The challenge
In recent years, many housing associations have become more active in rationalising their stock. Drivers include a desire to reallocate legacy stock that is operationally or geographically hard to manage, the need to invest to meet retro-refit targets or, simply, to monetise specific homes that have benefited from significant capital appreciation over time.
In selling to Beehive, a key objective could be to create a capital receipt to be reinvested (as an equity contribution) into new affordable developments. This would increase the net overall stock of affordable homes in the UK. Other objectives could be to realise strategic goals, such as achieving retrofit or building safety targets.
Our approach
Beehive pays housing associations a fair open market price with the important reputational safeguard they will remain as genuinely affordable homes. They will be leased to local authorities at truly affordable rates (70-75% of the Local Housing Allowance), enabling them to cut costs on often sub-standard temporary accommodation.
Once a decision has been made to dispose of stock, it is far more efficient to transact with a single, bulk, corporate buyer such as Beehive than to sell to individual purchasers. It also makes sense to transact with a buyer that, like Beehive, has established documentation and significant financial backing to enable portfolios to be acquired at speed.
Positive impact
We deliver a material social impact because, via Beehive, the homes will pass to a local authority, ensuring the homes continue to remain as affordable stock.
Because the raised capital can enable the development of new homes, such a disposal would actually create a net increase in the number of affordable homes available in the sector.
We award retrofit grants (£10-£15k) to any leased homes falling below an EPC rating of C. Beehive also allocates approximately 10% of its operational profit to voluntary and community sector organisations tackling the housing crisis in the areas we operate in.
Selling properties to Beehive also gives housing associations an opportunity to build new bridges and enhance relationships with the local authorities that lease them – we always give registered providers full visibility of which councils the homes go to.
