Quality parity between public and private housing …
However, our main goal as Convivia is to create inspiring spaces, which will bring people and places together to create fun communities and transform lives.
We would not be able to achieve this by operating within conventional limits, but by establishing our own unique financial and procurement model, we can provide a specification for all public housing developments that is on par with the end. of the private sector – making luxury accessible to all.
Social housing is not social. In order to transform both perceptions and reality, we must change the space that is provided – not only because everyone, regardless of their background, deserves the same standard of living, but because in doing so we will be able to make a real difference to both the physical and mental well-being of thousands of people in the UK.
So yes, skeptics have every right to raise an eyebrow, as providing public housing to any quality standard has proven difficult as the economy is simply not functioning. But in the words of Buckminster Fuller, “You never make a difference by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.
Shouldn’t it be the government’s responsibility to ensure that public / social housing is of a good enough standard – why is private enterprise needed?
It should be the government’s responsibility to provide quality public housing, but due to the sheer demand for housing, the government does not have the capacity, through existing local infrastructure, to meet it. In the absence of stock, the government had to rely on the private sector which in turn provided housing of varying quality over the years.
Due to more recent tax changes and the high price of land, this private supply dried up and the stock was diverted to the more lucrative private sector. Unfortunately, to make sense of the economy, sometimes shortcuts are taken and the quality is reduced, the tenant suffers.
How to encourage more developers to invest in the public sector? Are the returns as good there?
The provision of housing in the public sector is not attractive to many developers as the income is relatively low compared to the private sector, although the cost of land and construction remains the same. In addition, income longevity may be more assured in the private sector, because – depending on the model used – the pound-for-pound return will be higher. In addition, the latest data shows that the market rent rate for the public sector is 20% lower than for the private sector.
However, I think developers could be encouraged to provide more social housing if the government introduced a tax incentive such as a reduction in stamp duty. The abolition of other levies could also prove beneficial, as well as any other measure aimed at compensating the promoter for the reduction in income of 20% he would suffer.
Ultimately, it also comes down to the motivation behind real estate development. Our main goal is to transform lives by revolutionizing the public housing sector – and although data and statistics point to a financial challenge, we have found a unique and innovative way to make this possible.
How important are sustainability and respect for the environment when it comes to building new homes?
Sustainability and environmental friendliness are both extremely important in the delivery of new homes. Unfortunately, many of the innovative measures are expensive and may not find their place in the development of the public sector where the margins are already slim. However, all developers have a responsibility to the planet to ensure that we are doing our best to provide sustainable stock.
Can houses be both good quality and affordable? And what does affordable really mean? Developers often have affordability quotas, but what is affordable for one may not be affordable for many others.
It’s very subjective as to what “quality” means in the affordable housing space. Some developers may have affordable quotas as part of their planning terms, although often the quality of this stock does not reflect that of the rest of their development.
Instead, we have established a model that truly creates parity between luxury in the public and private sector. This means that our housing design will be equal to that of high end apartment complexes, instead of falling into the trap of providing ‘quality social housing’, which is common in developments across the UK. .
* As part of our special Black History Month investor series, we spoke to Roy about barriers to investing for the black community, how more can get involved in property, and how to get involved in property. his greatest achievement in his current role. You can read this interview here.