourism. In addition the area faces difficulties in retaining its younger people as they move to adjacent and more distant destinations for employment. Within this context The Moray Council s Local Housing Strategy (2013/18) includes the following priorities: Priority 1: To address housing need and improve access to housing Priority 2: To meet our statutory obligations to homeless households Priority 3: To assist people with particular housing needs Priority 4: To improve the energy efficiency of housing and address fuel poverty and climate change 9

10 Priority 5: To improve the condition of Moray s housing stock Priority 6: To promote successful, safe, sustainable communities and social inclusion. Our primary engagement with The Moray Council is through the Housing Service. Our involvement, at both strategic and operational level is critical to us as we work to ensure our investment and other resources are aimed at delivering high quality and affordable homes in towns and communities throughout Moray taking account of Council priorities in respect of the type, size and location of those properties. The Moray Council will be publishing its new Housing Need & Demand Assessment (HNDA) in 2017, this will inform the housing supply target, stock management information, housing investment requirements and the provision of specialist accommodation. The Osprey Group will continue to work with the Council as the HNDA is developed and will become a key partner in the delivery of the required strategic outcomes. At an operational level we will continue to work closely with the Council s staff in relation to the allocation of properties, both new and relets, to assist the Council meet its legal obligations. In addition our Registered Tenants Organisation, Osprey Tenants & Residents Association (OTRA) has well established links with Moray Tenants and is a member of the Moray Tenants Partnership. Aberdeenshire / Aberdeen The Osprey Group, through Osprey Housing and Osprey Initiatives Ltd, is committed to supporting the Local Authorities and their key strategic partners to deliver successful outcomes for the diverse communities throughout the area. The Councils will shortly be revising their Local Housing Strategies following the publication of their joint Housing Need & Demand Assessment (HNDA). The Councils have agreed a city Region Deal with HM Government, The Scottish Government and One Opportunity North East (One). The Deal is ambitious and will have far reaching impacts, not just on the economy, but on regional competitiveness, connectivity, infrastructure, housing, employment and lifestyle, all of which are key elements in attracting and retaining the people we will continue to need to power and support the energy sector. The City Council has also established Shaping Aberdeen Aberdeen s current Strategic Investment Plan which identifies a significant increase in the provision of new affordable housing through their joint initiative with Places for People Group an initiative which the Osprey Group may seek to participate in. The HNDA will address the needs for both the Aberdeen Housing Market Area (AHMA) and Rural Housing Market Area. The former being most impacted by the changes in the energy sector already referred to and the latter including areas of more traditional economic activity including fishing and fish processing, notably in Peterhead and Fraserburgh, food and drink and tourism, particularly in Royal Deeside and the wider Cairngorm National Park area. 10

11 The draft HNDA (September 2016) which includes both the Aberdeen and Aberdeenshire Rural Housing Market Areas identified the following trends. Strong annual population growth from 2001 to 2014/15. Variable age profile trends with older people ( 55+) favouring Aberdeenshire whereas the population of age group was five times the growth rate in Aberdeen compared with Aberdeenshire. Strong population growth projected younger people in Aberdeen / older people in Aberdeenshire. Net migration continuing The enlargement of the European Union in 2004 resulting in 35,000 migrant workers from the 13 accession countries over half of which were from Poland. Increase in households (over the Scottish average) single people households being a strong factor in Aberdeen. Significant variation in housing tenures with a lower proportion of affordable housing in Aberdeenshire than Aberdeen. House prices showing strong growth until 2014 and have since fallen back, particularly in Aberdeen. The economic downturn initially impacted higher value properties but has widened to include all house types more recently. Private rents have followed the trend with strong growth throughout the period 2010 to 2014 and subsequent significant decline. Rents are however still well in excess of the Local Housing Allowance (LHA). Despite the turndown in prices affordability remains a problem with people on lower quartile price being unable to afford to buy a lower quartile property in any part of the area particularly so in the Aberdeen HMA Weekly wages typically these have been significantly higher than the Scottish average in the AHMA, whereas the RHA is more aligned with Scotland as a whole. Housing Benefit rates remain lower than the Scottish average, significantly so in Aberdeenshire. The assessed demand for social rented homes (based on five distinct scenarios) identifies an additional minimum requirement of 633 properties p.a.(scenario 1) rising to 1,095 p.a. (Scenario 2) for the period 2016 to The demand for below market rent units being in the range 304 to 492 pa. for the same period. Further analysis and consideration both of the HNDA and other research by the Osprey Group and others, particularly the local authorities will be necessary to inform and support future investment decisions. We will continue to work closely with the relevant authorities and our professional advisers to ensure that our development proposals meet agreed guidelines. We will remain alert to the external factors noted earlier including the UK s decision to withdraw from the European Union particularly with regard to the mobility of labour and impact on agricultural and fishing / fish processing, the changes in the energy industry and the success of the City Deal and other initiatives including the Aberdeen City Masterplan and Shaping Aberdeen. 11

