Guestblog: Savills – Helping housing providers build better businesses

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Change in the social and affordable housing sector is constant. The last two years have put paid to any notion otherwise.

From the rent cut to the Housing and Planning Act 2016, from the reclassification decision by the Office of National Statistics to the deregulation of housing associations, and from two general elections with the Brexit vote inbetween, change has been constant. Then came the tragic events at Grenfell Tower, the repercussions of which are only beginning to become clear in terms of fire safety and asset investment. Housing professionals might be forgiven for feeling a little dizzy at the pace and monumental nature of all this change.

Yet it is worth considering that, as change is constant, the need to assess and reassess our business plans must be too. A finely crafted plan from 2015 may have positioned the business well and have been great at the time but it was two years ago and is now in need of being updated.

So how to be smart about this? How to ensure you and your colleagues aren’t missing opportunities, or running in circles?

A useful way of approaching this is thinking in terms of business efficiency.

At the headline level, this does mean picking up the mantra from the housing regulator and the government of ‘doing more with less’ but it is not just about the numbers.

In a dedicated Business Efficiency seminar Savills is holding with the NHC in Castleford on 25th September, we will explore the opportunities for housing providers to build more efficient businesses.

Key topics we will cover include:

  • The economic and policy context.
  • Effective asset management.
  • Treasury management and funding options.
  • Joint ventures and partnerships.

The aim of the event is help housing providers generate greater business capacity. How you use this capacity is up to you. It could help provide more affordable homes. It could support diversification into new areas of business to better deliver your social aims. It could give breathing room and build resilience to prepare for continued rent cuts to 2020.

Forward-thinking housing providers have been considering these issues for some time – and they continue to do so. The NHC event will hear from some of these organisations and their experiences. Savills will also be able to provide an overview of the sector based on work we have done supporting housing providers in recent years.

The seminar promises to be a fascinating day and one that I hope as many housing colleagues as possible are able to attend to share their views and ideas. I look forward to seeing you there.

Helen Collins is Head of Savills Housing Consultancy

 

Visit the events page for more information on ‘Business Efficiency Seminar – unlock your potential’ at WDH in Castleford on 25th September.

Preparing for the General Data Protection Regulation in Social Housing

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The General Data Protection Regulation (GDPR) will change the way tenant data is dealt with. From 25th May 2018, all organisations will need to ensure they comply with the new data protection legislation. At this stage the social housing sector needs to be aware of the changes and should start reviewing documentation, and whether processes will comply with the new requirements.

One new requirement is that of “accountability” – whereby organisations will need to show the way in which they are complying with data protection principles.

Requirements will change on key consent principles in the GDPR which will include:

  • Building customer trust and engagement.
  • Making sure that the consents you ask individuals for match your consent practices.
  • Offering individuals “genuine choice and control”.
  • Making statements of consent very clear and specific.
  • Being “granular” in the consent you’re asking for – a “blanket” consent under a generic statement isn’t good enough.
  • Naming the third parties who will rely on the consent.
  • Allowing people to withdraw their consent.
  • Keeping consent practices under review.

Emphasis of the principles is clear enough – manage personal information responsibility, make clear requests for what you require and offer people a genuine choice over whether to actually give their consent. A further aim of the GDPR is to prompt a cultural shift in the way that consent to sharing information is given. Consent should be separate from main terms and conditions, and it should require “clear affirmative action” from the individual giving it.

The Return of Customer Profiling

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Customer profiling has climbed housing providers’ list of priorities again recently after an apparent lull. More than ever, finances are tight in our sector and providers must be sure that resources are targeted where they will make the greatest impact. Painting a detailed picture of customers can help do that. From a purely commercial perspective, one of the most important parts of any business is to understand who your customers are. Every time you scan your loyalty card at the supermarket, the store is collecting information about you and what you like to buy. A twist on this ‘getting to know you’ approach can be put to good use in housing services.

