Tenement dwellings - provision of Building Reserve Funds: report

Appendix 4: Discussion Guides

Public Research: Owner Occupiers

Set up (5 mins)

Introduce Diffley Partnership Team

Welcome to the Discussion Group–

• Explain the discussion will last an hour
• There will be plenty of time to get your views across and discuss issues between yourselves, something we encourage; my role is to keep the conversation flowing, ensuring we cover the broad areas we need to and ask any follow-up questions,

• Fully anonymous and confidential; The Diffley Partnership abide by the Market Research Society Code of Practice and the SRA Ethical Guidelines.
• Request permission to record discussion – with your permission I will record the discussion; this is just so we can go back and listen again after the discussion

Do you have any questions before we start?

Introductions and opening discussion

To begin, I want to give everyone the opportunity to briefly introduce yourselves- whereabouts you live in Scotland, which kind of flat/ tenement you live in and how long you have lived in that residence.

There is concern for the condition of overall housing stock in Scotland, including flats. According to data published by the Scottish House Condition Survey, half of all housing is in ‘critical disrepair’ and almost half demands ‘urgent attention’.

• Does that surprise you? What are your reactions?

Repairs and Maintenance of Tenements (10 mins)

Would anyone like to have a go explaining the differences between maintenance and repair?

• So maintenance consists of… (PRESERVING)
• So repair consists of… (RESTORING)
• Check their definitions and the levels of consensus in the group

Do you feel about the condition of the building you live in at the moment?

• Maintained to a good standard?
• How come/ how not?
• Roof/ gutters/ windows etc?
• Any concerns about damp or rot?
• Safety given the above?

Do you feel owners are equipped to know the costs of addressing outstanding repairs and regular maintenance in the flat?

• How come/ how not
• What could help? (Home reports)

Are there any repairs needed as far as you know to the building?

• Major or minor?
• Affecting you directly/ indirectly?
• Are these being dealt with by owners?

If the property needs repair, are there any barrier to getting the repairs done?

• Coordination between owners
• Absent owners
• Costs
• Availability of contractors

What would you put the need for repairs down to?

• Lack of maintenance over time?
• Features of the building- age, location, weather, original build quality, materials?
• Anything else (listing status, planning/ building control)

Do you have any examples of lack of maintenance over time leading to a big and costly repair?

Current situation- collective action and factoring arrangements

I’m going to ask you about Owners Associations or Groups. Does anyone have any experience of this in their current residence?

• Reasons to have/ not to have in place?
• What is it responsible for if there is one?
• How does it work/ not work?- joint decisions, coordinating work to the building
• Do people know each other well within the building?
• Are you involved in any way?

What is your experience of factoring in your residence?

• Experiences of professional factor or manager
• Experience of self-factoring
• Levels of payments- any knowledge?
• How is that money spent? What on and how often?

Current situation- surveys and emergency repairs

Living in the building, are you aware of any regular survey being carried out?

• Thoughts on why a regular survey would be important/ not important?
• Thoughts on what would count as regular
• Can a survey help understand what is wrong with the building and what needs attention?

Emergency repair procedures, are you aware of any of these being served whilst you have been resident?

• What has this meant for you?
• Did this lead to any collective action by the owners of the flats?

Does anyone have experience of Local Authorities intervening in repair and maintenance?

• Serving a notice?
• Giving a grant?
• Helping with missing shares?

Any ideas around what Local Authorities can/ can’t do concerning repairs and maintenance?

Suggestions on Future Implementation- applying BRF to Tenements (20 mins)

Has anyone heard of a Building Reserve Fund or Sinking funds?

State definition- Building Reserve funds or ‘sinking’ funds are a type of fund set up to pay for repairs.

Does anyone know if these are in place for the building you live in?

• If so, how much do you pay in?
• how is this level determined?
• How do contributors determine what to spend on?
• Is this organised through a factor?

What is your reaction to having a Building Reserve Fund in place for the property you live in?

• Helpful/ not helpful for you?
• Helpful/ not helpful for future residents?

What is your reaction to the Scottish Government making this sort of fund- to be used for repairs- mandatory?

• Concerns- affordability?
• Concerns- practicality?
• Benefits- missing shares, lack of maintenance at present?

How would they decide a minimum amount everyone should set aside for building repairs each year?

