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HOMES FOR SCOTLAND'S PEOPLE: A Scottish Housing Policy Statement

SECTION 1 ACHIEVING OUR VISION FOR SCOTLAND'S HOMES

1 .1 Our challenge is to transform housing in Scotland: to raise the quality of the homes in which people live, to build strong, sustainable communities, and to ensure that an affordable home is within everyone's reach.

1 .2 Our vision is simple to state but challenging to put into practice. This introductory section sets out the detail of our vision and offers an overview of the actions we have embarked upon to make it a reality. Later sections look in more depth at our programme of actions - past, present and future - in response to the challenge we have set ourselves.

OUR VISION

ENOUGH HOUSING OF THE RIGHT TYPE IN THE RIGHT PLACE

1 .3 We need:

• sufficient numbers and variety of housing to give people genuine choice and minimise the difficulties faced in moving between or within areas and tenures.
• accommodation across Scotland which is suitable for our ageing population and appropriate for those with particular needs arising from disability.

• a planning system which releases land for housing as part of a long-term settlement strategy and which not only offers enough predictability to give developers and house builders the confidence to invest but also protects communities and the environment from inappropriate and badly-designed development.
• a housing system which supports growth and employment by enabling people to live in areas convenient for their work.
• to maintain and improve the condition of housing stock (whoever the owner) so that occupants, neighbours and the wider community are not put at risk and as an investment for the future.

QUALITY HOMES FOR THOSE WHO RENT

1 .4 We need:

• a wide variety of quality rented housing for those for whom ownership is not a realistic
  or attractive option.
• a vibrant, mixed tenure housing system, where quality social and private rented housing both play their full part and renting
  a home is seen as being as valid a choice as home ownership.
• every tenant to live in a home which meets standards appropriate for 21st-century Scotland.
• to give tenants security so that they have more certainty in their lives and can be part of strong stable communities.
• high standards of housing management (whether the property is rented from a
  private or a social landlord) with people
  being treated as individuals and with respect.

OPPORTUNITY FOR THOSE WHO WANT TO OWN THEIR OWN HOMES

1 .5 We need:

• a housing system, which meets the aspirations of those who wish to become home owners.
• more affordable housing, whether it is for example to help first-time buyers get a foot on the housing ladder in areas where house prices have soared, or to enable young people to remain in rural communities.
• to enable those who seek to buy a home to take such an important decision on the basis of sound information about its condition.

HELP FOR THOSE WHO NEED IT AND ASSISTANCE TO AVOID HOMELESSNESS

1 .6 We need:

• to provide support for those who need it, recognising the particular needs of young adults, the elderly and the disadvantaged.
• to provide the assistance that will enable elderly or vulnerable people to continue to live independently in their own homes.
• effective means of helping people avoid homelessness and immediate assistance if it should happen.

STRONG, SAFE AND ATTRACTIVE
COMMUNITIES

1 .7 We need:

• to give people everywhere the opportunity of a home that meets their needs in a thriving mixed community.
• to remove the inequalities that blight our most disadvantaged communities and close the opportunity gap between those areas and the rest of society.

1 .8 It is not so long ago that Scottish public housing was in serious decline, fuel poverty was extensive and rough sleeping was widespread. Local authorities were saddled with high levels of debt as they sought to tackle the deteriorating quality of their housing stock while high mortgage rates impacted upon home owners and raised the spectre of repossession.

