THE LOUGHVIEW ESTATE: a shared future REPORT TO THE NORTHERN IRELAND HOUSING EXECUTIVE By Professor Chris Paris, Emeritus Professor University of Ulster In partnership with RSM McClure Waters and Professer Paddy Gray THE LOUGHVIEW ESTATE: a shared future Abbreviations 4 Acknowledgements 4 Summary and recommendations 5 1. Introduction 10 2. Methodology 13 3. Literature review 16 4. Residents’ perspectives on the Loughview Estate 22 5. Key players’ perspectives on the Loughview Estate 29 6. A shared future in a distinctive local housing market? 38 7. Conclusions and recommendations 43 References 45 Appendix 1: Tables 48 Appendix 2: Semi-structured interviews with key players 62 Appendix 3: The household survey 64 1 Abbreviations HMA Housing Market Area HRP Household reference person LEML Loughview Estate Management Limited MoD Ministry of Defence MPG Merrion Property Group NIHCS Northern Ireland House Condition Survey NIHE Northern Ireland Housing Executive NINIS Northern Ireland Neighbourhood Information Service NISRA Northern Ireland Statistics and Research Agency UUHPI University of Ulster House Price Index Acknowledgements I wish to thank the following for their contributions and help in undertaking this study: The residents of the Loughview Estate who agreed to be interviewed in the household survey. The key players who were interviewed and consulted (listed in Appendix 2). Colleagues at RSM McClure Watters, especially Jenny Irwin, Joanna Clearkin, Martin Hinch and the fieldwork team. Colleagues in the Housing Executive Research Unit, especially Joe Frey and Kate McKeown, who provided assistance and support at all times. Professor Paddy Gray for advice on methods and policy. Professional photographer Gardiner Mitchell for images of the Loughview Estate and other former MoD areas in Ballykelly. Copyright holders who have granted permission to use their images, especially Block CPM, the Limavady Chronicle, and Martin McKeown. Professor Chris Paris 2 Summary and recommendations Background and overview prices, despite longer-term falls continuing into This report examines the transfer of former 2012. The literature review also considers the Ministry of Defence (MoD) housing to civilian use relations between housing markets, community relations, residential segregation and mixing. through a case study of the Loughview Estate, in Ballykelly, Co Londonderry. Distinctive features Households on the Loughview Estate of this case study include widespread publicity The section on households in the Loughview about the sale of these homes with a reported Estate is informed by the household survey, focus on first time buyers, many people queuing undertaken during September 2012, with and camping out despite a wider housing market comparisons and contrasts drawn from other recession in Northern Ireland, and the scale relevant data sources including house condition of release of former MoD housing with all 317 surveys and census material. The fieldwork team houses sold during May 2010. estimated that 15-20% of the houses were vacant, Introduction and literature review though some were being refurbished. The introduction reviews the project brief and One hundred households were interviewed, with 57 owner-occupiers and 43 tenants. Most were three key issues for the study: the impact of relatively young, single or couple households, the release of former MoD homes on the local who had moved to the estate from the local area. housing market; whether the Loughview Estate The great majority of residents were attracted is an ‘unplanned’ mixed community, and how primarily by the low cost of housing to buy or sustainable the community is likely to be. The rent. methodology comprised desk research, literature review, a household survey and in-depth Most owner occupiers had invested in interviews with property professionals working in improvements and redecoration of their homes, the area and relevant government agencies. and thought the houses had increased in value significantly. The high level of renting in the The literature review examines available data estate, however, showed that purchasers had relating to household and housing circumstances included many investors, in contrast to the of the Loughview Estate and its wider context. publicised focus on first time buyers, with many It discusses the origins and history of the estate, rental properties being managed by their owners which had been within Shackleton Barracks, and rather than estate agents. reviews other material on the transfer of MoD There was an even mix of households by religious housing and property. The wider housing market affiliation and a high proportion of ‘mixed’ context is established through an analysis of households. Levels of overall satisfaction were house price trends in the region and Northern high, relatively few problems were reported on Ireland as a whole; the Loughview Estate was sold the estate and most residents were proud of the during a period of apparent recovery in house image of the area. 3 Key players’ perspectives on the