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The Isle of Man is looking to change the way it delivers social housing ––and has turned its eye to Jersey for inspiration.
Lindsay Wood, Andium Homes' Chief Finance and operations Officer, said the provider was helping the Isle of Man with a "feasibility study for a new social housing delivery model based on the Andium Homes experience".
The Crown Dependency’s Chief Minister, Alfred Cannan, was among the delegates who came to Jersey last month for the 39th British and Irish Council (BIC) summit.
Since then, Mr Cannan has told Isle of Man press that Jersey's model seems like a possible way forward. The Isle of Man currently runs a housing deficit of about £6.5m covered from public funds, resulting from the gap in spending on social housing versus the income from rent.
Mr Cannan said an association model – like Andium – may close that deficit, and even result in a net increase to public funds.
"The creation of a housing association, were it to happen, would potentially allow for a complete change in approach for the management of social housing but also allow greater flexibility for investment into other types of housing," he said.
"In the UK housing associations are now commonplace and although they run as commercial organisations, they re-invest their profits back into housing provision."
While in the island, he met Andium representatives to learn more about the company’s business model and incorporation from the Government of Jersey Housing Department to Andium Homes Ltd in 2014.
Ms Wood explained: "We showcased our successful business model, which is fully funded by the rental income we receive from our stock of 4,700 homes.
"We charge our rents in line with the Government’s social housing rents policy with our average rent reflecting 70% of market, and an annual increase capped at 4%. We also return approximately £29m each year to government."
Pictured: Isle of Man Chief Minister Alfred Cannan – here on a tour of The Limes development – was among the delegates who came to Jersey last month for the 39th British and Irish Council (BIC) summit.
She continued: "We explained that one of the key benefits of creating the company was the ability to reinvest our capital into our refurbishment programme, enabling us to maintain our homes to the Decent Homes Standard and increase it further to the higher Modern Facilities standard."
BIC delegates were also given a tour of Andium’s development at The Limes, where modern methods of construction are being used to deliver 130 new homes by next year.
Ms Wood added: "Our capital programme is well established, and we continue to develop at pace, with more than 800 homes completed, and almost 1,000 under construction or in contract.
"We are on track to deliver our ambitious target of 3,000 new homes by 2030.
"We are looking forward to continuing to work with the team in the Isle of Man to share our social housing expertise and helping them with their feasibility study for a new social housing delivery model based on the Andium Homes experience."
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