Why extra care housing is still the right answer… Nick Abbey ExtraCare 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 ExtraCare Charitable Trust different? “Conventional” extra care Rent/shared ownership or sales homes? Most receive care – alternative to residential care Grant ExtraCare 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 Y1 £000 Y5 £000 Operational income 2,9643,358 Gross operating surplus Equity growth Central overheads Net Surplus % %

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

Capital Grants? Examples: Pannel Croft in Birmingham: 180 apartments, 80% rent, 20% s/o Grants: £13m 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£117 –s/c£ 49 Pannel Croft (180) –Rent£101 –s/c£ 33 A N Other (34) –Rent£114 –s/c£ 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-for- profit