Mixed Communities

Richard Parker

PricewaterhouseCoopers LLP

Contents

• Findings from PwC Survey on Housing Policy

• Mixed Communities From the USA to the UK

• Where Next for Policy

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PwC Survey

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Key Survey Findings

• 70% agreed that the Government’s policies in the last five years have been effective, however 74% of those surveyed feel the ‘Decent Homes’ target will only be partially met or met in some areas

• 59% do not feel that the ‘Decent Homes’ standard will deliver sustainable

change.

• The survey revealed that 62% of respondents believe it is now time to change the focus of housing investment.

• When asked to identify future policy priorities- 88% stated that mixed and sustainable communities should be the priority. So how do we do it? Do we have the tools?

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Mixed Communities-from the USA to the UK

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Why Mixed Communities?

• Strong link between the condition of the housing market - price ,quality , tenure ,mobility- and the long term viability of places

• Approach Informed by Area ‘effects’ studies in the US - poor people living in a poor neighbourhood experience worst outcomes than someone in same situation living elsewhere ( HOPE VI)

• 3 key policy justifications:- reduce deprivation, improve delivery of key policy goals (education , health, worklessness) and create more sustainable communities

• No silver bullet but need ‘step change’ to succeed

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So what is HOPE VI ?

• $5bn dollar programme to address most severely distressed public housing in the US.

• 466 grants awarded to 166 cities

• 80,000 units to be demolished , 96,000 replacements, only 49,000 for public housing. Other for private sale , market rent or intermediate rent

• Aim to create mixed and sustainable communities

• Current budgets ($100m) 20% of that in 1990’s

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Why HOPE VI

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What did HOPE VI achieve?

• Catalyst for using innovative funding approaches to jump start wide scale redevelopment- and rooted in market principles

Success

Centennial Place Atlanta –adults in labour force up from 36% to 69%

In Louisvilles Park DuValle – crime dropped 82%

Manchester Pittsburgh –Median incomes rose 23%

Issues

Only 46% of residents return. Development takes time plus screening

Many do not qualify due to screening (by health and work)

What about the hard to house?

One strike and Out

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HOPE VI - delivery

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So to England………..

• New Deal for Communities seeks to apply some of the key principles from US - need to ‘adapt’ not ‘adopt’ US model.

• DCLG have 9 demonstration projects

• Focus is on 1% most deprived Super Output Areas

• No new resources but some transformational outcomes ( 7:1 leverage)

• Commercial guidance has been published by DCLG

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A6 Plymouth GroveThe challenge Central Manchester Estate of 1400 homes .

Little or no investment over 30 years .which aligned to narrow tenure base has led to dereliction , social exclusion , crime and deprivation.

The Solution

• 50% of social housing refurbished

• Remainder demolished, replaced with 600 homes for sale

• New commercial hub, community hall, key worker homes

• Developer underwrites house sales to fund the refurbishment of social housing.

Outputs 100% diversification of tenure 50% reduction in crime

6 yr waiting lists for social housing

First social housing PFI

pathfinder to reach

commercial close

Grove Village

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Where Next for Policy

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Where Next for Policy

• Good case for moving beyond Decent homes to something more transformational

• A need for new models – of Ownership and Delivery ( beyond Transfer)

.

• Need to build trust and leadership at local level

• No shortage of private capital .Private Sector can secure finance and shoulder commercial risk .Public Sector needs to take lead . Collaboration is key.

• Models are in place , where are the projects?