Gold Service scheme could be rolled out across country

The gold service scheme pioneered by Irwell Valley Housing Association could be rolled out to many more social housing providers as an alternative to giving tenants equity shares.

A report from the Chartered Institute of Housing has said that providing particular incentives to tenants, as in the scheme, could make them feel that they have more of a stake in their homes and neighbourhoods.

This means the Gold Service could deliver the same benefits that would be gained from equity share schemes in which people can own a financial stake in their home, the report said. The report was published to coincide with the launch on Tuesday of the low-cost homeownership taskforce, chaired by Baroness Dean of the Housing Corporation.

Gold Service tenants get improved access to services and £1 vouchers for each week of membership. These can be spent in shops.

The report found that the most positive effect of the scheme was in making tenants who stick to their tenancy agreements feel valued. But it warned that incentives to change tenants' behaviour must be coupled with good landlord performance to be effective.

The Gold Service scheme has already been adopted by Castle Vale Housing Action Trust.

Any further extension of the programme would have to tailor the approach to meet different circumstances and fit differing cultures within associations.

Irwell Valley chief executive Tom Manion said: "The scheme is something that you can explain easily to people, and we have a lot of people who volunteer to go on it. We have found that it can motivate people."

The CIH's findings form part of a new report by the Office of the Deputy Prime Minister looking at the viability of equity share schemes. Its homeownership taskforce, launched on Tuesday, will consider the full implications of such a scheme alongside the affordable housing schemes that are currently running.

It found that despite earlier interest, equity shares remained problematic to put into action. In particular, there was scepticism from landlords and lenders over funding.

Andrew Heywood, senior policy adviser at the Council of Mortgage Lenders, said: "The problem with this idea is that you have to keep track of an increasing, gradual stake, and that could have legal costs.

"It's also unclear what people want from these stakes. Are they designed to make people feel they own part of their home or to move people into home ownership?"

Despite the problems with equity stakes the government is still keeping the option open.