The information gleaned from profiling a tenant base can be extremely valuable, not only in terms of where to focus resources and targeting support for customers in need, but in many other commercially beneficial ways. One of the findings from the soon-to-be-published fourth NHC Universal Credit Research report is that over two-thirds of respondents have or are planning to carry out a customer profiling exercise of their tenant base to determine those at risk of falling into arrears or of having difficulty paying their rent. This will help those organisation to pinpoint where claimant support should be targeted and thereby maximise rental income.

But how do you go about profiling your customers? There are valuable sources of guidance for carrying out profiling exercises but a single approach will not meet all requirements of every organisation. The desired outcomes of the project should determine how the organisation goes about collecting the intelligence required. Housing organisations’ resources are finite and there may already be valuable information on your systems perhaps from tenancy sign-up about household composition or disability, or from information collected since on vulnerable people. This may be all you need.

Some organisations embark on large-scale studies of their tenant base, commissioning external consultants to collect wide-ranging information to pinpoint certain tenant types and segment them based on demographic, behavioural or value-based characteristics.

There are many considerations when embarking on a customer profiling exercise and NHC will be holding a free member roundtable in York on Tuesday, 14th November where these considerations will be addressed using real-life examples. For more information and to book onto the event click here.

NEA’s ‘Improving Energy Efficiency In Communities’ Project

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In 2017-2018 National Energy Action will build upon its partnership with EDF Energy to deliver another year of its Improving Energy Efficiency In Communities Project which aims to reduce the wider impacts of fuel poverty for households across England.

The project provides FREE basic energy awareness training to frontline practitioners within voluntary and statutory organisations.   Training aims to equip individuals with the skills and knowledge to better identify and assist households who struggle to manage their energy needs and to maintain a warm and healthy home.

Organisations can also benefit from FREE energy advice surgeries/ awareness sessions to help their service users to better manage their energy use, access appropriate energy tariff and payment options as well as insulation and heating schemes, income maximisation, money and debt advice services.

NEA is providing all trainees and energy advice recipients with copies of a bespoke information leaflet to aid service signposting and referral.

As part of EDF Energy’s commitment to provide a more holistic service, EDF Energy customers accessing NEA advice services can also benefit from a range of Priority Services, which includes access to Warm Home Discount rebates, money advice, trust fund grant assistance and the Priority Services Register.

The Improving Energy Efficiency In Communities project is national but has a key focus in the North East, North West, London & South East, South West and the Yorkshire & the Humber areas.

For enquiries about FREE energy advice surgeries /energy awareness sessions in these areas contact:

For enquiries about awareness/ advice sessions in all other areas (and all general enquiries) contact Malcolm Dove at NEA on 0191 269 2932 (email: Malcolm.Dove@nea.org.uk).

For enquiries about FREE basic energy awareness training for frontline practitioners across England contact Tracy Norris, Business Support Officer at NEA on 0191 269 2946.

NEA is grateful for support from EDF Energy for this project.

Join the NHC Board – Apply to be a director today

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2017 Election of Directors

The overall management and strategic direction of the Northern Housing Consortium is entrusted to the Board of Directors who are subject to election each year from Full Member organisations.

Under the Consortium’s governance arrangements, all nominations for the position of Director will be reviewed by the Board (or their nominated representatives), against a Skills Matrix for Directors to ensure that they meet the Board’s requirement to fill any vacancies – a Skills Matrix and Board Director Role Profile are enclosed in the Board Director Nomination Pack.

In accordance with a procedure agreed by the Board, and to ensure a regional geographical balance across the Northern region, we are seeking nominations for a total of four new Directors’ places to be filled for the three-year period 2017-2020.

There are also three Directors who are retiring this year but who wish to stand for re-election they are as follows:

  • Chris Smith, Executive Director of Service Delivery and Development, Thirteen Group
  • Nick Atkin, Chief Executive, Halton Housing Trust
  • Bob Taylor, Group Chief Executive, First Ark

The Board have confirmed their support for the re-election of the above candidates.

