The Scottish Federation of Housing Associations (FHA) has welcomed the Scottish Government’s decision to make new-build affordable housing the centrepiece of its economic recovery programme announced today (Monday 15^th June).

Cabinet Secretary for Finance John Swinney announced that  £31 million of a possible £45 million (arising from extra spending announced at Westminster) will be spent on desperately-needed new-build affordable homes for rent.

The SFHA has this year campaigned hard, through its Year of the Home Coming campaign, for 10,000 new build affordable homes for rent to be built in Scotland this year.

Jacqui Watt, Chief Executive of the SFHA said:“We are delighted that the Scottish Government has recognised the overwhelming need for more new affordable homes by allocating an extra £31million to support new housing. It has helped that the new Housing Minister Alex Neil has made new build his main priority.

“With waiting lists spiralling out of control and the construction industry stalling, the arguments for investing in housing could not have been stronger. A strategy for homes is also a strategy for strengthening our communities and creating jobs. Housing associations are ready and waiting to develop, with the plans and the expertise to build the high-quality homes that Scotland needs.

“We must maintain this momentum in future years, with continued investment in new housing.”

The SFHA, Shelter, Homes for Scotland and the Chartered Institute of Housing have called for the extra money coming to Scotland as a result of increased UK spending on housing to be targeted at new-build affordable homes.

Addressing the SFHA's Annual Conference, Housing Minister Alex Neil made a speech on investment reform and affordable housing funding.

The Minister also announced that the lead developer proposals will not be enforced in Scotland and announced a range of measures aimed at maximising efficiency in the sector.

Reforming the way we invest in affordable housing will harness the energy of Scotland's dynamic housing associations, Alex Neil said today.

The Housing Minister was responding to a consultation on the future of housing investment in Scotland, launched in December 2008.

He said that in a turbulent financial climate, resources must be targeted to ensure the biggest returns, providing the best services for the tenants of today and tomorrow.

Investment reform will be shaped by five key proposals:

* Improving the efficiency of housing associations' activities across the board, including procurement

* Setting a standard for development performance, which will in future be a requirement for receipt of Government subsidy

* By the end of the next spending review, we will award three-year budgets to those associations and groups of associations that are best placed to make use of it - the sector's "leading developers"

* Supporting collaborative groups as a way of bringing local authorities and housing associations together

* A new focus on sharing best practice

Housing and Communities Minister Alex Neil said:

"Scottish housing associations have a proud track record of developing and managing homes across the length and breadth of the country.

"They have made a real difference to many of our most vulnerable communities.

"We have listened and not ridden roughshod over the views of associations and all organisations, which have responded to the consultation.

"I'm committed to getting rid of unnecessary red tape and introducing longer term funding arrangements to help financial planning and aid efficient procurement.

"Together, with a bit of Scottish innovation, forward planning and resilience to the elements, I have no doubt we have what it takes to build a sector that will weather the storm."

Commenting on the Scottish Government’s latest statistics on affordable housing, the Scottish Federation of Housing Asociations has welcomed the renewed focus on affordable housing, but called for more emphasis on homes for rent.

Jacqui Watt, SFHA Chief Executive said: “The SFHA cautiously welcomes figures that show an 8-year high in the number of affordable homes completed in Scotland, and the renewed focus on housing from the Scottish Government during a recession and time of desperate housing shortage is to be welcomed also. But it is worrying that the number of completions fell in the latter part of 2008 and early part of 2009, when the recession really took hold.

“The SFHA believes money would be better spent at this time on building more new affordable homes for rent, rather than publicly subsiding home ownership or buying properties off the peg from private developers. This does not provide either the economic boost or the increase in supply of rented housing which Scotland is in such dire need of at present.

“The SFHA has campaigned successfully to boost the funds available to housing associations and local authority to build more homes, and we call on the Scottish Government to use all available funds to maximise this.”

Prince Charles will meet Glasgow nursery and school pupils when he visits the award winning Castlemilk Stables on Tuesday, June 2.

The Royal visitor will tour the stunning building which was saved from demolition as a ruin and transformed into a thriving community facility after a 10 year battle by campaigners and local residents.

