Co-operative Housing in Wales

Rhidian Jones – Head of Affordable Housing, Welsh GovernmentCCH Annual Conference, Cardiff, July 2015.

Background• Historic and current co-operative housing movement in Wales.

• Relatively small scale, but principles exist.

• e.g. much housing in the Rhondda Valley was built by terminating co-operative building societies. Around the 1st world war several Garden City projects in Wales. Built on co-operative principles.

• LSVTs - Community Housing Mutuals.

• Previous Labour Manifesto commitment and now part of Welsh Government Programme for Government.

• Cross-cabinet commitment to co-operation.

Taking it forward• Whilst a Government objective – cant do it alone. Partnership

approach.

• Set up stakeholder steering group to take forward – agreed terms of reference

– Welsh Government – Welsh Local Government Association– Community Housing Cymru– Chartered Institute of Housing Cymru– Council of Mortgage Lenders– Wales Co-operative Centre– Confederation of Co-operative Housing– CLT Movement– CDS Co-operatives– TPAS– Shelter Cymru

Outcomes

• To provide an alternative way to access housing via a recognised approach to co-operative housing in Wales.

• Increased delivery and choice of affordable housing in Wales.

• Recognition of co-operative housing as a robust and policy recognised approach to affordable housing delivery.

• Partnership working between co-operative sector, affordable housing sector and local communities.

• Efficient use of Government and public land and public subsidy (where appropriate).

Measures of success

• Meets housing need• Provides democratic community membership • Membership is involved in the governance of cooperative• Provides one or a combination of; rental co-operatives; market value

co-operatives and limited equity cooperatives • Quality of the housing - equivalent or better then current Welsh

standards for social new build housing.• Quality of place demonstrated through social, economic and

environmental sustainability• Flexibility to be accessible and attractive to range of

incomes/households - includes equity stake + low incomes• Mixed communities with a flexible form of tenure • Models of co-operative housing are fundable

Work Programme

•Legislative work stream

• Barriers - Housing Bill – Housing Act

•Operational work stream

• Funding – Models - Structures - Support

Work Programme

Legislation

•The Housing Act (Wales) includes Section 6 on Co-operative Housing.•Lifts the bar on fully mutual co-operatives being able to grant assured tenancies. •It creates new grounds for possession which will allow lenders to repossess the properties if the co-operative (members) default on the payments. •By allowing fully mutual housing co-operatives to grant assured tenancies, it will allow them to use standard and well-understood tenancy agreements and remove a known difficulty with occupancy agreement between the cooperative and its members.

Work Programme

Operational

•Research around need and demand•Exploration of mutual home ownership •Provide revenue funding to the Wales Co-operative Centre to host a Co-operative Housing Project Manager and a call off contract of support (CCH/CIH/consultants)•Provided £1.9 m capital grant to support three pilot co-operative housing projects in Newport, Cardiff and Carmarthen•These pilots will deliver approximately 100 co-operative homes, the first of which will be delivered by this summer.•Guidance and ongoing support as well as over 25 other co-operative housing projects emerging,

Pilot ProjectsLoftus Garden Village, Newport

Part of a wider 200+ garden village housing development on ex-Pirelli Cables site. Welsh Government Land, led by Seren Group. 20+ co-operative shared ownership homes. Completed late 2015

Home Farm Co-operative

41 social rented home co-operative. Welsh Government land. Cadwyn led with City Council support. Homes close to completion and co-operative formed.

Carmarthen Co-operative

28 intermediate rented home scheme. Local Authority land. Delivered by Grwp Gwalia. Completed in 2016.

Other activity

• Other projects happening – e.g. MVHA – Taf Fechan Housing Co-op – West Rhyl CLT

• Wide and diverse range of other projects coming forward.• Support available through the WCC.• Range of different approaches – CLT, Co-op, TMC etc• Welsh Co-operative and Mutuals Commission made

recommendations on growing and developing the co-operative and mutual economy in Wales - to create jobs and wealth in support of the Welsh Government’s aims and ambitions

Challenges• Same challenges as “mainstream” housing

– Development investment– Development opportunities– Rent levels– Welfare Reform

• Co-operative Housing evidencing that it brings added value (Evaluation underway)

• Scale in comparison to wider housing scene.• New models of mutual ownership at a time where traditional lending

is constrained.• Becoming an embedded housing choice• Emerging housing co-operatives working together – need to find a

way to make this easy.

Challenges• To many models?

Opportunities• Previous evidence to suggest increased tenant perception of

 ownership and empowerment leads to reduced arrears, reduced void turnarounds and improved community and quality of life.

• Opportunities with social services and health sectors - housing co-operatives can provide more than just housing - promote well being and provide care services for their members.

• Examples of this - emerging housing co-operative in Cardiff for young people with learning difficulties being developed by United Welsh and the Bronllys Health and Wellbeing CIC in Powys.

• Wales, co-operatives generate more than £1billion in income a year - employ an estimated 7,000 people (2010 figures).

• Co-operative Housing can contribute to this further.

Co-operative Housing in Wales

Rhidian Jones – Head of Affordable Housing, Welsh GovernmentCCH Annual Conference, Cardiff, July 2015.