Exploring ideas
Moving towards tenure neutrality
Conference of The Isles 29 November 2013
Pete RedmanManaging Director, Policy and Research
Financial advisors and capital market arrangers for housing clients
We want to increase financial capacity and reduce risk
We want to maximise Social Enterprise Value
Mixed tenure and tenure neutrality can strengthen balance sheets, increase sustainability, and improve social outcomes
Why TradeRisks?
1,000 unbroken years of UK landlord and tenant
Power relationships between commercial, and agricultural landlords, and tenants have moved into balance
But
The status of residential tenants is low, particularly for social housing tenants
1,000 years of UK landlord and tenant culture
There is no conclusive evidence that mixed tenure brings benefits to residents. There is no increase in lending cups of sugar to your neighbour
Most, not all, people dislike large scale social housing estates
Recent work on social mix, and on income mix, does, however, show increases in social capital, and increases in capital values
Does mixed tenure bring benefits?
Where’s the social housing?
Social Rent
Shared ownership
Owner occupied
Small gardens - higher density - hard landscaping - hidden
1. Make all planning policy tenure blind
2. Improve flexibility and recycling of capital subsidies
3. Rebalance Right to Buy
4. Maximise value added across the housing spectrum
Steps towards tenure neutrality
Where’s the social housing?
Right to Buy can distort ideas of worth
Taxpayer, 45%
Landlord; 20%
Social rent tenant; 35%
Distribution of beneficial interest
Current
Administrativerules
Tipped in favourof tenantat expenseof taxpayer
Hard to replacewith remainingreceipt
FutureValue based
Balanced betweeninterests of
taxpayer,landlord, and
tenant
Linked to rentand terms of
tenancy
Maximising value added?????? Type X
Maximising value added?? Type Y
Maximising value added Type Z
A menu of rights and responsibilities distributed between:
• Occupier• Service provider• Equity owner A• Equity owner B…………
Could we have a single tenure?
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