The Isle of Man could soon see the first large-scale not-for-profit housing association set up as part of proposals for a major shake-up.

The Department of Infrastructure (DoI) commissioned a report to look into a housing strategy with a need to provide more housing a priority as part of the Our Island Plan.

The report by UK-based consultants Altair Ltd, which cost £79,290, has now been published and will be put before Tynwald next week by DoI Minister Dr Michelle Haywood.

Currently, all social housing on the island is either managed by the Department of Infrastructure or by local authorities.

There is no independent, not-for-profit housing association - common in the UK - that owns or manages social housing stock outside of direct government or local authority control.

The new body proposed in the Altair report would be a standalone entity, operating independently with its own board.

Any such entity would take over management and ownership of 1,260 properties, oversee housing development and provide homelessness support services.

The report sets out a five-year roadmap for how the new housing association could operate.

In its first phase, the proposed housing association would act as a landlord by managing day-to-day maintenance, rent collection, and tenant services, while the government retained ownership of the properties.

And over time, the new entity would transition into a fully-fledged stock-owning body, with the ability to borrow against the value of the properties to fund the construction of new homes.

This, the report says, would bring more long-term investment into the island’s housing sector while reducing reliance on government capital spending.

In a summary of its findings, the report says: ‘We recommend the Department of Infrastructure should progress the establishment of a not-for-profit Housing Association.’

‘The government’s vision is to build a strong and diverse economy, built on firm foundations. Having sufficient affordable housing which meets the needs of the population now and in future is one of those foundations.’

The consultants argue that a dedicated housing association would mean better investment, improved service delivery, and increased flexibility to meet specific needs such as housing for key workers, young people, and the elderly.

Initially, the housing association would be funded through a management fee paid by the DOI, with the aim of ensuring continuity of services for tenants while new systems are put in place.

The report recommends a phased approach, with full transfer of the housing stock to the new association expected after two years.

During the first phase, the association would also take on management of 32 units owned by the Ballacurn House Trust, deliver homelessness prevention services in partnership with existing providers and administer the Home Purchase Assistance Schemes (HPAS).

The report outlines that the DOI currently generates a surplus of around £5 million a year from housing which is used to support other services within the department.

But if the proposal comes to fruition, this surplus would be pocketed by the housing association and would be reinvested directly into activities such as repairs, upgrades and new developments.

The report acknowledges that this would create a budget shortfall for the DOI but argues the overall benefit to the housing system would outweigh the cost.

A number of representatives from the island’s local authorities were interviewed as part of the three-month consultation process for the report, including representatives from Braddan, Douglas and Ramsey Commissioners.

The report does not name individuals or directly attribute comments, but it notes that: ‘Some interviewees were keen to emphasise their success as a local housing provider, which they suggested was not being recognised by the Isle of Man (IOM) government.

‘One interviewee suggested that, rather than transferring Department of Infrastructure (DOI) stock to a new housing entity, it should be transferred to their local authority instead.

‘Some interviewees reported concerns about a possible forced transfer of local authority stock to the new housing entity.

‘They were concerned about the implications of the local authority losing such a valuable asset, in this scenario.’

Representatives from three housing support providers, namely Housing Matters, Locate IOM and Manx Care, were also quizzed on the potential plans as part of the interviews.

The report notes that: ‘The three organisations interviewed were generally more supportive of the proposals than the local authorities, although they stressed that more information on the details was needed before they could fully commit their support.’

The idea of establishing a housing association on the Isle of Man has been under discussion for several years.

However, the decision to commission the report couple with its findings represents the first tangible steps in the concept becoming a reality.

The publication of the report comes ahead of a planned ministerial statement in Tynwald, where Dr Haywood is expected to outline the government’s next steps and confirm whether the proposal will be taken forward.

The full report is available online via the Tynwald Register of Business.

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