Initiatives that extend the mix of tenures and incomes on social housing estates have consistently led to an improvement in property prices, lower turnover and increased demand for homes that are vacated. They have also led to higher levels of tenant satisfaction and a better reputation for stigmatised neighbourhoods among outsiders, according to research for the Joseph Rowntree Foundation

The study, using a sample survey of 100 councils and 88 larger housing associations, finds that 70 per cent have taken action on at least some of their estates to ‘rebalance’ the local community. Going beyond the ‘right to buy’, measures taken have included low-cost home ownership schemes, selling vacant homes to private buyers and offering some properties at intermediate or market rents. All the social landlords who had introduced mixed tenure schemes reported a marked improvement in the estates concerned, including reduced stigma.

The report, by independent consultants Graham Martin and Judi Watkinson, especially highlights the success of schemes that involve selling a proportion of vacant homes for owner occupation. Although many landlords, particularly councils, had introduced sales schemes for financial reasons, the feedback on the social consequences was very positive – suggesting they provide a new tool for improving the quality of estates.

There was, however, a North-South divide among councils, with authorities in the North and Midlands much more likely to have sold empty homes on the open market than those in London and South East. This was not true of housing associations, who were also more likely to cite the benefits of mixed-income communities as their reason for selling homes – as opposed to cutting repair costs for ‘void’ properties, or reducing the amount of surplus ‘hard to let’ property.

Graham Martin said: “ Even in areas where the demand for housing is high, there is increasing recognition of the contribution that mixing incomes and tenure can make to achieving balanced and sustainable communities.”

He added: “Commentators in the past have argued that the jury is still out on the benefits of mixed tenure. The consistency of the feedback received in this survey suggests the verdict is now positive. Mixed tenure not only seems to work, but can help to reverse the decline on estates caused by excessive social polarisation.”

The report includes an assessment of the SAVE (Selling Alternate Vacants on Estates) scheme that the Joseph Rowntree Housing Trust (JRHT) has introduced in its 1,000-home estate of New Earswick in York. JRHT, which is administered as part of the Foundation, decided in 1998 that it would sell alternate vacancies on the open market and build replacement homes for rent with the proceeds. This and other low-cost home ownership schemes mean that one in five properties in the village are now in shared ownership or full home ownership.

The study notes that SAVE and other sales schemes are designed to attract middle-income households on full mortgages to an estate, who are more likely to be young families. This contrasts with statutory ‘right to buy’ schemes where purchasers tend to be older, existing residents buying at a large discount who sometimes do not have sufficient income to maintain their properties. A significant proportion of local authority ‘right to buy’ properties are subsequently sold on to private landlords, with potentially adverse consequences for the estate.

Lord Best, Director of the Joseph Rowntree Foundation, said: “The views of other social landlords surveyed for this report accord with our own experience of SAVE in New Earswick. There has been a marked and very welcome improvement in perceptions of the estate, property values have risen and more families in work have been moving in. It might seem strange that we should sell to save, but this scheme not only creates a mixed-income community but also, by recycling sales proceeds, finances new homes for rent elsewhere.”

Note to Editors
Rebalancing communities: Introducing mixed incomes into existing rented housing estates by Graham Martin and Judi Watkinson is published by the Joseph Rowntree Foundation and available from York Publishing Services, 64 Hallfield Road, York YO31 7ZQ (01904 430033) price £11.95 plus £2 p&p.

The report and Findings can both be downloaded, free of charge, here.

For further information contact:
Graham Martin (author) 0151-475 0726
Judi Watkinson (author) 01653 694910

Issued by David Utting, Associate Director (Public Affairs) 020-7278 9665 / david.utting@jrf.org.uk