Tag: housing

Work begins on energy-efficient housing developments

Work is underway to build brand new affordable homes in Bingham and Parkview in North East Edinburgh.

The Council-led developments – which will complete in Autumn 2021 – will be built by construction firm CCG (Scotland) Ltd. CCG has delivered a number of award-winning new homes for the Council at Leith Fort and in Greendykes and is also progressing a major development of affordable housing in Craigmillar, which received its first new tenants this summer.

Both new sites promise to provide modern and energy efficient homes for social rent as part of Edinburgh’s ambitious 20,000 affordable homes target. In addition to delivering new homes, CCG will provide apprenticeships, engage with local schools and colleges and provide community investment funds in Bingham and Parkview.

Construction is now underway in Bingham along Duddingston Row at the former home of Lismore Primary School. Work will also start at Parkview next month at Peffermill Road, the former site of the Parkview Care Home, bringing a derelict brownfield site back to life.

The homes will benefit from improved energy efficiency and a reduced carbon footprint, saving residents on fuel bills, and will have access to high quality green space. Included in the design is a mix of one, two and three bed flats, colonies and houses, with 70 homes across the two sites (40 in Bingham, 30 in Parkview). 

Councillor Kate Campbell, Edinburgh’s Housing, Homelessness and Fair Work Convener, said: “Every new social home counts because housing need is exceptional in Edinburgh – there’s nothing better than seeing council houses being built and knowing that it won’t be long until they become people’s homes.

“With so many families in need of a new home, and construction so important to our economic recovery from Covid-19, the homes and jobs being delivered by our ambitious house-building programme will make a real difference to people’s lives.

“But we have to keep delivering more. We have 3,500 new homes in design development right now, with 800 homes already under construction across the city. Soon, we’ll be setting out our investment plans for the next 10 years, to make sure that we continue to provide much needed homes, create jobs and support local communities with tangible benefits like apprenticeships, community hubs, parks and improved public spaces.”

Councillor Mandy Watt, Edinburgh’s Vice Housing and Economy Convener, added: “Everyone has the right to a safe, warm home. That’s why our strategy for the future is about investing more in our communities, upgrading our social housing and building thousands of new affordable homes in Edinburgh. 

“And it’s not just about bricks and mortar – we’re seeing other benefits and improvements that we can bring to local areas. These developments in Bingham and Parkview will benefit lots of people in many different ways. They’ll help to regenerate the area and provide better public realm, better greenspace and funding for neighbourhood projects. They’ll benefit the long-term future of our environment too, thanks to their low carbon footprint and focus on energy efficiency.”

CCG Managing Director, David Wylie, said: “CCG’s commitment to providing quality, energy efficient homes is a philosophy shared by the City of Edinburgh Council. Our partnership has continued to deliver a lasting legacy across the region by not only supporting the supply of new affordable homes but also creating jobs, apprenticeships and localised investment.

“The commencement of Bingham and Parkview is another important milestone for us both and we look forward to working with the Council as we head into 2021 and beyond.”

The £9.5m investment will be funded by the Council with £4.1m in grant funding from the Scottish Government.

Have your say on regulation of short-term lets

A public consultation will gather final views on proposed new legislation for the regulation of short-term lets.

The Scottish Government’s proposals include a mandatory licensing scheme to ensure that all short-term lets are safe and to address issues faced by neighbours.

The regulations, if passed by Parliament, would come into force by April 2021. These would also give councils powers to manage pressures created by the use of whole properties as short-term lets.

Welcoming the launch of the consultation, Housing Minister Kevin Stewart said: “Short-term lets can offer people a flexible and affordable accommodation option, and they have contributed positively to Scotland’s tourism industry and local economies across the country.

“However, we know that in certain areas, particularly tourist hot spots, high numbers of these arrangements can cause problems for neighbours and make it harder for people to find homes to live in.

“The views and evidence from our previous consultation and research showed broad consensus for some form of regulation. Our proposals will allow local authorities and communities facing the most severe pressures to take action to manage those more effectively from next year. 

“I believe our proposals for a licensing scheme and short-term let control areas are evidence-based and right for Scottish circumstances.

“We will be engaging with stakeholders on our detailed proposals over the next four weeks. I am confident that our proposals will allow local authorities to ensure a safe, quality experience for visitors, whilst protecting the interests of local communities.”

Read the consultation paper on the Scottish Government website.

The consultation runs until Friday 16 October.

Post-lockdown housing market suggests an escape to the country

Property professionals are warning that major changes in the housing market in Scotland are afoot as the Covid-19 pandemic significantly alters the way people think about their working environment and the nature of the work-life balance.

The nine-to-five office routine, with a couple of hours of unproductive commute on top each day, is becoming increasingly unattractive and office workers are asking themselves if they actually really need to return to their desks.

It is a question which is being posed too, by some of the most astute names in global business, such as Schroders, JP Morgan and Google, who are all allowing employees to work from home for the foreseeable future.

If businesses such as these are suggesting that the mass movement of people to fixed locations to do their work is no longer necessary, the argument gains strength that it is likely to change the WFH game for everybody.

