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Questions Answered

The following questions and answers provide additional points for clarity for submitting an expression of interest.

Q. Can more than one expression of interest be submitted for different sites by the same applicant? Could the applicant indicate which site they would like to be given priority?

A. A single applicant can submit more than one expression of interest. These should go on separate pro-formas as separate proposals. The applicant can indicate which they would like to be given priority if they wish.

Q. Is there a maximum number of properties a landowner can apply to build?

A: Given the limited resources for the pilot and our desire to have a geographical spread we would encourage smaller projects of up to 10 homes. That is not to say we will dismiss assessing larger proposals, but it may mean we are less likely to get a geographic spread.

Q. Would a steading conversion be eligible for the scheme?

A: No. Rural Empty Property Grant would be the grant mechanism to apply for in this case. The Rural Homes for Rent Grant is applicable only to New Build properties.

Q. Would applications be approved in part, for example four out of eight houses proposed?

A. No, applications will not be approved in part.

Q. If the houses proposed for Rural Homes for Rent Grant form part of a larger new development, can the applicant decide how to apportion the infrastructure costs?

A. The applicant can decide how to apportion the infrastructure costs in this situation, however this should be done on a reasonable basis.

Q. If an applicant can identify other sources of public funding, for example that may contribute towards a carbon-saving energy system, would they be allowed to use this funding without facing a reduction in Rural Homes for Rent Grant?

A. If the other funding is from Scottish Government - Housing and Regeneration Directorate then this would be taken into account and Rural Homes for Rent Grant would be reduced accordingly.

Q. Can properties be supplied by an alternative power source such as renewable energy, rather than 'mains' power supply?

A. Yes, this would be acceptable.

Q. How are bedspaces counted?

A: A single bedroom would be counted as one bedspace, and a double bedroom would count as two bedspaces.

Q. Would it be possible for the property to be sold to a new landlord before year 30, without having to repay the grant but with the new owner being bound by the terms of the scheme?

A. Approval would have to be sought from Housing Investment Division before the sale could take place in order for us to ensure the new owner was a suitable landlord for the scheme and is eligible under the scheme rules.

Q. Could the landlord choose to withdraw from the scheme before year 30 and repay only a proportion of the grant?

A. No, the full amount of grant is repayable if the grant recipient withdraws from the scheme before year 30.

Q. Does the maximum grant amount include the notional land value when the landowner owns the land they are hoping to build on?

A: No. The land value is notional because there is assumed to be no acquisition costs. But the notional land value is taken into account in calculating the grant percentage (which should not exceed 55%).

Q. Will valuations of the land be undertaken on an open market or affordable basis?

A. Valuations of the land will be undertaken on the basis of market value. The resultant market value could vary between an unrestricted value (if there are no planning or other relevant burdens affecting the land) to a restricted value (reflecting a local authority's affordable housing policy and / or other burdens).

Q. Will the grant provide 100 new homes per annum or 100 new homes over the 3 years?

A. It is anticipated that the Grant will produce 100 new homes in total during the duration of the pilot, over the course of the three years.

Page updated: Friday, July 4, 2008