12 The new Local Housing Strategies for both Aberdeen & Aberdeenshire will, of course, review progress against existing plans including matters relating to: Homelessness Fuel Poverty Housing for People with Particular Needs and in particular the work of the two Integrated Health & Social Care Boards Our primary engagement with Aberdeen and Aberdeenshire Councils is through the Housing Services teams. Our involvement, at both strategic and operational level, is critical to us as we work to ensure our investment is aimed at delivering high quality and affordable homes in towns and communities throughout the Aberdeen and Rural Housing Market Areas. Our development plans will take account of Council priorities in respect of the type, size and location of those properties and will be submitted to the relevant Councils for inclusion in their Strategic Housing Investment Plans. At an operational level we will continue to work closely with the Council s staff in relation to the allocation of properties, both new and relets and to assist the Council meet its legal obligations in relation to homelessness. In addition Osprey Housing has, over the past five years, engaged in the management of affordable housing for a number of other registered social landlords including Aberdeen Soroptimist Housing Society Ltd, Limited Liability Partnerships (LLP s) through the National Housing Trust (NHT) initiative and the Local Affordable Rent Housing Trust (LAR).These services are provided through the Group by Osprey Initiatives and are anticipated to continue throughout the Plan period. Osprey Initiatives also provides managing agency services to Osprey Housing in relation to the latter s increasing number of mid-market rent properties in the Aberdeen Housing Market Area. Our Registered Tenants Organisation, Osprey Tenants & Residents association (OTRA) has well established links with Aberdeen and Aberdeenshire Tenants through both the North East Tenants Residents and Landlords Together (NETRALT) and the Northern Lights Network. The Group has carried out a SWOT / PESTLE Analysis to inform the development of this Plan Appendix 2. Performance will be reviewed by every six months when both the SWOT & PESTLE outcomes will also be reviewed this is seen as critical given the changes that are now evident. The Osprey Group has undertaken a full and detailed Option Appraisal into its future development capacity taking into account the views of its tenants through OTRA, the requirement to achieve SHQS and more recently EESSH standards for existing properties and assurance that rents would remain affordable. The impact of new development on the business plans for both RSL s within the Group is positive subject to costs (including staff costs) being retained at current or close to current levels. The option appraisal, took account of a range of financial projections, scenario planning and assumptions and resulted in the decision, taken by both RSL s, to re-engage with the development of new affordable housing. 12

13 6 Our Ambitions & Principles Corporate Plan The Group has, in consultation with staff and tenants has established six key Aims or Ambitions: Our Ambitions have been developed to reflect national and local priorities but they are very much ours they reflect our values, our culture and our determination To Make A Difference Every Day, they are: 1. Strengthening financial viability 2. Meeting our customers priorities 3. Continually improving how we deliver our services 4. Ensuring long term sustainability of our assets 5 Supporting the development and management of new affordable housing 6. Continually investing in and developing our people Each of these Aims is supported by an Action Plan (Appendix 5), to ensure that performance is on target and focused on existing / new priorities. Ambition 1 - Strengthening Our Financial Viability Focus on costs and value for money for ourselves and our tenants Manage and mitigate the risks arising from Welfare Reform & implementation of Universal Credit Ensure that our pension arrangements are affordable. Remain vigilant in relation to borrowing covenants. Ensure that new developments are affordable for tenants and the Group. Ensure effective business planning and that assumptions are both realistic and prudent. Maintain and improve our relations with existing and future funders. Ambition 2 - Meeting our Customers Priorities Improve the accessibility of our services Learn more about the needs and aspirations of our customers. Review our service offer and service standards to customers. Provide more opportunities for customers to challenge, influence, shape and monitor our services. 13

