Can Housing Co-Ops Provide An Answer To the Housing Crisis?

Recently I was reading a couple of articles about housing co-ops and as its not something we have covered at My property Mentor before,  today I’m redressing the balance. Now, I should say I’m not an expert at all in this sector and I’m always happy to be educated by those that may be. So feel free to add your comments below.

What Is A Housing Co-op?

From Wiki:

Co-operative housing is controlled by the members of the co-op, which is run by a board of directors. There is no outside landlord. In most cases, all residents of the co-op become members and agree to follow certain by-laws. Residents pay a monthly charge that is set by the co-op in its annual budget. In some countries, co-ops get government funding to support a rent-geared-to-income program for low-income residents. In addition to providing affordable housing, some co-ops serve the needs of specific communities, including seniors, people with disabilities and artists.

Many housing co-ops have been give the green light because they are also very eco focussed. There are a couple of great examples in London where the residents have built a fully sustainable environment for all the inhabitants, including growing their own food. Have a look at the Guardian article  about the Sandford walk project here. (Pictured opposite.)

The New Cross Estate support officer Mark Langford, says:

“All the tenants are collectively landlords and responsible for helping the co-op,” The rents are set at just £50 a week – including council tax, heating and electricity. It was set up for a community of  writers, artists, film-makers, musicians and architects.

Goldsmiths art department and the Laban dance school are nearby. Each year there are some 30 tenancies that become available available.

There is no doubt that this form of living requires a lot of give and take. To me, they remind me of a modern version of the Kibbutz. Communal living is not for everyone, so personally I doubt whether this will solve many of the UKs housing issues. But it is a great place to start. It is interesting however that there are so many grants etc available and that finance can be sought via Ethical Banks.

Here are a couple more examples of co-operative living.

www.highburyfarm.freeserve.co.uk

http://www.nchc.org.uk/  -  North Camden Housing Co-op

The Lambeth Scheme

Possibly one of the most successful and fascinating examples is the Lambeth Self Help Housing Association (LSHHA). Lambeth Council decided to sell off 62 properties, all of which were managed by LSHHA, and many of which were large enough to accommodate families. The groundbreaking mutual cooperative helps local people stay in the heart of their community by providing affordable housing in South East London. It’s fully managed by the tenants, and was funded by the ethical Bank Triodos.

( Another example; a Triodos loan helped food writer and broadcaster Hugh Fearnley-Whittingstall renovate the 65-acre organic Park Farm at Musbury near Axminster, turning it into his new cookery school, River Cottage HQ.)

LSHHA has been described as ” the only genuinely self-funding housing association of its kind currently active in the UK.” It receives no external funding and still fulfils all its legal obligations as a housing association.

The deal with Lambeth Council gave LSHHA a discount on the properties in return for a promise that they would only offer new places to council applicants. The agreement allowed the Association to buy the homes and secure the future housing needs of a significant number of families in the community.

Abraham Krespin, Director says “There is a second phase of the development in the pipeline, hopefully involving the purchase of over a hundred more residential properties in the Lambeth area in the next few years,” and “This kind of housing scheme really does meet the needs of its customers. It allows the tenants to manage their homes and to make the decisions which affect their lives.”

What The New Coalition Thinks

There is one unique thing about a housing co-op you will not get anywhere else – you can choose your neighbours. Housing minister Grant Shapps views co-ops and community land trusts as “superb examples” of communities taking responsibility for themselves.

So the question is; does it meet all their needs? It’s certainly amazing what a little forward thinking can bring about. What are your thoughts? Is this a way forward to breathe new life into previously empty properties?

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