CHANGING PATTERNS IN SCOTLAND - KEY TRENDS

• The number of households in Scotland is increasing. Despite a slight fall in the national population, household numbers have increased at a steady pace in recent years. Rising incomes and demographic trends have resulted in significant increases in the number of single person and elderly households. These patterns are projected to continue.
• The rate of house-building is exceeding growth of households but there are significant shortages in some areas. Around 21,000 additional homes become available each year and forecasts predict that around 13,000 new households will be formed each year. This suggests that enough homes are being built nationally to satisfy demand but the available homes are not necessarily in the areas where they are most needed and some existing homes may no longer meet needs.
• Scotland does not function as a single housing market. Instead there are a series of distinct regional and local market areas (from major conurbations to more rural areas), each with its own characteristics and affected by different issues.
• Increasing prices are making housing less affordable. Although not as acute as elsewhere in the UK, Scotland has experienced a marked upswing in average house prices since 2000. There are real problems of affordability in some areas, particularly for potential first-time buyers who are finding the costs of owner-occupation prohibitive. Fewer of them are now buying their first home and only when they are much older.
• More people own their own home than ever before. In 1981, 36% of homes in Scotland were owner-occupied. That figure is now 65%. This massive shift towards home ownership over such a short period is largely attributable to the Right to Buy scheme. Over 400,000 householders have taken advantage of this opportunity to buy their own home.
• House conditions have improved but more can be achieved. Successive Scottish House Condition Surveys show that the number of homes suffering from condensation or dampness has fallen, but 73% of local authority housing, 64% of housing association housing and 70% of private sector housing falls short of the new Scottish Housing Quality Standard.
• More homeless people have a right to accommodation. The number of people applying to local authorities as homeless has risen significantly since new duties were placed on authorities in autumn 2002 to provide temporary accommodation for all such applicants. Annual applications were 55,943 in 2003-04.
• The Scottish Executive is investing heavily in housing. We will invest more than £3.5 billion over the next three years in pursuit of our vision for housing in Scotland - a massive investment.

1 .9 Devolution has given us the opportunity to make a genuine difference to people's lives and the last six years have seen a massive change in the landscape of housing in Scotland. Through progressive legislation, focused investment and partnership with local government, housing associations, tenants, private sector funders and others, difficult issues have been tackled and real change brought about. But much more remains to be done. We need to consolidate and build upon our recent achievements as well as anticipate future challenges.

1 .10 While big strides have been taken in raising standards in the social rented sector and in tackling the homelessness problem, our work in those areas is far from complete. We need to meet our commitments on homelessness as part of our strategy to address the full range of housing supply issues. We also need to tackle disrepair in private sector housing, for the benefit of both those who rent and those who own their homes. The measures which we are proposing in the Housing Bill will ensure that people in private sector housing can enjoy similar advantages to those that we have put in place already for people in other sectors. Achieving our vision will involve an ambitious programme of action across the full spectrum of housing.

OUR ACTIONS

ENOUGH HOUSING OF THE RIGHT TYPE IN THE RIGHT PLACE

1 .11 We need to increase the number of quality homes that are available at affordable prices - particularly for people who are on modest incomes - and in places where people wish to live.

1 .12 Since devolution we have:

• funded the delivery of 41,000 affordable homes.
• introduced the National Planning Framework to guide long-term decisions on Scotland's development and infrastructure.
• legislated to ensure that local authorities produce comprehensive local housing strategies for their areas.
• brought 1,400 houses back into productive use through our Empty Homes Initiative.
• undertaken a comprehensive review of housing supply and affordability in Scotland to better inform our future house planning and investment priorities.
• pushed up standards of design and sustainability in building construction through
  a combination of guidance, targeted investment, promotion and legislation.
• appointed and worked with a Housing Improvement Task Force to develop proposals to improve the condition of private sector housing.
• invested in the regeneration of communities that were previously seen as undesirable.

1 .13 Building on this, we will:

• invest up to £1.2 billion over the next three years to provide around 21,500 affordable homes; an average annual increase of 34% over current levels.
• set a benchmark in planning advice for 25% of all new housing developments to be affordable homes.
• introduce new legislation and guidance to modernise the planning system and make it more effective in the release of appropriate land for development and the efficient determination of planning applications.
• streamline the release of surplus land by public bodies to enable the construction of affordable homes.
• encourage local authorities to complement investment, especially in rural areas, with additional income from reduced Council Tax discounts on second homes.
• invest in strategic water and sewerage infrastructure between 2006 and 2014 to release constraints affecting all estimated new housing developments.
• investigate the potential application of public/ private partnerships for housing in Scotland.
• legislate to modernise the Tolerable Standard and provide local authorities with new powers to tackle disrepair in private sector housing and avoid neighbourhood deterioration.

QUALITY HOMES FOR THOSE WHO RENT

1 .14 We need to ensure that rented homes are brought up to the highest standards so that tenants are offered a home that is safe and secure and fulfils their aspirations.

