SOCIAL HOUSING THE WAY FORWARD "Social Housing - The UK experience" John Tipping Programme Director Capita HELM Corporation Limited 2011 Content UK Housing Overview Current Issues Questions and discussion Capita HELM Corporation Limited 2011 Social Housing Housing for rent or sale at less than market price Aimed at people who cannot afford market price Mainly council or HA owned Case of Ghana ownership could be same for Middle, Low or No income level groups SOCIAL HOUSING THE WAY FORWARD The UK housing scene Origins almshouses in 11 th C Victorian era thru to WW1 After WW2 growth of Council housing Growth of owner-occupation Focus on 1980s onwards Decline of Council housing Growth of HAs - after 1974 Housing Act SOCIAL HOUSING THE WAY FORWARD Housing Associations Now termed RPs Registered Providers Early pioneers Victorian philanthropists Growth after 1974 Act - grants Thatcher era main providers Govt policy to cut back Councils RTB and impact more than 1.5m sold Access to private investment SOCIAL HOUSING THE WAY FORWARD Housing tenure in UK Private renting Council Home-ownership SOCIAL HOUSING THE WAY FORWARD Compare African experience Tenures and trends? Govt housing policy and subsidy? Compare and contrast SOCIAL HOUSING THE WAY FORWARD Recent developments Recent policy since 1980s tripod; Stock transfer (LSVT) Arms Length Management Organisations (ALMOs) Private Finance Initiative (PFI) Recession and growth of private renting SOCIAL HOUSING THE WAY FORWARD Stock Transfer LSVT Large Scale Voluntary Transfer Councils transfer stock to new or existing HA private finance. Most now transferred so current programme very small. SOCIAL HOUSING THE WAY FORWARD ALMOs Arms Length Management Organisation Stock remains in Council ownership New Board of governance Depends on tenant ballot Obtain Treasury funding to meet DHS What happens after DHS programme? SOCIAL HOUSING THE WAY FORWARD PFI Private Finance Initiative Treasury credits and private investment Transfer of risk New housing or refurbishment DHS City funds attracted by income stream Underwritten by Housing Benefit (HB) Recession - no more PFI SOCIAL HOUSING THE WAY FORWARD Current issues DHS get props up to standard Govt deficit and public sector cuts HA prog cut no more grant Trend to market rents HB bill 20 billion being cut back Affordability SOCIAL HOUSING THE WAY FORWARD Photos of an estate before regeneration SOCIAL HOUSING THE WAY FORWARD Rental and Stair Casing Onset relationship when signing up Managed rental to build relationship Gradual buying/selling Buy further shares Less rent Can increase over time Through Share ownership product SOCIAL HOUSING THE WAY FORWARD Benefits Build relationship as support mechanism onto the housing market More you own, less rent you pay More you, own more profit Own 100% sell on open market Supports and ensures good quality of life SOCIAL HOUSING THE WAY FORWARD Restrictions Not allowed if in arrears Income Lease restrictions SOCIAL HOUSING THE WAY FORWARD Costs Valuation fees Legal fees Stamp duty Mortgage fees Rent and service charge arrears SOCIAL HOUSING THE WAY FORWARD Coalition agenda Still investing 13bill over 4 years in sector New housing without grant Market rents to fund new homes Fixed term tenancies Sliding rents? HB cuts The Big Society? SOCIAL HOUSING THE WAY FORWARD RP Businesses What do they entail? Income collection arrears and poverty Tenancy management ASB anti-social behaviour management Customer Services Repairs & maintenance Leasehold management SOCIAL HOUSING THE WAY FORWARD RP Businesses (2) Not just housing bricks & mortar Building communities Regeneration Social investment in poorer estates Culture change More stable, contented communities = less cost, more efficient SOCIAL HOUSING THE WAY FORWARD Refurbishment / Maintenance & Lifecycle Kitchens Bathrooms Heating / Plumbing Windows / Doors Building Energy req. Community Management Rent Collection Grounds & Park Maintenance Neighbourhood safety Tenant Liaison Helpdesk Call Centre Regeneration & Development Master Planning Added Value (Schools, Police etc) Social Housing Lettings & Private Development SOCIAL HOUSING THE WAY FORWARD ICT Systems SOCIAL HOUSING THE WAY FORWARD What is Africa experience? Any trends here we can compare? Any lessons learned we can utilise? What are key drivers in Africa? Jobs, crime, lack of supply, mixed communities Others? SOCIAL HOUSING THE WAY FORWARD Conclusions Management of communities Strong client side, effective service providers Customer focus Efficiencies, people, process and technology