Tag: housing

Accelerating rents push renters towards smaller properties and lower running costs

  • There’s been a jump in demand for one and 2-bed flats as renters feel the cost-of-living squeeze, and fewer renters looking for 2- and 3-bed houses
  • The average rent has increased by £115 per month since last year, reaching £1,051 per calendar month – and accounting for 34.4% of the average income of a single earner
  • Rental growth has accelerated over the last 12 months – from less than 2% in July 2021 to 12.3% today – although there are signs that rental growth is starting to peak at current levels
  • In a reversal of a trend seen during the pandemic, rental growth in urban markets (10.5%) is now outpacing that in rural markets (8.5%) as strong employment growth drives demand in cities
  • There is no real prospect of significantly improved rental supply in the near term as private landlords continue to sell off homes due to tax and regulatory changes and renters decide to stay in their current homes

Renters are being pushed towards smaller properties and lower running costs in the face of higher rents and rising living costs including rising energy prices, according to to Zoopla, the UK’s leading property destination, in its quarterly Rental Market Report. 

Chronic shortage of supply pushes rents higher 

The average rent has increased by £115 per month since last year, reaching £1,051 per calendar month – and accounting for 34.4% of the average income of a single earner. This surge in rents is heavily impacted by a severe supply and demand imbalance with the stock of homes available to rent standing at just half of the five-year average – while the average letting agent currently has just eight homes available to rent.*

This chronic supply shortage is also impacted by an increase in renters staying put in their properties to avoid rent hikes and landlords continuing to sell properties in the face of tax and regulatory changes. Currently, approximately 3 in 4 renters will decide to stay in their current property and although they will experience lower levels of rental growth of 4% or less – this will squeeze supply in the market as a result. 

There’s been an acceleration in demand for one and 2-bed flats as renters feel the cost-of-living squeeze, and fewer renters looking for two and 3-bed houses. Outside of London, the average asking rent is £105 lower per month for a 2-bed flat compared to a 3-bed house. 

Renters making decisions about what type of property to rent will also consider running costs and rising energy prices are likely to be playing a role in the shift in demand to smaller homes. 

When it comes to energy prices, the amount of gas to heat and run a purpose-built flat for a year is 40% lower than a terraced house and 25% lower for a converted flat.** New-build city centre flats are also becoming increasingly appealing to renters seeking out smaller homes with lower running costs.

Annual rental growth nears its peak

Rental growth has accelerated over the last 12 months from an annual rate of less than 2% in July 2021 to 12.3% today, while rental growth is out-pacing earnings growth in all regions and countries of the UK.  Rental growth is ranging from 7.6% in the North East to a staggering 18% in London – however, there are signs that rental growth is close to peaking.

Despite rents in London rebounding from a low base,  the pace of rental growth in London is not sustainable at current levels with average rents in London currently 7.8% higher than pre-pandemic.

In a reversal of a trend seen during the pandemic, rental growth in urban markets (10.5%) is now outpacing that in rural markets (8.5%) as strong employment growth drives demand in cities. 

The strongest performing urban markets are London (17.8%). Manchester (15.5%), Glasgow (14.4%) and Bristol (12.9%) – where rental growth is standing above the UK average of 12.3%. Rents are also rising faster at the top end of the market with asking rents for 2-bed flats rising more quickly at the upper end (top 25%) of the market in comparison to the lower end of the market where demand is more price sensitive.

What’s the outlook for the rental market?

There is no real prospect of significantly improved rental supply in the near term as private landlords continue to sell off homes due to tax and regulatory changes. Renters renewing their tenancies will also amplify the fierce supply squeeze and keep upward pressure on rents into 2023.

There is headroom for some renters to pay more, especially outside London and the South East, however overall, we expect the headline rental growth to slowly taper over Q4 and into 2023. 

Richard Donnell, Executive Director at Zoopla comments: “Rents have surged ahead over the last year but there are signs that the pace of growth is peaking and set to slow into 2023. Renters are responding and looking for smaller, better value for money homes to rent with an eye on energy costs as much as rental levels. 

“What the rental market needs to combat these challenges is more new homes for rent. Greater regulation has seen less new investment and a small but growing number of landlords selling up, meaning the rental market has stopped growing since 2016.

