Keeping control ofour lives

Mutual Retirement HousingFor Older people

Glyn Thomas

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CDS Co-operatives

CDS Co-operatives is the largest secondary coop in the

UK. It manages 3,491 social housing Homes in London

and the South East. 2230 are owned by 48 fully mutual independent

housing co-ops. Most of these were originally built by CDS

The remaining 803 units are occupied by CDS’s own tenants which are managed as if it was a housing association.

We also manage 448 Shared Ownership & Right to Buy properties.

As funds become available CDS currently buildsnew estates which will be transferred to new housing co-ops when the residents are ready andwish to transfer. CDS Co-ops actively promotesco-operative housing solutions by publicising the advantages of mutual ownership.

Harold Campbell Court -Dartford

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CDS Co-operatives

Social Housing for Older People

PerriveiwPerriview Housing Co-op consists of 24

one bedroom two person flats. Residents

are elderly single people and couples.

Built in 1987 it is a fully mutual independent

housing co-op built in 1987. All the tenants

have contractual tenancies. London Borough

of Bexley has 50% nomination rights. CDS

has been appointed as the managing agentfor the co-op.

Perriview Housing Co-op Crayford

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CDS Co-operatives

“Keeping control of our lives –Mutual Retirement Housing for Older People"

The pamphlet proposes that new forms of mutual retirement housing

should be set up to give older the people alternative choices to that

provided by private sector builders like McCarthy & Stone, Pegasus etc.

Two mutual models are proposed;- A modified form of commonhold tenure. A modified form of mutual home ownership.

The pamphlet also contains suggestions about the role of government and

some legislative changes that may be necessary to promote the mutual models.

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Mutual alternatives to Owner Occupation

Mutual organisations are owned and run by their members. There are no external shareholders.

Mutuals are about self-help, democracy, social responsibility and caring for one another.

Mutuals In the UK have 23 million members and assets exceeding £476 billions.

Mutual sector includes very large organisations like retail co-ops, building societies, mutual insurers and friendly societies as well as small organisations like allotment societies, credit unions and working men’s clubs.

Mutual Retirement Housing provides suitable housing which is owned and managed by older people themselves.

What is mutuality?

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Our Ageing Society

Britain has an ageing population. Better health facilities, housing and diet mean that most of us live longer.

The number of pensioners already exceeds the number of young people under 18 yrs.

The number of people over 75 yrs is likely to double. Older households where the

main householder is over 65 yrs will make up half the household growth by 2029.

Another factor is the ‘babyboomers’ ie people born between 1948 and 1960. The first babyboomers have already passed retirement age and those born in 1960 will reach retirement around 2020. This means that the proportion of older people is likely to grow even more.

Britain is growing older

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Our Ageing Society

Most older people are owner-occupiers. 73% in urban areas – 81% in rural areas.

Most pensioner owner-occupiers are not rich. But they’re not poor either. According to Age UK only 19.1% of pensioners are below the poverty line. But many of these are desperately poor.

Many older owner-occupiers live in non-decent housing. In England about 40% of vulnerable households are owner-occupiers. This proportion may well be higher in Wales.

Making the necessary improvements is very difficult because they don’t have the resources but as many as 60% may have £120 k or more equity in their homes. They are ‘asset rich and income poor’.

Ownership and assets

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Our Ageing Society

Most people value their independence highly.

Most people want to live in their own homes. That doesn’t necessarily mean they want to stay in their current homes.

Many will only move home when it becomes impossible for them stay for medical reasons.

Others will move to what they regard as more suitable homes at the seaside or in the country.

These can bring problems too. What is suitable for a ‘young old ‘couple in their fifties may not be suitable later.

Staying put

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Mutual alternatives to Owner Occupation

As we get older our housing needs change. Our homes are no longer fit for purpose i.e. too many stairs, expensive to heat, are up a steep hill or far from the shops.

In seaside or rural areas health and social services are often severely overstretched.

Loneliness and lack of socialization can be a big problem for people living on their own.

Dealing with builders, plumbers and the utility companies become an intolerable burden.

Owner-occupation and its problems for the elderly

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Mutual alternatives to Owner Occupation

Mutual Retirement Housing removes these worries and provides theresidents with a better quality of life.

Co-operative management ensures that everyone has an equal say in how the flats are managed. Service charges can be kept as low as possible.

Everyone has their own front door key. Residents don’t have to join in community events if they don’t want to.

Being involved in the self management of the schemes often bolsters self confidence and reduces dependency.

There’s always someone about if you need help or are feeling lonely.

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Location and design of buildings

Mutual Retirement Housing should be built where older people want tolive.

Older people want to live in safe, quiet neighbourhoods.

Small estates which are mixed in with general housing are preferable to retirement villages.

Retirement housing should not be a ghetto but part of the wider community.