1 .15 Since devolution we have:

• introduced a new Scottish Housing Quality Standard to raise the quality of people's homes and set the ambitious target of ensuring that all social housing meets this standard by 2015.
• transferred nearly 100,000 homes to community ownership, giving tenants a greater say in the management of their homes and generating around £2 billion for investment in housing improvement over the next 10 years. That trend is set to continue.
• introduced the Prudential Borrowing Regime to offer local authorities a further option to invest in the quality of their housing stock. Alongside the abolition of the requirement to set aside a proportion of capital receipts to repay debt, this is forecast to generate additional housing investment of over £200 million over the next three years.
• introduced licensing of Houses in Multiple Occupation (HMOs), giving additional protection for tenants in these properties (who are often either vulnerable or have particular needs). Over 3,500 HMOs are now licensed.
• legislated to give housing association and local authority tenants security of tenure and the opportunity to influence the matters that affect them most - a move that has seen the registration of several hundred tenants organisations across Scotland.
• worked with social landlords to introduce common housing registers to make it easier for prospective tenants to find the most suitable accommodation to meet their needs.
• established Communities Scotland to regulate, inspect and drive up physical and management standards in local authority and housing association properties.

1 .16 Building on this, we will:

• continue to promote community ownership and encourage the transfer of the 80,000 homes currently on the Community Ownership Programme, subject to the balloting of tenants.
• work with local authorities and Registered Social Landlords (RSLs) to ensure that all have robust plans to deliver the Scottish Housing Quality Standard by 2015.
• examine choice-based letting within the framework of common housing registers.
• introduce registration of all private landlords.
• strengthen private sector tenants' rights to a well maintained home and introduce a Private Rented Housing Panel to help resolve disputes over repairs and to raise standards in private rented accommodation.
• work with local authorities and RSLs to develop existing and new techniques for improving the efficiency of the procurement of affordable housing (with the savings reinvested in additional affordable housing).
• consider whether change is needed to the structure of social rents to make them fairer and more consistent.

OPPORTUNITY FOR THOSE WHO WANT TO OWN THEIR OWN HOMES

1 .17 We need to be able to respond to the aspirations of many to own their own homes, while recognising that many people will continue to find rented accommodation more suited to their circumstances. Ownership brings responsibility too; not least to maintain property in an acceptable condition.

1 .18 Since devolution we have:

• modernised the Right to Buy scheme - continuing to offer the opportunity of home ownership to people who might not otherwise have had that chance, but balancing this more equitably against the need to offer accommodation to new tenants. We will report to Parliament next year on the evidence of how the revised scheme is functioning.
• introduced Private Sector Housing Grant (£72 million in 2005-06) to target support on improving conditions in private sector housing.
• legislated to clarify responsibilities for common repairs in tenements and other shared properties making it easier for repairs to be completed promptly and harmoniously.

1 .19 Building on this, we will:

• provide nearly 5,000 low cost homes over the next three years as part of our £1.2 billion investment in affordable homes.
• introduce an innovative "Homestake" scheme based on shared equity to assist first-time buyers to get a foot on the property ladder.
• allow for the introduction of a single survey to enable those who seek to buy a home to do so on the basis of sound information about its condition.
• legislate to enable local authorities to provide home owners with loans, advice and practical assistance as well as grants to carry out repairs or improvements to their homes, targeting financial assistance to those who need it most.

HELP FOR THOSE WHO NEED IT AND ASSISTANCE TO AVOID HOMELESSNESS

1 .20 We need to enable all members of society to have access to the support that will allow them to live in their homes and to contribute towards the life of their communities.

1 .21 Since devolution we have:

• introduced some of the most progressive homelessness legislation in Europe to give all homeless people in Scotland entitlement to at least temporary accommodation, and have provided financial support to local authorities to expand the temporary accommodation available.
• installed around 45,000 central heating systems in people's homes and insulated over 200,000; steps that have reduced the extent of dampness in Scottish housing and brought about a huge reduction in the number of households subjected to fuel poverty.
• given over 80,000 vulnerable people in Scotland assistance through the Supporting People programme to enable them to continue to live in their own homes.
• legislated to make it easier for people experiencing difficulties in paying their mortgage to remain in their homes while they sort out their finances and established the Mortgage to Rent scheme.
• prioritised the adaptation of privately-owned houses to suit the needs of disabled occupants and targeted Private Sector Housing Grant for this purpose.

1 .22 Building on this, we will:

• ensure that local authorities are able to offer a permanent home to everyone who is unintentionally homeless by 2012. We will work with local authorities and other stakeholders to deliver this challenging target as part of our wider strategy for the supply of housing.
• eradicate fuel poverty as far as reasonably practicable by 2016.
• spend £1.2 billion over the next three years on our Supporting People programme to continue offering support to vulnerable people who wish to live independently.