In Scotland, the opportunity to re-think lifestyle choices has been catalysed by an extraordinary alignment of supply and demand, which has been the traditional, tried-and-tested market driver.

While there has been pent-up demand in cities such as Edinburgh for a number of years now, there has suddenly – since lockdown ended on June 29 – been an unprecedented increase in supply.

This has confounded experts who consistently have emphasised negative aspects and predicted a market crash, ignoring the present, confident market sentiment.

The market “has gone from zero to full ahead in the blink of an eye”, according to Andrew Milne, residential partner in the Edinburgh office of DM Hall, one of Scotland’s largest firms of Chartered Surveyors.

He said: “The flood of supply stems from a number of factors: people who were ready to move in March but were prevented; people who have reflected on their lifestyles and have been emboldened by lockdown and WFH; and those who want more space than is available in cities.

“One of the idiosyncrasies of this market is the disproportionate number of households without children who are keen to move. Parents, of course, are more constrained by schooling considerations. And, unfortunately, lockdown-related relationship breakdowns mean more demand for housing.

“It is clear that having been confined to city flats for several months has loosened people’s ties to their geographical location and, especially if they have been encouraged to work from home, they are seeking a more fulfilling home environment.”

Mr Milne said that there was an abundance of attractive properties in outlying locations such as East and West Lothian and Fife which, while not cheap, have significant benefits if the commute is reduced to one or two days a week.

He said there was also a noticeable uptake of high-end properties in the capital fuelled by returning global Scots unsettled by the pandemic and seeking a sense of home. They have also been swayed, he said, by the technology and comms revolution which means that they can operate effectively from anywhere.

“A lot of activity,” said Mr Milne, “is being driven by people who now do not wish to wait until they are close to retirement to achieve a better work-life balance, when WFH means that they are halfway there now.”

Alasdair Seaton, partner in DM Hall’s Dunfermline office, said: “The activity in the market at the moment is certainly not normal. We are seeing moves which are clearly driven by lockdown-related considerations.

“These include people needing bigger homes if they are going to be working there indefinitely; people who have missed their relatives and grandchildren and who want to be nearer to them; and a substantial movement of people from Edinburgh who want more space, a rural environment or just a bigger property for their money.

“The vast majority of sales are going to a closing date and achieving prices well in excess of their Home Report values. Many are selling without inspection, and very quickly. Again, many of the transactions involve households without children.”

Jennifer Campbell, Head of Rural Agency at Baird Lumsden, agreed that a move to the country was under way, with people looking to establish “the good life” in good time.

She said: “Plot sales have been very popular as many people are finally undertaking their dream of building their own home. Purchasers are generally seeking rural locations on the outskirts of villages offering peace and privacy and a garden office, or the capacity to put one in. Properties with land have always remained in high demand.

“Our lettings department has also been extremely busy and we have a number of registered applicants from the rest of the UK and overseas wishing to return to Scotland to let a prime rural property to provide a suitable environment for home working.

“Purchasers are generally impatient. They want into their dream home now, trepidatious and fearful of another lockdown. The uncertainty has pushed buyers and sellers to be a bit braver and get on with it. It’s a great time to sell.”

More support for tenants

New measures to help with housing costs during the pandemic

Emergency legislation extended to ensure no evictions until March 2021

.

A new £10 million fund will be part of a package to support people struggling to pay their rent due to financial difficulty associated with the COVID-19 pandemic.

The Tenant Hardship Loan Fund will open later in the Autumn and offer interest-free loans to those unable to access other forms of support for their housing costs.

The Discretionary Housing Payment (DHP) fund which helps tenants in receipt of benefits will increase by £3 million, bringing the total to £19 million. This is in addition to the £60 million DHP budget already being used to fully mitigate the bedroom tax.

Emergency legislation put in place to protect private and social tenants from eviction during the coronavirus pandemic will be extended by six months, pending approval from the Scottish Parliament.

Ministers will also introduce new regulations to allow for the notice period for eviction for anti-social or criminal behaviour to return to one month to protect other neighbours.

Housing Minister Kevin Stewart said: “Tackling inequality and supporting people is a central theme of this year’s Programme for Government and this package of support for tenants is part of that.

“We already know that the pandemic has hit the lowest earners hardest and the Scottish Government has already put in place a range of actions in place to support tenants.

“This new £10 million fund, along with a further increase in our Discretionary Housing Payment funds, will mean that no one should be left in a position where they cannot access support to pay their rent. The intention is that this fund will open in November for those unable to access other forms of support to help meet their housing costs.

“We have been clear that no landlord should evict a tenant because they have suffered financial hardship due to the pandemic.

I fully expect landlords to be flexible with anyone facing such challenges, signposting them to the sources of financial support available, and tenants in difficulty should engage with their landlord and seek advice on the options open to them.

