May 2013

Members of a North West housing co-op have purchased their home after receiving a loan from us. Now they want to help others do the same.

The four members of Castle Rockdove Housing Co-op have been living together for a number of years but formally set up as a co-operative two years ago, after being spurred into action by the news that their landlord wanted to sell. They recently drew a loan from Co-operative & Community Finance to help buy their flat in Rockdove Avenue, an estate of 245 flats in Hulme, Manchester which was built as council housing in 1948.

The four flatmates are also members of other co-ops – Carbon Co-op, Glebeland City Growers and Manchester Radical Social Centre – and say that living and working co-operatively allows them more time, energy and freedom to spend on projects which will benefit their community.

Matt Fawcett, who has lived in the flat for 10 years, said: “You find that when people are free from the tyranny and stress of paying extortionate rent prices, they have time to think creatively about implementing social change. We need to stem the tide of privatisation so that people can stay in their homes and feel secure.”

Since becoming owners, the co-op members are making changes which will make the property more sustainable, energy efficient and eco-friendly. Having successfully purchased their own flat, the co-op is looking to help others in their area do the same thing, and has been approached by other renters in their building for advice and guidance on the process. They acknowledge that it isn’t always easy, though:

“Banks are generally not interested in lending to people like us; people who earn below market rates and who want to borrow a relatively small amount. It’s really difficult to find a mortgage lender as a co-op, but Co-operative & Community Finance came to the rescue! They talked to us and they really understand our project.”

Ian Rothwell said: “The four members are part of the co-op sector in this part of Manchester, and are committed to and enthusiastic about co-operative living and working. Although they are all employed, none of them are earn high salaries and setting up the co-op is an ideal way of ensuring affordable accommodation.”

The members of Castle Rockdove are currently discussing expansion options and are looking for investments from £200, at much better interest rates than you’ll find at your local bank. If you’re interested in investing please get in touch with Matt Fawcett: matt@carbon.coop

Nearly forgotten Victorian home saved by co-op

A neglected Victorian home in Manchester has been bought by the Co-operative Living Freehold Society, with plans for a much-needed boost of environmental refurbishment. This is thanks to a loan from Co-operative & Community Finance who brokered a deal with other lenders.

The property is a semi-detached three-storey house in the Withington suburb of Manchester. It was discovered in a semi-derelict condition after several years of neglect from its former owner, requiring much needed maintenance work. The co-op plans to refurbish the property to a high level of environmental sustainability, making it attractive for housing co-ops to lease.

A potential housing co-operative tenant has already emerged, forming specifically with the intention of leasing the property from the freehold. Cordata Housing will have control over day-to-day matters, such as the distribution of rents, contribution to reserves and short-term regular maintenance activities.

Ian Rothwell, investment manager at Co-operative & Community Finance said “We feel very confident with the idea of The Co-operative Living Freehold Society having control over several properties. It means that housing co-operatives will get a retro fit eco property ready to move into, a secure and habitable home for their future.”

“Having multiple freehold titles within the same legal entity enables borrowing to be arranged more efficiently and on more competitive terms. We look forward to seeing the improvements they will make to the house, and look forward to hopefully growing their property portfolio.”