• Same flat amount for everyone?
• Different based upon the building and the flat- age, number of units, communal facilities, mixed use, height
• Different based upon the existing repairs
• Different based upon affordability
• Any other ideas? (length of tenure, value of property)

Have you any views on how the money should be held and treated? (Prompts- held, invested, central/local/ individual tenements?)

Are there any other considerations you think have been missed on a BRF?

Conclusions and wrap-up

Thank you very much for the discussion, is there anything not already covered that you would like to mention?

Thank and close

Public Research: Tenants

Set up (5 mins)

Introduce Diffley Partnership Team

Welcome to the Discussion Group–

• Explain the discussion will last an hour
• There will be plenty of time to get your views across and discuss issues between yourselves, something we encourage; my role is to keep the conversation flowing, ensuring we cover the broad areas we need to and ask any follow-up questions,
• Fully anonymous and confidential; The Diffley Partnership abide by the Market Research Society Code of Practice and the SRA Ethical Guidelines.
• Request permission to record discussion – with your permission I will record the discussion; this is just so we can go back and listen again after the discussion

Do you have any questions before we start?

Introductions and opening discussion

To begin, I want to give everyone the opportunity to briefly introduce yourselves- whereabouts you live in Scotland, which kind of flat/ tenement you live in and who you rent from- (private landlord/ RSL)

Repairs and Maintenance of Tenements (10 mins)

There is concern for the condition of overall housing stock in Scotland, including tenements. According to data published by the Scottish House Condition Survey, half of all housing is in ‘critical disrepair’ and almost half demands ‘urgent attention’.

Do you feel about the condition of the building you live in at the moment?

• Maintained to a good standard?
• How come/ how not?
• Roof/ gutters/ windows etc?
• Any concerns about damp or rot?
• Safety given the above?

Do you feel owners know the costs of addressing outstanding repairs and regular maintenance in the flat?

• How come/ how not
• What could help? (Home reports)

Are there any repairs needed as far as you know to the building?

• Major or minor?
• Affecting you directly/ indirectly?
• Are these being dealt with by owners?

If the property needs repair, are there any barriers to getting the repairs done you are aware of?

• Coordination between owners
• Absent owners
• Costs
• Availability of contractors

What would you put the need for repairs down to?

• Lack of maintenance over time?
• Features of the building- age, location, weather, original build quality, materials?
• Anything else (listing status, planning/ building control)

Do you have any experience of poor condition of a flat you have rented affecting your quality of life?

Do you have any experience of wanting your landlord to carry out maintenance and repairs to the building and it not happening?

• Please tell us more
• Do you have any ideas on what would help?

Current situation- knowledge as a tenant

Living in the building, are you aware of any regular survey being carried out?

Are you aware of the building having an owners association or group?

-what is your impression of this?

Are you aware of the building having a factor?

• What is your impression of this?

Emergency repair procedures, are you aware of any of these being served whilst you have been resident?

• What has this meant for you?
• Did this lead to any collective action by the owners of the flats?

Do you feel the rent you pay goes towards common maintenance and repair by the owner?

• How come/ how not?

Suggestions on Future Implementation- applying BRF to Tenements (20 mins)

Has anyone heard of a Building Reserve Fund or Sinking funds?

State definition-

Does anyone know if these are in place for the building you live in?

What is your reaction to having a Building Reserve Fund in place for the property you live in?

• Helpful/ not helpful for you?
• Helpful/ not helpful for the owner?
• Helpful/ not helpful for future residents?

What is your reaction to the Scottish Government making this sort of fund- to be used for repairs- mandatory?

• Concerns- affordability? (passing on cost)
• Concerns- practicality?
• Benefits- missing shares, lack of maintenance at present?

How would they decide a minimum amount everyone should set aside for building repairs each year?

• Same flat amount for everyone?
• Different based upon the building and the flat- age, number of units, communal facilities, mixed use, height
• Different based upon the existing repairs
• Different based upon affordability
• Any other ideas? (length of tenure, value of property)

Are there any other considerations you think have been missed on a BRF?

Conclusions and wrap-up

Thank you very much for the discussion, is there anything not already covered that you would like to mention?

