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Housing associations’ rent is lower than the market price

Created on 16-10-2023

Design, planning and building Policy and financing
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The fact that housing associations’ rent is lower than the market price poses future financial risks and stress on affordable housing providers.  Housing associations need a certain level of rent to be able to build good homes in the first place and to maintain them to a high standard. In the context of affordable rents, it becomes more challenging to balance. They need to set rents at a level that allows them to construct and maintain quality homes while keeping them affordable for residents over time. This involves choosing suitable locations and building quality housing, which can lead to higher land and construction expenses. Moreover, affordable rents make it take longer for housing associations to recover their construction costs through rental income, especially compared to the private sector. 

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Topic

Social housing perception

Social housing is a term for housing provided or subsidised by government or non-profit organisations to meet the housing needs of individuals or families with low incomes or special needs. Perceptions of social housing can vary widely among different groups and are influenced by several factors, including cultural, economic and political contexts.

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Institutional

The structure of government institutions that have the responsibility and power to create building regulation and monitor compliance with them

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Country

The political structure governs a specific geographical area and accommodates a specific population group.

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Affordability

Area: Policy and financing

Housing is usually deemed unaffordable when it consumes more than a set percentage of a household's monthly income. The Eurostat[1] and the OECD[2]  follow this threshold approach and define households overburdened with housing costs as those spending more than 40% of their disposable income on housing. However, this indicator fails to capture financial hardship, particularly among lower-income households. In fact, lower-income households may be spending less than 40% of their income on housing and yet failing to meet adequate consumption levels for other goods. As a response, the residual income approach ascertains housing (un)affordability by defining a minimum level of consumption for a set of goods according to particular household types. The residual income approach builds on consumption data to define the minimum level of income necessary for a household to survive after housing costs. The main shortcoming of this approach is that relies on subjective measures of what constitutes the necessary minimal expenses for a household. These two definitions of affordability navigate two tensions 1) between housing and other types of consumption and 2) between the individual conceptions and what is affordable and what government considers to be affordable (Haffner & Hulse, 2021). More recently, scholars have emphasized the multi-faceted nature of affordability to include commuting and transport costs together with energy costs (Haffner & Boumeester, 2015). Other approaches focus on supply-side measures, for instance on the share of the housing stock that a household can afford (Chung et al., 2018). Evolutions in the measurement of affordability bear witness to the complexity of housing systems. Affordability is not only dependant on housing consumption but also housing supply, particularly in inelastic markets where providers have considerable power. At the same time, displacement pressures and rising energy costs in an older and inefficient stock add pressure on households to access affordable housing. References Chung C., Evangelou N., Geyer J., Quint R., Keith I., Coates D., Daula T., Frumkin S., Leventis A. v, Doerner W. M., Roderer D., & Barba M. (2018). A New Home Affordability Estimate: What Share of Housing Stock Can Families Afford?. FHFA Staff Working Papers 18-04, Federal Housing Finance Agency. Haffner M., & Boumeester, H. (2015). Housing affordability in the Netherlands: the impact of rent and energy costs. Journal of Housing and the Built Environment, 30(2), 293–312. https://doi.org/10.1007/s10901-014-9409-2 Haffner M., & Hulse K. (2021). A fresh look at contemporary perspectives on urban housing affordability. International Journal of Urban Sciences, 25(S1), 59–79. https://doi.org/10.1080/12265934.2019.1687320   [1] https://ec.europa.eu/eurostat/web/products-datasets/-/tessi165   [2] https://www.oecd-ilibrary.org/sites/624ee022-en/index.html?itemId=/content/component/624ee022-en#section-d1e6271  

Created on 15-07-2021

Author: A.Fernandez (ESR12), M.Haffner (Supervisor)

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A Culture of a British Housing Association