“There is a risk that more regulation to improve standards or potential new measures to dampen rental growth, as proposed in Scotland, may compound the supply problem which is pushing rents up in the first place. Policymakers need to tread a careful path between protecting consumers and ensuring a decent supply of homes for rent.”

Hannah Gretton, Lettings Director at LSL’s Your Move and Reeds Rains brands comments: “We are experiencing high levels of demand for rental properties with homes being snapped up within hours of hitting the market.

“With over 270 lettings branches nationwide, it’s a picture that is reflected up and down the country with particular demand in urban areas.

“On average, we are seeing double figures of enquiries per property with a one-bedroom property in Manchester last week receiving over 100 requests to view, highlighting just how busy our branches are and the challenges renters face when it comes to finding an appropriate property.”

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.”

Housing market experts advise: hurry if you’re selling, halt if you’re buying, stay if you’ve borrowed

How the new interest rates affect house prices and rent

  • Housing market: hurry if you’re selling, halt if you’re buying, stay if you’ve borrowed, finance experts advise
  • Landlords will likely increase rent prices or sell to cope with increased mortgage repayments
  • Inflation and interest rates will keep rising, but house prices are already slowing down

The Office for National Statistics announced last month that UK inflation rose to 10.1%, from 9.4% two months earlier. The Bank of England expects it to further increase, peaking at 13.3% in October. The accompanying higher interest rates, currently at 1.75%, and bleak two-year economic outlook generally means bad news for homebuyers, landlords and renters across the UK.

Top market analysts at CMC Markets expect interest rates to further rise to 2.25% in September. This directly impacts mortgages on variable rates – around 1 in 5 households in the UK – and another 3.1 million whose fixed-rate periods expire in 2022-2023, according to UK Finance estimates.

Borrowers whose repayments are directly linked to the base rate, as set by the Bank of England, will now face mortgage repayments at rates between 3% and 4%, up from 1.75% and 2.75% only five months earlier. This will inevitably spill into rent prices.

CMC Markets analysed the latest data for June 2022 from HM Land Registry, published on August 17th, and concluded that the likely tendency for house prices is in a temporary slowdown, which is good news for those waiting a little longer to buy a home.

Michael Hewson, Chief Market Analyst at CMC Markets comments: “Houses sold in June 2022 only increased in price by 1% compared to May, whereas, last year, this constituted a much more generous 5.7% surge.

“This is only the first month this year for prices to slow down at such a fast rate, so some caution before jumping to conclusions is advised. Remember, house prices may be slowing down, but they are not decreasing. Importantly, since this is transactions data processed at the time, it does not take into account the big leap in interest rates that the Bank of England announced later that month, let alone the even bigger hike in August.

“Therefore, despite the soaring inflation and rising consumer prices across the board, UK house prices appear to be trailing behind because demand for homes has generally come to a screeching halt. Most buyers are weathering the storm for a few more months at least, while some are also working out how the cost of living crisis will pan out in the medium term so that the new mortgage is not squeezing their pockets beyond their comfort zone.

“For those still keen to get on the property ladder, there are plenty of fixed-rate banking products that can insulate them from the current spiralling interest rates on mortgages. They should, however, prepare for the possibility of being faced with higher-than-expected repayments once the fixed rate period expires, as the new variable rates are at the lender’s discretion. Fixed rates are not a cure-all either, as they may now be set to a higher level to start with.

“The buy-to-let market is equally volatile. Landlords will either pass the increased mortgage repayments onto tenants by increasing their rent or simply sell fast to lock in a better price.

“Right now though, those already on the property ladder are generally better off staying put rather than moving or re-mortgaging. They would not get a good deal on their old house in this market and may likely end up losing more money overall.”

What did the Bank of England do earlier in August?

The Bank of England explained that the rise in interest rates was necessary due to external pressures which are expected to persist. This means that British firms and residents will continue to feel this weight reflected on rising domestic prices, wages outpaced by soaring inflation, and even higher mortgage repayments, despite the Bank’s attempt to widen the borrowing pool through less restrictive mortgage rules.

Although historic, the Bank’s decision was not a surprise for trading analysts at CMC Markets, a London-headquartered financial services company, who believe the Bank was expected to raise interest rates higher than 1.25% during the June meeting, as a means to keep import inflation in check.

