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This item was published during the term of a previous administration that ended in April 2007

Houses

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New housing heads for the Highlands

16/12/2004

A package worth more than £200 million to build around 1,000 new affordable homes in the Highlands was announced today.

If Highland tenants vote to transfer their homes to a not-for-profit landlord, the council's housing debt will be written off, allowing rental income to be spent on improving existing homes.

Welcoming Highland Council onto the Executive's Community Ownership Programme, Communities Minister Malcolm Chisholm said it would:

  • Provide £50 million over five years to build around 1,000 new affordable homes
  • Write off housing debt of £175 million, which is currently being serviced by rents
  • Transfer 15,000 council owned properties to a new not-for-profit landlord
  • Help improve and modernise existing homes to meet the new quality standard

The Minister said:

"This is a time of great opportunity for housing in the Highlands. Local people hold the key to unlocking a massive investment programme and building much needed new affordable housing, as well as improving existing homes.

"Before tenants are balloted, I'm making money immediately available for new homes. This is on top of existing building programmes, and will make a huge contribution to meeting the need for more housing in the Highlands.

"Transfer to a new landlord will also significantly improve existing housing and help keep rents at affordable levels for years to come, as the money spent on servicing housing debts can go directly to modernising and upgrading properties.

"I also want tenants to be more involved with their landlords, and have power over the day to day running of their homes.

"Community ownership gives tenants more input, with representation on the Board of the new landlord."

Councillor Margaret Davidson, Chair of Highland Council's Housing and Social Work Committee, said:

"I am delighted that the Council has now joined the Community Ownership Programme.

"I am convinced that housing stock transfer presents the best long term option for the Council, for people in housing need, for our communities the length and breadth of the Highlands and most importantly for our existing Highland tenants.

"We are now moving full steam ahead to develop proposals to put to our tenants. We are committed to working with them to make sure they get full and impartial advice and that they have all the information they need to make an informed choice when they are asked to vote in a ballot.

"We understand that many tenants will have concerns about the possibility of stock transfer.

"I can assure all tenants that if transfer proceeds rents will be kept affordable, services will be maintained or improved and tenants will keep their existing statutory rights including the right to buy their existing houses."

Highland Council announced its intention to transfer 15,000 council homes to a new not-for-profit social landlord in October 2004.

Tenants in the Highlands are expected to be balloted towards the end of 2006.

Other councils who have joined the Community Ownership Programme are Stirling, Edinburgh, Argyll and Bute, Western Isles, Renfrewshire and Inverclyde.

Glasgow, Scottish Borders and Dumfries and Galloway councils have already transferred their housing stock to not-for-profit registered social landlords.

All council and housing association properties must meet the Scottish Housing Quality Standard by 2015.

Page updated: Wednesday, December 15, 2004