1. PRINCE BISHOPS HOMES

2. The Need For Change-Financial Crisis 2008

3. Northern Rock

4. Keith Tallintire April 2010 The Private Housing Market Sector in the North East

5. Derwentside Homes Invest £18M (increased by additional £42M) into PBH wholly owned subsidiary – all surpluses gift aided up to DH & re-invested in social housing. Targeted at those who cannot access a mortgage. No grant. Reputable Landlord. Homes let at affordable rent levels on AST. (Ave £520 p/m) Offer an innovative “rent then buy” option after 4 years (entry onto the housing ladder). Inject cash into Local Housing Market/economy to protect jobs. Solution

6. Purchase cost say £90,000 per unit. Base cost agreed with tenants £100,000. After 4 years tenant can purchase & share 50/50 in any equity gain. Base cost £100,000 Market value (4yrs)£120,000 Tenant Share 50% £10,000 PBH surplus on sale £20,000 Tenants share capped at £20,000 “Rent then Buy”

7. Affordable model. Route to get onto housing ladder. Self funding, without grant. No commitment / extra cost to tenant. Funds re-cycle into Derwentside Homes to support social housing. Quick. (no mortgage needed day 1) PBH ADVANTAGES

8. PROPERTIES

9. Durham City – 5 bed £141,000 £650 per/month Quaking House 4 bed - £125,000 £595 per/month Property Range

10. Ushaw Moor – 3 bed £90,000 £495 per/month Crook 4 bed detached - £103,000 £600 per/month Property Range

11. Willington – 12x3bed & 2x4bed Project nameLocal Authority No. units Project Value £'000 Tenure Commentary WillingtonDurham (RtB)14£1,365 3/4 bedMarket RentComplete November 2014

12. New Brancepth 9x4bed homes Project name Local Authority No. units Project Value £'000 Tenure Commentary New BrancepethDurham9£1,365 4 bed Market RentCompletion February 2015

13. Coxhoe 34 homes Project name Local Authority No. units Project Value £'000 Tenure Commentary CoxhoeDurham34£3,722 3/4 bed Market Rent Start on site February 2015

14. Hamsteels School Site 32 homes Project name Local Authority No. units Project Value £'000 Tenure Commentary Hamsteels SchoolDurham39£3,393 3 bed hse 2 bed bung Market Rent Legals in progress/planing permission progressing

15. Weavers Croft Crook -34x3bed Project name Local Authority No. units Project Value £'000 Tenure Commentary Weavers CroftDurham (RtB)34£2,981 3 bedMarket RentCompletion September 2015

16. Langley Park 15x3bed 2x4bed Project name Local Authority No. units Project Value £'000 Tenure Commentary Langley ParkDurham17£1,600 3/4 bed Market RentStart on Site Q1 2015

17. Eastfields, Chaucer & Humber – 15xbungalows 9x3bed Project nameLocal Authority No. units Project Value £'000 Tenure Commentary EastfieldsDurham (RtB)12£1,046 2 bed bung/3 bed houses Market Rent Started on site completed June 2015 ChaucerDurham (RtB)5£414 2 bed bung. Market Rent Started on site completed June 2015 HumberDurham (RtB)13£1,235 2 bed bung. Market Rent Started on site completed June 2015

18. Fellsdyke 36x2bed apartments Project nameLocal Authority No. units Project Value £'000 Tenure Commentary Fellsdyke Gateshead (RtB)36£3,334 2 bed apart Market Rent In progress completed March 2015

19. Development Programme Prince Bishops Homes currently developing on 13 sites throughout North East to deliver 288 new homes at a cost of £25.8million within next 12 months.

20. Innovative model to deliver without grant a large number of affordable housing. PBH model “recycles” surpluses back into a RP thereby requiring less grant for the RP. Designed to help those who cannot access a mortgage but can move from renting to home ownership by building up a deposit while they rent. Developments containing all PBH we consider to be 100% sites of affordable units. Model includes mechanism to ensure offered to local families and/or households with limited income. Offers low cost homes & ability to move from rent to ownership. Features

21. Government support through “Build to Rent” programme. PBH only RP in north to be successful & is delivering 114 new market rent units through this programme. Structural change in UK housing market post credit crunch this has created gap in market for models such as Prince Bishops PBH model. Price sensitive works best in north where house values low and yields high. Features

22. Planning Framework NPPF – Definition Affordable Housing “Affordable housing/ intermediate housing should include a provision to remain at an affordable price or for the subsidy to be recycled for alternative affordable housing provision. DCC delivery of affordable housing including intermediate housing for sale or rent. Types of intermediate are: Shared ownership Low cost homes for sale or Homes where purchaser moves from renting to buying.

23. CUSTOMERS

24. PBH Customer Analysis “We have been renting for the last 2 years but want our own home. We looked at the option of buying a brand new home but due to the restrictions from mortgage lenders & the amount of money we needed to save it was not possible” (Stephanie Mavin) Customers tend to be those who cannot access mortgage either due to lack of deposit, poor credit history or variable income. Targeted at household incomes 0f £25,000 p.a. Allows them to spend £500 p/m on rent, require a 6% yield which gives target house price of say £90,000. Mobility – cutomers changing jobs.

25. , Customer Profile

26. , Customer Status

27. , Customer Income

28. Case Study For Joanne, who works as a carer and is also studying healthcare at New College Durham, Prince Bishops Homes offers the best of both worlds. The 41-year-old said: “Prince Bishops Homes is perfect for me – at the moment I’m not able to buy a house as I’m studying and am hoping to go on to do a degree in nursing. “Renting at the moment is perfect but in four years time, when I will be offered the chance to buy the house, hopefully I will have a new career and be able to get onto the property ladder.”