This is on the backdrop of a 10% year-to-date depreciation of the British pound sterling against the US dollar and an indication from the Federal Reserve, the US central bank, of a further interest rate increase by 0.5% or 0.75% in September.

Michael Hewson comments: “The UK currently fares worse than both the EU and the US. This is due to its closer dependence on energy shocks than the States and less government intervention to soften the blow compared to its European counterparts.”

What’s next and when will things calm down?

Other than adjusting the interest rates to the accurate level to keep abreast of import inflation, the economic projections for the UK paint a bleak outlook for the next two years.

The UK is projected to enter a recession in the final quarter of this year, the Bank of England announced. The country’s economy will contract by 1.25% in 2023 and 0.25% in 2024, however, inflation is becoming a much bigger long-term threat, with unrealistic chances of falling back to the desired 2% much before 2024.

The current political race for the Conservative Party leadership and the consequent fiscal policies promoted by the new British government is a major factor to take into account for any inflation, GDP, and unemployment projections and investment decisions.

As it stands with the current measures, inflation is expected to peak at 13.3% in October – a sharper increase than the Bank anticipated in June, originally estimated at 11%. It will continue to rise throughout 2023 only to decline in 2024.

Meanwhile, forecasts for the Consumer Price Index (CPI) are less optimistic now, expected to decrease only to 9.5% in the third quarter of 2023, although the Bank anticipates a sharp fall in prices immediately thereafter.

Selling prices are set to increase to reflect rising costs while real household post-tax income is expected to plunge in 2022 and 2023. The Bank predicted that core prices will peak at 6.5% this year, meaning that, in the following six months, food and energy will constitute more than half of the headline CPI.

The next meeting for the Monetary Policy Committee, where the Bank of England will decide what the new base interest rates might be, is set for September 15th.

Lorna Slater MSP welcomes rent controls and eviction ban to help people in Lothian 

Lorna Slater, the Scottish Greens MSP for Lothian has welcomed the Scottish Government’s announcement of a national rent freeze and an eviction ban until at least March, which they say will provide “vital stability and support” for tenants across Lothian at a time when many are suffering.

The announcement was made as part of the Programme for Government and will help tenants across Lothian where the average monthly rent is £942, which is an increase of 41.7% since 2010.

Scottish Green MSP for Lothian, Lorna Slater said: “With soaring inflation and skyrocketing bills, these are desperate times for tenants all across Scotland. People in Lothian have been hit by increasing rents.

“We are facing the biggest social emergency for decades. The rent freeze and eviction ban that the First Minister announced will provide vital stability and support for tenants across Lothian and beyond at a time when many are suffering. 

“It is one of the steps we are taking, in partnership with the Scottish Government, to mitigate the damage being done by Downing Street and the energy companies.”

“Improving tenants’ rights and tackling inequality are at the heart of the cooperation agreement that we agreed with the Scottish Government and must be at the heart of our recovery.”

“Over the course of this parliamentary term Scotland will see the biggest expansion of tenants’ rights since devolution, with more rights for tenants to make a house a home by keeping pets and decorating, better protections from eviction and, perhaps most importantly, a robust system of rent controls.”

 

Majority of professional landlords with large portfolios have no succession plan in place

Handelsbanken Wealth and Asset Management urges professional landlords to plan for the future

Most professional landlords with large portfolios (52%) have no succession plan in place, risking the future sustainability of their business for the next generation.

The findings, from local relationship bank Handelsbanken, also suggest a worrying lack of succession planning among older landlords, with half of those aged 45 or above lacking any long-term management plans.

According to Handelsbanken’s SME Landlord Survey Report 2022, which surveyed 120 professional landlords with at least four properties, more than a quarter (27%) of those with no succession plan said they had not had the chance to develop one yet, while 23% admitted it had simply not crossed their minds.

Around one in five (19%) said that they had no one to leave their portfolio to, while 15% stated it is simply not a priority for them – with the same proportion saying the process was just too complicated.

The study shows that landlords with smaller portfolios are far more likely to have taken steps to protect their portfolio from estate tax liabilities: an overwhelming majority (96%) of landlords across all age groups with a portfolio of four or five properties say they have long-term succession plans in place, compared to just 52% with more than 10 properties, suggesting that those with higher value estates are less concerned about the tax liability facing the next generation.

