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SUPPLY OF APPROPRIATE AND AFFORDABLE HOUSING

32. Responses to the consultation reiterated that supply of, and access to, appropriate and affordable housing is fundamental if homelessness is to be prevented and tackled effectively. The Executive's housing policy statement Homes for Scotland's People, published in March this year, sets out the range of action being taken to address the housing needs of Scotland's population.

33. The key actions are as follows:

• Funding expansion in new social rented provision (to provide over 16,500 homes for social let between 2005/06 and 2007/08);
• Expansion in low-cost home ownership provision (nearly 5,000 homes between 2005/06 and 2007/08) including introduction of the Homestake scheme;
• Planning Advice Note 74 on affordable housing published - seeking to increase provision of affordable housing in new developments;
• Planning reform to speed up the planning process and improve land supply for housing;
• Investment in landbanking schemes; release of surplus public sector land for affordable housing and streamlining of processes for disposal of public sector land;
• Investment to address infrastructure constraints; and
• Reduction of council tax discount on second homes - additional funding ringfenced for affordable housing.

34. Local authorities have developed Local Housing Strategies in line with guidance from Communities Scotland, which set out the housing needs, and the action which will be taken to met these needs, in their area. These will continue to be key to the identification of housing need - and planning to meet this need in local areas.

35. Following the last Spending Review, increased funding for the Affordable Housing Investment Programme has already been announced for the period 2006/07 - 2007/08. This is enabling increased provision of affordable housing, rising from well over 6,000 units in the current year, to over 7,000 units in 2006/07 and an estimated 8000 in 2007/08. As well as providing over 16,500 homes for social rent, this provision includes nearly 5,000 homes for low-cost home ownership; helping meet the aspirations of home ownership for those on low to modest incomes and meeting demand that might otherwise fall upon the social rented sector.

36. We will take careful account of affordable housing requirements to meet the 2012 target in considering priorities for the next 2 years, and in implementing the Strategic Housing Investment Framework ( SHIF). Communities Scotland will shortly consult on the SHIF which will guide the future allocation of the Affordable Housing Investment Programme.

37. The aim is to put in place a new framework for housing investment which supports both national policy objectives and diverse local housing priorities, ensuring that development funding is applied in a more strategic manner with increased efficiency. As part of the SHIF consultation we welcome views from local authorities and others as to how the Framework and subsequent allocations can best reflect the implications of the 2012 target and the linked resource requirements of local authorities.

38. As is set out above, the Executive will continue to work with local authorities to ensure that assessment of housing need is carried out on a consistent basis and takes account of the local impact of the 2012 target in order to inform the planning and resourcing of affordable housing beyond the current Spending Review period. The next Spending Review will therefore take account of the available evidence on housing need, including the impact of the 2012 target on demand for and supply of accommodation.

39. We will also report to Parliament next year on the effect of the Right to Buy.

40. Homes for Scotland's People emphasises the need for diverse provision and it is important that this diversity is also reflected in meeting the needs of homeless people. In particular we are conscious of the need to ensure accommodation which meets the particular needs of disabled people and people from black and minority ethnic communities is available.

41. More broadly, we would emphasise the importance of ensuring that accommodation held by Registered Social Landlords and private landlords is available for re-housing homeless people. The provision of a local authority tenancy is not the most appropriate outcome in a number of cases. We are committed to ensuring that responsibility for housing homeless people is shared among all housing providers, and that homeless people are able to access the housing most suited to their needs.

Diversity of provision - Registered Social Landlords

42. Section 5 of the 2001 Act requires that an RSL provide accommodation where requested by the local authority to house a homeless household assessed as having a priority need, unless they have a 'good reason' not to do so. We are aware that a number of studies have been carried out to evaluate the effectiveness of local arrangements under section 5 and related protocols and will review these studies in order to determine whether further guidance is required.

43. We would emphasise that RSLs have a very important role to play in preventing and addressing homelessness. In addition to responding to section 5 referrals where these are made, this responsibility also extends to providing relevant information to local authorities in order to support the operation of such referrals (e.g. information on stock profile and voids); and preventing homelessness amongst existing tenants where possible. Communities Scotland will continue to inspect RSLs on that basis.

Diversity of provision - private rented sector

44. A number of local authorities are making specific efforts to involve the private rented sector in addressing homelessness, and greater access to that sector is important in terms of finding sustainable solutions and increasing the range of supply available to meet demand under the homelessness legislation. There is now access to a rent deposit/guarantee scheme in each local authority area for example, as recommended by the Homelessness Task Force, and the National Rent Deposit Forum is being funded to develop further guidance for these schemes. A number of national initiatives to improve the sector are also ongoing - most notably the introduction of registration of private landlords in March 2006 and the introduction of a private rented housing panel.

45. The Executive is also in discussions with private rural landowners about their potential role in the provision of affordable housing on private land which would not otherwise become available for that purpose. In all these developments we are anxious to proceed in such a way as to ensure that good landlords are not deterred from remaining in the sector, or from rehousing homeless people.

