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Addressing Affordability
Olivia Harris
Dolphin Living
#UKAA17
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Addressing affordability through personalised rents
www.dolphinliving.com11 Belgrave Rd
LondonSW1V 1RB
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Dolphin Living• Established in 2005
• £124m Dolphin Square sale proceeds
• Rents that London’s workers can afford
• Westminster & central London focus
• £160m of net assets, £230m gross assets
• 630 occupied homes
• 450 unit development pipeline
• Charitable trust & subsidiaries including RP
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LONDON’S HOUSING CRISIS
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London’s housing crisis5
Since 2005 in London:
• House prices up almost 100%
• Rents up by 40%
• Median weekly pay has increased by only 20%
• Housing stock grew by 0.9% per annum
• Population grew by 1.4% per annum (source : Housing in London
2015)
• 2005-2011 natural growth provided the majority of population
growth (source : Housing in London 2015)
• 2011-2015 53% of population growth was from migration and 47%
from natural growth (source: ONS population dynamics, 10/2016)
• Combined these factors have contributed to a housing shortage
and affordability crisis
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
London house price, rental index and median earnings - 2005
=100, Source: ONS
House pricesRents
Median weekly pay index - 2005=100 Source: Nomis, ONS
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London’s housing crisis6
To understand why London Living Rent is necessary we need to
compare to market rents...
London Living Rent
London Living Rent reflects 33% of ward
median earnings
London Living Rent –“genuinely affordable”
– Mayor of London
This map shows London Living Rents
for 2 bedroom properties
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London’s housing crisis7
Borough median market rent Source: Valuation Office Private
Rental Market
Statistics October 2015 – September 2016
Camden £2,050 pcm
Ealing £1,450 pcmWaltham Forest £1,275 pcm
Lewisham £1,350 pcm
Southwark £1,560 pcm
Lambeth £1,625 pcm
H’smith & Fulham £1,835 pcm
Westminster £2,600 pcm
Hackney £1,820 pcm
London Living Rent
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PERSONALISED RENTS AT THE NEW ERA ESTATE
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Where:
x = Personalised Rent
a = Passing rent (or a base rent for new schemes)
b = The net income required to meet living costs (excluding
housing costs) and achieve an acceptable quality of life according
to Joseph Rowntree’s Minimum Income Standard for the United
Kingdom
c = Actual net household income
= + ( ) c – b – a2
x a
Personalised rent9
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Personalised rent10
£0.00 £500.00 £1,000.00 £1,500.00 £2,000.00 £2,500.00
£3,000.00
Couple working age @ £35k pa
Single working age @ £35k pa
Monthly £
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Impact of different household's living costs on Personalised
Rent
1bed Base Rent JRF MIS Living Cost Personalised Rent Uplift
Disposable Income
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Personalised rent11
£0.00 £500.00 £1,000.00 £1,500.00 £2,000.00 £2,500.00
£3,000.00
Couple working age @ £35k pa
Single working age @ £35k pa
Monthly £
Ho
use
ho
ld T
ype
& A
nn
ual
Ne
t In
com
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Impact of different household's living costs on Personalised
Rent
1bed Base Rent Personalised Rent Uplift JRF MIS Living Cost
Disposable Income
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Personalised rent12
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Rental outcomes:
- Efficient allocation of subsidy- Low bad debts, voids and rent
arrears- Rent certainty for tenants
Organisational outcomes:
- Financial: target gross rent (rent envelope) can be
fixed for an estate / blockvs.
- Charitable: homes can be let to those in greatest housing need
or targeted to certain workers
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Personalised rent
