Temporary to Permanent Models
Summary
Some very good work has been done on temporary to permanent models and a report entitled ‘Review of Temporary to Permanent Arrangements – Final Report’ undertaken by Civis Consultants in September 2006, has lots of information.
The report gives information on various provider models which for the purpose of the report was grouped as follows:
The key features of each model are listed in the report together with apparent advantages of each type.
Further Information
Those wanting to read more about this type of arrangement can find the report by going to the external link below.
T2P offers a real alternative to use of temporary housing and to tackling homelessness through wholesale property acquisitions, mostly houses in existing communities in need of investment.
Proposals by the Government to extend this type of accommodation lean heavily on prototypes launched in 2006. In essence, the prototypes seek to replace private housing to accommodate homeless people by using Housing Benefit income to fund mortgage repayments so that properties can join the permanent housing stock.
The prototypes are:
Local Space
This is a new RSL formed by Newham LBC to buy around 1,200 properties to accommodate council nominees.
Start up equity of £50 million was provided by the council through the injection of 450 void properties at nil cost and the Housing Corporation is providing £25 million in phased SHG.
The Royal Bank of Canada is providing £200 million loan finance.
Local Space is drawing the money to buy street properties. The organisation is headed by Chief Executive Bob Young.
Safe Haven
(Not to be confused with this project (also called Safe Haven) which is totally separate and not linked in any way).
A housing charity not registered with the Housing Corporation, structured by an investment boutique specialising in socially responsible funding.
Unlike Local Space, its first scheme with Ealing LBC has not required an injection of property equity or SHG subsidy.
The purchase of 200 properties to be leased to Ealing LBC is being funded from £33 million Bank of Ireland facilities.
Lloyds TSB
New credit lines exceeding £1 billion to buy over 6,000 homes for T2P schemes with RSL’s and/or local authorities.
There is strong interest from associations and councils.
Conclusion
A temporary to permanent model may be suitable at some time in the future for the Greater Haven Gateway (sub-region) but there is much work to be done before the Councils in the sub-region are in a position to be ready to forge ahead with this type of venture.
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