‘No turning back’ for housing associations committed to neighbourhood renewal

After the crossroads

One of two research reports being launched in London’s East End today by the Joseph Rowntree Foundation finds that the term ‘housing plus’, coined in the 1990s to describe the sector’s involvement in neighbourhood renewal, is too narrow. The extent of regeneration activities undertaken by housing associations nowadays includes training and job search schemes, retail development, money advice, family support, action partnerships with schools, youth work, art and sport projects, and community safety programmes.

Based on case studies in Birmingham, Gloucester, Greater Manchester and Portsmouth in England and Newport, Gwent in Wales, the report also notes that associations, who previously lacked a strategic framework for their community investment role, are now able to identify closely with the Government’s National Strategy for Neighbourhood Renewal.

The study, by the Birmingham-based organisation, People for Action, suggests that associations committed to community investment are more likely to see themselves as accountable to the communities they serve and as having social and economic objectives that mark them out as ‘social enterprises’. Some also show awareness of ways that past policies may have contributed to the problems of social exclusion.

But the report acknowledges that another group of housing associations have taken a different path, choosing to limit their role to that of housing provider. Others still have engaged in community investment activities, but with a commitment that is likely to prove fragile.

Paul Slatter, the report’s editor, said: "There have been predictions that a slowing economy and restrictions on rent increases will compel housing associations to cut back on their non-housing activities. We agree that some associations will probably have withdrawn from community investment in three years’ time, becoming more like housing companies.

"However, there are many others who have fundamentally changed their core activities and increasingly share common ground with other neighbourhood regeneration organisations such as development trusts and enterprise development agencies. Their commitment to this new way of working is strong and, having passed the crossroads, it is unlikely they will want to turn back."

Building communities: changing lives
The second report launched today examines the role of neighbourhood-based regeneration organisations (NROs) working independently of statutory agencies, which include development trusts and settlements and partnership organisations as well as health centres, housing providers, schools and faith organisations. Based on a study of 20 different organisations in disadvantaged areas, it concludes that they play an important part in countering the isolation and sense of powerlessness in disadvantaged neighbourhoods.

While providing local leadership, the NROs studied were big enough to undertake projects that were beyond the capacity of smaller local organisations, and to work in partnership with outside agencies and as part of regional and national initiatives.

The study, by Stephen Thake of the University of North London’s Cities Research Group, highlights the particular contribution NROs have made to tackling low income in disadvantaged areas by creating clusters of activity and networks that enable residents to re-join the social and economic mainstream. Many have, themselves, become a source of jobs for local people.

However, the report warns that all the organisations, no matter how well-managed, face chronic financial insecurity because they depend on short-term, project-based funding. Employees bear the brunt of this and are often poorly paid compared with equivalent staff in the public sector.

Stephen Thake said: "Neighbourhood regeneration organisations are making a direct contribution to tackling social exclusion. But their valuable work will prove hard to sustain in the long term unless it is given greater recognition in the Government’s Neighbourhood Renewal National Strategy Action Plan and through durable funding arrangements at regional and community level."