Among all those with a clear succession plan in place, more than half (54%) plan to convert their portfolio into a property development portfolio to attract business property relief, while 43% are considering a charitable trust, which would enable the handover of business to their heirs with minimal tax exposure.

Other popular options include family trusts (35%), family investment companies (28%) and acquiring agricultural properties to qualify for agricultural relief (26%).

Plans and solutions for succession planningPercentage of respondents
Converting portfolio to a property development portfolio to attract BPR54%
Charitable trusts43%
Family trusts35%
Family Investment Company28%
Acquiring agricultural properties for Agricultural Relief26%

Christine Ross, Head of Private Office (North) and Client Director at Handelsbanken Wealth and Asset Management, a subsidiary of Handelsbanken, said: “The success of buy-to-let over the past decade has created huge numbers of wealthy landlords – with a real need for dedicated financial and tax planning.

“Property investors with substantial portfolios often defer creating a wealth succession plan, but are prompted into action when considering the alternative – the need for their heirs to sell assets to meet the tax liability on death.

“A plan that includes the use of a family investment company or a trust may carry some initial tax cost, but if put in place early enough, has the potential to create far greater savings over the longer term.”

To read the full Handelsbanken’s SME Landlord Survey Report 2022, please click here.

Council lied to justify destructive development, claim Silverlea campaigners

Community campaigners fighting to save the Silverlea woodland, wildlife and heritage site from a housing development have condemned as “Council lies” the claim that the site is a “barren” flytipping site  of “low landscape value and low recreational value with few quality trees”.

A meeting of the City of Edinburgh Council development sub-committee on 10 August flouted the Council’s own policy by approving the building of 142 houses on the green belt in the Muirhouse and the Salvesens area in north-west Edinburgh.

The Save Our Silverlea Campaign describe a photo of the site produced by the Council to justify the development as “totally misleading”.  

A SoS spokesperson said: “The photo showed a big pile of flytipped waste – but when a team from Save Our Silverlea visited the site days after the Council meeting, all we found was one white plastic bag and a dumped shopping trolley. The Council photo was either very old or taken elsewhere.  Councillors visited the site shortly before the meeting so they should have known the photo was ‘fake news’.”

Save Our Silverlea have produced photos of the site showing massive trees and a verdant and vibrant woodland. 

30-40 mature trees are to be felled to make way for the proposed scheme.

“We defy anyone – even a Councillor – to look at these magnificent trees and say this is a “barren”  flytipping site.  Clearly there has been some flytipping over the years – but if the site was sympathetically opened up to the community as a mini nature reserve with low impact paths and perhaps a children’s play area, then this increased footfall would act as a deterrent to flytipping. 

“The Council is effectively “saving” the site by destroying it.”

Freedom of Information request

The camapigners say the city council tried to justify the destruction of dozens of mature trees by claiming they were planting 131 saplings on the narrow strip of grass known as Silverknows Park. 

At the Council meeting Save Our Silverlea spokesperson Edward Murray described the real situation: “My flat overlooks Silverknowes Park and I watched them planting these saplings out in mid-February on a bitter cold day with the ground waterlogged,” he explained.

“The end result is the vast majority of these saplings never took root. They’re dead. Are we then to exchange 30-40 mature trees for row upon row of dead twigs in plastic tubes? That doesn’t strike us as a fair exchange.” 

On 16 August Save Our Silverlea submitted a Freedom of Information request asking how much the Silverknowes Park Tree Plantation cost.

At the Council meeting Edward Murray described Muirhouse, where he has lived for over 30 years, as “just a dormitory for workers to sleep in before going back to work again”. 

Mr Murray added: “Muirhouse is the size of a small town; it has no primary school, no park, not even a pub. It doesn’t even have a supermarket. In short, it is a deprived area. We have nothing down there. It’s one of the most deprived areas in Edinburgh.  

“And now, having taken practically everything, you want to take our last green space, the Silverlea site, for development, destroying a wildlife habitat and creating congestion and pollution along the Silverknowes/Muirhouse Parkway, described by Police Scotland as ‘the second most dangerous road in Edinburgh’.”

Save our Silverlea are continuing their campaign:  “As climate change threatens the future of humanity, we need to act to defend our green spaces.   This land should be used for the local community – not to make £millions for greedy property developers.

