Sold on it

When Advance Housing Association said it planned to help people with serious mental health problems become homeowners, social workers, nurses and even some of its own staff weren't sure the idea could work. But it has.

In a pioneering scheme, the Oxford-based association has come up with Own Home – a hybrid of supported housing and shared ownership for people with a history of serious mental illness.

It's the same as most shared-ownership schemes run by housing associations: an individual buys about 60% of a property on the open market; Advance retains the other 40% and charges rent on it.

The difference with Own Home is the level of support Advance offers to help people take the plunge. Hilary Caldicott, the scheme's project manager, explains: "We support people each step of the way and that includes finding a property, organising the mortgage and managing the home they have taken on."

From thin walls to a quiet garden
Brian Arden* is one of the project's success stories. He had been an Advance tenant for six years before Own Home began. But he was unhappy in his flat – the thin walls increased his anxiety and paranoia because he felt his neighbours could hear him talking. Moreover, he desperately wanted another bedroom and a garden so that his son, who has special needs, could visit and play.

Through Own Home he was able to buy a three-bedroom house on a quiet street only a couple of doors down from an Advance house where two of his friends live. "It's a dream come true," Arden says.

Advance manages about 1200 homes and specialises in housing people with special needs. Seven years ago, it decided that more housing options should be available to these groups and started a scheme called Sold, aimed at people with severe learning disabilities. It works in exactly the same way as Own Home and has so far helped 80 people to buy a home. Its success encouraged Advance to extend supported shared ownership to other groups.

"It comes down to human and citizenship rights – if people want to own a home they should have the chance to do so," says Caldicott. "They may not always have the expectation to start but many are extremely interested when they're told it's possible."

Demand for Own Home has been strong. Since the launch of this pilot scheme in February last year, 15 people have bought a home, a figure that surpasses Advance's initial target of 10.

The project is specifically designed for people who are on income support and receiving disability allowance. They have to use a mortgage broker that's selected by Advance and is experienced in dealing with their circumstances. Caldicott says it would be very difficult for people whose mental health problems are severe enough for them to receive disability allowance to find a mortgage in the usual way.

Relief from maintenance anxiety
Advance also draws up a special lease for Own Home properties that makes it clear property maintenance is the association's responsibility. "The owner must keep the interior in a good condition, but we look after structural issues and repairs. This is important because it releases people from the anxieties associated with maintenance," says Caldicott. Homeowners have access to the association's 24-hours emergency repairs service and can call Caldicott's team during the day if they want to discuss any worries.

The cost of managing the upkeep of properties is covered by a monthly service charge – it totals £2000 to £2500 a year – that Advance levies on homeowners. While income support pays the mortgage interest, housing benefit is used to meet rent and service charges. But clients pay no direct fees for getting advice from Advance, including help in finding a suitable property.

If people with a mental illness want to own a home, they should be given the chance 

Hilary Caldicott, Advance

With a career at the mental health charity Mind behind her, Caldicott is well suited to one of her principal responsibilities: assessing who qualifies for the scheme.

"The first thing you need to establish is whether the person has a sound reason for leaving their current housing," says Caldicott – the government will only pay income support to cover the mortgage if the new accommodation meets their needs better.

The second part of the assessment deals with the kind of mental health problem the person has. If they are taking illicit drugs or have serious alcohol dependency, they will be unlikely to qualify because they won't be able to budget for mortgage and other payments.

To date, none of the people on the scheme has asked to pull out or had problems meeting their payments. So why aren't more supported homeownership schemes available?

Winning round the sceptics
Advance had to convince many doubters before it started up Own Home. It initially met resistance from some social workers and even its own employees who worried that mentally ill people could not cope with homeownership. Some potential clients also felt suspicious about the scheme and unsure about taking on the responsibilities.

More problematic still was the issue of services from Supporting People, the government's care services funding programme.

Supporting People helps people with home management such as sorting out bills, benefit claims and shopping. But when someone transfers to a new address, it's not always easy for them to take the Supporting People back-up with them.

"Someone who had a helper in three times a week might not get these visits if they moved. We give support and advice but don't get as involved as Supporting People, so we have to be sure homeowners can cope without it," says Caldicott.

Supporting People services are a sticking point for other landlords who are keen to follow the Own Home example. Darshan Matharoo, director of housing and support at Beth Johnson Housing Association, says: "We are reviewing the provision of support services but are really eager – and the demand is certainly there."

Advance and its new homeowners have such faith in the scheme that they hope the obstacles will not deter other organisations from doing similar things.

"For Brian Arden, this was his first chance to have his son come and stay," says Caldicott. "We often deal with people whose whole life has been disrupted by mental illness.