Thank and close

Stakeholder Research: Interviews

Introductions

Introduce the research: Scottish Government commissioned The Diffley Partnership to conduct policy-relevant

research on the Provision of Building Reserve Funds (BRF) for Tenement Dwellings. BRFs are sometimes known as ‘sinking funds’.

As part of this you have been identified as a stakeholder with valuable knowledge on this topic and future-focussed thinking

• Explain the discussion will last up to 55 mins.
• Explain sequence of the discussions: general to specific
• Provide reassurances that findings will be reported as overall messages and themes.
• Fully anonymous and confidential; The Diffley Partnership abide by the Market Research Society Code of Practice and the SRA Ethical Guidelines.
• Request permission to record discussion – “with your permission I will record the discussion; this is just so we can go back and listen again after the interview, the recording will not be shared with Scottish Government and will be destroyed at the end of the research commission”

Do you have any questions you would like to ask before we start?

Knowledge and Engagement

Could introduce yourself and tell me more about your role/area of work?

Were you involved in the Scottish Parliamentary Working Group on Tenement Maintenance

• In what capacity?

I am going to ask you a few context questions next about outstanding repairs and then regular maintenance for tenements.

What are the main factors in determining outstanding repair needs for tenements? (Prompts- age, location, number of units, building height, mixed use, communal areas, materials, listing status, planning/ building control)

What are the main factors in determining regular maintenance needs for tenements? (Prompts- age, location, number of units, building height, mixed use, communal areas, materials, listing status, planning/ building control)

What are the main factors in determining outstanding repair costs for tenements? (Prompts- age, location, materials, ad-hoc/ planned, listing status, planning/ building control)

What are the main factors in determining regular maintenance costs for tenements? (Prompts- age, location, materials, ad-hoc/ planned, listing status, planning/ building control)

Opinions on BRF Recommendation

State Recommendation:

Statutory guidelines should set out the minimum payment each building needs put into a BRF every year. The guidelines should be based on the assessed repair risk for that type of building and extent of common responsibility. There should be a transparent points system based on, for example, the:

• age of the building;
• number of individual units;
• presence of communal facilities (lifts, large areas of landscaping, roads etc); and
• building type.

Most of these factors can be ascertained from Registers of Scotland (RoS) and cross-checked at the first sale by the chartered surveyor carrying out a Home Report.

In general terms, do you welcome this Recommendation and its adoption by SG? – How so?

What are your hopes for this? (Prompts- for people living in Tenements, for condition of our built environment, for profession, for society)

What are your concerns from a specialist standpoint (putting aside any experience you have as a tenement owner)?

Current Situation

What do you think are some of the reasons why some tenements have no provision or security in place to ensure outstanding repairs addressed and their regular maintenance? (Prompts- affordability, coordination, hassle, non-compulsory nature, Deeds)

In your experience, what are reasons which prevent owners forming Owners Associations and/or paying into a shared pot? (Prompts- relevant reflections on Maintenance funds (cleaning, garden etc.), Factoring charges, Enforcement orders)

Do you think that those who own tenements understand what their legal responsibilities are in terms of building fabric? – how so?

Do you feel owners are equipped to know the costs of addressing outstanding repairs in tenements? -how come?

Do you feel owners are equipped to know the costs of addressing regular maintenance for tenements? -how come?

How common do you think BRFs are in Scotland at the moment?

Do you have any examples/ contacts?- if so what have you learnt from them?

What can we learn from BRF that are in place in other countries?

Suggestions on Future Implementation- applying BRF to Tenements

What do you think would help owners understand their responsibility and the costs for maintaining tenements? (Prompts- Documentation such as Home Reports, awareness raising)

• Existing owners/ New owners?
• Owner occupiers/ Landlords?

How do you think BRF could be applied to Tenements across Scotland? (Prompts- exceptions, phasing, incentives, local level considerations)

According to Tenement WG recommendation, ideally a BRF should be calculated on basis that property is in good condition. What should be done for buildings that have existing disrepair? (Prompts- fix first, add to later costs, set up BRF only once certain things in place)

How would you recommend determining level of payments owners should make into a BRF?

What are your views on how a points system could determine minimum payment level per owner?

In terms of the building itself, do you think these aspects are important in determining payment levels?:

• age of the building;
• number of individual units;
• presence of communal facilities (lifts, large areas of landscaping, roads etc);
• building type
• mixed use
• height

In terms of the owners, do you think any of these aspects are important in determining payment levels?