14 Ambition 3 - Continually improving how we deliver our Services Effective and meaningful benchmarking Review and develop effective tenant satisfaction measures Improve internal management information and reporting mechanisms. Spot checking standard procedures / documents to ensure compliance. Create a performance improvement plan incorporating feedback from validation visits, ARC outcomes and tenant scrutiny outcomes. Ambition 4 - Ensuring long term sustainability of our Assets Take an Asset led approach to the long term use of stock. Develop and implement life cycle costing plans based on detailed and up to date knowledge of the stock. Ensure that funding is available for capital investment to maintain and improve stock over the period of the Plan and beyond. Ensure that sufficient resources are available for the ongoing servicing and repair of stock to ensure compliance with legislative and regulatory standards and meet the expectations of our tenants. Ensure that stock continues to be fit for purpose and take action in respect of stock that no longer fulfils its original purpose. Ambition 5 -Supporting the Development and Management of New Affordable Housing Develop 250 (Osprey Housing) and 100 (Osprey Housing Moray) affordable homes over the period 2015/16 to 2019/20. Ensure that all new developments are rigorously tested against pre-determined criteria prior to final governing body approval. Work with strategic and other partners to encourage the delivery of a range of affordable housing through for example the NHT initiative, the Local Affordable Rent Housing Trust (LAR) and low cost / shared ownership models. Participate in the Strategic Planning arrangements and delivery mechanisms led by local authority partners. Provision of high quality tenure and management services to other landlords including other registered social landlords and others. Ambition 6 - Continually Invest in and Develop our People Identify and implement a Training Plan to ensure that the requirements of the Group and aspirations of staff and governing body members are met. Achieve IIP High Performing accreditation by Recruit, retain and develop staff and governing body members for the future. Ensure that staff and governing bodies have the right tools for the job. 14

15 Our Guiding Principles We believe that we will achieve our aims if we focus on the principles or golden threads that permeate everything we do: Value for Money quality and affordability for tenants and other stakeholders Compliance - trustworthy Good governance reliable - a safe pair of hands Risk aware understand the pitfalls and deal with them Commit to complete keep our eye on the ball and keep our promises Collective responsibility no buck passing Resource & Empower do the right thing, in the right way at the right time. The Corporate Plan is underpinned directly by the Group s Thirty Year Business Plan and Five Year Financial Forecasts, a full review of which, is carried out annually. The Corporate Plan should therefore be cross referenced with these and other Strategic Plans. 7 Risk Management The Group has established an effective approach to reviewing both strategic and operational risk and this is set out in Appendix 8. The six key strategic risks are: Welfare Reform Financial Viability Asset Management Failures Housing Management Failures Governance Failures Corporate Failures Risks are reviewed through the governance cycle every six months with final review and approval of sub Committee recommendations being the responsibility of the Osprey Housing Board. 15

16 8 Delivering the Corporate Plan Corporate Plan We are very aware of the requirement to critically review our performance, understand our operating environment and engage with our stakeholders to ensure that we meet the current demands of tenants and others as well as secure our future. The Corporate Strategy embraces this approach and the timeline for the development of the Strategy indicates the involvement of governing body members, the staff team, tenants and professional advisers in the creation of the Strategy. Developing the Corporate Plan - Timeline Date Event Purpose Involving March 2015 Business Plan Review Executive Team + Arneil Johnston June 2015 Strategic Review Governing Bodies + staff and tenants June 2015 Vision, Mission & Objective Setting October 2015 Strategic Event Governing Bodies December 2015 Strategic Event Governing Bodies February 2016 Objectives Action Planning Management Team + External Facilitator Governing Bodies, Staff (all) and Tree of Knowledge April 2016 Customer Services - All staff + facilitator Excellence August 2016 Governing Body Meeting Approval of Vision, Mission & Objectives October 2016 Governing Body Strategic Event Affordability Assessment Arneil Johnston November / December 2016 Key External Stakeholder Consultation Local Authorities, Lenders 9 Reviewing the Corporate Plan The Corporate Plan is a living document it will be used throughout its life to ensure that the Group and its constituent members are focused on delivering our ambitions. Inevitably circumstances change, opportunities arise, threats, as yet unseen, emerge. We will be alert to these changes and adapt as we always have. A detailed Action Plan that provides specific, measurable actions designed to support the delivery of the six Ambitions has been established. Progress against these actions will be reviewed by the Governing Bodies at least twice a year. 16

