Category Archives: Housing

Business, Housing

Quantum Advisory announces key partnership

Quantum Advisory, the leading independent financial services consultancy whose head office is situated in Cardiff, has announced a key partnership to share its pension and employee benefits expertise with the housing sector.

Quantum Advisory has become a commercial partner of Community Housing Cymru, the trade body for housing associations in Wales. The organisation represents 34 not-for-profit housing associations who provide almost 165,000 homes to 10% of the country’s population.

In addition to securing funding and developing policy frameworks to support its vision to make Wales a country where good housing is a basic right for all, Community Housing Cymru is committed to connecting members with each other, opportunities and industry experts.

As a commercial partner of Community Housing Cymru, Quantum Advisory will build upon their existing engagement with members by sharing valuable market and sector insights at dedicated sessions, exhibiting at the trade body’s conferences and identifying opportunities for tailored solutions.

Quantum’s specialist Housing Association service covers the Local Government Pension Scheme (LGPS), Social Housing Pension Scheme (SHPS), group defined contribution schemes and all other types of pension and employee benefit arrangements. The service includes full scheme reviews, annual pension strategy monitoring, assistance with pension issues surrounding corporate activity, employee financial awareness sessions, and flexible employee benefits and salary sacrifice options.

Stuart Price, partner and actuary at Quantum Advisory, said: “Quantum has enjoyed an excellent relationship with Community Housing Cymru and its members for a long time, so this partnership was a natural next step for us to continue our support for the housing sector in Wales.

“Many housing associations participate in either the LGPS or SHPS and our experience of working closely with these schemes means that we understand the advantages and challenges these arrangements bring to housing associations.”

Louise Price-David, head of member services and partnerships at Community Housing Cymru, said: “It is a pleasure to extend a warm welcome to Quantum Advisory as our newest commercial partner.

“Quantum Advisory is a leading independent financial services consultancy in the UK, specialising in pension and employee benefit services. Their expertise and tailored solutions are invaluable assets to our sector. We are excited to collaborate with Quantum Advisory to enhance financial wellbeing and drive positive outcomes for our members.”

 

Housing

A Turning Point: the impact of abolishing Multiple Dwellings Relief on Housing

Written By Dominic Stead, Property Director, My Future Living

Today, I am reflecting on the Chancellor’s surprise Spring budget decision to abolish multiple dwellings relief for Stamp Duty Land Tax – which applies when buyers make bulk house purchases.

From 1 June 2024 the relief which was originally introduced in 2011 to alleviate Stamp Duty Land Tax burdens when properties were purchased in bulk will no longer be applied.

The relief, which zero-rated bulk acquisitions, made purchases by investors of build to rent properties more affordable and it was instrumental in creating growth within the private rental market and providing crucial support to investors and developers to help them address the housing shortage.

As a registered property provider for retirees, I am concerned that abolishing this relief may give rise to some challenges and impact our sector’s growth and efficiency.

It also strikes me that it’s a move that seems completely incongruent with the government’s broader objective of increasing the number of affordable homes nationwide.

One major issue that has impeded our sector is the turnover of 16 housing ministers in the last 14 years. This lack of leadership continuity has hindered the successful implementation of strategies aimed at providing additional homes across the country.

Moving forward, we need a government that can provide a long-term vision for addressing the housing shortage effectively. We also need them to take a more holistic and integrated approach to housing policy and recognise housing as a fundamental component of our national infrastructure – something that is inextricably linked to people’s sense of self, health, and wellbeing.

Amidst these challenges, My Future Living remains committed to our mission of growing our portfolio of high-quality retirement properties.

The shortage of affordable rental properties across the country highlights the urgency of our work. We will continue to expand to ensure retirees have access to comfortable and secure living options they

need.While the changes to Stamp Duty Land Tax present challenges, they also reinforce the need for collaboration and innovation within the housing sector. It is clear the industry must work more closely with policymakers and stakeholders to shape housing policies that reflect the needs and aspirations of our communities and enable us to build a future where quality housing is accessible to all.

Housing

New Homes Week: National association of property buyers calls on chancellor to turbo-charge housebuilding

A leading property association has urged the Chancellor needs to put housebuilding at the centre of next week’s Budget.

Speaking in New Homes Week, the National Association Of Property Buyers, warned a chronic lack of affordable properties is still “plaguing every corner of the UK”.

Spokesman Jonathan Rolande said: “The current projections around house building are way under what the market actually needs to drag itself out of this supply crisis.

“The Government and Labour speak of 300,000 new homes a year. We need way more than this because there is still a chronic lack of good, affordable new housing across the UK.