• Affordability
• Location of property- SIMD
• Type of owner- owner occupier/ landlord/ Housing Association
• Value of property
• Length of ownership
• Existing arrangements- factoring, owners associations

Are there any other considerations you think have been missed?

What do you think is most important in determining payment levels?

Have you any views on how the money should be treated? (Prompts- held, invested, central/local/ individual tenements, any models such as Safe Deposit Scotland)

Have you any views on how to ensure the amount in BRF can cover any substantial repairs?

Have you any ideas on how missing shares should be covered?

Have you any ideas on monitoring or enforcement? (Prompts- level, systems, pitfalls to avoid)

What role do you see for these different parties when this recommendation is adopted?

• Owners
• Lenders
• Factors
• Housing Associations
• Local authorities
• Surveyors
• Solicitors
• Owners Associations
• Support bodies

Are you aware of any other provisions, regulations and processes that would be affected by this recommendation being enacted? (Prompts- dual regulation, extra processes, resource for stakeholders like you/ that you represent)

Conclusions and wrap-up

Thank you very much for the rich discussion thus far.

What other considerations or recommendations would you like us to feed into this research on BRF if any?

Is there anyone else you think we should be speaking to?

Do you have any data or information to pass onto us?

Thank and close

Stakeholder Research: Housing Associations

Set up (5 mins)

Introduce Diffley Partnership Team- Fiona Hutchison, Mhairi McFarlane

Welcome to the Discussion Group–

• Explain the discussion will last an hour
• There will be plenty of time to get your views across and discuss issues between yourselves, something we encourage; my role is to keep the conversation flowing, ensuring we cover the broad areas we need to and ask any follow-up questions,

• Fully anonymous and confidential; The Diffley Partnership abide by the Market Research Society Code of Practice and the SRA Ethical Guidelines.
• Request permission to record discussion – with your permission I will record the discussion; this is just so we can go back and listen again after the discussion

Do you have any questions before we start?

Introductions and opening discussion

To begin, I understand you may know each other already but I want to give everyone the opportunity to briefly introduce themselves for my own benefit- roughly the geographic area your cover, the number of tenements

Thank you for those introductions. Were any of you directly or indirectly involved in the Tenement Working Group?

Initial reactions (10 mins)

Let me state the recommendation which Scottish Government are adopting to you, and ask for your reactions.

‘Statutory guidelines should set out the minimum payment each building needs put into a BRF every year. The guidelines should be based on the assessed repair risk for that type of building and extent of common responsibility. There should be a transparent points system.’

In general terms, do you welcome this Recommendation and its adoption by SG? – How so?

What are your hopes for this? (Prompts- for people living in Tenements, for condition of our built environment, for profession, for society, ‘supplying quality affordable homes to those in need’)

What are your concerns from a specialist standpoint?

Are you aware of any other provisions, regulations and processes that would be affected by this recommendation being enacted? (Prompts- dual regulation, extra processes, resource for Housing Associations, Registered Social Landlord requirements)

Repairs and Maintenance of Tenements (10 mins)

I am going to ask you a few context questions next about outstanding repairs and then regular maintenance for tenements. Please answer based on your experience of this type of property.

What are the main factors in determining outstanding repair needs for tenements? (Prompts- age, location, number of units, building height, mixed use, communal areas, materials, listing status, planning/ building control)

What are the main factors in determining regular maintenance needs for tenements? (Prompts- age, location, number of units, building height, mixed use, communal areas, materials, listing status, planning/ building control)

What are the main factors in determining outstanding repair costs for tenements? (Prompts- age, location, materials, ad-hoc/ planned, listing status, planning/ building control)

What are the main factors in determining regular maintenance costs for tenements? (Prompts- age, location, materials, ad-hoc/ planned, listing status, planning/ building control)

You could always provide us more detail in confidence separately to discussion group, but in general terms- do you/ how do you work out costs per unit to common maintenance and repair? (Prompts- historic, % of property value, % of building size, their own arrangements for apprenticeships and jobs in construction and maintenance)

Current Situation (10 mins)

Do you think that those who own tenements understand what their legal responsibilities are in terms of building fabric? – how so? (Prompts- Housing Associations like them, private owners- any differences)

Do you feel private owners are equipped to know the costs of addressing outstanding repairs and regular maintenance in tenements? -how come?

