1. Jenny Pannell Charlotte Cook Independent Consultant Partner
PRS – The missing option Workshop For Housing LIN Conference 18 February 2014
Jenny Pannell Charlotte Cook Independent Consultant Partner

2. Why “The Missing Option”?
Prevailing mindset on tenure, older people and housing is often:
rental options = social housing
market options = home ownership
+ perhaps some shared equity/ shared ownership options for ‘in-betweeners’
So the missing option is often private/ market rent

3. Definitions: Market/Private Rent
All housing types: houses, flats, bungalows, retirement housing
Available to anyone who can afford it
No allocation process as for social/ ‘affordable’ rent (i.e. based on assessed housing/ support/ care needs)

4. Definitions: Specialist Housing
Groups of dwellings: small schemes to large retirement villages
Age-restricted: 55/ 60/ 65+
Special design features
May have support/ care/ facilities available

5. Definitions: Mainstream Housing
No age restriction
May have special design features (e.g. Lifetime Homes)
Or be property type/ location popular with older people (e.g. bungalows, seaside)

6. Demand: Overall Under-researched area: often PRS not mentioned
Some evidence of increasing demand, including from owner-occupiers
Push factors include divorce/ relationship breakdown and financial issues

7. Demand: Specialist Retirement/Extra Care Housing
Girlings and 4 extra-care providers report demand, including from better-off older people paying higher rents
Demos research found nearly 60% of survey respondents (aged 60+) interested in moving
25% of these were interested in purchase; 25% interested in renting a retirement apartment on an assured (lifetime) tenancy

8. Supply: Mainstream PRS Housing
Mostly from small buy-to-let landlords, ASTs (insecure 6-month lets)
Still some poor quality
New provision by housing associations and private companies (e.g. Govt Build to Rent): targeted at younger age groups (“young professionals”) and London/SE

9. Supply: Specialist Retirement/Extra Care Housing
Girlings (2,500 properties, mainly retirement housing)
Places for People (200+ retirement properties managed by Girlings)
individuals (often ‘reluctant’ landlords - e.g. on inheritance if can’t sell)
a few charities and housing associations (extra care/village models) e.g. Abbeyfield, Belong (NW), Jewish Care and St Monica Trust (SW)
a few private providers with PRS options (some inclusive deals e.g. 3 meals a day; not always with tenancies)

10. Barriers and Overcoming Them Providers (1)
Local Authorities
Secure tenancies
Localism Act 2011
Influence over planners

11. Providers (2) Housing Associations ASTs Charitable objectives
SPV set up

12. Providers (3) Private Companies Funding structure Long term investment
Are they convinced?

13. Providers (4) Other Charitable Organisations Is PRS charitable?
“its all relative”

14. Finance (1) Need for a successful business model
Lots of small scale “buy to let”
Broaden horizons?

15. Finance (2)
Buy up existing portfolios
Create new ones?

16. Finance (3) Borrowing capabilities? Sufficient stock?
Income risk (nominations, marketing, evidenced demand)

17. Finance (4) Rent regulation Benefits Macro economy
Savings and interest rates

18. Development (1) Planning policy Nominations CIL Affordable housing %
Rent levels

19. Development (2) Quality of the product Units sizes
On site services/facilities

20. Development (3)
Investor developer or
Develop and out

21. Experience (1) Matching the product to the audience Management levels
gold
silver
bronze
Management practices

22. Experience (2) Changing the way we think:
ageing population is not a bad thing
being a tenant is not a bad thing
keeping tenants happy means keeping them in occupation and paying their rent

23. Barriers and Overcoming Them: From the Older Person’s Perspective
Need to manage uncertainty about availability, affordability, quality: now and into the future
Availability:
suitable PRS housing very limited;
not on the agenda for most older people, their family/friends, nor advice agencies or providers

24. Barriers and Overcoming Them: From the Older Person’s Perspective
Affordability:
more likely to be affordable for older people with higher incomes/ significant capital;
may be less affordable for those reliant on benefits (LHA issues);
higher HB for specialist market-rent housing though problematic (‘exempt accommodation’ issues)

25. Barriers and Overcoming Them: From the Older Person’s Perspective
Security of tenure:
most older people unlikely to want to move into PRS without longer or lifetime tenancies
except those using it as short-term gap-filler
Quality of stock and management:
PRS still suffers from poor reputation
Issues with absentee or constantly changing landlords
need for more high-quality well-managed PRS housing for older people

26. Thank You Solicitors and Parliamentary Agents Minerva House
Charlotte Cook Partner Jenny Pannell Independent Consultant and LIN PRS Briefings co-author Imogen Blood Imogen Blood Associates
Solicitors and
Parliamentary Agents
Minerva House
5 Montague Close
London
SE1 9BB
DX London Bridge 6 T F