Posted on 20-07-2023

  On the top floor of their building, where green trees peeked through houses that covered one of Sheffield's seven hills, a farewell party was held. It marked the end of an 11-year journey for Miranda Plowden, the business director of South Yorkshire Housing Association (SYHA). During this heartfelt and humble gathering, Juliann Hall, her close friend, teammate, and co-director of Care, Health, and Wellbeing, shared Miranda's story and her visionary approach to cultivating a unique "culture" within SYHA. However, this was not your typical notion of culture.   Miranda envisioned A Culture of Joy and Right to Beauty, encompassing every decision and detail at SYHA. This culture went beyond their housing schemes and influenced their daily work environment and attitudes. It stemmed from a people-first approach, firmly believing that happy and compassionate employees would naturally deliver homes that inspire happiness.       The Culture and Residents’ Health and Wellbeing   SYHA is keen to spreading joy and promoting the right for everyone to experience beauty in their housing schemes. Their strategic plan focuses on providing affordable homes where residents feel happy, healthy, and proud. This is exemplified in the elegant and modern design of their properties, such as the recent North Wingfield Road social housing complex and the Wikihouse project.   The culture of promoting beauty extends beyond housing schemes to the surrounding landscapes for residents to have beautiful views and shared spaces. SYHA actively participates in creating vibrant meadow-like landscapes in urban areas, which serve as habitats for pollinators and require less maintenance. Through careful selection of plant species, they demonstrate how urban spaces can be transformed into visually appealing and environmentally friendly areas.   The culture of joy also encompasses care for residents' health and well-being, which is evident in various initiatives. For instance, they care to conduct co-design focus groups with residents to update design briefs for future projects. They maintain good communication channels through their customer experience team. Workshops with customers are held to continuously improve their services.   An interesting insight from one of SYHA's co-production workshops is the residents' dislike of jargon. They find terms like "fuel poverty" aggressive and prefer simple language that allows them to understand and feel in control of their decisions without being stigmatized. Similarly, the term "heat pump" can cause frustration, as residents desire clear and accessible language.   SYHA's Livewell department is dedicated to supporting residents' health and well-being. They provide mental health and wellbeing support and assistance in overcoming daily challenges, regardless of whether someone is a SYHA customer or not. They also have staff members focused on helping individuals find employment and integrate naturally into the community.       A unique work Culture, deviating from usual corporate work style   As an architect, I cannot overlook how SYHA implemented their culture of joy and right to beauty in the workplace as well as in their homes and services. Working closely with the interior designer, they ensured that every detail reflects this culture. Miranda's quote describes it best:   “People expect Google to have beautiful offices, but not a charitable organisation in Sheffield. The feedback from our teams shows that design and beauty in places where they are least expected can have a positive effect on wellbeing and make people feel valued. At South Yorkshire Housing Association, we believe that everyone has a right to beauty and joy, especially people who didn’t expect to experience either.”    As cited in SYHA’s interior designer: 93ft website  (accessed on 17/07/2023)   What amazed me was SYHA's boundary-less workplace. There were no individual offices, walls, or closed doors between departments and team members. They have a bookable rooms for meetings and workshops with teams and residents. If you just want to disconnect in peace, there is a room for prayer and meditation regardless of your belief. During her speech at the farewell party, Miranda emphasized the importance of maintaining the joy at work, smiling at one another, opening doors for one another and caring for both colleagues and customers. It's the small gestures that make a lasting impact.   At SYHA, everyone, from newcomers like myself to the CEO Tony Stacey, worked together in the same open space without assigned desks. On my first day, I sat at one of the long tables alongside Miranda (the business director), Natalie (the team's head), and my new colleagues. On the same table on the next day I sat with other directors and team leads and was able to schedule an interview with them within minutes. This setup promotes collaboration and easy access to discussions. It also harnesses a sense of collaboration and support beyond hierarchies. Being physically present in this open environment allowed me actively to engage in conversations, observe ongoing discussions, and receive immediate responses to my inquiries. What better setting could I had for my Transdisciplinarity based research?       SYHA’s Culture and my Research Secondment   Understanding SYHA's core values and culture assured me that I am in a fitting workplace aligned with my research. Their belief in enabling individuals to settle into a welcoming home, live well, and achieve their full potential resonated deeply with the core motivation behind my research on Health and Wellbeing. My study aims to incorporate Life Cycle Costing into the design stages to prioritize the health and well-being of residents. Working in an environment that not only embraced meaningful slogans but also genuinely believed in and implemented them proved to be an invaluable experience for me.   As part of my Marie-Curie research project, I embarked on a three-month secondment with SYHA's Development and Asset Management team, under the guidance of Natalie Newman, the head of the team, who served as my secondment supervisor. Throughout our discussions, she openly shared her opinions, provided critiques, offered feedback, and provided guidance in approaching individuals and gathering necessary data. Likewise, my regular supervisor, Matteo Martini, supported, encouraged, and ensured my seamless integration within SYHA.   The knowledge and insights I gained during these three months at SYHA would have taken years to acquire independently. The colleagues at SYHA, with whom I discussed my topic, showed great enthusiasm and generously answered any doubts I had. They also expressed their willingness to continue supporting my research even after the end of the secondment.   By the end of secondment and being part of an association working hard to realize this culture, I felt hopeful and now eagerly look forward to contributing to the day when the belief in the Right to Beauty and Joy becomes the normal for all humans and for the betterment of our planet.       More interesting readings: How SYHA started and the influence of Cathy Come Home movie SYHA’s history and the founders mission and vision. A beautiful low-maintenance landscapes of Pictorial meadows. How did SYHA communicate their business purpose through their workplace design. 93ft sharing SYHA's interior design.    

Author: A.Elghandour (ESR4)

Secondments

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