17 10 Supporting Strategic Framework: Appendices 1 Staff Structure / Exec Team Profiles - attached 2 SWOT Analysis / PESTLE - attached 3 ARC Return 2015/16 Osprey Housing -..\..\..\ARC\2016\AHP Full ARC - final.pdf Osprey Housing Moray -..\..\..\ARC\2016\MHP Full ARC final.pdf 4 Five Year Forecast 5 Strategic Ambitions Action Plan -..\..\..\Performance Monitoring\ \Performance Improvement Plan \Performance Improvement Plan xlsx 6 Development Programme 7 Affordability Summary Slides (Arneil Johnston) 8 Strategic Risk Matrix - S:\Common\AHP_MHP_Share\Governance Masterfile\Risk Management\Strategic Risk Guide\2016\Strategic Risk Matrix - updated August 2016.pptx 17

18 APPENDIX 1 Staff Structure Executive Team Profile Colin Hawkins - Osprey Housing Group Chief Executive Chartered Member of the Chartered Institute of Housing Diploma in Housing Executive Director of Osprey Initiatives Ltd Appointed as the first CEO of Aberdeenshire Housing Partnership now Osprey Housing in 2002 Colin brings a wealth of experience from his career including senior roles played in local authorities in Scotland and London. Colin s previous experience includes the roles of Head of Strategic Development for the Housing & Social Work service for Aberdeenshire Council and prior to that Depute Director of Housing at Clackmannan DC. Involved in the establishment of Ochil View Housing Association Colin became its first secretary following its launch in the late 1980 s. Prior to moving with his family to Scotland Colin enjoyed a senior role within Lewisham Council s priority estates projects in Deptford and New Cross. In addition to his work with Osprey Colin has served on the Board of the Scottish Federation of Housing Associations (SFHA) and is currently vice-chair of Inspire (Partnership through Life) Ltd. an Aberdeen based charity providing support and services to people with learning and other disabilities. Colin s interests, beyond his family and career include hill walking, motorcycling and playing cricket. 18

19 Glenn Adcook Osprey Housing Group Executive Director Diploma in Housing Fellow of the Chartered Institute of Housing Member of the Social Research Association Executive Director of Osprey Initiatives Ltd Glenn Adcook joined Aberdeenshire Housing Partnership now Osprey Housing in February 2011, returning to the management of housing service delivery following a period of some 15 years in the private sector consultancy. Glenn joined AHP, now Osprey Housing, from CELLO mruk research where he was a senior executive consultant. Whilst he specialised in housing research and consultancy he was part of the senior management team and joined the PLC's corporate business development group. Prior to that Glenn enjoyed a successful 21 year career in housing incorporating Local Government and other public sector orientated housing organisations. A fully qualified housing professional, Glenn has become a specialist in broader housing and social policy by building on his experience of managing housing service delivery; corporate and strategic planning in Local Government; his work with Central Government; and responsibilities for policy analysis, policy development and research. He has previously held a range of senior managerial posts including Director of the Chartered Institute of Housing in Scotland. In addition, Glenn is an accredited trainer. 19

20 APPENDIX 2 SWOT ANALYSIS STRENGTHS Financial Position incl. long term projections Group Structure - +ve impact on Business Plan Stock Profile demand, profile and property types Income management high performing void and arrears performance Able to develop new affordable housing Quality of governance people & structure Ambition to grow & improve Stakeholder & partnership relationships OPPORTUNITIES Rebranding Future opportunities (based on existing good reputation) Current & Future development (growth) Expansion of Activity + Business (Osprey Initiatives & Group). Maximise efficiencies (including those supported by IT) with positive impact on staff capacity. Relocation of OHM Office Future of Allocations (Waiting Lists / Choice Based Lettings etc) WEAKNESSES Requirement for further validation of Life Cycle Costs and potential impact on finances. Quality & reliability of housing demand data. Some further clarification of support staff roles within the team. The existing staff appraisal system requires further work to achieve best outcome for organisation and staff development. Tenant satisfaction Unclear VFM direction & strategy THREATS Inflation, Brexit, Independence Referendum and resourcing public sector (particular impact on rents & affordability) Over commitment / capacity impact on service delivery & people (staff structure to deliver ambitions) Economic impacts housing demand & employment Over supply particularly Aberdeen City Increasing competition. Current morale / staff relationships Succession planning Governing Bodies & Staff Local Common Housing Register 20

