Funding Extra Care Housing: a piece of cake or leftover crumbs? Jeremy Porteus 25 September 2012

Is quantitative easing delivering? £1.75 trillion bail out of banks in UK (IMF) £375 billion pumped into the UK economy as part of stimulate growth (The Guardian) £100 billion new mortgages (BoE) £40 billion for infrastructure and £10 billion for new homes (DCLG) £570 million for Get Britain Building (HCA) £200 million confirmed allocation of government capital funding for housing with care and support over 5 years (DH) Yet, 2 out of 5 house sales are with people over 50 (Right Move). Have we got the balance right?

At the same time, no u-turn on deficit reduction £20 billion efficiency savings in NHS (NHS operating framework) £1 billion reduction in adult social care spend (ADASS/LGA) £20 billion savings to welfare budget (DWP) Local government settlement 26% reduction in cash terms (DCLG) Whitehall departments cut by 34% on average (Treasury) Next Comprehensive Spending Review to come and expect further cuts in public expenditure!

Forecasting demand and supply 90% of older people live in ordinary housing Nearly 70% are home owners, the remainder are predominantly in social housing Supported housing for older people accounts for less than 5% of the market (729,818 units) 1.5m individuals report having a medical condition or disability that requires specially adapted accommodation Shortfall of supply in specialist housing with care to keep pace with demand, including housing for people with dementia Less supply often in rural areas

Rising expectations Dilnot Commission on Paying for Care & Support - the Commission hopes that more people will be able to consider extra care housing in the future, if they are more aware of this type of provision and can be more certain over their financial planning. -..there is also an indication that they help people to avoid moving into more intensive residential care settings Age of Opportunity (CSJ) -.. We believe that as as country we have not yet realised the potential of extra care

Sustainable solutions for independent living How might accommodation and care for older people change over next years to cater for ‘baby boomers’? What impact will changing wealth and tenure on accommodation and services older people might want as opposed to might need? What will the implications of levels of equity held by older people, a self funder market? How best to use the considerable asset of sheltered housing? What policies/strategies in place for age-friendly communities?

Community Chest of Chance? Land/LISTs/Asset vehicles Capital allocations Second homes monies Housing Revenue Account HCA funding and public & private partnerships Department of Health funding Registered Providers borrowing Developer investment REITs Community Land Trusts Finance houses/BS bank Pension Funds Social Impact bonds New market entrants The Trees – Highgate, London

Remember the care in Extra Care Housing! The ‘care’ in Extra Care Housing is what makes it but… Impact of demise of Supporting People funding Tightening eligibility criteria and Increasing self-funder market Major drive towards personal budgets to achieve care efficiencies (or create new excluded groups?) And then there is welfare reform/ housing benefit changes How to keep housing with care affordable (rent, sale, shared ownership, intermediate rent, commercial/retail) Manage risk to avoid a Southern Cross

Some high level interventions Increase the stock of housing suitable for older people and lessen the distinctions between different housing types - HAPPI Create an environment where the market is led by owner occupiers and recognise that older people will invest in housing provision. Planning system needs to recognise the diversity in style and viability of tenure & neighbourhood mix eg price range and design Ensure we use the sheltered housing asset to maximum public benefit of older people. But, is there a point when existing accommodation is no longer suitable? Waverley Gardens - Bristol

Opportunities or Challenge? Is there the case for Extra Care for maximising independence for people with dementia or is the future more residential care and home based care and support – ‘Living Well at Home’? Are there other market opportunities such as reablement, telecare, co- housing, homesharing, social capital, dementia or end of life care? What strategies and policies are in place to engage, involve and listen to the housing with care needs of older people and their carers - a ‘Living Lab’? Can you cut the cake!?

Thank You Jeremy PorteusHousing LIN c/o EAC 3rd Floor, 89 Albert Embankment London, SE1 7TP UK tel: tel: website: