diminishing partnership housing by: ex cllr bill powell bill@vts16.fastmail.net housing portfolio...

Diminishing Partnership Housing by: ex Cllr Bill Powell

bill@vts16.fastmail.net www.fairshares.plus.com/fair-housing

Housing Portfolio (2005 to 2007)

North Warwickshire Borough Council.

‘Free Land’ for Housing?

R = Social Rent (subsidised)

Discounts should be ‘in perpetuity’??

M = Open Market (mortgage)

M M MR RM

Affordability: Current Menuat 30% of Income

House£100,000

Income p.a. Required

AffordabilityRelative %

£ Weekly payment

£ Weekly including

Maintenance

Mortgage28 year £ 23,600 Reference £ 136 £ 164

‘Shared Ownership’ £ 16,500 70 £ 95 £ 123

Open Market Rent £ 16,500 70 £ 95 £ 95

RSL Rent £ 11,600 50 £ 67 £ 67

NWBC Rent £ 9,000 38 £ 52 £ 52

Affordability: Land Trust Menuat 30% of Income

House£100,000

Income p.a. Required

AffordabilityRelative %

£ Weekly payment

£ Weekly including

Maintenance

Mortgage28 year £ 23,600 Reference £ 136 £ 164

Co-Rent & Buy 28 yr £ 18,600 80 £ 107 £ 135

Co-Rent £ 12,200 52 £ 70 £ 70

Social Co-Rent £ 9,200 40 £ 53 £ 53

UK Housing in CRISIS

• Elderly living longerDivorceLate marriage

• Prices up 38% in one year• Low / Variable interest rates• Fewest built since WW2 (1945)• First time buyers can’t afford

NEED = 100,000 more homes p.a.?

Snapshot of ‘HAVE’s vs. ‘HAVE NOT’s

18 25 45 5535 65AGE

Pension

IncomeSupport

Rental

Mortgage

Engineer PhD

NursePension

£

No Hope

LOW INCOMENursesFiremenTeachers

IRREGULAR INCOMEWaitersFruit PickersMusicians

RENT POVERTY

The ‘Missing Middle’

Purchase by Mortgage

0 5 15 25YEARS

£ x 1000's

300

200

100

£ per m onth

00

660

Ho

use

Pri

ce

Mr Jonesforced sale

Equity Mr

Sm

ith

'sE

qu

ity

Loan

Pay

men

ts

Winners

Small Mortgage

BIG Mortgage

FREE Housing

BORROW

World Cruise!

Losers

WAGE LOSSIll HealthJob Loss

PARENTHOOD

DIVORCE

INCREASE %interest rate

HOME

REPOSSESSED

£

££

£ £

365Units

1 UnitBought

RentRent

Investor

Partnership – Year 1

£

££

1 UnitBought

Rent

365Units

Rent

Investor

Partnership – Year 27

£ £

Mrs JONES

‘Career Break’

Parent: for 5 Years

Miss JONES

Student Nurse

In training: RENTS

Trained: BUYS 8 units p.a.

Mr & Mrs JONES

Retire with 365 units.

SELL: 16 units p.a.

Flexibility

Purchase in Partnership

0 7 21 28YEARS

Rent & Buy

£ X 1000s

300

200

100

£per m onth

1000

660

BankEquity

Pay

men

ts

Hou

seP

rice

14

Rent only

Equity Equity

Inve

sto

r

So

cial

Lan

dlo

rd

Occ

up

ier

Social Landlord

Social Units

Rent Free

‘Never’ Sold

+Maintenance Charge

‘Affordable’ Rent = £ 231 per month

Income Required = £9,263 p.a.

Social Housing in Partnership

Free Land??

Savers & Occupiers in Partnership

Local Housing Partnership LLP

Community LandTrust

Property Investment Fund Ltd

Shares

Depos

its SA

VE

RS

OC

CU

PIE

RS

Maintenanc e

Other LHPs

Mutual HousingCo-op

Key Elements Buy & Sell Units

Indexed Values

Financial Partner

Mortgage not required

Low Deposit

Co-Ownership

AND

Community Land Trust

Single Tenure

Staircase UP & DOWN

Shared risk & reward

Equity NOT Loan

no Credit Hurdle

Start out Renting

Shared Commitment

Holds Community Interest

for Rent, Buy, and Sell.

3% Inflation options

3% Inflation options

3% p.a. Deflation

3% p.a. Deflation

3% p.a. with Social Share

3% p.a. with Social Share

Who's who?

Pat Conaty & Rosemary Foggitt (Common Futures)David Rodgers (Co-operative Development Assn)

Bob Paterson (Salford Uni + govt. pilots)Toby Lloyd (Researcher)

Carl Taylor (Redditch Homes)Chris Cook (Limited Liability Partnerships)

Adrian Moran (Housing Corporation)Jock Coates (Oxfordshire CLT)

David Murray (Wolverhampton CLT)Charles Barlow (Warks Rural Community Council)

David Seviour (ex Leicester Housing Assn)Tarek El Diwani (Ansar Finance)