“We need much more council/ social housing – build council houses on the brownfield sites where they are now building 1000s of private houses.   The struggle to save our Silverlea continues.”

ELGT839_PL1_rev01-Silverknowes-Park-PlantingDownload

Annual house price growth increases to 10.5% in Scotland  

✓ Increase in the rate reflects the low annual comparison point in June 2021  

✓ 19 Local Authorities have price growth in excess of 10.0%  

✓ Transactions are lower than in June 2021 – but that was a bumper month  

✓ Argyll and Bute has highest growth rate at 25.5%  

• The Walker Fraser Steele Acadata House Price Index (Scotland). Please refer to the Notes at  the end for information on content and methodology. 

• Walker Fraser Steele is the trading name of e.surv Chartered Surveyors in Scotland.

Scott Jack, Regional Development Director at Walker Fraser Steele, comments: “June is the mid-point in the calendar year, the summer solstice marking when the sun is at its most  northerly point – but will this June also herald a change in temperature for the housing market in  Scotland? Possibly. 

“Average house prices continued to rise in June, but only by 0.4% (£950) to £221,900 accompanied by  a slight downturn in the total number of transactions – compared admittedly to an unusually high  number in June last year.

“Added to this, four of the bottom five local authorities by value saw prices  fall in June, suggesting that the lower end of the market is running out of steam. However, looking in  the round, whilst the number of transactions may be cooling, continued lack of supply and strong  demand, particularly for higher value, spacious properties, is fuelling individual prices.

“There were 70  sales in excess of £750,000 in June alone, the highest annual increase in average house prices  recorded in Argyle & Bute, up 25.5% over the year, with June seeing three high value houses go for  well over the asking price. In fact, for the year to date there have been 453 sales in excess of £750,000 in Scotland, over half (228) in Edinburgh, driving the underlying rise in average house prices which  have increased by 10.5% (£21,000) on an annual basis. 

“As we move into the second half of the year it will be interesting to see the impact of reduced  competition at the lower end of the market on properties higher up the value chain. However, to date,  the sun continues to shine almost unabated as restricted supply remains the dominant factor for  house prices across Scotland.”

Commentary: John Tindale, Acadata Senior Housing Analyst  

The June housing market  

The average price paid for a house in Scotland in June 2022 is £221,900, establishing yet another  record price for the country – the twelfth occasion that this has happened in the last twelve months.  

This price is some £21,000 higher than that seen in June 2021, indicating that prices have risen by  10.5% on an annual basis. This annual growth rate is the highest recorded to date in 2022, but it has  been elevated by a near £3,000 fall in prices that occurred twelve months earlier in June 2021,  meaning that the base point for measuring the annual growth rate started from a particularly low level.

In fact, the average house price only rose by some £950, or +0.4%, in June 2022 – the lowest  monthly increase of this calendar year.  

Figure 1. The average house price in Scotland over the period June 2020 to June 2022 (Link to source Excel)

As discussed, there would appear to be a minor slowdown in the number of transactions  that took place in June 2022, compared to the previous year – although June 2021 had set a new  record level for the month, and was also the fourth-highest monthly total of the previous ten years, so  the bar to clear had been set extremely high. 

On page 5 we show that the number of high-value transactions are similarly seeing a minor  slowdown, but again the June 2021 total was always going to be hard to exceed. However, the June  2022 total is the second month of this calendar year in which the total number of high-value sales is  not the greatest for the month of the eight years shown. 

Nevertheless, the desire to live in properties with plenty of space, generally meaning the purchase of  high-value detached properties, continues. Frequently, the achieved selling price then exceeds that of  the guide price, likely indicating that there has been competition for properties with the requisite  characteristics.

New instructions to sell remain relatively thin on the ground, so maintaining the tight  supply conditions, and hence supporting the monthly increase in house prices. The latest RICS UK  Residential Survey does not anticipate that this pattern will change “for the time being”.

Annual change  

The average house price in Scotland increased by some £21,000 – or 10.5% – over the last twelve  months, to the end of June. This is a near £4,000 increase over the £17,000 growth in prices seen in  the twelve months to the end of May 2022 – but prices in June 2021 fell by £3,000 from May 2021, so  the base starting point for measuring annual changes in value was already at a relatively low level,  making it more likely that prices would show an increase twelve months later.  