In your experience, what are reasons which prevent private owners paying into a shared pot? (Prompts: relevant reflections on Maintenance funds (cleaning, garden etc.), Factoring charges, Enforcement orders, factoring arrangements not in place, affordability)

if tenants refused to undertake maintenance, then what would they do if they had no choice to fix something if it had went past the point of no return?

Suggestions on Future Implementation- applying BRF to Tenements (20 mins)

What do you think would help owners understand their responsibility and the costs for maintaining tenements? (Prompts- Documentation such as Home Reports, awareness raising)

• Housing associations
• Private RSL landlords

How do you think BRF could be applied to Tenements across Scotland? Prompts- exceptions, phasing, incentives, local level considerations

*It has been suggested in the desk research that Registered Social Landlords should be exempt- will delve into their feelings and logic for exceptions if this is raised. How would that work given that the fund is an amount that ought to be spent on a building *

According to Tenement WG recommendation, ideally a BRF should be calculated on basis that property is in good condition. What should be done for buildings that have existing disrepair? (Prompts- fix first, add to later costs, set up BRF only once certain things in place)

How could exiting arrangements for repair you put in place match with any new legal requirement to contribute to a BRF? (Prompts- existing alignment, dovetail or create duplication or displacement?)

Are they additional aspects to consider for the services you provide in particular for:

• Supported accommodation
• Factoring services- on behalf of private owners
• Shared equity housing

Payments (20 mins)

How would you recommend determining level of payments owners should make into a BRF?

What would your reaction be to a flat fee/ minimum contribution mandated by in legislation?

What are your views on how a points system could determine minimum payment level per owner?

In terms of the building itself, do you think these aspects are important in determining payment levels?:

• age of the building;
• number of individual units;
• presence of communal facilities (lifts, large areas of landscaping, roads etc);
• building type
• mixed use
• height

In terms of the owners, do you think any of these aspects are important in determining payment levels?

• Affordability
• Location of property- SIMD
• Type of owner- owner occupier/ landlord/ Housing Association
• Value of property
• Length of ownership
• Existing arrangements- factoring, owners associations

*Housing association rents are typically low at around £70 per week, but a majority of tenants rely on Housing Benefit or, increasingly, Universal Credit housing support to pay these rents.*

Are there any other considerations you think have been missed?

*It has been suggested in the desk research that Registered Social Landlords should be exempt- will delve into their feelings and logic for exceptions if this is raised. How would that work given that the fund is an amount that ought to be spent on a building?*

What do you think is most important in determining payment levels?

Have you any ideas on how missing shares should be covered?

Have you any views on how the money should be treated? (Prompts- held, invested, central/local/ individual tenements?)

The WG recommend mandatory Owners Associations with legal status, do you think such a thing would help deal with money?

Have you any ideas on monitoring or enforcement? (Prompts- level, systems, pitfalls to avoid)

Conclusions and wrap-up

Thank you very much for the discussion, is there anything not already covered that you would like to mention?

As part of this research Diffley Partnership are also reviewing public and grey documentation. Following this session, please send us on anything (retracted of personal data) you see as relevant to this work.

Thank and close

Stakeholder Research: Factors

Set up (5 mins)

Introduce Diffley Partnership Team

Welcome to the Discussion Group–

• Explain the discussion will last an hour
• There will be plenty of time to get your views across and discuss issues between yourselves, something we encourage; my role is to keep the conversation flowing, ensuring we cover the broad areas we need to and ask any follow-up questions,

• Fully anonymous and confidential; The Diffley Partnership abide by the Market Research Society Code of Practice and the SRA Ethical Guidelines.
• Request permission to record discussion – with your permission I will record the discussion; this is just so we can go back and listen again after the discussion

Do you have any questions before we start?

Introductions and opening discussion (5 mins)

To begin, I understand you may know each other already but I want to give everyone the opportunity to briefly introduce themselves for my own benefit- roughly the geographic area your services cover, your size of tenement client portfolio please.

Thank you for those introductions. Were any of you directly or indirectly involved in the Tenement Working Group?

Initial reactions (15 mins)

Let me state the recommendation which Scottish Government are adopting to you, and ask for your reactions.

