Tackling the housing emergency

Investing in affordable housing

Housing Minister Paul McLennan visited an affordable housing development in East Lothian to highlight plans in the draft Budget for next year to increase funding for the Affordable Housing Supply Programme.

The investment could see the total budget for delivering affordable homes rise to £768 million in 2025-26 – an increase of more than £200 million compared to this year’s published budget.

Other measures in the Scottish Government’s draft Budget aimed at tackling the housing emergency include:

  • £4 million to support local authorities and frontline services to prevent homelessness
  • £2 million to transform empty properties into safe, warm, affordable homes

In addition, £1 million for registered social landlords and third sector partners will be available this year to fund work to help sustain tenancies and prevent homelessness.

Speaking during his visit to the development in Haddington, Housing Minister Paul McLennan said: “Investing in safe, warm and affordable homes is key to our top priority to tackle child poverty.

“We already have a strong track record in affordable housing, having supported the delivery of 133,000 affordable homes since 2007 – this includes our £2.9 million investment in the development at Haddington. That’s 45% more per head of the population than in England and 70% more than in Wales.

“By increasing the affordable housing supply budget in 2025-26 by more than £200 million, housing providers will be able to deliver at least 8,000 properties for social and mid-market rent and low-cost home ownership.”

Councillor Andy Forrest, East Lothian Council spokesperson for Housing, said: “It was really useful to welcome the Minister to Haddington this morning to discuss East Lothian’s recently announced Affordable Housing Crisis and to emphasise the need for clarity as soon as possible on what our settlement will be so that we can continue to sustain our hugely important future housing programme.

“We welcome the announcement of more subsidy funding for affordable housing and any additional revenue for frontline services to help prevent homelessness.”

Homelessness is a hidden issue in Scotland’s student housing crisis

THE recent Cross-Party Group on Housing report on student homelessness proved that we have a long way to go with student housing (writes RUTH ELLIOTT, Vice-President Community of Edinburgh University Students’ Association).

In Edinburgh alone, there is currently a shortfall of over 13,000 bedspaces.

Students have been known to be both resourceful and resilient, hopping between hostels and crashing on friends’ sofas, but it’s hard to believe this lack of stability won’t have an impact on their studies, as well as their mental health.

In fact, NUS Scotland’s Cost of Survival Report (2023) survey showed that 66% of students feel this has impacted their mental health, with this skyrocketing to 83% of estranged students and 78 per cent and 79 per cent of low income and students with caring responsibilities.

And things aren’t much better if you do manage to find accommodation, with 75% of student respondents falling below the UK poverty line after housing costs (Russell Group Student’s Unions (RGSU) Cost-of-Living survey).

The Advice Place at Edinburgh University Students’ Association has seen an increasing trend of affordability as a barrier to finding housing for students.

As Vice President Community, I am calling on the University of Edinburgh and the Scottish Government to provide more accommodation that is genuinely affordable for students, and to support alternatives such as student housing co-operatives to alleviate the pressures on the housing market.

Nowhere to live

But there’s another, unexpected problem on top of the lack of accommodation and affordability.

One of the biggest issues with student homelessness is hidden homelessness. ‘Hidden homelessness’ refers to people who would meet the legal definition of homelessness but are not represented in the local authority homeless statistics (see here).

Some examples are:

  • Staying with family and friends
  • Sofa surfing
  • Living in unsuitable housing such as squats or in ‘beds in shed’ situations

Source: The Homeless Monitor: England 2018

Many students don’t realise they could be considered homeless (possible as the problem has become increasingly normalised). As a result, the majority of students are not empowered to reach out for help when they really need it, which also means we don’t have a good idea of how widespread this problem is.

This affects how the issue of student housing is recorded by the university, and therefore how it is prioritised and addressed. Equally, the fact that students do not consider the University as a place to reach out for help is troubling.

The University of Edinburgh has a lot of work to do to rebuild the relationship with its students to be viewed as more trustworthy and supportive.

Those who experience hidden homelessness are hidden from statistics and services as they are dealing with their situation informally.” (Crisis)

It is essential to raise awareness about hidden homelessness – as well as awareness about being at risk of homelessness, whether through overcrowding, unaffordable rent or those at risk of abuse in their homes – so we can better support our students and lobby for change that is backed by data.

