Introduction

Vectis was formed, as a non-charitable Housing Association, in 1974, by the Isle of Wight Chamber of Commerce, to provide affordable rented housing for local key workers. The cost of the homes would be paid for via a grant and loan system operated by the Housing Corporation. The original shareholders of Vectis were representatives of local businesses, and the first Chairman was Mr. Howard Evans, then President of the Chamber. The Association was run by a Managing Agent, Mr. Fred Taylor, who was a senior partner in a firm of Chartered Accountants in Newport.

The first new homes were built in 1980, and by 1990 there were approximately 90 around the island. Half of these were to be rented by key workers, the other half were for Isle of Wight Council nominations. In the event there were very few of the former type, so most were nominations.

The Association was criticised in a later Housing Corporation monitoring report for maintaining its stance on key workers rather than focussing on housing those in greatest need. From that moment, in order that future grant funding could be obtained, the allocations policy changed accordingly.

It is perhaps ironic that the Government of today is actively promoting the provision of affordable homes for key workers

In 1990 Vectis became managing Agent to East Cowes housing Association (ECHA), which had been founded in 1948 by Saunders Roe (latterly British Hovercraft Corporation and GKN Westland) to house its workers in that town. That Association had built 120 homes in the 1950's, paid for entirely by loans from the then Cowes Urban District Council, and Saunders Roe. Throughout the 1980's (thirty years on) tenants were busy buying their homes for very small sums, under Right To Buy legislation. By 1990, ECHA had 60 homes left, and over £1million in the bank. All this time, it had never employed any staff, and had been run by a Committee, with management supplied by a local estate agency. The Committee decided to tender for such services from amongst the Housing Association movement on the Island, in order to bring in expertise for the purposes of accessing Housing Corporation and Council grants towards replacing the homes which had been sold. It had already registered with the Corporation. Vectis won the tender, and a successful relationship developed, which saw not only an active development strategy, but also a comprehensive modernisation programme, of the older properties, get underway.

With the active support of the new Unitary Authority, both organisations continued to receive grant allocations, and successfully negotiated for private finance, to build new homes, and acquire Existing Satisfactory Purchases (individual properties), throughout the 1990's.

By the end of that decade there were a total of 220 homes in ownership between the two associations.

It was at this stage that both Committees of Management accepted the administrative futility of maintaining two separate Housing Associations, and it was agreed that the two organisations should merge into one with the express purpose of providing best value to the two sets of residents served.

There followed a long and detailed consultation process, and an arduous paper chase, conducted incidentally entirely without external assistance, save essential legal formalities. This eventually culminated in a successful merger in March 2001. A new Committee was formed, comprising half each of the members of the other two boards.

The new arrangement turned out to be most successful, particularly since the new Committee blended the best skills and experience of both the other Committees.

With the introduction by the Government of rent constraint from April 2002, the Committee resolved to convert to charitable status, in order to take advantage of tax exemptions. Corporation tax was being paid at an average annual rate of £70,000. Such outflow of funds was not considered sustainable given other calls on the Association's cash reserves. The savings consequent to conversion would be needed to compensate for the very real adverse impact of the Rent Plan. In any event, the Association's activities had clearly evolved into those of a charitable nature, and it was arguable that it was in fact contravening its non-charitable rules by continuing to remain as such.

Another complex procedure, again undertaken internally, was successfully concluded in June 2003, and the Association's new charitable rules were formally adopted (and the Committee became a Board).

By this time, it was clear that the regulatory authorities saw larger conglomerates of mergeed Housing Associations as those most likely to deliver best value to their communities, and by reducing accessibility to grant funding, the developing ability (though not the capacity) of smaller organisation was effectively sidelined. The Board was alert to this, however, and arrangements were put in hand to search for a developing partner which would help retain the Association's development potential. That search proved successful, and new homes have been provided, with more in the pipeline. In the meantime, a long standing comprehensive modernisation programme has ensured that existing homes have the benefit of up to date facilities with low energy equipment and fittings, as part of the objective of sustaining housing stock for the long term.

Vectis has a good working personal relationship with the overwhelming majority of its tenants, and is able to pont to high levels of overall service satisfaction. This is considered fundamental to a successful future. It has embraced the principles of "continuous improvement" examples of which are described in successive Chairman's Reports. The Association retains Investor in People status, as a mark of its commitment to its staff, whose dedicated teamwork is a central feature of success to date.