‘Statutory guidelines should set out the minimum payment each building needs put into a BRF every year. The guidelines should be based on the assessed repair risk for that type of building and extent of common responsibility. There should be a transparent points system.’

In general terms, do you welcome this Recommendation and its adoption by SG? – How so?

What are your hopes for this? (Prompts- for people living in Tenements, for condition of our built environment, for profession, for society)

What are your concerns from a specialist standpoint (putting aside any experience you have as a tenement owner)?

Are you aware of any other provisions, regulations and processes that would be affected by this recommendation being enacted? (Prompts- dual regulation, extra processes, resource for factors)

Repairs and Maintenance of Tenements (10 mins)

I am going to ask you a few context questions next about outstanding repairs and then regular maintenance for tenements.

What are the main factors in determining outstanding repair needs for tenements? (Prompts- age, location, number of units, building height, mixed use, communal areas, materials, listing status, planning/ building control)

What are the main factors in determining regular maintenance needs for tenements? (Prompts- age, location, number of units, building height, mixed use, communal areas, materials, listing status, planning/ building control)

What are the main factors in determining outstanding repair costs for tenements? (Prompts- age, location, materials, ad-hoc/ planned, listing status, planning/ building control)

What are the main factors in determining regular maintenance costs for tenements? (Prompts- age, location, materials, ad-hoc/ planned, listing status, planning/ building control)

You could always provide us more detail in confidence separately to discussion group, but in general terms- How are owners’ contributions to common maintenance and repair arrangements set up by factors calculated? (Prompts- historic, % of property value, % of building size)

Current Situation (10 mins)

Do you think that those who own tenements understand what their legal responsibilities are in terms of building fabric? – how so?

Do you feel owners are equipped to know the costs of addressing outstanding repairs in tenements? -how come?

Do you feel owners are equipped to know the costs of addressing regular maintenance for tenements? -how come?

What stops owners carrying out planned maintenance (rather than waiting until a repair needs to be done)?

In your experience, what are reasons which prevent owners paying into a shared pot? (Prompts- relevant reflections on Maintenance funds (cleaning, garden etc.), Factoring charges, Enforcement orders, factoring arrangements not in place)

Suggestions on Future Implementation- applying BRF to Tenements (20 mins)

What do you think would help owners understand their responsibility and the costs for maintaining tenements? (Prompts: Documentation such as Home Reports, awareness raising)

• Existing owners/ New owners?
• Owner occupiers/ Landlords?

How do you think BRF could be applied to Tenements across Scotland? (Prompts- exceptions, phasing, incentives, local level considerations)

According to Tenement WG recommendation, ideally a BRF should be calculated on basis that property is in good condition. What should be done for buildings that have existing disrepair? (Prompts- fix first, add to later costs, set up BRF only once certain things in place)

How could exiting contributions to factoring fees match with any new legal requirement to contribute to a BRF? (Prompts- existing alignment, dovetail or create duplication or displacement?)

Payments (20 mins)

How would you recommend determining level of payments owners should make into a BRF?

What would your reaction be to a flat fee/ minimum contribution mandated in legislation?

What are your views on how a points system could determine minimum payment level per owner?

In terms of the building itself, do you think these aspects are important in determining payment levels?:

• age of the building;
• number of individual units;
• presence of communal facilities (lifts, large areas of landscaping, roads etc);
• building type
• mixed use
• height

In terms of the owners, do you think any of these aspects are important in determining payment levels?

• Affordability
• Location of property- SIMD
• Type of owner- owner occupier/ landlord/ Housing Association
• Value of property
• Length of ownership
• Existing arrangements- factoring, owners associations

Are there any other considerations you think have been missed?

What do you think is most important in determining payment levels?

Have you any ideas on how missing shares should be covered?

Have you any views on how the money should be treated? (Prompts- held, invested, central/local/ individual tenements, any ways that correspond to arrangements through factoring?)

The WG recommend mandatory Owners Associations with legal status, do you think such a thing would help deal with money?

Have you any ideas on monitoring or enforcement? (Prompts- level, systems, pitfalls to avoid)

Conclusions and wrap-up (5 mins)

Thank you very much for the discussion, is there anything not already covered that you would like to mention?

As part of this research Diffley Partnership are also reviewing public and grey documentation. Following this session, please send us on anything (retracted of personal data) you see as relevant to this work.

Thank and close