Because of the limited housing options available, students are more likely to take on riskier situations – whether that be higher rent than they can’t afford, living further away from campus living with strangers, or subletting illegally.

This leaves students very vulnerable. Students are not a homogenous group and can be some of the most vulnerable people in our society as young people, international students, queer people, carers and parents, and people from low-income backgrounds.

It’s positive to see Edinburgh Council putting more focus on reducing homelessness, and I would like the University to take more responsibility here.

This year, I am working on a project with the University to include more comprehensive data collection on students’ housing situations in the matriculation process. It’s really important that this addresses the issues I have outlined regarding hidden homelessness, and encourages students to reach out.

The student housing crisis is a complex issue which needs addressing. But without the right data, we’ve failed before we’ve begun.

Increasing funding for affordable housing

New bonds issued to support delivery of homes

A £22 million investment has been made into a scheme to increase investment in affordable homes and deliver more housing.

As part of Scotland’s Charitable Bond Programme, the Scottish Government has provided funding to issue two new bonds via finance intermediary Allia to housing providers Link and Cairn Housing Association to provide support for more than 150 new homes.

The programme, which has been running since 2014, provides loans to social landlords to construct new affordable homes, with the interest being reinvested by the Scottish Government into the affordable housing budget to support more homes for social rent.

This latest extension will see the total number of bonds issued increased to 40 and a total investment of more than £482 million.

Housing Minister Paul McLennan said: “Tackling the housing emergency requires bold thinking and investment in Charitable Bonds is another tool we can use to increase investment in our affordable housing budget while also allowing social landlords to access vital funding to build new homes.

“This has been a successful model in the past but is reliant on Financial Transaction funding from the UK Government. This funding, which is vital in housebuilding, has been cut by 62% since 2022.

“While we are demonstrating what we can do with the devolved powers and levers we have, it is vital that the UK Government reverses that cut so we can increase investment in the affordable housebuilding sector.

“We have a strong track record in affordable housing with 133,000 homes delivered since 2007, 93,000 of which are for social rent. However, tackling the housing emergency requires joint working from the Scottish and UK Governments and local authorities.”

Peter Freer Director of Debt Capital Markets and Head of Allia C&C’s Scottish Office said: “These two bond issues demonstrate the ongoing success of the Charitable Bond programme.

“With the Scottish Government’s investment in the bonds, Allia has been able to provide Link with additional funding to support its significant development programme and make our first loan to Cairn Housing Association.

“Both organisations are providing much-needed new affordable homes, and we look forward to continuing our work with the Scottish Government to create more positive impact across Scotland.”

The charitable bonds programme was created in response to demand from housing associations for better access to appropriate finance.  It provides unsecured loans for up to 15 years. Charitable bonds are an ethical investment product where the margin usually paid as interest to the bond holder, tax, or profit to shareholders, is released as grant funding.

  • Link – bond value of £16,006,385
  • Cairn Housing Association – bond value of £6,019,085

Poll reveals vast majority value countryside access

  • 85% said access to the countryside was ‘very important’ (53%) or ‘fairly important’ (32%) 
  • Strong support for countryside access evident across every age group, gender, region and socioeconomic background 
  • 85% of Labour voters agree that access to the countryside is important

The vast majority of people in Great Britain believe it’s important to have access to the countryside close to where they live, according to new polling from countryside charity CPRE and YouGov.  

85% of those asked responded that access to the countryside was either ‘very important’ (53%) or ‘fairly important’ (32%). Strong support for countryside access was evident across every age group, gender, region and socioeconomic background.  

Strikingly, 85% of those who voted Labour in 2019 agreed that access to the countryside was important. The figure for Conservative voters was 91%.  

The Westminster government has already begun making decisions that will shape our countryside for generations to come.

We are calling on them to listen to their supporters and make good on their promises to protect the countryside – including the Green Belt – and to take action in CPRE’s core priority areas: planning system reform; affordable housing; the transition to clean energy and the need for joined-up decision making on how we use our finite supply of land. 

CPRE chief executive Roger Mortlock said: ‘The results prove the countryside is deeply important to people, whatever their political beliefs and backgrounds.  

‘The countryside is working harder than ever to address the challenges our nation faces but we’ve got to start treating our land as the finite resource that it is.