The derelict stables were originally part of the historic Castlemilk Country Estate.
They were saved from bulldozers by Glasgow Building Preservation Trust and the Cassiltoun Trust who worked tirelessly to raise £4.2m to regenerate the local landmark.

The building boasts an environmentally friendly ground source heat pump and is home to Cassiltoun Housing Association which runs numerous community initiatives including a nursery school, a children’s orchard and arts projects.

The Prince will meet some of the architects and artisans who worked on the project during a tour of the building. He will also plant an apple tree in the children’s orchard and view a photographic exhibition.

Charlie Millar, Chief Executive of Cassiltoun HA, said: “We are honoured to welcome Prince Charles to Castlemilk Stables as we know he is an architecture enthusiast as well as a keen environmentalist.

“I’m sure the Prince will be interested to hear how residents and campaigners worked to turn a derelict yet historic ruin site into a stunning hub providing employment and vital services in the heart of this community. It’s a real success story and demonstrates what can be achieved by local people with determination and hard work.”

Anna Stuart, Chair of the Cassiltoun Trust and Cassiltoun Housing Association, which was formed by local residents, said: “I am delighted and thrilled that Prince Charles is visiting Castlemilk Stables not only to see a fine project but to see how historic buildings can help breathe new life into communities. “

Glasgow Building Preservation Trust saw the project through from inception to completion. The charity bought the building, secured funding for the renovation from more than 22 agencies and employed the builders before handing the building over to the Cassiltoun Trust in 2007.
 
Anne McChlery of Glasgow Building Preservation Trust said: "This project was about heritage led regeneration and it is one of which we are extremely proud. It was a catalyst for bringing people together with a common purpose and is an exemplar in partnership working. It successfully incorporates a range of objectives including community ownership, sustainable energy systems and preserving the city's build heritage."

On the anniversary of the birth of John Wheatley, considered by many the father of “social housing,” the Scottish Federation of Housing Associations is calling for extra funds to be directed at affordable housing.

Today (Tuesday May 19) is the 140th anniversary of the birth of Shettleston MP John Wheatley, Housing Minister in the first Labour Government under Ramsay MacDonald. Wheatley’s 1924 Housing Act, which created thousands of new homes from working class people, is considered to be probably the major achievement of Britain’s first Labour Government.  As a result of this year’s UK Budget, an estimated extra £45-£50million is available to be spent on housing, and the SFHA is calling on the Scottish Government to target this cash at desperately needed new-build affordable housing.  Through its Year of the Home Coming campaign, launched in January at John Wheatley College, the SFHA is calling for 10,000 new affordable homes for rent to be started in Scotland this year. 

SFHA Chief Executive Jacqui Watt said:  “There could be no better way to mark the anniversary of the birth of John Wheatley, a champion of decent housing provision for all, than to boost new-build affordable housing in Scotland this year. We are calling on the Scottish Government to target this money where it is desperately needed – at affordable housing. This is a strategy for society, the economy and jobs."

The Scottish Federation of Housing Associations (SFHA) has expressed concerns that changes to the Scottish Government’s funding to housing associations will delay new-build projects, during a time of recession and desperate housing shortage.

The Scottish Government has announced that the Housing Association Grant (HAG) benchmark will be reduced by £1000 per unit. HAG is the amount of public subsidy per unit given to housing associations to build new homes. The benchmark is the level of public subsidy which associations are expected by the government to need for new developments. Projects over the benchmark undergo extra scrutiny and will face delays.

Reducing the benchmark levels, barely two months after they were set in March, will therefore delay many vital building programmes, say the SFHA.

Following pressure from the SFHA, in February, the Scottish Government increased HAG levels by an average of six percent, equivalent to between £4000 and £5000 per house.

Cabinet Secretary for Health and Wellbeing Nicola Sturgeon said at the time: “We have listened to concerns from housing associations and have made changes to Housing Association Grant assumptions."

SFHA Chief Executive Jacqui Watt said:  “Not only are these benchmarks being changed after only two months – causing widespread uncertainty for housing associations, but the decision by the Scottish Government to lower HAG benchmarks will put developments across Scotland, particularly in rural areas, in jeopardy. This is in direct conflict with urgent calls from the Scottish Parliament for more new rural homes.