In June 2022, 30 of the 32 local authority areas in Scotland saw their average prices rise over the levels  seen twelve months earlier – the two exceptions being Na h-Eileanan Siar and Inverclyde, although the  average property price in Na h-Eileanan Siar only fell by £5 over the year. These two areas are  currently bottom of Table 3, meaning that they have the two lowest average property values of the 32  local authority areas in Scotland. As we suggested last month, this may indicate that the competition  between buyers for homes is not so intense at the lower end of the price spectrum. 

The area with the highest annual increase in average house prices in June 2022 was Argyll and Bute,  where values have risen by 25.5% over the year. This is the third month in succession that Argyll and  Bute has recorded the highest annual change in prices, having been assisted in this process by a  number of high-value sales achieving prices above their guide levels. This again occurred in June, with  a five-bedroom detached home on the Isle of Bute having an asking price of £700,000 but selling for  £830,000. Three examples, in the same area, show the way in which competition for homes in  attractive locations can result in a noticeable increase in average house prices. 

On a weight-adjusted basis, which employs both the change in prices and the number of transactions  involved, there are five local authority areas in June that account for 42% of the £21,000 increase in  Scotland’s average house price over the year. The five areas in descending order of influence are: – Edinburgh (13%), Glasgow (11%); South Lanarkshire (7%); Fife (6%); and Perth and Kinross (5%).  

Monthly change  

In June 2022, Scotland’s average house price in the month rose by some £950, or 0.4%, continuing the  pattern of minor upward oscillations in property values on a monthly basis. The average price in Scotland now stands at £221,900, which sets a record level for the nation for the twelfth month in  succession.  

In June 2022, 18 of the 32 Local Authority areas in Scotland experienced rising prices in the month,  three fewer than in May. The largest increase in average prices in June, of 7.4%, was in Perth and  Kinross, where the average price of detached homes increased from £350k in May to £380k in June.  The average price for homes was elevated in the month by the sale of a four-bedroom local architect  designed detached property near to the Bridge of Cully, which sold for its asking price of £1.3 million.  

At the other end of the scale, the lowest increase in average prices in June, of -7.4%, was in Inverclyde.  In Inverclyde the price of detached homes fell from an average £360k in May to £300k in June – however, only two detached homes were actually sold in the area in June – which explains why the  movement in average prices was so exaggerated. Flats are the most frequently purchased property  type in Inverclyde, and these increased in price from an average £78k in May to £82k in June – a far  more reasonable movement in prices over the month.

It is interesting to note that four of the bottom five local authorities by value all saw prices fall in the  month, which as we commented earlier suggests that the lower-priced sector of the market is not  seeing the same level of competition as is being experienced at the higher end of the market, thus  allowing prices to fall.  

Peak Prices  

Each month, we highlight the local authority areas which have reached a  new record in their average house prices. In June, there are 13 such authorities, four less than in May.  We can also add that Scotland itself has set a record average price in June 2022 – the sixth of this calendar year. 

Heat Map  

30 of the 32 local authority areas in Scotland have seen a rise in their average  property values over the last year, the two exceptions being Na h-Eileanan Siar and Inverclyde.

The  highest increase over the twelve months to June 2022 was in Argyll and Bute at 25.5%. 19 of the 32  local authority areas had price growth in excess of 10.0%.

Improvements to shared equity housing scheme

Veterans and disabled people among those to benefit

Changes to a shared equity scheme will mean disabled people, first-time buyers and others on low to medium incomes will have an increased opportunity to buy a home that meets their needs.

From today, the threshold of the Open Market Shared Equity Scheme – which allows people to buy a home without having to fund its entire cost – has been raised by 9% across the country to reflect rising house prices. The scheme is aimed at priority groups who need support to buy their own home.

Applicants will also be able to make offers on properties above the formal valuation amount, where they have funds available. People who have an application in progress do not need to reapply to benefit from the changes.

Housing Secretary Shona Robison said: “These are positive changes which will put applicants on a more level playing field with other buyers when purchasing an affordable home.

“We are well aware of the rise in house prices and we have listened to people’s feedback. That is why we are acting to make the process fairer and to offer a helping hand in challenging times.