STRONG, SAFE AND ATTRACTIVE COMMUNITIES

1 .23 We need to close the gap between deprived and more prosperous areas to give people living in disadvantaged areas opportunity to live in a home that meets their needs and in an attractive community.

1 .24 Since devolution we have:

• legislated to tackle anti-social behaviour and its impact on communities.
• invested £120 million through the Better Neighbourhood Services Fund to improve public services in Scotland's most disadvantaged communities. This investment has included neighbourhood environmental improvements and £29 million to improve community safety and reduce anti-social behaviour.
• funded over 1,300 projects through Social Inclusion Partnerships as a central feature of our targeted partnership approach to regenerating communities.
• worked with urban regeneration companies across Scotland to provide practical opportunities to link housing investment with training and employment opportunities.

1 .25 Building on this, we will:

• invest around £470 million in the regeneration of deprived communities over the next three years to tackle the poverty and exclusion which still burden far too many neighbourhoods in Scotland.
• continue to ensure that housing investment is linked into our regeneration priorities through the targeted management of our Affordable Housing Investment Programme.
• introduce Housing Renewal Areas as a means of encouraging a more comprehensive approach to tackling housing renewal in areas of poor or declining standards.
• publish a policy statement on regeneration by summer 2005 to generate a wide-ranging debate on the way ahead.

1 .26 We recognise the massive contribution made by front-line housing professionals to the delivery of this ambitious agenda. We also recognise that it is at the front line that the linkages between housing, regeneration, community safety and other issues are most challenging to handle. We will work with the Chartered Institute of Housing, local authorities, housing associations and other stakeholders to ensure effective workforce planning, training and support so that those dealing directly with the public are best placed to handle their crucial and changing role.

1 .27 The housing system as a whole is interlinked. Measures introduced to improve one particular part of the housing picture often have implications elsewhere. We need to consider all aspects of the system (both subsidised and market housing) if our policies are to be fully effective. We require, for instance, to ensure that there is a sufficient supply of housing in order to help meet the needs of homeless people. Similarly, the provision of quality, affordable homes in safe neighbourhoods can only be achieved as part of a co-ordinated approach across many policy areas. Our initiatives on land-use planning, transport and the economy will play a major role in influencing what can be achieved. Similarly, the successful delivery of our housing objectives will help to meet our aspirations for tackling poor health and poverty and promoting sustainable development. Housing policy cannot be isolated from the wider agenda that is being progressed under the commitments set out in our Partnership Agreement.

1 .28 Recognising that our housing policies need to be considered as part of the Executive's broader programme for Scotland, this statement details the wide range of actions which we are undertaking to deliver the change that is still necessary to achieve good quality, warm and affordable housing for all.

SHARED OWNERSHIP

Pine Tree Road in Banchory, Aberdeenshire is a recently completed development by Grampian Housing Association, in partnership with Bancon Developments, which is helping people to realise home ownership for the first time in their area. With funding of almost £450,000 from Communities Scotland, the housing association have been able to help 10 families and individuals become part home owners in a pressured market area. Pauline Sanderson and her 4-year-old son Ethan, live at number 17. Previously Pauline lived in a private rented flat. Now with the help and support of the housing association she has become a part owner of a semi-detached house. Pauline has secured a mortgage for 25% of the property and the remaining 75% is paid in rent to the housing association. She said: "Without the help of this shared ownership scheme I would not have been able to get on to the housing ladder in this area as the price of property is so high. With this scheme I can increase the share in the property as my circumstances allow and the intention is that I will be able to increase my share to eventually become the sole owner."

HELPING FIRST-TIME BUYERS

We will help first-time buyers into home ownership by:

• Investing in the provision of nearly 5,000 homes for low-cost home ownership over the next three years
• Introducing a new "Homestake" scheme for people aspiring to home ownership in both urban and rural areas. Through the provision of homes on a shared equity basis, "Homestake" will:
  • enable Registered Social Landlords to provide new homes for ownership to low-income households
  • support low-income households to buy a home on the open market in pressured areas
• Enabling more land to be released for housing as a means of tackling upward price pressures.
• We will:
  • make the planning system more proactive in releasing land through the development plan process and faster in the handling of applications for housing development
  • invest to remove strategic water and sewerage infrastructure constraints on all estimated new housing developments
• Making greater use of public land for the development of affordable homes
• Working with the house-building industry to increase the provision of "starter" homes in the market

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