Schemes should be located near to public transport links and local shopping facilities and other amenities such as parks and open spaces.

Good design is essential.

Location

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Location and design of buildings

The housing should be built to Lifetime Homes in Lifetime Communities standards.

It should be designed with people growing older in mind. Step free access and lifts should be the norm.

There should be two bedrooms with living rooms big enough to accommodate existing furniture. Ample storage should be supplied.

Double glazing and high quality thermal isolation should be provided. The buildings should have a very low carbon footprint.

Showers, walk-in baths and downstairs toilets should be available on request.Common facilities like a launderette, common room with kitchen should be provided.

Good design

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How MRH schemes would work

Two models are proposed A modified form of commonhold A modified form of mutual home ownership

With Commonhold everyone owns their own flat but jointly own the common parts and the land. They form a Commonhold Association which co-operatively manages theproperty.

With Mutual Home Ownership, the retirement housing is built on land owned by aCommunity Land Trust. All residents are members of the mutual home ownership societywhich is co-operatively managed. MHO is suitable for people who do not have the assetsto purchase their homes outright.

Both models enable residents to fully protect the value of their assets which they can leave to their children.

Commonhold and Mutual Home Ownership

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Finance

Both models rely on two sources of finance;-

Capital provided by the residents themselves from the sale of their existing homes.

Loan capital obtained from commercial lenders.

Both Mutual Retirement Housing models need a buoyant housing market and the availability of loan capital.

However housing remains a tangible asset which could be used as a security for future borrowing. Another source of finance could be City institutions like pension fund seeking long term returns.

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Benefit to the general public

Mutual retirement housing would increase the nation’s housing stock at low or zero cost to the public purse.

. It would free-up of much needed family sized homes as ‘empty nesters’ downsize their

accommodation to smaller homes.

By addressing the issues of loneliness and lack of socialization it could help to reduce the incidence of illnesses like Depression and mild Dementia.

. It could help to keep people healthier longer and promote independent living. Dependency

on Social Services and the National Health Service would be reduced.

It should increase older peoples’ feelings of general well being, self confidence and happiness.

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Examples of Mutual Retirement Schemes overseas

Scandinavia, the Netherlands and GermanyThe co-housing model is often used. This is similar to mutual home ownership but it usually has community-building elements built in.

United States

In the United States there are condominiums in places like Florida which many people buy for their retirement . Many condominiums are organised as mutual companies owned by residents.

Malmo Sweden HCA

Groningen Holland HCA

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Mutual Housing in a Welsh context

Mutual Housing is not new to Wales:

Much of the housing in the Rhondda Valley was built by terminating co-operative building societies.

Before and immediately after the First World War there were several Garden City projects in Wales. These were built on co-operative principles.

Today Community Housing Mutuals have been set up in many local authority areas throughout Wales as a result of Large Scale Voluntary Stock Transfers.

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Mutual housing in Wales in the past

19th century terminating co-operative housing societies in the Rhondda and other Valleys

About 40% of the housing in the Rhondda Valley was built by terminating housing co-ops. Groups of people would join together to build a number of houses either by self build or by hiring a local builder. When houses were complete individual members would move in. This was decided by ballot. When all the houses were complete all the members would be given the deeds of their building. The co-op was then wound up.

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Mutual housing in Wales in the past

20th century Garden City Movement

In the early part of the 20th century the Garden City Movement founded by Ebenezer Howard was very influential in Wales. Co-partnership schemes were promoted by the new Welsh Town and Country Planning Association led by Lord Davies of Llandinam. Garden suburbs were built at Rhiwbina, Gorseinon, Wrexham and several other places. The Wrexham Co-partnership scheme was founded by a miners’ co-op.

RhiwbinaGarden VillageRhiwbina Garden Village

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Mutual housing in Wales today

21st Century Community Housing Mutuals

In recent years the Welsh Assembly Government has encouraged the setting up of several Community Housing Mutual schemes. Todate all of these have a been a result of stock transfer from local councils.

CMH schemes exist in Rhondda Cynon Taff, Torfaen, Newport , Ceredigion and in several other local authorities. There have been YES ballots in Neath Port Talbot , Blaenau Gwent , Merthyr Tydfil and more are expected in the near future.

Community Housing Mutual Group

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Promoting Mutual Retirement Schemes in Wales

What the Welsh Assembly Government could do today

The WAG could set up a unit to promote Mutual Retirement Housing which would produce information on legal structures, model rules and procedures etc ---

It could make available surplus land to be used for Mutual Retirement Housing schemes.

It could provide pump-priming funds to promote small scale pilot schemes.

It could lobby the Westminster Government to liberalise leasehold legislation to make commonhold easier to implement.

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CDS Perriview Co-op- Bexley

www.cds.coop