“So much is at stake. We  risk preventing  an entire generation from ever owning the keys to their own home. That’s why it is vital that Jeremy Hunt puts house building at the centre of his Budget next week and provides a genuine roadmap to how we can turbocharge housebuilding.

“We also need to go further and faster on using more available land. Right now we are seeing delays, hold-ups and red tape plaguing construction plans in virtually every corner of the UK. This in turn is putting many of the big house building firms off when it comes to committing to projects this year and beyond. Those companies will be listening intently next week to what Mr Hunt plans to do.”

Mr Rolande said the situation is all the more pressing because activity remains high in the market.

“People currently do want to buy and sell,” he said. “Demand is there. But, all too often, people then step away from the market because of a total lack of availability in their area.”

For those who are lucky enough to secure a new property this week, Mr Rolande has outlined his checklist of things to remember.

He advises:

*Before you shake on a deal and decide whether to buy or not, there’s a lot to consider.  Consider what might prices do, will you be happy long-term in the home and the area, can you afford repayments as well as improvements or maintenance? I find lots of people worry about whether to buy or not, without considering the options if they don’t. The rental market is booming right now and rents are high. It’s also tricky to find somewhere nice to rent. This may make buying a more attractive option for some.

*Get things included. Very often a seller will be pleased to leave items behind especially if they are moving somewhere smaller. Buyers often get curtains, blinds and kitchen appliances but be cheeky and ask if they want to leave garden furniture or tools to save you buying them on Day One.

*If you’re buying a flat do your own research on the managing agent and freeholder. You’ll usually find online reviews to help build a picture of who you’ll be dealing with, and paying money to.

*Don’t over-confide in the estate agent. They work for the seller. Never say “we’ll offer X but will increase to Y if we have to.” You’ll be sure to end up paying Y or more!

*Think about safety – especially if you’ve rented before. Homeowners don’t have to do safety checks like landlords so you’re responsible when you move in. Have smoke alarms and CO alarms ready for your first day. Don’t use gas appliances if they look old or unsafe and get the electrics checked too.

Charity & CSR, Homelessness, Housing, Investment, Investment News, Social Housing

SASC invests in Cornerstone Place to fund properties for single people who are homeless or at risk of homelessness in Rochdale

Cornerstone Place, a social enterprise that provides property solutions to homeless support charities, has received a social investment loan of £884k from Social and Sustainable Capital (SASC) to build 14 properties for people who are homeless or at risk of becoming homeless in Rochdale, Greater Manchester.

The loan from SASC’s Community Investment Fund will pay for the Whitworth Road project, a new development in North Rochdale, which has 13 one-bedroom apartments and one two-bedroom apartment. The apartments will be built by Agile Property & Homes using Modern Methods of Construction that use renewable materials and can reduce energy costs and carbon emissions by up to 90% compared with traditional building methods.

The development also includes ancillary space to facilitate support staff on-site 24/7 from Stepping Stone Projects[i], a homelessness charity set up in partnership with Rochdale Council that already has an operational project with Cornerstone Place. Stepping Stone Projects will own the properties after completion, managing the units and delivering wrap-around support to the tenants.

Cornerstone Place was set up in 2019 with a mission to help end street homelessness in the UK by 2030, with a unique proposition that offers homelessness charities an alternative to renting or buying properties. They source the properties, arrange all the funding, manage the build and professional teams, arrange long-term finance and deliver the projects for the charities.

The aim is that the homelessness charity will end up owning the property without needing to dip into or tie up their valuable reserves, helping them to serve the people in their community over the long term.

David Ball, Co-Founder & Director at Cornerstone Place said: “There is a massive need for the Whitworth Road properties, with figures showing 283 people are in statutory temporary accommodation in Rochdale, 892 ‘open homelessness cases’ and a housing list nudging 8,000 applications. With SASC’s loan we will be able to fund the development for the benefit of the local community which will be managed by Stepping Stone Projects a trusted and impactful regional charity dedicated to supporting people.”

Mark Bickford, Chief Investment Officer at SASC said, “The management team at Cornerstone Place and the construction company are experienced and the project is well-planned, with Rochdale Borough Council strongly committed to the success of this project.

“The modular homes, coupled with the support from the charity, will provide a ‘stepping stone’ on the pathway to independence for care leavers, people who are homeless and those at risk of losing their homes. These homes will provide much needed accommodation for people in need who are not quite ready to live independently without support.”

SASC’s Community Investment Fund launched in 2014 and lends amounts of between £250,000 and £2 million to community based, locally led organisations which are providing essential services to improve the well-being of local residents.

