We are setting up three new companies
28 February 2018
We are setting up three companies to offer sector first flexible rents and mentoring, build new homes and provide an estate agency service
We are delighted to announce that following extensive member consultation and in-depth customer engagement, Red Kite will be setting up a new group structure that includes a property, commercial and unique charitable housing company.
With a plan to provide 375 new homes by 2021 and further scope to provide even more through our partnership with the local Council, we have a vision to truly realise the potential in our communities. With our new subsidiaries, we will also be able to offer different tenure types, setting flexible rents that are based on a person’s ability to pay and providing bespoke mentoring programmes to improve people’s independence.
Following widespread consultation over the last 12 months with our customers and shareholding members, our plans are the culmination of all the customer feedback we have had over the years. In particular, problems with managing antisocial behaviour and being able to offer different rent levels are a priority for our customers, so we believe that the set-up of these new companies will allow us to bring a whole range of benefits to the local area.
With each of the companies wholly owned and managed by Red Kite, existing Red Kite tenants will not be affected in terms of their rights and opportunities, but they will benefit from our ability to manage antisocial behaviour in a much fairer, clearer and faster way and generate a profit for purpose that we will reinvest into the community.
Here is a brief summary of each company and its offer to customers:
Our new charitable company, Twenty11: this unique organisation will be first of its kind in our sector, allowing us to provide a fairer housing solution that caters for individual affordability. New tenants will have an option to rent homes that are part of the charitable company and pay rent that is based on a household’s ability to pay, which could be either more or less than those charged by Red Kite. The freedoms also mean that we can manage antisocial behaviour much faster and fairer, in line with standards set by tenants themselves.
Distinctly different from what is already available to some customers when it comes to financial budgeting, Twenty11 will give people access to a bespoke Community Potential Specialist that encourages positive behaviours, a change in mind-set when it comes to independence and a desire to develop their skills and talents to realise their potential.
Our new property company, Edenmead: this will contribute to our development programme by providing brand new homes for outright sale. Our venture into building different tenure types allows us to cover the subsidy required for low rent housing which we know that our local community needs. Edenmead will start offering homes off plan, early in 2018.
Our new commercial company, Pennvale: this company will allow us to provide non-charitable services, such as the set-up of a lettings agency, and will see us manage market rent and affordable homes. It will also offer a modern and trusted service to both local landlords and those seeking quality, private rented accommodations, from an organisation with experience of managing a large portfolio of homes.
As an innovative organisation, Red Kite aims to realise the potential in our communities and work towards delivering on the inclusive growth agenda to create more sustainable and inclusive societies. Following positive conversations with Homes England (formerly the Homes and Communities Agency) and the Ministry of Housing, Communities and Local Government (formerly the Department of Communities and Local Government), we know that this is the right thing to do for our customers, but also our wider society.
Trevor Morrow, Chief Executive, said: “Setting up our new Group Structure in this way, particularly the charitable company, is a sector first and something we have been working towards for the last 18 months. I am incredibly excited about the potential that we now have to use freedoms to truly deliver options for those who need a helping hand to get established in a home and career. We want to be able to respond to changes in people’s circumstances and offer flexibility as they move through various stages in their lives, which ultimately help them improve their life chances and access different housing options. By moving some of our empty and future new-build homes into a new portfolio of available homes in the charitable company, we are able to do much more for local people and truly make work pay”.
Mike Gahagan, our Chairman, stressed that the new group structure would enable Red Kite to broaden and improve its offer to residents of High Wycombe. He said: "Our Board regards it as important that we seek to constantly improve the quality of our service, both to our customers and to others within the area. We believe that our new structure enables us to do this. We are well aware that some of our initiatives are innovative and the Board has been keen throughout that we pilot such approaches and monitor them carefully so that we can learn and improve. In summary, we are aiming to provide a range of services designed and delivered for the 21st century".
Our new charitable company, Twenty11, will allow us to:
- Provide a fairer housing solution for everyone and cater for individual affordability
- Offer tenancy periods that support changes to lives of our customers, covering major milestones with a range of options
- Take tenant-led to the next level, giving customers more opportunity to make decisions about their communities
- Offer a Community Potential Specialist that encourages independence and coaching through employment
- Set greater expectations of people’s responsibilities
- Encourage good behaviour from people living in our homes and deal with bad behaviour earlier, and more fairly, in line with standards agreed by customers
Watch our member consultation video which explains the benefits in more detail.