1. we can CEO, Family Mosaic 8 Questions (and some Answers) about The New Affordable Rent Model Brendan Sarsfield

2. we can What is Family Mosaic? Landlord (rent and leasehold) Support Provider Developer Community Support Agency

3. we can Family Mosaic Own 23 000 homes 3000 supported homes 2000 shared ownership homes 95% in London 5% in Essex Support 2000 residents living in homes we do not own

4. we can Q1.What is the New Model? 90% Private finance/10% grant Rents up to 80% Market rent Other forms of HA subsidy still needed to make it work Relets of some existing homes at same new high level rent

5. we can The New Model Well intended More complex than first thought And so Family Mosaic organised: Research into effect on residents Analysis of effect on accounts Consultation with Local Authorities

6. we can Q2. Who is the new model for? Existing Client Groups Better than Private Rented sector/no housing Research suggests unaffordable Welfare Reform likely to make this worse New Client Groups Helps those caught between social and market Challenges existing nominations contracts Use of relets reduces the number of homes available for existing groups

7. we can Q3. What does it mean for our customers? Family Mosaic commissioned independent research showing: 1.60 and 80% MR unaffordable in Inner London. 2.HB bill will increase by 150% 3.Increases disincentives to work. 4.Outer London works better as MR’s lower. 5.Welfare reforms will make it even harder

8. we can Q4. How can we respond positively? Family Mosaic want to: Retain focus on existing tenant groups Keep relets at low rents Charge rent at maximum of 60% market rent on new homes Use sales rather than relets to meet funding gap Work with local authority partners to deliver common goals

9. we can Q5. What does this mean for Family Mosaic’s finances? Family Mosaic Loan book £600m Borrowing constrained by covenants Gearing – Limits how much you can borrow against your assets. Interest Cover – net income must be greater than interest Our Limit – 65% Gearing (42% today) - 1.1 Interest cover (1.2)

10. we can Family Mosaic’s Finances Present model (pa): 600 homes for rent 300 shared ownership New model (pa): 250 homes for rent 250 homes for sale

11. we can Q6. Do we want to play? Family Mosaic will bid because: Homes still needed, We don’t know where this is going, but Only a 250 unit rented programme No relets Unsure about larger homes

12. we can Q7. What are other HA’s doing? Diverse response From ‘Is it worth it?’ to ‘All in’ Overall smaller programmes Business Plans stretched –capacity issue. Majority using relets to make work Programme likely to be delivered

13. we can Q8. What does it mean for local authorities? Less homes for current client groups. Problems with Regen schemes Winners and losers Need for London wide lettings How can Councils help make scheme more affordable?