This Officer Key Decision meeting saw the approval of a tender for Year 2 of the Stock Condition Surveys, which will inform the council's future investment requirements for its housing stock. The decision, delegated to the relevant officer, was made to ensure the council continues to meet its commitments to the Social Housing Regulator and to inform its Asset Management Strategy.

Tender for Year 2, Stock Condition Surveys

The Corporate Director of Inclusive Economy, Housing and Culture, Paul Kitson, approved the procurement of a contract for services to carry out Year 2 of the Stock Condition Surveys (SCS) at an estimated cost of £950,000. This will be achieved via a mini-competition using the Procurement Hub dynamic purchasing system¹.

The council is undertaking Stock Condition Surveys (SCS) for all of its Housing Revenue Account (HRA) housing stock to understand and invest in its stock. The surveys consider internal, external, and communal aspects of the stock, including Housing Health and Safety Rating System (HHSRS)² reviews across all 29 categories. The outcomes will provide the HRA Asset Management team with data to inform the 30-year investment plan for the council's housing stock.

The pilot and year 1 of the SCS have already commenced through separate commissions to Savills and the council's consultants, John Rowan and Partners. The proposed tender will assess whether these parties continue to provide value for money in the current market.

The tender will be based on bids against a target rate per survey, with the inclusion of all associated supporting services. These services will include digital systemisation of the surveys and returns in a format which can be uploaded to the current system, and future potential council systems. Management structure and quality assurance processes will be part of additional requirements whereby the bidders will need to show a track record of similar such commissions with structured delivery plans.

A Planned Procurement Notice was published on 11 April 2025, and the council received significant interest. The council aims for a fast turnaround of the tender, followed by relevant tender validation, review, and internal governance, with a view to awarding the contract by September 2025.

This project supports Priority 5 – Homes for Our Residents under Building a Fairer Newham, the council's Corporate Plan 2022-2026. It will contribute to improving the quality of existing council homes and estates and increase resident satisfaction.

Alternative options considered and rejected were:

• Arranging for the works to be undertaken in-house, as the council does not have the required specialist resources for this type of work.
• Doing nothing, as the surveys are essential to ensure the council's housing stock is maintained to a good standard of repair and residents' safety.

No leaseholder consultation under section 20 of the Landlord and Tenant Act 1985³ is necessary, as the surveys are primarily to be undertaken in respect of rented stock, and to the extent that they may include communal areas, the threshold for consultation is not reached. Previous communications have advised residents of these Healthy Homes surveys, and all residents involved will receive communications clarifying the requirement closer to the time of individual property review.

The budget for the capital costs of the stock condition survey is included in the Major Works project budget within the 2025-26 to 2027-28 Investment Stock Assets programme budget, which forms part of the 2025-26 to 2027-28 Housing Revenue Account (HRA) Capital Programme Budget approved by Cabinet in February 2025. The estimated capital costs of the stock condition survey will be funded from a combination of HRA Reserves and new HRA borrowing. Based on current interest rates, the borrowing proposed in this report would add an estimated £84,000 per annum to the council's future revenue budget, including provision to repay the borrowing.

The council has a general power of competence under section 1 of the Localism Act 2011⁴ to do anything an individual may generally do subject to any statutory limitations. The recommendation within this report is in keeping with this power. The estimated value of the proposed contract for services is above the threshold for the purposes of the Procurement Act 2023⁵. In consequence, any procurement exercise must be fully compliant with the requirements of the Act. As a local authority, the council qualifies as a contracting authority and member entitled to use the Procurement Hub DPS. A tender to be conducted by way of competition under a dynamic purchasing system represents a fully compliant procurement exercise.

In accordance with paragraph 20.4 of the council's Contract Standing Orders, use of a dynamic purchasing system is permitted subject to it representing best value to the council. In reaching a decision on best value, officers may have regard to both the rates and prices offered and balance these against the quality and convenience of use of a dynamic purchasing system. Where a dynamic purchasing system is selected, the delivery of social value in the borough must be evaluated under the tender. The requirements of positive equality duties of the Equalities Act 2010⁶ will form part of the terms of the contract; these terms will be provided as part of the tender documentation.