“We need a strategic, cross-government approach to land use that will help the countryside provide food and energy security, nature restoration, climate change mitigation, health and wellbeing benefits, space for new homes – and space for beauty, too.’ 

Extended relief for councils buying affordable housing

Increasing exemptions to additional properties tax

Legislation enabling councils to increase their affordable housing stock without having to pay a tax on additional properties has been introduced in the Scottish Parliament.

Under changes to the Additional Dwelling Supplement (ADS), paid as part of Land and Buildings Transaction Tax, the length of time a buyer moving between properties has to sell their original home in order to be able to reclaim ADS would also be extended from 18 months to 36 months.

Other changes include an exemption for people buying a new property to live in after divorce or separation if they are required by court to keep their previous home. Further amendments will exempt buyers from paying ADS on a property for which missives have been signed when a separate property has been inherited in the meantime.

Public Finance Minister Tom Arthur said: “The Additional Dwelling Supplement is an important source of revenue and in 2022-23 raised £163 million to support vital public services. The tax works well in most cases but we have taken on board feedback about the way it operates in certain circumstances.

“We want everyone in Scotland to have an affordable home that meets their needs, which is why we’re extending the scope of relief for councils to help them increase their affordable housing stock without having to pay tax on additional properties.

“The amendments also take on board feedback that it can be tricky for people moving house to sell their original home within 18 months due to differences in supply and demand in the housing market across Scotland.

“I am grateful to everyone who responded to the Scottish Government’s consultation on these changes and look forward to working with MSPs as the legislation progresses through Parliament.”

Green light for affordable housing development at Newcraighall East

An ‘exciting’ new residential development in Newcraighall has been granted, subject to conditions, by councillors on City of Edinburgh Council’s development management sub-committee.

The site, to be developed by housing specialists Cullross Ltd, will see 220 mixed-residential units brought to the area, located east of Glennie Road.

Flats, colony flats, and townhouses are included in the ambitious plans, with 163 (74 per cent) of the units being for affordable housing which will be delivered by Cullross on behalf of Hillcrest Homes. The remainder being for private housing.

 A substantial open park space, with quality landscaping, will be provided for the local community and the layout integrates with the existing residential development.

The proposed development is allocated as housing site HSG27 in the Council’s Local Development Plan, where residential development is acceptable in principle.

It also delivers a 20-minute neighbourhood, being within 10-minites of a school, open place, play parks and a railway station, as well as a number of active travel connections. The site is within a 20-minute walk of Fort Kinnaird Retail Park and Queen Margaret University.

Twenty-minute neighbourhoods are places that are designed so residents can meet their day-to-day needs within a 20-minute walk of their homes.

The proposals include education and healthcare contributions to mitigate its impact on the locality.

Cullross Ltd has nearly 60 years of combined experience designing, developing, and building new homes and specialising in affordable housing projects. 

Mark Beaton, Director of Cullross Ltd., said: “We are delighted to have had our application for residential development at Newcraighall East granted, subject to conditions.

“Extensive community consultation was undertaken on our ambitious proposals which will bring much-needed housing, the majority of which will be affordable housing, to Edinburgh.

“We were particularly keen to ensure that there is extensive greenspace available to the local community, including delivering a substantial landscaped open park.

“As the project progresses to site, we look forward to continuing to engage with the local community on this.”

Angela Linton, Hillcrest Chief Executive, said: “We’re delighted to again partner with Cullross to deliver another high-profile development.

“The 163 Hillcrest properties, which will form a significant portion of this development in Newcraighall, will offer a welcome boost of high-quality affordable housing to the city of Edinburgh.”

Rod Duncan, director of jmarchitects, said: “jmarchitects are delighted that the planning application for Newcraighall has been approved. The six month process from start to approval is testament to the team and to the City of Edinburgh Council.

“The masterplan on an allocated site will deliver 220 new homes within a design framework that is based on sustainable and biodiverse principles with placemaking at its heart.”

Barratt Developments to deliver 270 affordable homes in Edinburgh and The Lothians

Barratt Developments is on track to deliver 270 new affordable homes across Edinburgh and the Lothians this year.

