WHAT IS A HOUSING
CO-OPERATIVE
Co-operatives, be it housing or business, are not-for-profit and democratic organisations run for and by their members. They have a rich history and have developed out of a desire to do things differently and in a way that genuinely serve communities.
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The co-operative movement's values are deep-rooted. They are: self-help, self-responsibility, democracy, equality, equity and solidarity. When these values are related to housing it means:
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Residents are in control
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Residents self-manage the homes in a democratic way
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Residents have security
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Residents pay fairer costs
Unlike some other types of community led housing the membership of a co-op is limited strictly to its residents. The community in question is made up of the people living together. They've created their own environment where they have influence.
deciding our values
WHY IS THIS PROJECT NEEDED
Project Home’s seven members are dedicated to creating a nurturing and democratic housing community and building resilient, mutually supportive communities that improve life chances both within the co-operative and in the wider area in which we reside.
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The housing crisis is acute and many are struggling to break out of the ‘rent trap’. Houses available for rent are often poorly provisioned, energy inefficient and unaffordable. Security of tenure is near non-existent. Renting in this market has a hugely damaging effect on livelihoods and we seek to offer a small, but replicable, solution.
Cohousing fosters self-sufficient and cohesive communities by combining private dwellings with communal governance, shared space and shared resources. This boosts physical and mental health and the wellbeing benefits of community-led housing are estimated at £1,575 per household per year. (Grant Colquhuon, Housing by the Community, for the Community (London: Capital Economics, 2020), 33.)
SOCIAL IMPACT
The social impact of the project is created through meeting the ever-increasing demand for housing which is:
Adequate - the right size and in the right place
Quality - the home is safe and that the dwelling-holder has adequate rights
Affordable - the monthly rent for the house is not more than 30% of an individual's monthly income
Sustainable - the materials used are procured locally and have high environmental standards in their production, and that the buildings and their use are sensitive to the natural environment.
Secure - members can stay for as long as they wish.
Current housing stock available to those on low income meets few, if any, of these needs.
Our work to provide this kind of housing complements the growing movement to democratise local economies, and involve community members in local service provision. The cost-of-living-crisis means that community-led businesses such as community shops, farms, pubs and housing are more important now than they have ever been.
Our co-operative housing will embody democratic collective self-help, by putting the community at the heart of their own housing provision. Community members co-own the co-operative and then are offered a lease for their dwelling. This ensures that the homes never enter the mainstream housing market and so remain affordable forever - as a member leaves, another can join at the original rate. The social impact will continue in perpetuity.
A shared characteristic of our members is that we earn below average incomes and most would face significant barriers to home ownership. Most members work in education, mental health, landwork or a crossover of these industries, all of which are renowned for below average wages.
We aim to become embedded as part of the local community. Project Home will hold local community events each year, including a harvest festival.
WHAT IS A MUTUAL HOME OWNERSHIP SOCIETY (MHOS)
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We are employing a hybrid of the Mutual Home Ownership Society (MHOS) model, pioneering intermediate housing which gives residents control, offers affordability in perpetuity, and provides long term tenure security while simultaneously allowing members to build financial security over time by accruing equity shares. We have been in long term consultation with Gauthier Guerin and the Catalyst Collective to refine this model for our particular needs and circumstances.
A core part of our group's desire to form this community is to address access to affordable housing. This MHOS model further supports an equitable housing option by enabling low-income entrants to secure housing while requiring little-to-no initial deposit to join. In comparison to traditional community housing it allows members to acquire an equity pot which they take with them should they decide to move on from Project Home. This mechanism affords members a safety net when they leave and enables them to re-enter the housing market more easily.
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We are in ongoing conversations with Ecology Building Society, Co-op and Community Finance, Resonance and CAF Bank who have been supportive of our initiative.
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For full details on our MHOS model, and the mechanisms involved please download our MHOS and affordability briefing using the link below. This briefing paper was designed as part of or conversations with Blaenau Gwent local planning authority.
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CASE STUDIES
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Below are a number of case studies of functioning or planned MHOSs in the UK.
Sycamore
This group has offered great support for our project and is in the process of forming currently. They won a tender from Walthamstow Borough Council for a plot of land designated for community housing, against strong competition. They chose to adopt the MHOS model and this was instrumental in the council awarding them the tender as its position as an intermediate housing product was considered appealing.
Lilac
Leeds based and the first example of an MHOS in the UK. more info
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Quaggy
London based MHOS that followed on the pioneering work of LILAC and developed their own form of MHOS. more info