For more information on Cornerstone Place visit: www.cornerstoneplace.co.uk

For more information on Stepping Stone Projects visit: www.stepping-stone.org.uk

For more information on SASC visit: www.socialandsustainable.com

[i] https://www.stepping-stone.org.uk/

Charity News, Housing

SASC invests £2m in North East charity Handcrafted to develop its supported accommodation services

Handcrafted, a charity that helps disadvantaged and socially isolated people in Durham, Gateshead and Chester-le-Street, has received a social investment loan of £2m from Social and Sustainable Capital (SASC) to expand its supported housing services.

The loan from SASC’s Social and Sustainable Housing fund (SASH) will enable Handcrafted to purchase 23 properties and house at least 26 people, expanding the charity’s existing supported accommodation services and moving their reliance away from rental to owned properties.

Handcrafted supports individuals with complex needs including mental health issues, homelessness, addiction and social isolation with shared housing and support, alongside skills training to empower people to turn their own lives around.

The charity was set up in 2011 to offer training in practical skills, but in 2014 it moved into supported housing, with the help of homelessness focused social enterprises, Green Pastures and Homeless Link.

Handcrafted has developed strong experience and expertise working with young people with complex needs and those coming out of prison, care or other secure settings. They are currently providing supported housing to 50 people and they also support over 500 people with skills and therapy workshops.

Dan Northover, Managing Director at Handcrafted said: “Handcrafted was born out of a desire to support and connect with isolated people, and those who had lost confidence in themselves. We see this loan from SASC as transformative, as it will enable us to own properties and have more control over the quality of the accommodation and how long people can stay. Having stable accommodation is critical to helping people break chaotic and destructive cycles, build their confidence, and inspire their hope for a brighter future.”

Ben Rick, Co-Founder and CEO of SASC said, “Handcrafted is a well-established organisation with strong local partnerships and some impressive achievements. It has a reputation for having better success particularly with young people and those that local commissioners struggle to place with other providers.

“Through training and creative activities, such as carpentry, cooking and other crafts, they help people build confidence, gain skills and work towards goals, which complements the supported housing services they offer.  The loan will enable Handcrafted to meet much-needed demand in the North East and transform even more lives.”

As of last September, SASH was fully committed, having allocated £64.5m of invested capital to charities across the UK. The successor fund, SASH II, is open and will provide a continuity of funding to frontline providers. The fund will support charitable organisations that deliver a combination of support and housing to move from renting existing housing stock to owning it. SASH II is targeting £125m.

For more information on Handcrafted visit: www.handcrafted.org.uk

For more information on SASC visit: www.socialandsustainable.com

Housing, News

Reality Check: How did 2022 compare to expectations for the year?

• Housing Hand looks back on rental trends for 2022 and ahead to 2023
• Shift to seamless move-in experiences continues to be a major focus
• Student market continues to feel turbulence triggered by Brexit and Covid

As we headed into 2022, UK rental guarantor service Housing Hand observed that the days of delivering just bricks and mortar accommodation were numbered. The firm pointed to the trend for more experiential living as one of the key elements that would define the rental market in 2022. So, has reality shaped up as projected?

James Maguire, Head of Sales and Business Development, Housing Hand, said:

“2022 has certainly seen a major push towards co-living and all of its associated benefits. Renters’ eyes have been opened to the convenience of single monthly rent/bills payments, speedy onboarding, on-site gyms and social spaces and more. Quality and convenience go hand-in-hand when it comes to co-living, so we fully expect it to continue growing in popularity during 2023 as well, though perhaps at a more moderate pace.”

The latest BPF figures reflect the continued growth of demand for Build to Rent homes during 2022. There were 76,829 completed Build to Rent homes in the UK as at Q3 2022. That’s an increase of more than 3,000 completed homes since Q3 2021. While that marks a slowing down in the rate of completions, there remains a pipeline of 17,450 Build to Rent homes under construction in London and 32,400 in regional cities around the UK.

Housing Hand also projected that there would be an increased emphasis on the speed of the tenant moving in journey during 2022. The company’s own pre-validation process has certainly reflected this, going from 48 hours to 48 seconds over the course of the year, thanks to an innovative new partnership with Canopy.

Graham Hayward, Chief Operating Officer, Housing Hand, said:

“We are delighted to be supporting renters to access properties faster, particularly given the dwindling number of landlords in the private rented sector and the increased competition that tenants are facing as a result.”

