SFHA Launches Discussion on Potential to Unlock Public Land for Affordable Housing

The SFHA has opened the discussion about the potential for unlocking public land in order to provide more desperately needed affordable housing, in a climate of falling public subsidy (1) and a tough private lending environment.

A discussion paper was launched at the SFHA's Development conference in Dunblane, taking place today (3rd February) and yesterday, with a spotlight shone on local social landlord Rural Stirling Housing Association, which by working together with Stirling Council, was able to provide 18 affordable homes for rent in a highly sought after site in Kippen.

Stirling Council provided the land on favourable terms, providing it was used purely for affordable housing. The 18 homes in The Old Nursery, are highly energy efficient and incorporate renewable elements.

Rural Stirling Chairman Owen McKee (pictured attached, with Tony Cain, Head of Housing at Stirling Council, at the Old Nursery homes in Kippen) said:

"This is another great example of successful partnership working between the association, the local community, Stirling Council which provided the site and the Scottish Government which is providing most of the grant funding. We very much hope to be able to continue to provide similar quality homes in the future".

Stirling Council's Portfolio Holder with responsibility for Housing, Councillor Alasdair MacPherson, said:

"Stirling Council is committed to working with our local housing associations to meet the housing needs of our local communities. If we can achieve this by releasing our own land bank then we are happy to do so. We would hope that other public agencies will follow our example."

The SFHA's Graham Harper explained the reasons for looking at using public land for affordable housing:

"If more public land is released for social housing, then housing associations and co-operatives will be in a position to deliver a significantly higher number of homes. While financial resources are in short supply, maximum use must be made of whatever other resources exist. Releasing public land will reduce the risks the sector has taken on to meet the Scottish Government's target," he said.

"Land accounts for up to £25k a unit of the cost of building a new affordable house. If the land is provided free or even cheaper than market rate, then it will be economically possible to build more units out of the same money.

"While the SFHA will continue to emphasize to politicians of all parties of the benefits of investing properly in affordable housing, we know public finances are stretched. One answer therefore, is to release land owned by local and national government, health boards and other public authorities.

"Some may argue the land should be hoarded for the future or that the capital receipt is the most important thing. But the rainy day is here: we have a huge shortfall in funding for affordable housing, increasing waiting lists, a construction industry on its knees and prospects for economic growth marginal at best. If we can't use it now, frankly we never will."

Ends

** PICTURES ARE ATTACHED TO THIS RELEASE**

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NOTES:

1) The overall amount of funding available for new investment in housing has been cut by over 30% and subsidy levels were cut for 2011-12 by around 48%. 2.5. According to the 2012-15 Draft Scottish Budget, this is set to be cut further; by nearly 50% in the first two years.

2) The SFHA was established in 1975 and has around 170 members providing affordable housing and wider community services in Scotland, as well as a further 200 commercial members. The SFHA is owned by its membership and exists to support the work of housing associations and co-operatives in Scotland by providing services, advice and good practice guidance.

3) The SFHA is the voice of the principal builders and managers of new affordable housing for rent in Scotland. Housing Associations own and manage around 40% of the country's affordable rented housing stock, over a quarter of a million homes across Scotland.

4) Housing associations and co-operatives are not-for-profit bodies regulated by the Scottish Housing Regulator.

 

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