21 Political, Economic, Social, Technological, Legal & Environmental (PESTLE) Analysis November 2016 A) Political Factors: 1 Brexit Financial, economic, legal (HR, H & S, Procurement), migration, skills, housing demand, demography, defence (Lossiemouth & Kinross) 2 US Election Financial, economic, trade, policy (NATO Lossiemouth & Result Kinross), security 3 Independence Ditto Referendum 2 4 International Middle East / North Africa refugee crisis, oil. conflict 5 Local Council Policy & strategy elections S Gov. Manifesto 7 Central Belt emphasis Currently benign target to build 50,000 affordable homes, grant rates, relates support, energy efficiency, mitigation of Welfare Reform. Resource distribution imbalance B) Economical Factors 1 Inflation & Interest Rate Uncertainty Cost of borrowing, cost of suppliers, impact on tenants / cash flow. 2 Employment Energy, Exports (Food, Drink & Clothing), Fishing / Fish processing, Defence, Agriculture, Tourism and Forestry. Impact on housing demand etc 3 Energy Costs Oil & Gas employment, cost of fuel (transport, heating and domestic energy use) 4 Tax regime Welfare Reform, Private Rented Sector 5 SG / UK Budget priorities Govts. 6 US? 7 Support to Council Tax Freeze impact on services LA s 8 Pensions & Pension Planning Employer / employee obligations. Impact of new freedoms to access pension pot 21

22 C) Social Factors Corporate Plan Welfare Benefit cap / roll out of Universal Credit Reform 2 Migration Different social values / requirements / expectations incl. family compositions Support requirements. Low & high waged employment. Student population 3 Demographics Aberdeenshire & Moray ageing Aberdeen younger profile will that continue, growth in child population. 4 Market Relationship breakdowns, changes in the way people live their changes lives. 5 Health Integrated Health & Social Care, obesity, implications of ageing. Living in the community 6 Social Equalities, housing for people with particular needs LD, inclusion autism, mental illnesses, physical disabilities, veterans, drugs and alcohol. 7 Changing social expectations Expectations on the State, breakdown of family / community networks. Increasing social media. D) Technological Factors 1 SMART Technology 2 24/7 services and connectivity 3 Reliability & Security For all Access to services customers engaging with services directly ordering repairs, paying rent, managing their enquiries. Home working (staff and customers). Non engagement. Investment Fraud, theft, system down, cost of security. Securing and developing expertise (staff, consultants and suppliers, customers) SMART meters, PVA SMART Homes 4 Energy efficiency 5 Building New build and replacement / procurement policies. Factory / materials system build 6 Transport Energy efficiency electric / hybrid vehicles access to charging points 22

23 E) Legal (and Regulatory) Corporate Plan Housing Impact on Social Housing tenancies, private rental Sector (OIL) (Scotland) Bill 2 Energy EESSH (2020) Standards 3 HR / H&S Brexit etc, Shared Paternity Leave 4 Procurement Brexit etc. Procurement (Reform) Scotland Act Financial Accounting Regs. further changes? regs. 6 ONS - Public SG Legislation impact on Regulation and cost of borrowing? Sector designation of RSL s 7 Land Reform Impact on planning and availability of development sites. F) Environmental Factors 1 Energy Efficiency Standards 2 Climate Change 3 Natural disasters 4 Healthy lifestyles and environments 5 Recycling & Waste Management EESSH 2020 Paris Agreement 2016 national targets for emmissions? Flooding & wind damage build in resilience / insurance Promote / facilitate (Lossie initiative) Community facilities / play areas etc. New development layouts Allergens Renewables House designs and fit out, refurbishment and renewals, education and information to tenants, office footprints 23