Cammo Meadows in Edinburgh, Leith’s Merchant Quay and St Clair Mews in Roslin, will all benefit from affordable housing this year, with a total of 270 homes earmarked for the region.

Barratt Developments – which consists of Barratt Homes and David Wilson Homes – is working closely with affordable housing providers and local authorities to construct much needed new homes for both mid-market and social rent as part of its East of Scotland developments. The delivery includes a wide range of homes on each site in order to best meet the affordable need in the area.

Harbour Homes has been working in partnership with the housebuilder and recently completed 43 mid-market and social rent properties at Merchant Quay. These will consist of one, two and three-bedroom apartments.

Meanwhile, Places for People recently delivered 114 properties at Cammo Meadows in partnership with Barratt, which includes one and two-bedroom flats and three-bed terraces.

On the outskirts of the city in Midlothian, 53 social rent properties are in development with Midlothian Council. Due for completion this autumn, these will include two-bed cottage flats and a mix of three-bedroom semi-detached and terraced homes.

Cammo Meadows also has also completed 50 apartments and terraces for sale through Edinburgh Council’s Golden Share Scheme, while Merchant Quay development has recently completed 10 Golden Share homes. The scheme consists of homes which are sold at 80% of their market value, while buyers still own 100% of the property.

While a significant number of plots have already completed, all properties will be ready to move into by October.

Cllr Stuart McKenzie, Midlothian Cabinet member with responsibility for Housing, said: “There is a real and growing need for affordable homes in Midlothian.

Midlothian Council is currently active on 13 sites, building 552 Council homes for our communities. Working in partnership with developers is an important source of new affordable housing and we are delighted to have contracted Barratt to build 53 homes for us at Roslin.

“This mix of flats and houses with two and three bedrooms are due to be delivered ahead of schedule.”

Heather Kiteley, Group Chief Executive of Harbour Homes, said: “We are pleased to have been part of this rewarding partnership which has created 43 new affordable homes in Leith, transforming disused brownfield sites into thriving communities.

“Demand for social and mid-market rent homes in the north of the city is especially high, and we are committed to providing brilliant places to live where they are needed most.”

Katie Smart, Director at Places for People Scotland, said: “We are delighted to be working in partnership with Barratt Homes at Cammo Meadows in Edinburgh.

“At Places for People, we work to change lives by creating and supporting thriving communities and Cammo Meadows is no exception. Working with Barratt Homes we are thrilled to bring 114 new much-needed affordable homes to the area.”

Nick Wright, Development Director at Barratt Homes and David Wilson Homes East Scotland, said: “Barratt and David Wilson have a strong track record in delivering affordable homes in the east of Scotland.

“This year alone, we are incredibly proud to be able to deliver 270 affordable homes across our Edinburgh and Lothian developments in partnership with our housing association and local authority partners.

“At Barratt Developments, we’re committed to building quality homes across the breadth of the country, including our East Scotland developments. These affordable homes will enhance the lives of those within the local community by creating modern, energy efficient accommodation in desirable locations.”

For more information on Barratt Developments in Scotland, visit:

https://www.barratthomes.co.uk/new-homes/scotland-east/

Council to build homes for social rent

More than 200 affordable homes have been given the green light this week, allowing the Council to create more much-needed affordable housing.

At least 130 of these new homes will be for social rent at key sites in Greendykes, Wester Hailes and Dreghorn.

It follows decisions by the Development Management Sub Committee on Wednesday (25 January) to grant permission for newbuild sites and agreement by the Finance and Resources Committee on Thursday (26 January) for the Council to purchase empty homes from the Ministry of Defence.

Of the 140 new homes agreed for Greendykes, 74 will be Council homes.

They form the final phase of the Council’s 15-year Greendykes masterplan, which is delivering 2,200 new homes in total alongside four new schools, a new public park, a brand new town centre and 300,000 sq ft of retail space.

The project is also the second pilot for the Edinburgh Home Demonstrator (EHD) programme, meaning innovative construction methods will be used to build these homes offsite before delivering them to Greendykes where they will offer residents’ net zero carbon homes. This is a significant milestone for the EHD programme and the Greendykes area as we look to accelerate the delivery of affordable housing that is aligned with the current Net Zero Carbon approach of the Council.

Of the 73 new homes granted for Wester Hailes, 41 will be Council homes.

