Building an Economy to Serve People

Getting More PeopleMaking Homes

In Housing Co-ops

Who We Are

Social Landlord & Service Agent Own / Manage 3,500 homes

Our Job

Be a good landlord Help more people to live in co-op housing Champion co-operation

What Is Co-op Housing?

Homes

People own or rent

Collectively manage/make decisions

Under a formal structure housing co-op – own & live management co-op – manage & live mutual housing organisation/gateway Other community led housing models

Co-ops – What Exists?

Bigger than you might think!

1,000 in UK

200,000 homes

0.5m people

£530m turnover

£10bn assets

But still small Only 1% market

£10bn

£520m

200,000

1000

10

1%

Much Good News

Upsurge of Community Models

Community Land Trusts (CLT) Garden Cities Movement Student Housing Co-ops Wales - Pioneer Projects The “new mutuals” - Rochdale BH

& Design Solutions Wikihouse PreFab

Barriers to Overcome

Awareness - “ what’s a housing co-op ? ” Relevance - “ but that’s not for me “ Image - “ isn’t that just hippies “ Reputation - “ poor quality, badly managed”

PLUS

THE NORMAL ONES! Money Land Planning

Myth Busting

Good quality housing for everyone Rent or Sale – town or country – any price Run Efficiently Benefit of those who live in them

Co-operation helps to Make Good choices Save Money Community = Good neighbours Safer & healthier places to live

Not ‘one size fits all’

What Do We Need to Do?

Change Perceptions

Lead by example – work together

Unite around simple core messages

Engage public support & enthusiasm

Seek positive advantages for co-op and community housing in planning, tax and flexible funding

Good tools – training, money, business skills, land, building

WHAT’S STOPPING YOU?

Building and Economy to Serve People

Who will work harder than you to make sure you have a good home?

How many people do you know who are just like you?

QUESTIONS FOR YOU!

Growing Co-operative & Social Housing

Blase Lambert21st January 2016

The Confederation ofCo-operative Housing

• The representative body for co-operative and mutual housing in England & Wales since 1992

• Aims and objectives: Promote viable forms of co-operative,

mutual & community led housing Assist organisations to enhance governance

& deliver excellent services Provide networking opportunities

• Our member organisations range from 1 home to several thousand homes (c£2b of uncharged assets)

• Programme with 19 projects in Wales with Labour government to deliver 600 new co-operative homes

Commission on Co-operative & Mutual Housing

Redditch Co-operative Homes

Accord Housing Association

(Finance & Development)Development, Corporate &

Financial Services

AgreementsRedditch Co-operative Homes

(Management Services)7 year lease & Management Agreement

Neighbourhood Co-ops(Local Scheme Management)

• Partnership between Accord HA & Redditch Borough Council

• Financed & developed through Accord HA (which retains freehold)

• Long lease to intermediary (RCH)

• Shorter leases to 6 local management co-operatives

• Currently another 226 homes in the pipeline through Accord / BCHS

What about the Big Society?

• Grant free models

• Social housing free developments

• Home ownership is what everyone wants!

• The antidote?• Councils using

their assets and borrowing capacity to support new build

• Brixton Green

Further Advice & Guidance

Blase LambertChief OfficerCCH

07940 448014blase@cch.coopwww.cch.coop

About us

• Formed as a Secondary services co-op in 2006

• Founder members -Consortium of 38 small organisations ( 31 Housing co-ops)

• Take control of their own services on a co-operative basis

• Incremental Growth : we currently have 46 members

Primary Housing co-op members

• 2500 units : £250 Million assets• £10 million Cash / £7 Mill debt• Regulated by HCA – Long Track record• Most affordable rents / highest standards

& satisfaction levels• Community cohesion/ minimal anti social

behaviour

Competitive advantage : Co-operatives Co-operating

• Co-operative Capital : Cash holdings leverage with Banks

• Members Loan Fund• Assets: Bargaining power / economies of

scale with common Business costs – Insurance, audit , maintenance, staff, ICT

• Vat cost sharing group • Mutual tax status – mutual trading

Positive Growth Developments in the North

• Larger Social Landlords Divesting• Princes Park Housing Co-op• Langrove Community Housing Co-op• Unregulated by HCA: New Models : Granby 4 streets CLT : Housing People Building Communities : Sheffield Student Housing Co-ops : North Huyton Community futures

Innovations in Finance• Members loan Fund• Social Philanthropic Investor• Wider Co-op Sector Support - Phone Co-op• Sweat Equity to Fund deposit• Sale and Leaseback• Community Shares• Radical Routes

Need to Innovate Further• Wider collaborations in the sector• More Bargaining Power – Lower costs of Management

and Maintenance• Development Costs – not for profit• Dialogue with bigger social Landlords • Maximise use of co-operative capital• Appeal to wider investment • Best model for investment : 100 % Tenant Controlled ?

perception it’s a private and not social venture • Barrier to Social Investor confidence in model