“The SFHA recognises that we need to get the most from the public pound, but these changes will delay many projects, put some back to the drawing board and create extra red tape.

"In a time of financial uncertainty and higher private lending costs, associations need certainty over their operating environment and targets. We call on the Scottish Government to set up a working group to explore the impact of changing tender costs and loan costs as a matter of urgency.”

The Scottish Federation of Housing Associations (SFHA) and Energy Action Scotland have teamed up to urge energy companies to follow the lead of Scottish Gas, which has cut its prices by 10%.

Scottish Gas, owned by Centrica, now claims to be on average, the cheapest electricity supplier in Britain.

SFHA Policy and Strategy Manager David Ogilvie said:"We welcome today’s 10% price cut from Scottish Gas, and urge other energy companies to follow suit.

“Fuel poverty remains a matter of utmost concern to the SFHA and housing associations across Scotland. The most recent figures from the Scottish House Condition Survey Key Findings 2007 Report show that fuel poverty is on the rise with 569,000 households living in fuel poverty in Scotland, representing 24.6% of the total, and given that higher energy prices continue to have a disproportionate and negative impact on vulnerable and low income tenants in the affordable rented sector, we would certainly join the Minister in calling for energy suppliers to cut their prices across the board.”

Mr Ogilvie continued:“At the same time, whilst we are aware that OFGEM is looking at the issue of unfair price differentials on prepayment meter tariffs, we would also reiterate our ongoing concern that action needs be taken by energy suppliers to eliminate unfair prepayment tariffs, and failing that, we would be looking for government intervention."

He added:"Fuel to heat the home is not a luxury item - it is a basic human need, and for those living in fuel poverty, the consequences are misery, discomfort, ill health and debt. Fuel poverty can mean having to choose between heating the home and having a hot meal. The SFHA believes that this is simply unacceptable in modern society."

Elizabeth Gore, Deputy Director of fuel poverty charity Energy Action Scotland commented: “Lower energy prices will help people to afford their energy bills and the cut by Scottish Gas will be particularly welcomed by low income customers.

“However, Energy Action Scotland still urges customers to shop around for the best deal and to ask their existing supplier if they are on the best tariff for their needs.

“We also believe it is essential to reduce the amount of energy people need to use.  They can do this by taking up advice and assistance to make their homes more energy efficient.”

The Scottish Federation of Housing Associations (SFHA) has welcomed the Scottish Government’s proposals to scrap the controversial Right to Buy policy for new build affordable homes.

The reforms, part of the consultation on the Draft Housing (Scotland) Bill, are aimed at safeguarding social rented housing for future generations.  The SFHA also welcomed proposals to make the Scottish Housing Regulator independent of government.

It is estimated that between 2012 and 2022 these reforms will retain between 10,000 and 18,000 homes for low cost rent that would otherwise be lost through Right to Buy sales.

The SFHA is keen for the Right to Buy to be ended for all new tenancies to protect limited stocks of affordable housing for rent and tackle rising waiting lists. It is also campaigning for funding to build 10,000 new affordable homes for rent in the coming year.

Jacqui Watt, Chief Executive of the SFHA said: “We strongly welcome the Scottish Government's national policy decision to end all Right to Buy for new build properties and its intention to consult on further restrictions, such as ending Right to Buy for all new tenancies. This will help protect and retain vital affordable housing stock at a time when housing is in crisis, with awaiting lists spiralling out of control. It will also help retain badly-needed stock ahead of the introduction of strict homelessness targets in 2012. "

“In these difficult economic times, a plentiful supply of well-managed and affordable rented stock is more important than ever. “

The new SFHA Diamond insurance scheme is now available.

Applications can be downloaded from our website here.

If you would like hard copies sent to your office or have any other queries, please email diamond@sfha.co.uk

Please be aware that the Crystal scheme being offered by Jardine Lloyd Thomson has nothing to do with the SFHA.

We would appreciate it if you actively promoted the new SFHA Diamond scheme.