Issues relating to the quality of infrastructure, the Loughview Estate non-adoption of roads by council or statutory services, and overall estate management were This section is informed by the literature review raised as possible problems for the future. The and by interviews and consultations undertaken general view was that infrastructure and services between September and November 2012. It should be upgraded, to ensure that an estate is examines the process of transfer of MoD housing adopted, before selling houses. This, however, to civilian use on the Loughview Estate and would increase costs and prices of houses in examines housing developments since the sale subsequent sales, which may increase the risk of of the home in May 2012. The estate was sold by such developments. the MoD by tender to the Merrion Property Group in 2009 and sold to the public in May 2010 by The situation in England and Wales regarding the DMC Properties of Limavady, at prices between transfer of former MoD housing to civilian use £30,000 and £60,000. There have been a number is very different. Annington Homes purchased of re-sales since May 2010 but the volume of sales all former MoD housing in 1996 and usually slowed after 2010. manages the sale of any housing onto the market directly. Many of their fully sold estates, however, The property professionals thought that around remain private rather than adopted by local 25-30% of houses were rented, in contrast to councils. the higher proportion found in the household survey. They generally considered that the main A shared future in a distinctive housing housing market effect was the rapid increase in market? low cost private rental housing in the area. Three This section reviews the overall findings in this other areas of former MoD housing had also study in relation to the key themes identified in been transferred nearby. Two had sold rapidly the introduction: the impact of the release of but substantial parts of the third were still for former MoD homes on the local housing market; sale and it, too, added to the growth of private whether it is an ‘unplanned’ mixed community, rental housing in the area. Over 500 houses were and how sustainable the community is likely transferred in total thus the Planning Service to be. considers there is no need for additional housing in Ballykelly under the North Area Plan. The impact on the housing market appears to be confined to the very local level. Most owner The key players agreed unanimously that the occupiers had come from the local area and Loughview Estate was a mixed religion area with relatively few would have been able to afford to good community relations. Their perspectives buy on the open market without the release of on social issues and the image of the estate, such low cost housing. Many thought that their however, varied considerably. Some argued that homes had increased in value, some because there were no social problems and the estate’s they had spent a lot of money on improvements, image was good. Others suggested that there but wider housing market trends suggest that were serious social problems, especially related some owners’ valuations may have been over- to drugs and that the poor image of the estate optimistic. There is a very high amount of private put off prospective purchasers or full rent-paying rental accommodation in this estate and another tenants. 4 nearby former-MoD housing area. Much of the traditions and none, but it is also an area of mixed private rental housing is owner-managed and tenure with a very high level of private renting. there may be already a significant over-supply, There is insufficient clear evidence to assess contributing to the current high vacancy level on whether the community is sustainable in the the estate. longer run and it is recommended that a repeat study be undertaken in the autumn of 2015 to The evidence unambiguously supported the assess developments over a five-year period hypothesis that the Loughview Estate has after the sale of the houses into the mainstream become an unplanned mixed community. housing market in May 2010. The main general The extent to which it is sustainable because lessons for other former MoD housing are the residents prefer a mixed community is less certain need to resolve issues relating to adoption of at present. Owner occupiers have invested infrastructure before selling houses, if possible substantially in their homes and few were and if not then to ensure governance and contemplating leaving in the near future. The management relations are made clear to any demographic profile of residents, however, is likely purchasers. to change over time, and a range of other factors are in play, concerning the image and reputation of the estate, issues relating to infrastructure and service provision, the non-adoption of roads and other management considerations. Various uncertainties taken together suggest that a preference for living in a mixed community may not in itself be enough to ensure that any estate is ‘sustainable’ in the longer term.