Floods to push up the price of repairs contracts

Landlords facing inflated repair bills as a result of recent storms could also see the cost of future maintenance contracts increase as contractors seek to mitigate risk.

The prediction comes as providers count the cost of nationwide flood damage and maintenance teams scramble to meet the increased demand for repairs. 

Rob Peck, head of services at national organisation Procurement for Housing, warned the cost of ‘price per home’ repairs contracts could rise in future as firms factor in a higher degree of risk due to the increased likelihood of more flooding with climate changes.

He added some housing associations may take different approaches to repairs contracts for homes in flood plains and those outside.

Alan Long, executive director of Mears, which has repairs contracts with 90 social landlords, said it was ‘entirely possible’ contract costs could rise in future, but it would depend on which elements are included in price per property deals. Not all repairs are included in the structure.

For example, Mears has recently dealt with roofs coming off homes, not covered under the landlord’s price per property contract.

Mike Edwards, managing director of Keepmoat Property Services, said that while this year’s storms would not affect the way it negotiates contracts, contractors might wait to ‘explore other appropriate cost models’ if the UK had a trend of extreme weather events over a number of years.

Keepmoat Property Services carried out nearly double the number of responsive repairs for Circle Housing Group in south east England in January, with numbers rising from 3,910 in December to 7,426. It has drafted in ‘extra resources’ to work alongside staff on repairs.

Mears has also recruited extra staff on some contracts to cope with the extra workload. For example, in south west England, demand for repairs in January was up 60 per cent on what the firm would normally expect at that time of year.

Mr Long admitted adverse weather was ‘stretching’ resources.

Some landlords are meeting the increased delivery costs. For instance, Mears received 26 per cent more orders for repairs from Moat housing association residents over a six-week period in January and February than it did in the same period last year.

This has pushed up the 20,000-home association’s costs because it has a ‘schedule of rates’ repairs contract and pays on a per job basis.

The 21,000-home association Radian is among landlords taking measures to protect their properties, commissioning a pumping tanker to clear water from streets in Datchet in Berkshire.