In terms of the year ahead, Housing Hand believes that the government needs to do more to support the rental sector, given its essential role as a core component in the UK’s housing mix. With rents rising by 12.1% during the year to December 2022, according to Hometrack, and with a further 4-5% rental inflation forecast for 2023, renters are battling an increasing lack of affordability. Tied to that is the fact that landlords are facing an increasingly unprofitable and unsustainable situation, in the face of coming EPC requirements.

Graham Hayward, Chief Operating Officer, Housing Hand, added:

“The UK rental sector is facing a difficult year ahead from all angles. It needs long-term thinking and strategic support if we are to avoid a steadily worsening situation for both renters and landlords. The government has an opportunity to make policy changes that will reverse the decline in landlord numbers but it will take swift and decisive action for that change to be felt in the near future.”

 

For more information, please visit https://www.housinghand.co.uk/

Housing, News, Property, Social Housing

Social and Sustainable Capital responds to ‘Exempt Accommodation’ report and urges government to act on recommendations with urgency

Written by Ben Rick, Managing Director, Social and Sustainable Capital (SASC)

Social and Sustainable Capital (SASC), welcomes the report by the Levelling Up, Housing and Communities Committee into exempt accommodation. We urge the government to act on the recommendations made in this report as a matter of urgency.

The type of supported housing known as Exempt Accommodation (EA) is a vital service for some of society’s most disadvantaged and vulnerable people. This makes the behaviour of some EA providers detailed in the report all the more horrific. The Committee’s accounts of substandard housing, non-existent support and exploitative behaviour are shocking but sadly not surprising to us: we have been raising concerns about standards in the sector for some time.

As the report points out, there are many good providers of exempt accommodation out there – and we are delighted to work with some of the best. Since 2017 we have approved loans worth almost £90 million to more than 25 high performing charities and social enterprises providing EA across the UK, mostly on a commissioned basis, so that they can acquire more homes and help more people.

We agree with the Committee’s view that only qualified care and support providers should be able to deliver support to vulnerable groups (paragraph 33).  Typically these are local charities that specialise in the needs of particular groups such as those fleeing domestic violence. While they have long and substantial track records, they are not necessarily Registered Providers. Over the last five years we have highlighted the vital work of these hidden champions: committed local support providers, who work closely with councils, the police, and providers of health services in their area. As the backbone of local EA provision these organisations need help to grow and support more people – and to counter the threat from rogue providers.

We also agree with the Committee that the lack of regulatory oversight or data in EA makes identifying best practice harder. But we are confident that it is possible to tell the good from the bad, and we believe we achieve this every day. As part of SASC’s due diligence process we conduct detailed reference interviews with local commissioning authorities (normally the Local Authority or the Care Commissioning Group). We seek to understand their views on the scale of the need for supported housing, the quality of housing and support currently being provided, and whether investment from us to the organisation in question would be well received.

We also welcome the Committee’s acknowledgement that better data and analysis (paragraphs 82-83; 107) is needed, as well as National Standards (paragraphs 54-56) and a National Oversight Committee (paragraph 60). SASC also support the view (paragraphs 57 and 87) that Local Authorities should be funded and empowered to be able to scrutinise local providers better; and that there should be a clearer route for high performing non-RP providers to be recognised by the RSH (paragraph 108).

We agree with the Committee that good providers should not fear greater scrutiny (paragraph 108). Good providers need to be identified and supported: rogue providers need to be identified and driven out. The findings of the LUHC Committee are an accurate reflection of the challenges the sector faces, and its report is extremely timely. We hope that the government agrees and acts on the recommendations now.

 

Charity & CSR, Finance and Banking, Housing, News

Welsh domestic abuse charity Thrive Women’s Aid receives £2.7m game changing social investment loan

Thrive Women’s Aid, a charity that has supported women and their children affected by domestic abuse in Neath Port Talbot for 42 years, has received a social investment loan of £2.7 million from Social and Sustainable Capital (SASC) to modernise and transform its accommodation and support services.

The loan from SASC’s Social and Sustainable Housing fund (SASH) will enable the charity to purchase homes for the first time, give them greater control over the quality of the accommodation, provide more stability for the families it supports, and have assets that will provide the organisation with greater financial security.

Funds will be used to purchase 20 properties in the Neath Port Talbot region, which will serve as safe move-on accommodation, where support services can also be delivered to help women and children rebuild their lives.

The charity’s accommodation will increase from 11 units, which are currently rented (six refuge units and five move-on units) to 31 units which will help them meet increased demand and better support victims of domestic abuse.

Neath Port Talbot has high levels of deprivation, poverty and disadvantage. Fourteen areas in the county borough are in the top 10% of the most deprived communities in Wales[i] and demand for the charity’s services increased during the pandemic, with a 42% increase in referrals into its adult services and remains high.

