ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Opening the door to tenant shareholding

Richard Peacock explains why Soha Housing has decided to become a mutual

Linked InTwitterFacebookeCard
Sharelines

Opening the door to tenant shareholding, by Richard Peacock

Twenty years ago, council tenants in South Oxfordshire held a lot of power. They used this in a vote which resulted in the birth of Soha Housing. Since then, they have lost the power to determine their landlord and other critical decisions affecting them. This story is true across much of the country.

Where we think it’s a good thing (and I do!), housing associations consult, involve and empower tenants to have a say in service and strategic questions. But we do so voluntarily. Since the demise of the Audit Commission and the undoing of the Tenant Services Authority’s tenant-focused regulation, no-one checks that this happens and there is no recourse for tenants if we do not.

We’ve had years of focus on the financials, on stress-testing, business risks, managing assets – and that’s all crucial of course. But so are the people who pay my wages and yours. We already provide homes that are better than those in the private sector: more energy efficient, secure, and affordable (although sadly becoming less so).


READ MORE

Association plans pioneering mutual modelAssociation plans pioneering mutual model
Mutually beneficialMutually beneficial
Value for money hasn’t gone awayValue for money hasn’t gone away

At our best, I believe we understand that we owe tenants transparent information and the right to have a say over decisions about their homes and communities. But how can we do better at giving genuine accountability and, I would argue, the necessary power to tenants?

Well, we’ve been considering and consulting for about two years and now Soha has decided to open up and encourage shareholding by all and any tenants who are interested. We’ve written resident involvement into the rules and followed excellent organisations such as Community Gateway in hard-wiring resident involvement to member voting.

“Through these changes to our rules, we hope to hardwire the ethos of mutual respect and partnership which has characterised Soha’s approach to co-regulation.”

Through these changes to our rules, we hope to hardwire the ethos of mutual respect and partnership which has characterised Soha’s approach to co-regulation. We believe that this move to a more formal and legal accountability is the right structure to underpin our purpose, vision and values.

Tenants who choose to join will have a vote for board members. They will also have a vote on changes to the rules and on how we involve residents.

I’ve been told more times than I can count that we are travelling in an unusual direction. It is depressing that this is the common view. Our board has debated the risks and opportunities and concluded that the latter far outweigh the former.

The many advantages of running as a mutual were captured by the Confederation of Co-operative Housing in its recent report and I’m proud that Soha will formally join the likes of Community Gateway, Rochdale, Merthyr Valley and Phoenix in having accountability to tenants, not at the whim of the current board, but tied into our rules. In other words, tenants of a mutual have real power.

Power isn’t a fashionable word to use about the relationship between a social landlord and its tenants. But I’m fed up of the sidelining of tenants.

Taken together, we as a sector are the nation’s biggest housing charity, and tenants are the main funders whose rent pays not only for their home but for affordable housing for the next generation.

“We as a sector are the nation’s biggest housing charity, and tenants are the main funders whose rent pays not only for their home but for affordable housing for the next generation.”

Rental income is our main income by a long way. Not only do tenants pay our wages, but the surpluses from the rents paid help to fund new homes. The money we borrow is secured by tenants’ homes.

So maybe it’s time we stopped seeing tenants just as beneficiaries of the housing charities, but rather understand they are also our main funders. They are the reason we exist and they are deserving of and entitled to accountability from those who run housing associations.

The answer won’t be the same for every association. But the challenge to have real accountability to the people we exist for and who are our main funders is a crucial question for every one of us.

Richard Peacock, chief executive, Soha Housing

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.