May 2003 - Ref 523
Rebalancing communities by mixing tenures on social
housing estates
Over 70 per cent of a sample of social landlords
have taken some initiative to 'rebalance the communities' on their
single-tenure estates by introducing a mix of tenures and incomes
(other than occurs through the 'Right to Buy'). The study, by housing
consultants Graham Martin and Judi Watkinson, also found that:
- A consistent feature of mixing tenures on estates has been an
overall improvement in property prices, reduced turnover, increased
demand, tenant satisfaction and improved area reputation.

- A clear north-south divide was evident in activities reported by
local authorities, with more reporting an active tenure mixing
programme outside London and the South-East. This regional distinction
did not apply to housing associations.

- The experience of the Joseph Rowntree Housing Trust's SAVE (Selling
Alternate Vacants on Estates) programme is that the benefits
associated with mixed tenure justify selling alternate vacant
properties on the open market (with the proceeds reinvested in
replacement property).

- The introduction of mixed tenure has tended to be pragmatic and
reactive rather than the result of logical evaluation and strategic
decision-making.

- Whilst some social landlords are committed to the principle of
mixed tenure, most initiatives have resulted from financial
practicalities; for example, to reduce an excessive number of vacant
properties, to reduce repair costs, to provide access to regeneration
funding, or to reduce the number of surplus or unpopular social rented
houses.

Background
Whilst some social housing estates are 'good places to live', many
have become unpopular in recent years:
"High rates of joblessness trigger other neighbourhood problems
that undermine social organisation, ranging from crime, gang violence
and drug trafficking to family break ups and problems in the
organisation of family life." (W J Wilson, When work disappears, New
York, Knopf, 1996)
It is difficult to argue the case for investment in an area where
few people would choose to live. In order to reverse this process and
make places more attractive, it might be helpful to devise strategies
that introduce a variety of household and economic mix similar to that
in more popular neighbouring communities.
The SAVE Programme
The Joseph Rowntree Housing Trust introduced its SAVE (Selling
Alternate Vacants on Estates) programme in 1998 to combat and reverse
the process of decline in its 'model' village of New Earswick - a
forerunner of the Garden Village movement. The scheme allows for 50
per cent of relets in the village to be offered on the open market for
full sale or shared ownership. By the end of 2002, 21 per cent of the
stock was either leasehold, low cost home ownership (LCHO) or fully
owner-occupied.
There has been a significant change in perceptions of the
villagers, property values have risen beyond local increases (see
Figure 1) and middle-income families are keen to move onto the estate.

The national perspective
Whilst there is much discussion on creating mixed and sustainable
communities, there is little information on what is being done to stem
the tide of 'residualisation' on existing estates.
A scoping exercise was carried out to assess the extent, if any, to
which social landlords were actively seeking to achieve mixed income
communities on existing estates. Over 70 per cent of sampled landlords
indicated that they had carried out initiatives on at least some of
their estates to introduce mixed tenure (see Table 1) through:
- low cost home ownership (LCHO);
- full sale;
- selling vacant properties, or;
- introducing market or 'intermediate' renting.

Market and intermediate renting offer an alternative or
complementary approach to selling existing properties: 27 per cent and
18 per cent of housing associations and local authorities,
respectively, report activity in this area.
Additionally, 55 per cent of housing associations and 30 per cent
of local authorities which replied also had projects involving the
sale of vacant properties for owner-occupation, or were seriously
considering one (see Table 2).

A clear north-south divide on the sale of vacant properties was
evident among local authorities, with active programmes being located
outside London and the South East. However, this was not the case for
housing associations, which have adopted the policy on a wider and
more inclusive basis.
Some social landlords have a long-standing commitment to mixed
tenure:
"On many of our estates it is difficult to identify or
differentiate one tenure from another." (local authority officer).
More typically, policies for introducing mixed tenure onto existing
council-owned estates have been established to try to resolve a
problem, for example, as a means to:
- access or generate regeneration funding;
- reduce the supply of surplus or unpopular
rented housing; or
- avoid the costs of repairing the more
expensive void properties.
Housing associations, in contrast, were more likely to cite the
benefits of mixed-income communities as a reason for introducing
mixed-tenure initiatives.
All landlords in the survey that have introduced mixed tenures
reported a marked improvement in the area. Improvements include:
- higher property values;
- lower turnover rates;
- higher tenant satisfaction;
- improved demand;
- reduced stigmatisation; and
- improved household mix.
Balancing priorities - pressure of demand vs benefits of mixed
income
Even in areas of highest demand, there is an increasing recognition
of the importance of raising the quality of life on, and the
sustainability of, social rented estates, and of the contribution that
mixing incomes and tenure can make to achieving balanced and
sustainable communities.
The Right to Buy debate
The sale of vacant properties has significant advantages over the
Right to Buy in introducing mixed incomes into existing communities.
Whilst Right to Buy (RTB) has achieved mixed tenure in many places,
this has not necessarily slowed or reversed the decline of unpopular
estates. The main differences between the two initiatives are as
follows:
Right to Buy
- RTB purchasers are usually older residents who have been able to
afford the discounted value but may not have a high enough income or
capital to adequately maintain or carry out major repairs.
- A significant number of former RTB properties quickly move to the
private rented sector, are often poorly managed and have adverse
consequences for the estate.
- RTB involves selling property with discounts of up to 70 per
cent, so the proceeds raised for replacement housing or estate
improvements are far lower than from the sale of vacant properties.
Sale of vacant properties
- The sale of vacant properties is about
attracting new middle-income households who are able to afford a
full mortgage, are likely to be young and to have children who will
attend local schools.
- It allows the landlord to choose which
properties should be offered for sale - thereby maintaining a
sustainable balance and mix.
- It can include a clause allowing the landlord
the opportunity to buy back the property at a later date if
appropriate.
Conclusions
This study has brought to light a greater level of involvement in
introducing mixed incomes into existing estates than had been
anticipated.
Although the key drivers to the introduction of new initiatives
tended to be financial reasons, once in place there has been almost
unanimous, positive acknowledgment of both the social and financial
benefits of mixed tenure schemes. These benefits include:
- reduced turnover (with related cost savings);
- increased demand;
- improved reputation and confidence in the
area;
- reduced stigmatisation of residents;
- increased tenant satisfaction;
- a more broadly balanced household mix; and
- increased property values.
Debate on the merits of mixed-income communities has often focused
on issues such as the development (or otherwise) of inclusive social
networks or the development of common interests between neighbours.
The findings emerging from this research suggest practical benefits
through greater social stability and increased contentment by people
with their home and neighbourhood.
About the project
This study was carried out by independent housing consultants and
researchers Graham Martin and Judi Watkinson. It was based on an
analysis of existing literature, a postal questionnaire to a sample of
88 of the larger housing associations and a stratified sample of 100
local authorities (achieving a 78 per cent response rate from the
councils and 82 per cent from the associations). There were follow-up
interviews with eleven councils and seven associations, and a case
study of the SAVE scheme operated by the Joseph Rowntree Housing
Trust.
How to get further
information
The full report, Rebalancing
communities: Introducing mixed incomes into existing rented housing
estates by Graham Martin and Judi Watkinson, is published by the
Joseph Rowntree Foundation (ISBN 1 85935 086 0, price £11.95).
Click on the 'order report' icon in
the left margin to order online.
Click on the 'report .pdf' icon in the
left margin to download a pdf of the full report free of charge. (File
size is 0.12MB). |