System for online bids ‘a nightmare’

The Housing Quality Network’s analysis of the quango’s first online Approved Development Programme bidding round concludes: “The corporation still needs to improve the online bidding system if it is to avoid nervous breakdowns across England next year.”

Changing one aspect of a complicated process can cause problems, but the corporation changed nearly every element of bidding, it explained.

Bidding through the Internet had proved difficult. RSLs consulted by the network called the process “a nightmare” that took “three times longer than last year”.

Housing Today has learned at least one housing association had to draft staff in on shifts to do the work, as it was “impossible” to get online during normal working hours.

New valuations under rent restructuring were “more of an art than a science” that produced inconsistencies, and the reform’s changes to rent levels could render schemes in low value areas unviable, HQN said.

And it added that while the headline grant rate had increased, associations were not getting the outcomes they hoped for. Two associations had expected it to generate a new local rate of 60-63 per cent, but rates had dropped to around 50 per cent.

HQN conceded that while results seemed unusual, “they may be logical outcomes of the quite radical changes in the capital investment regime”.

But despite the difficulties ADP bidding exceeded expectations, topping £4bn, with 8,697 bids by 498 RSLs hoping for a share of the £921m on offer.

A corporation spokesman acknowledged the frustrations of the sector: “We know that some RSLs had problems accessing the system and we would like to thank you all for your forbearance.”

Meanwhile, some RSLs may be able to apply to the quango for a refund of interest incorrectly charged when grant was recovered.

Checks revealed that some interest charged when grant was recovered since 1 April 1997 may need refunding. The corporation believes only a small number of RSLs are affected and has identified £34,000 so far.