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Government action on housing
25/06/2008
Measures to help homeowners at risk of repossession and plans to end right to buy on new social housing were announced today.
In the Scottish Parliament, Health Secretary Nicola Sturgeon said the Government was launching a Homeowners' Support Fund to deliver £25m of Government help for those at particular risk of repossession.
Ms Sturgeon also repeated the commitment to support first time buyers and announced investment of £250 million through the expansion of the Government's shared equity schemes.
And she announced that Parkhead and Cassiltoun Housing Associations in Glasgow are working towards second-stage transfer ballots for tenants in November.
Ms Sturgeon said:
"When we published Firm Foundations last year, our proposals were ambitious and radical, to tackle the problems that afflict housing in Scotland and result in too many people failing to find affordable homes that meet their needs.
"Increased housing supply, in line with our ambitions, will act to improve affordability for house buyers from those entering the market for the first time to families moving to meet changing circumstances.
"I recognise that current market conditions are fluid and require a flexible response from Government, but the root cause is reduced liquidity, not reduced demand.
"Market conditions do not diminish the need for an increase in housing supply to address the nation's future requirements."
Ms Sturgeon highlighted the current financial difficulties experienced by some homeowners. She said:
"We recognise the significant effort and sacrifice that people have made to buy their own home, and although the credit crunch will not deflect us from the long-term goal of increasing the supply of new housing, we cannot ignore its impact.
"The £25 million Homeowners' Support Fund will help those who cannot obtain help from elsewhere to remain in their homes.
"We're backing our commitment to the Low-cost Initiative for First Time Buyers - LIFT - with plans for a quarter billion investment over the next three years to support hard-pressed first time buyers by expanding our shared equity schemes. This will help more people to achieve their home ownership aspirations, where that is sustainable for them.
Ms Sturgeon added:
"People continue to need homes they can afford. Accordingly, I am confirming a national goal to increase the rate of house building to 35,000 new houses a year by the middle of the next decade.
"Given the critical role of local government in taking forward so much of our agenda, I am particularly pleased by the extent to which CoSLA and the Government agree on the priorities for action, such as increasing supply across all tenures, creating mixed communities and joint working between councils."
The Cabinet Secretary also underlined the Government's commitment to providing more choice for those who either did not want or could not afford to buy, adding:
"Our proposal in Firm Foundations to end the Right to Buy for new social housing was universally welcomed. Consequently, I can confirm that we will take steps to implement those changes."
Ms Sturgeon also confirmed the Government's commitment to working with SFHA, CoSLA and other stakeholders to reform the way in which the Government invests in new social housing.
She welcomed steps by the Glasgow Housing Association to take forward second stage transfer in the city. She said:
"Protecting and promoting the interests of tenants and taxpayers are the twin aims at the heart of our approach to the challenging issues in Glasgow.
"I am particularly pleased to announce today that Parkhead and Cassiltoun Housing Associations are aiming for ballots to start on November 17 this year, subject to GHA and individual purchasers agreeing the detailed proposals to be put to tenants and obtaining the necessary approvals."
"I have outlined a challenging programme aimed at getting the fundamentals right for housing in Scotland. Our plans command extensive support among stakeholders and will, I am certain, deliver lasting improvements to all aspects of our housing system."
Funding to expand shared equity schemes is from the £1.5 billion Affordable Housing Investment Programme announced by Communities Minister Stewart Maxwell on May 30, 2008.