They will be built at a derelict site in Murrayburn Gate where the Wester Hailes Health Centre once stood. The site is next to the Westside Plaza shopping centre and close to rail links, with the community to also benefit from a new public footway to the nearby Canal View Primary School.

All 23 empty homes agreed to be bought in Dreghorn are currently owned by the Ministry of Defence and are based along Dreghorn Place and Dreghorn Drive. The homes will be made available for social rent from the Council.

Councillor Jane Meagher, the Council’s Housing, Homelessness and Fair Work Convener, said: “Never has our need for affordable housing been greater as we face a cost-of-living crisis and a climate emergency. The decisions made this week demonstrate our Council’s commitment to urgently creating the homes Edinburgh needs.

“I’m particularly pleased that we’ll be able to deliver so many homes for social rent. We want to provide everybody with a safe and warm place to live but we’re facing growing homelessness in Edinburgh. This remains a challenge, but these new properties that we’re buying and building are going to help many people in desperate housing need.

“And, as we build these new homes, we’ll create well designed places. Innovative offsite manufacturing of net zero homes such as those planned for Greendykes will help tenants and residents to keep their fuel bills down. This work will be taken forward alongside retrofitting many of our existing homes, so that older Council properties are also brought up to a better standard.”

PoLHA wins commendation at the Herald Property Awards 2022 for Heron Place development

Port of Leith Housing Association (PoLHA) has won a commendation at the Herald Property Awards 2022 in the Affordable Housing Development of the Year category (sponsored by NHBC) for its Heron Place development.

Heron Place was also shortlisted for the Scottish Home Awards 2022 and nominated for Architecture: Regeneration Heron Place at the Scottish Design Awards 2022.

The development situated at Granton Harbour consists of 46 homes for social rent, including two wheelchair accessible flats, and 58 homes for mid market rent. The construction and design team comprised of CCG (Scotland) Ltd, architects Hackland and Dore, structural engineer Bayne Stevenson Associates Ltd and M&E engineer The Keenan Consultancy.

The Herald Property Awards for Scotland 2022 honoured the achievements of Scotland’s most innovative and successful home and commercial builders, developers, agents, interior designers and registered social landlords. The awards took place on Thursday, September 29 at the Doubletree by Hilton, Glasgow.

The Affordable Housing Development of the Year category was open to registered social housing providers, charities, trusts or public bodies in partnership with a local authority and/or a developer for rent and/or shared ownership.

The judges were looking for evidence of how the development has impacted positively on the lives of local residents and contributed towards the regeneration of the area. Consideration was given to the use of sustainable materials and building techniques, as well as the development’s impact on the local environment.

Heather Kiteley, Group Chief Executive of PoLHA, said: “We’re proud that Heron Place is thriving within the Granton waterfront community with sustainable, affordable homes and brilliant communities.

“Receiving a commendation for Best Affordable Housing Development at the Herald Property Awards on top of our shortlist at the Scottish Home Awards 2022 is incredible rewarding.”

Scottish Housing Day: Alliance of Edinburgh affordable housing providers rally together to support sustainable housing

With Scottish Housing Day (14 September 2022) focusing on sustainable housing, the Alliance of Registered Co-operatives and Housing Associations, Independent in Edinburgh (ARCHIE) is working collaboratively to address the challenges around decarbonisation and energy efficiency and provide advice on how tenants can live sustainable lives, from energy saving tips to financial support.

Past ARCHIE successes include joint ventures such as distributing energy saving packs to tenants and energy use advice. One of the most successful projects is the provision of Tenant Advice Services, which includes money, debt, benefits and tenancy sustainment advice.

Through sharing services and collaborating on joint activities ARCHIE members provide value for money and keep rents affordable.

The ARCHIE members are Lister Housing Co-operative, Manor Estates Housing Association, Muirhouse Housing Association, Port of Leith Housing Association (PoLHA), Prospect Community Housing, Viewpoint Housing Association and West Granton Housing Co-operative.

Larke Adger, Chair of ARCHIE and Chief Executive, West Granton Housing Co-op commented: “Through collaborative working, we have achieved better services and support for tenants across all ARCHIE member organisations.

“We look forward to continuing to build on this work to help create thriving, sustainable communities.”