“Our evidence-based approach ensures that the scheme continues to be targeted at priority groups and to ensure that, across Scotland, all areas are able to benefit from a viable scheme with a reasonable number of purchases.

“The Scottish Government delivered 111,750 affordable homes between 2007 and 2022, with more than 78,000 for social rent. Progress has started towards our next ambitious target of delivering 110,000 affordable homes by 2032, of which 70% will be for social rent and 10% in remote, rural and island communities.”

Open Market Shared Equity scheme

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Green light for 142 homes at Silverlea

Proposals for another ‘net zero’ housing development, as part of the City of Edinburgh Council’s £1.3bn Granton Waterfront regeneration project, have been granted approval by city planners.

This major milestone follows the start of construction work at the £72m, 444-home ‘Western Villages’ project, which is also part of the local authority’s wider regeneration of the area. Over the next ten years 3,500 mixed-tenure homes and associated infrastructure will create a new, sustainable coastal community.

Hart Builders will start work on site in 2023 at Silverlea to deliver 142 high quality sustainable homes, including wheelchair-accessible ground-floor dwellings in a mix of social rent (91) and mid-market rent (51) each benefitting from coastal views and access to parkland. 

Cllr Jane Meagher, Housing, Homelessness and Fair Work Convener, said: “I’m delighted with today’s decision. We’ve reached another major milestone on our Granton Waterfront project to deliver much needed sustainable affordable housing in the area. I recently visited our Western Villages development nearby and was very pleased to see we’re already starting work there to deliver 444 net zero homes on the site. 

The homes that we build here will make such a difference for wheelchair users and others who find it so difficult to get a home that meets their needs. Our proposals for the site have been carefully designed to improve the quality of the surrounding green space and to make it easier for people to walk or cycle around the area.

Cllr Jane Meagher: Facing up to Edinburgh’s housing challenge by building smart new homes

Councillor Jane Meagher, the city council’s Housing, Homelessness and Fair Work Convener, writes:

After a slowdown during the pandemic, it’s great to see so much work underway to build the new affordable and sustainable homes our growing city needs. 
 
Last week I had the pleasure of marking the site start for our newest housing development – Western Villages at the new Granton Waterfront. Spanning a site the same size as the New Town, this regeneration of the waterfront really is going to create a brand new coastal community. 
 
This is growth which will benefit those who already live in the area and the city as a whole and I have to say, it’s incredible to watch the start of construction. There is a team of people working extremely hard so that, over the next decade, we’ll see drastic change and thousands of people move into beautiful new homes.

They will join a 20-minute neighbourhood where they can shop, socialise, and access support. With our partners we’re investing millions in the area, including the fantastic gas works holder, which will become an amazing spectacle; a home for events and a glowing beacon for North Edinburgh below everyone who flies into the city. 
 
I am strongly committed to doing what I can to secure more affordable homes for Edinburgh. Over 150 households bid for every Council and housing association home that becomes available so that’s why we’re driving forward with building new affordable homes on sites across the city.

Close to Granton, in nearby Pennywell and Muirhouse, new homes and a new civic centre are taking shape. We’re also investing in improving existing homes with major works underway in both multi storey blocks and low-rise housing.   
 
As the city grows, the demand we are seeing for affordable and social homes is only going to increase. That is a reality we must face, not least with the country in the grip of a cost-of-living crisis and fears of recession on the horizon.

It’s why it’s critical the Council and its partners press ahead with a truly ambitious and forward-thinking housebuilding strategy and it’s why we must continue to make the case for increased investment in this programme to the Scottish Government. Our capital city, after all, is per head the lowest funded local authority in Scotland.
  
The way we’re building homes is also changing, with innovative measures being used to reduce energy. Western Villages is a great example of that, as Scotland’s largest net zero development. We want the whole city to become net zero carbon by 2030 so we are committing to ‘build smarter’ and create new homes which are greener and use eco-friendly technology.

This construction work is also helping to boost and create new jobs and apprenticeships which will further help us to support people into employment and keep our economy resilient, which is particularly significant after the impacts of Covid. 

The future is challenging, but together with developers and others we are doing everything within our powers to make it fairer on residents and on our environment. We’ll keep working to tackle our housing pressures and deliver these affordable and sustainable new homes.

This article first appeared in the Edinburgh Evening News