What sorts of problems are coming when the people fail to meet get results in tax depreciation schedule?
BRE also investigated whether the impact on costs of social deprivation, low demand, exposure to wind-driven rain, economies of scale in building contracts, or the new congestion charge in London could or should be built into the maintenance allowance model. In some cases this was because no consistent data was available – for instance, there is no robust data about the numbers of different languages spoken in different authority areas, or about the range of different building contract arrangements authorities have entered into.
In other cases, the impacts were already largely accounted for elsewhere in the model – for instance, the costs associated with low demand will be accounted for largely by the voids and relet factor together with the crime factor. For instance, it was found that maintenance costs increase only very minimally where tenants are at home all day, or where properties are exposed to wind-driven rain.
BRE could find no alternative information about dispersion of the local authority owned dwelling stock or travel times. Instead, BRE examined whether a minimum fixed unit management cost per dwelling could be derived which would take account of the fact that no matter how small their dwelling stock, authorities still have to pay for premises, IT systems, and other support.
These fixed costs will lead to smaller authorities having proportionately higher management costs per property. BRE approached this issue in several different ways to try to reach a consistent solution, including regression analysis of actual spending by social landlords, rental property depreciation ato and building up a basic model of staff and overheads for housing management in a small authority to see what this implied for costs.