46. We are aware that the vast majority of tenancies granted with the private rented sector are short assured tenancies and that private landlords are reluctant to grant assured tenancies. We wish to explore the need for a review of the assured tenancy regime in the longer term. We will also consider a number of other options to allow local authorities additional flexibility in discharging their duty to homelessness households, where this flexibility would lead to a more appropriate and sustainable outcome for the household. Among the options we would like to explore further with stakeholders are a) reviewing the interim accommodation regulations which currently allow for the provision of interim accommodation to priority need households in certain circumstances; and b) encouraging greater use of private sector leasing and lead tenancy schemes.

47. Respondents to the consultation were of the view that there are number of issues relating to Housing Benefit which can act as barriers to homeless people accessing the private rented sector, and accessing employment opportunities. We will continue to work with the Department for Work and Pensions to ensure that these barriers are properly identified and addressed insofar as possible.

Allocations policies

48. The Executive has been working with local authorities and their RSL partners to simplify access and maximise choice in relation to all social lets. Key to this has been the promotion and development of Common Housing Registers throughout Scotland and the Executive and social landlords will continue their efforts to establish these throughout the period to 2012.

49. We recognise that landlords are working hard to strike a balance between housing people under the homelessness legislation and meeting housing need more generally. We do not underestimate the difficulty of this task in some areas and are aware of the tensions which can arise in some communities. We are also aware that there is some confusion as to the options which social landlords have with regard to their duties to house homeless people - and how these duties and approaches to implementation link to wider allocations policy and practice.

50. We are clear that allocations policies must take account of a wide range of housing need - and that it is important that a reasonable proportion of social lets is available for households who are not homeless but are looking to move or who are otherwise in housing need. This is currently recognised in the legislative framework which requires that social landlords must give 'reasonable preference' to homeless households but also to others in particular housing need (such as large families and those living under unsatisfactory housing conditions).

51. Social landlords have flexibility in deciding upon and implementing their allocation policies as long as they take account of legal requirements. In relation to homelessness the legislation states that permanent accommodation should be offered to unintentionally homeless households. Although there is no timescale for making this offer within the legislation, the Code of Guidance currently states that this should be done as 'quickly as possible, whilst also ensuring that this is only done at a time when the household is able to sustain permanent accommodation'.

52. Current evidence shows that landlords are able to meet the needs of a wide range of households. However there is considerable variation between landlords in terms of the range of need which is being addressed. As was set out in the Housing Policy Statement, we are carrying out further work to collect wider evidence on the operation of allocations policies in order to inform the need for further guidance. This work is likely to include research on waiting lists to investigate issues of housing need; research to explore the customer perspective of allocations; and research with landlords to identify more clearly any tensions between current policy and practice.

53. In the shorter term we will discuss the particular issues regarding the interpretation and implementation of legislation and guidance on the allocation of lets to homeless people with Communities Scotland and CoSLA with a view to providing further guidance on addressing a wide range of housing need through allocation policies. In particular there is a need to ensure that there is an appropriate balance between meeting the needs of homeless people and other housing applicants and that there is sufficient flexibility in local management to achieve that balance whilst also ensuring legislative duties are met.

Housing quality/regenerating areas

54. The quality of housing available is also key to meeting the needs of homeless people and achieving the 2012 target. High quality housing will prevent homelessness and also ensure that solutions are more sustainable. The Executive has introduced a Scottish Housing Quality Standard, setting out a clear definition of what constitutes good quality housing, and local authorities and other landlords are working towards achieving this standard by 2015 through the development of local delivery plans. We will take into account progress in implementing these plans as part of assessing local authorities' capacity to achieve the 2012 target.

55. As well as addressing the quality of individual dwellings it is clear that in Scotland's most deprived areas there are a range of economic, social and environmental issues which need to be addressed to ensure that these are attractive places to live and that homeless households and others can sustain accommodation there. This is why we have set a specific Closing the Opportunity Gap target of promoting the community regeneration of Scotland's most deprived neighbourhoods through improvements in employability, education, health, access to local services, and quality of the local environment.

56. We are taking action across the Executive to achieve this target and, through the £318m Community Regeneration Fund, providing dedicated funding to Community Planning Partnerships as a catalyst for focusing their own resources and efforts on these areas. Furthermore, Housing Renewal Area powers will allow local authorities to take a more comprehensive approach to the renewal of private housing, taking account of broader strategies for community regeneration.

Furnished tenancies

57. In rehousing homeless households it is often important to consider the provision of furniture and basic household goods in order to ensure that the accommodation is more likely to be sustained. Communities Scotland administer the Furnished Tenancies scheme which delivered over 2000 such tenancies in its first two years of operation. Ministers will consider whether this scheme should be extended beyond 2005/06 in light of evidence regarding its impact to date and the continuing need to provide furnished tenancies. Ministers will also consider whether the remit of the scheme should be widened to ensure a greater focus on preventing homelessness.

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