Should the number of successful nominations exceed the vacancies available, a postal ballot will be arranged and the results announced for formal approval by the Full Members at the Consortium’s Annual General Meeting on 16th November, 2017 in York.

A nomination form is included in the Nomination Pack, and I invite you to consider and make nominations of candidates no later than 18th August 2017.  Please note that you can nominate more than one candidate but in doing so you should note the conditions for nominating candidates included in the Nomination Pack.

Download the Nomination Park here.

An application form for nominated candidates is included here.  This must be completed by the nominee and returned with the nomination form no later than 18th August 2017.

Download the application form here.

If you would like to discuss your nomination for the position of Director, please contact:-

Jo Boaden
Chief Executive
T: 0751 5991731
E: jo.boaden@northern-consortium.org.uk

Member Showcase – YHN Goes Dutch in Newcastle

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Your Homes Newcastle

The challenge of providing housing for our ageing population is often talked about in our sector and we’re all too aware of the competing factors at play when trying to meet this need.  When it comes to a deprived area in the middle of much-needed but not yet completed regeneration, the need for an innovative approach is all the more important.

Tree Top Village atriumSituated on the banks of the River Tyne, Walker was once a hub for Newcastle’s shipyard industry but in recent years has struggled to find its place in a changing social and economic environment.

Together with Newcastle City Council, we were aware of the growing need for older people’s housing in Walker but we were keen to deliver this in a way that both improved the offer for older residents and contributed to the wider regeneration of the area.

And so Tree Top Village was born.

Exclusively for people over the age of 55, Tree Top Village consists of an impressive main building offering 75 sheltered housing apartments bordered by 44 one and two bedroom homes with gardens.

One of the main inspirations for the development was Hans Becker, a Dutch architect who revolutionised older people’s living in Europe by designing housing that connects older people with the world around them and has a positive impact on health and wellbeing.  One of the central principals of Becker’s philosophy is that instead of segregating older people from the wider community we should create buildings that welcome the community in.  And that’s exactly what we’ve tried to do at Tree Top Village.

Tree Top Village lobby

At the heart of the development is a glass atrium with a lobby, restaurant, shops, museum and hair and beauty salon open to the public, providing much needed facilities, and of course employment opportunities, for people living in Tree Top Village and the surrounding areas.

We kept the principles of Becker’s “Apartments for Life” model and philosophy on human happiness at the centre of our plans which led to a building design far removed from the traditional style of sheltered housing.

Each property in Tree Top Village has its own outdoor space, whether that is a balcony, courtyard or garden, so residents can benefit from the positive impact outdoor space has on health and wellbeing.

Features inside the properties include high specification kitchens and bathrooms, spacious bedrooms and light and airy lounges, many with striking views of Newcastle’s iconic skyline.   Each of the properties can also easily be adapted to respond to a range of needs and has a level access shower, a transfer area and access to an on-site scooter store.

The layout was designed to make it easy for residents to interact with other people if they want to, whether that’s seeing what’s going on as they walk through the atrium to get to their apartment, having a chat with a neighbour in one of the communal areas or enjoying a meal in the restaurant alongside families from the wider community.  We hope that at Tree Top Village anybody who wants some company will always be able to find it.

Outside the development, the regeneration of the area continues apace, with a new primary school, much needed supermarket, redevelopment of the local park and new build projects by private developers improving the landscape of the surrounding area.

Incorporating Becker’s principles into this development required our creative heads and the need for partnership working more than ever; looking around at what is now a lively and welcoming environment  I am certain it was worth the effort and I hope we see more housing of this type in the years ahead.

