Why extra care housing is still the right

Why extra care housing is still the right answer… Nick Abbey Extra. Care Charitable Trust

Vision and Mission • Vision • Better Lives for Older People • Mission • To give older people an independent, safe and secure future in a network of inspirational communities

What we do • Housing with care in villages and smaller schemes • For anyone – rent, buy, shared ownership, with or without care and support • 3555 apartments • 1500 staff

How is the Extra. Care Charitable Trust different? • “Conventional” extra care • Rent/shared ownership or sales • 40 -60 homes? • Most receive care – alternative to residential care • Grant • Extra. Care Charitable Trust • Mix of “full” sales, s/o and rental (50: 30: 20? ) • 250 homes typically • Lifestyle • Minority receive care (25% - 33%? ) • Activities and volunteering • Low/no grant • Sales cross subsidy

• • • Arts and crafts centre IT suite Library Woodwork Relaxation room Winter garden/indoor bowls • • • Restaurant/bar Shop Village hall Hairdressing Greenhouse Well-being centre Enriched opportunities Laundry Fitness gym Spa pool

Shenley Wood, Milton Keynes

Hagley Road, Birmingham

Pannel Croft Opens!

The Happi Report • “…all the facilities and amenities these projects have so brilliantly incorporated. ” • “. . it is here that the retirement villages…score so well. ”

The Happi Report • “The inquiry heard how it may no longer be practical, however desirable, to advocate a rapid expansion of extra care housing with all the facilities these projects have so brilliantly incorporated…”

• “These extras…can absorb 40% of the floor space… And paying the service charges to sustain all these, usually well appreciated facilities can be a burdensome cost to residents. . and to the State. . ”

• “. . current age of austerity…cut one’s cloth. . club room with kitchen facilities. . ” • “. . reduce requirements for expensive communal facilities and on-site staff. ”

Appraisal model – Hagley Road • 114 sales • 78 s/o sales • 49 rented • 241 • Aim to sell 80. 2% equity • Av price £ 214, 661 • Av receipt £ 172, 233 Y 1 £ 000 Operational income Y 5 £ 000 2, 964 3, 358 Gross operating surplus 462 Equity growth 16 133 Central overheads -74 -84 Net Surplus 632 404 681 13. 6% 20. 3%

Loan required • • • Capital costs £ 45, 096 Grant -£ 1, 200 Fundraising -£ 500 Sales proceeds -£ 33, 069 Loan required 10, 327 • Facility from Lloyds 2012: £ 120 m

Capital Grants? • Examples: Pannel Croft in Birmingham: 180 apartments, 80% rent, 20% s/o • Grants: £ 13 m • Coventry: 20% rent, 50% sale, 30% s/o, 262 apartments • Grants: nil “Money is never the problem with a good idea…”

Burdensome service charges? • Birmingham • New Oscott (260) – Rent – s/c £ 117 £ 49 • Pannel Croft (180) – Rent – s/c £ 101 £ 33 • A N Other (34) – Rent – s/c £ 114 £ 48

Reasons to say yes! • Improved health and wellbeing • Antidote to loneliness through “accidental contacts” • High demand to buy (and cross subsidise) because of the lifestyle – (probably not for a clubroom/kitchen. . )

More reasons… • US, Australia, New Zealand, China, Holland… • Family houses back in use for families • Integrate housing, health and social care

ARCO • Associated Retirement Community Operators • Launches March 2013 • Private and not-forprofit

Nick. Abbey@extracare. org. uk 02476 506011 www. extracare. org. uk