The Office for National Statistics[ii] shows that 5.7% of adults aged 16 to 59 years in England and Wales, experienced domestic abuse in the year ending March 2022. On that basis, it is likely there could be around 6,700 cases a year in the Neath Port Talbot area[iii] and this figure is likely to be grossly underestimated due to reluctance and barriers victims face when reporting domestic abuse to the police.

Lucy Reynolds CEO at Thrive Women’s Aid said, “One of our four strategic priorities over the next five years is to modernise, innovate and transform our accommodation support services for individuals and families fleeing domestic abuse. This includes increasing the number of properties available for those with varying needs and risk levels.

“Owning properties gives us more control and allows us to bring support services together under one roof in a holistic way. Like the rest of the UK, Neath Port Talbot has a housing crisis, and it can be difficult for women to access housing. We provide move-on accommodation with support to enable them to re-build their lives after experiencing domestic abuse and regain their independence in safe communities.”

Ben Rick, Co-Founder and CEO of SASC said, “We are pleased to be making our first investment from our SASH fund in a Welsh charity.  Thrive is a well-run organisation with a great vision and strong community links. This loan promises to be real game changer for them – putting them in control and enabling them to transform their accommodation and services.”

This investment makes Thrive Women’s Aid the 16th organisation to receive funding from SASH.

As of September 2022, SASH was fully committed, having allocated £64.5m of invested capital to charities across the UK. The successor fund, SASH II, launches this autumn, in order to provide a continuity of funding to frontline providers.

The fund will support charitable organisations that deliver a combination of support and housing move from renting existing housing stock to owning it. SASH II is open for fundraising and targeting £125m.

For more information on Thrive Women’s Aid visit: www.thrivewomensaid.org.uk/

For more information on SASC visit: www.socialandsustainable.com

[i] https://thrivewomensaid.org.uk/wp-content/uploads/Thrive-Strategic-Plan-2021-2026.pdf

[ii] https://blog.ons.gov.uk/2022/07/21/a-better-understanding-of-the-scale-of-domestic-abuse-during-the-pandemic/

[iii] https://thrivewomensaid.org.uk/wp-content/uploads/Thrive-Strategic-Plan-2021-2026.pdf

Finance and Banking, Housing, News

Chancellor’s tax cuts will widen the income gap at a time of national crisis, wars Housing Assoiaion Chief

The chief executive of Bradford-based Manningham Housing Association (MHA) has warned that the Chancellor’s mini-Budget will increase the gap between people struggling on the lowest incomes and those least in need of financial support.

Speaking in response to Kwasi Kwarteng’s announcements last week, Lee Bloomfield said: “The Chancellor’s decision to target his measures towards helping the better off will be deeply worrying for individuals and families on the bottom rungs of the income ladder, including a high proportion of housing association tenants.

“The 600,000 highest earners in the country will save an average of £10,000 a year through his abolition of the top rate of income tax.

“Meanwhile, he issued a threat to cut benefits for 120,000 people on Universal Credit.

“We are dealing with a cost of living crisis which is slashing household budgets every week.

“The Chancellor had the opportunity to make a positive difference to the lives of those suffering most from rising costs.

“Instead, he chose to give extra help to people who need it least.”

Finance News, Homes, Housing, News

Housing Secretary must protect the most vulnerable as energy prices double and inflation runs out of control, says CEO

The chief executive of Leeds-based housing association Unity Homes and Enterprise has appealed to new Housing Secretary Simon Clarke to be an advocate for extra financial assistance for those left most exposed by the hike in energy prices despite the measures announced by Prime Minister Liz Truss last week.

Cedric Boston said: “I welcome the support the Government has brought forward but the fact remains that average energy bills will have doubled in just 12 months.

“This will have a devastating impact on individuals and families on the lowest incomes including a considerable proportion of housing association tenants.

“Such a major hit on limited household budgets comes in the midst of a spiralling cost of living crisis with inflation seemingly out of control.

“I appeal to Simon Clarke, the new Housing Secretary, to be an advocate for the needs of the most vulnerable at the heart of the Government’s decision-making as we approach an incredibly difficult winter.

“This should include allowing those on housing benefit, who Ministers say they want to help, to retain the additional support received from the proposed social housing rent cap rather than the Treasury clawing it back to central funds.

“The benefit cap must also rise to enable households in receipt to meet inflationary rent increases.

“Further, there can be no excuse for annual benefits for individuals and families not to go up in line with inflation.

“Unity will always do everything we can to safeguard the wellbeing of local communities, but the Government must commit to supporting us and our tenants in the short, medium and long-term.”