David Langhorne is Your Homes Newcastle’s Assets and Development Director. For more information or to discuss this article, please contact communicationsteam@yhn.org.uk

Data Blog – Shifting Tenure Patterns in the North

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In February’s Housing White Paper the Government moved away from its broad focus on encouraging home ownership, something that was front and centre of the David Cameron administration, in favour of helping to fix the housing market so that more people across the country can have the security of a decent place to live. We examine the latest available data from the Labour Force Survey and from NOMIS to illustrate tenure make-up in the North and how it has changed over recent years.

Region

Despite commitments and incentives from the White Paper to continue publicising the Help to Buy equity loan programme, the number of households owning their own home has been falling since 2006, and in response there is a significant increase in private rental,both nationally and in the North (as the figure below shows). After accounting for one-quarter of the housing market in 1996, social housing saw a decline in popularity until 2011 when it has remained constant at 19%.

Tenure Changes in the North 1996-2016

Source: Labour Force Survey

Generally, Tenure patterns vary by region but  private renting remains consistent across the North. The Government now recognises the need for security of tenure in the private rented sector and is committed to exploring “family friendly tenancies of three years minimum duration”. This comes after a significant increase in private renting in all parts of the country. In the North East in particular, private renting has more than doubled from 2006 to 2016 albeit from a relatively small base number of 88,000.

Change in Private Renting 2006-2016

Change in Private Renting 2006-2016

Source: Labour Force Survey

As the figure above shows, other parts of the North and the Midlands have seen large increases in the private rented sector but changes in other tenures are not so straightforward. Six out of the nine English regions saw a decrease in owner-occupation since 2016 – some relatively substantial and mostly concentrated in the three Northern regions (see Yorkshire and Humber) – along with the Midlands.

Elsewhere, with the exception of the South East, owner occupation has grown, most notably in the East of England.

Change in Owner-occupation 2006-2016

Change in Owner-occupation 2006-2016

Source: Labour Force Survey

There is no pattern to be gleaned from an examination of the change to social renting by region. There were increases in four regions and similarly, decreases in another four. As far as the North is concerned, the largest decrease (-8.4%) in social renting in the country was in the North East and there was a slight increase in Yorkshire and Humber.

Change in Social Renting 2006-2016

Change in Social Renting 2006-2016

Source: Labour Force Survey

There was also a large decrease in social renting in London where there has been increases in both private renting and owner-occupation (above).

Age

Private renting is dominated by younger people with over half of private renters aged between 16 and 34 and this decreases with age.

Tenure in the North by Age Group

Age 16 to 34 Age 35 to 49 Age 50 to 64 Age 65 and over Total
Owner Occupied 15% 42% 38% 5% 100%
Private renting 52% 32% 14% 2% 100%
Social renting 27% 41% 28% 4% 100%

Source: NOMIS

The higher the age range, the greater the proportion of owner-occupiers and as those in the younger owner-occupied age groups get older, so the proportion of older people in this sector will grow. There is a greater spread of ages living in social rented accommodation with almost the same proportion of 16-34 year olds and 50-64 year olds living in the social sector.

It is clear that there has been a shift in tenure patterns in recent years with the private rented sector now playing almost as significant a role in the northern housing market as the social rented sector. Affordability of owner-occupation continues to be an issue, despite government attempts to counter this, and its popularity is dwindling. However, after a reported slump in the buy-to-let market, we may see younger people in a stronger position to buy their own homes in the coming years and a return to the pre-2006 status quo. Either way, local plans will need to be robust in ensuring markets are balanced and as suggested in the White Paper, may need to be reviewed every five years to keep up with the moving market. As devolution deals evolve across the northern regions, strategic sites could be allocated across larger geographical areas determining the tenure balance over local authority boundaries.

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The NHC has recently constituted a working group for members on the private rented sector that seeks to share best practice and act as a forum for those working in the PRS to share ideas and problems with colleagues. With the share of the PRS growing, it is important that issues around quality, regulation and driving up standards are explored for the benefit of members and those living in private rented accommodation. The next meeting is expected to take place in October or November. To be notified when the date is confirmed, please sign up to receive the NHC’s event update.