This item was published during the term of a previous administration that ended in April 2007
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Plans to increase affordable housing
19/11/2004
Initiatives to help people take the first step onto the
property ladder were outlined today.
Communities Minister Malcolm Chisholm told a Scottish
Federation of Housing Association conference in Edinburgh
that shared equity schemes would play an important part in
meeting expanded affordable housing targets.
Reminding delegates that, following the Scottish Budget,
the Executive committed £1.2 billion over the next three
years on increasing the affordable housing target from
18,000 to 21,500 homes, Mr Chisholm said:
"The past year's review of affordable housing in
Scotland now means we have the best understanding of
Scottish housing needs we've ever had. Our three-year
target for the supply of affordable housing will support
economic growth and make sure people have the choices that
meet their needs.
"Of our new 21,500 target, 16,500 social rented homes
will be funded - the biggest social rented programme for a
generation - and nearly 5,000 homes for low cost ownership
provided to meet the needs of hard working families and
essential workiers aspiring to owning a home of their own
for the first time.
"The low cost ownership plans represent the largest
expansion in this sector for a decade - not at the expense
of social renting, but as a vital extra, responding to
clear evidence of the need to support people's ownership
aspirations, and taking pressure off the rented sector.
"Communities Scotland will very shortly unveil the
details of our proposals for a new and expanded low cost
home ownership programme - a range of initiatives to help
people get started on the property ladder, all based around
the idea of shared equity.
"This scheme will be more flexible than we have ever had
before. We want to see it used in pressured market areas,
where it will help people take up the opportunity of home
ownership. It could also be offered to tenants of social
housing, allowing them to buy a home on the open market, in
turn freeing up rented homes for those on waiting
lists."
The Minister said that a significant chapter in the
affordable housing review had now been concluded, and that
the Executive was now moving forward with action on a broad
front. He added:
"The review has clarified the evidence base for action
on affordable housing to support both economic growth and
social needs. Among the things its conclusions have
influenced are:
· the major spending review increase in
investment for both social rented houses and low cost home
ownership, permitting a new focus on pressured areas while
sustaining regeneration elsewhere;
· the decision to introduce new financial
instruments for low cost home ownership;
· planning reforms to improve the functioning of
the housing market and achieve greater integration with
housing strategy, including new planning advice on the
planning system's contribution to affordable housing;
· action on land and infrastructure constraints;
and
· the decision to publish an overarching Housing
Policy statement in the new year to set out our policy on
housing as a whole.
"We will continue to work closely with our partners -
including local authorities and Registered Social Landlords
(RSLS) - who have a crucial role to play in ensuring we
realise our investment and delivery plans."
The discussion paper to be published by Communities
Scotland will outline various models through which the
delivery of low cost ownership through shared equity might
be achieved. Full details will be in the discussion paper,
but models will include:
* grant funding RSLs to develop new properties for sale
on a shared equity basis in pressured markets. (Pressured
markets are areas identified in local authority Local
Housing Strategies. These are not restricted to designated
pressured market areas for the purposes of the Right to
Buy.)
* grant funding RSLs to purchase properties at an
appropriate discount from private developers for onward
sale to shared equity purchasers.
* supporting low income households who wish to purchase
property for sale on the open market in pressured markets,
through grant funding RSLs to take an equity stake.
* enabling tenants who currently live in social rented
housing in pressured markets to purchase property on the
open market, through grant funding RSLs to take an equity
stake. This model would release properties to waiting list
applicants who are in acute housing need, whilst assisting
tenants to move into owner occupation.
* grant funding RSLs to develop new properties for sale
on a shared equity basis to existing owner occupiers whose
homes are scheduled for demolition and who wish to
participate in an agreed area redevelopment plan.