Targeting priority groups Yvette Ruggins Sales Director & Chair of NHF s Home Ownership Advisory Panel
Introduction Introduction to Affinity Sutton Definition of priority groups Marketing to the MOD Marketing to social tenants Learnings & barriers Role of the Local Home Buy agent The future
Shared ownership s 2 priority groups Serving military personnel Social tenants (RP or LA)
Serving military personnel
Serving military personnel source of information Affinity Sutton experience MOD presentations LHBA experience Radian s equity loan scheme - Armed Forces Home Ownership Scheme (launched Jan 2010) Only recently recording MOD applicants
Serving military personnel backcloth to marketing Backcloth of war, redundancies & change Mobility vs. stability Role of tied accommodation Increasing aspiration (& expectation) of home ownership Strong support of government backed schemes
Serving military personnel profile Service 4-6 years + Lower to middle ranks Good level of savings Quite high levels of debt 50% of completions in the SW Family accommodation most popular (equity loan)
Serving military personnel how to reach them (1) Discreet marketing communication channels: Joint Service Housing Advice Office (JSHAO) HIVES Individual bases Magazines such as Housing Matters or Pathfinder
Serving military personnel how to reach them (2) Tailor message and keep simple Avoid marketing alongside social tenants (stigma) Case studies (need sign off by MOD Comms team) Key source of enquiry is WOM & base briefing (54% vs. 36% LHBA database) Internet as source of enquiry is low (18% vs. 31%)
Serving military personnel barriers to home ownership Role of tied & other accommodation Implications of being stationed abroad: multiple addresses, no UK address, missed/late payments whilst away Mobility vs. stability (research) Ensure Power of Attorney to allow purchase to proceed whilst away Reluctance to feature in case studies
Social tenants
Social tenants source of information AS experience (profiled last 100 tenants helped into home ownership) Research & task forces LHBA experience
Social tenants the theory & the practice 100% supportive of theory Marketing needs to be joined up & focused Headline marketing by LHBA Individual scheme marketing by RP RP s role in feeding the longer term pipeline Balance between marketing & voids 12% of approved applicants on LHBA websites 6% of completions
Social tenants Affinity Sutton s approach Launch schemes to social tenants for an exclusive period Trying ring fencing of certain % of units Social tenants are always prioritised 3 prong attack: Raise awareness amongst all tenants Market specific schemes to local tenants Internal awareness building especially front line staff
Social tenants a case study (1) AS has 17,300 rented properties in SE London Bromley, key area of strength (15,500) 2 quite different schemes to be marketed at same time use to understand drivers & barriers Both a second phase
Social tenants a case study (2) The two schemes: Re-generation in Orpington (3 bed houses) Prestigious scheme in Bromley Common (1 & 2 bed apartments)
Social tenants a case study (3) Mass mailing of AS tenants followed by First Steps tenants High levels of enquiry from both groups 2 types of enquiry informed, wanting to know next steps OR curiosity about the option but quite often not having income or desire to become a home owner First Steps tenants much better informed & engaged
Social tenants case study the results so far Orpington scheme: 1 st release - 5/6 houses reserved to social tenants (6no social rented homes released) Bromley Common scheme: 8 flats reserved so far with 1 to a social tenant & 3 to children of social tenants Helping children: assists social mobility; improves the lot of the next generation; may release a property in the future (under occupation)
Profile of social tenants interested in home ownership (1) 36% of social tenants want to be home owners (50% London) Seek stability; social mobility, stake in community, pass equity on Skew towards RP tenants (rather than LA)
Profile of social tenants interested in home ownership (2) Most earn less than 40,000 with trigger at 30,000 London - AS: 73%; First Steps: 87% vs. 81% (total database) Outside London AS: 83% (similar to overall database)
Profile of social tenants interested in home ownership (3) Deposit is a real or perceived issue: 66% of tenants say they can t afford a deposit Social tenants likely to have lower savings (disproportionate number of 95% LTV mortgages) 18-34 year olds twice as likely to consider than older tenants
Profile of social tenants interested in home ownership (4) More likely to have children Stated preference for 3 bedroom houses Good spread of actual property types purchased (especially 2 bed apartments) They like resales!
Social tenants sources of enquiry Initial sources of enquiry: wider range of sources in London: 34% via LHBA 10% via LA 13% via AS mailings Outside London: 46% LHBA LA referrals & AS mailings less effective
Social tenants key learnings (1) Analyse sales history : which schemes were the most popular? London it s just easier Focus on boroughs with high concentrations of stock e.g. Bromley, MSDC High profile, prestigious schemes Family houses (especially 3 bed) Re-generation areas (not necessarily current residents)
Social tenants key learnings (2) It s a numbers game need to improve conversion rates Low awareness amongst AS tenants 2/3 of tenants are on benefits Need to improve data collection
Social tenants barriers to home ownership Why move from a rented house? Social rented tenancies are secure & increasingly valuable why give it up? Deposits perception & reality Restricted mobility cross borders Perception that shared ownership is only smaller flats
Role of the LHBAs Important! Headline marketing Feeding the pipeline Work with RPs to promote shared ownership to their social tenants & staff Homeswapper Encourage Local Authorities to do more Share best practice amongst other LHBAs
The Future (1) Dispel the myths 5% deposits Mortgage availability Range of properties available Resales
The Future (2) Proactive asset management help move along the tenures social/affordable rent; Rent to HomeBuy; savings schemes etc Government initiatives e.g. Foot on the Ladder Family-sized homes What impact RTB?
The Future (3) Continued priority Need to do better but be mindful of the barriers Co-ordinated focus by RPs, LAs & LHBAs
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