“I can confirm today that emergency legislation will be extended to ensure no evictions can take place until March 2021. However, since the initial legislation was introduced we have listened carefully to tenants and housing authorities concerned that a three month notice period is too long where tenants have behaved in an anti-social or criminal way. We are therefore reverting back to a one month period for repossession for such cases to ensure we can protect other tenants, neighbours and landlords who should not have to tolerate such behaviour.”

The Coronavirus (Scotland) Act ensures evictions cannot take place before end of September and this will now be extended for a further six months to March 2021.

The Tenant Hardship Loan Fund will open later in the autumn and further details of how to apply will be announced in due course.

Landlords encouraged to look forward to new academic year

SafeDeposits Scotland is working with landlords who provide student accommodation to help overcome challenges brought on by Covid-19, as the number of overseas students returning to the UK drops.  

During lockdown, the not-for-profit organisation reached out to landlords and tenants to provide advice and information around changes to the sector due to the pandemic. It works closely with all landlords including those that have been impacted by the decrease in students enrolling this academic year.

The Glasgow-based tenancy deposit scheme holds deposits on behalf of landlords and agents in line with government regulations designed to ensure responsible leasing.

As the sector continues to work towards pre-Covid-19 levels of activity, SafeDeposits Scotland is urging landlords to focus on providing the best renting experience for current tenants, while considering options to diversify their future tenant base.

Mike Smith, operations manager at SafeDeposits Scotland, said: “UK universities expect to see a £2.6 billion shortfall in the next academic year due to the pandemic, with 20% of domestic students not returning to university, and 75% of overseas students not enrolling this September.

“Pre-lockdown, demand for student accommodation in Scotland was notably high. Boasting some of the UK’s top universities, it’s no surprise areas including Aberdeen, Dundee, St Andrews, Glasgow and Edinburgh experienced an influx of students each year looking for housing.

But despite the drop in numbers of students expected to enrol this year, it’s evident there’s faith in the resilience of the sector, with a number of high-profile developments announced in the past month alone.

“Two recent Edinburgh examples of long-term growth within the sector include the new 120-bed purpose built student accommodation complex set to be built at Haymarket, while Unite Student has confirmed plans for a £24 million build of student flats at Meadowbank.”

To understand the concerns of landlords in the private rented sector during these unprecedented times more clearly, SafeDeposits Scotland carried out research to find out how they have coped during lockdown and how they feel about leasing property in the new academic year. 

Mike explained: “We’re confident demand for student housing will return, whether it is in the private rented sector or for purpose-built accommodation. However, until we have a clearer picture of what future academic enrolment figures are like, landlords could consider alternative ways to lease properties.

A good example is renting to young professionals that are looking to move away from home for the first time. The demands of these tenants are similar to students in the private rented sector, and it can be a way of keeping properties occupied until we know more about the future of higher education. 

“We recently carried out research with our landlords that are renting to students. This revealed that almost half (43%) secured new tenancies during lockdown while almost three quarters (73%) of this group expressed concerns around what this academic year will look like for them. 

“To alleviate concerns, we’ve been working closely with landlords to ensure the tenants they do have in place now have the best experience. To support, we’ve moved our face-to-face workshops online to offer free advice and information. Our Charitable Trust has also recently announced its funding towards research being carried out by the University of Stirling. This research is exploring the benefits of allowing tenants more flexibility to make a house a home.

“We believe having happy tenants leads to longer tenancies, creating more vibrant communities where people want to live. This boosts local economies and helps increase demand for rental property in that area.

“The property sector has been resilient during past economic challenges, but the full impact of the pandemic is yet to be seen. We know the government is working hard to support international students hoping to return to Scotland to continue their higher education studies. This will have a hugely positive impact for our landlords who rely on overseas students to rent their properties, and hopefully we will see the results of this work.

“In the short term, we urge landlords to implement safety guidance from the Scottish Government and manage risk wherever possible, while tenants adhere to the measures put in place.”

Charitable organisations welcome housing research report

The TDS Charitable Foundation and SafeDeposits Scotland Charitable Trust have welcomed a new report on compliance in the private rented sector produced by the UK Collaborative Centre for Housing Evidence (CaCHE) – part of a wider programme of work funded by the two charitable organisations.

The report, “Improving Compliance with Private Rented Sector Legislation”, explores how local authority enforcement and regulation in the UK’s private rented sector (PRS) could be improved.

The report details findings from 70 in-depth interviews with key stakeholders and professionals from 13 UK local authorities. The research finds considerable variation in stance, philosophy and approach to enforcement and compliance both across UK nations and also within them across local authorities.

The research was carried out by Dr Jennifer Harris, Professor Dave Cowan and Professor Alex Marsh of the University of Bristol – one of the 14 institutions in the CaCHE consortium which is led by the University of Glasgow.

The report makes a number of recommendations for UK policy makers, including:

  • Improving the data available to local authorities on the private rented sector.
  • Providing adequate funding to local authorities to allow them to develop appropriate and effective responses to the changing nature and context of the private rented sector.
  • Codification of the diverse legislative provisions which currently exist.
  • Providing sentencing guidelines to the criminal courts and tribunals to ensure that punishment is proportionate to the nature of the offence.

Professor Martin Partington CBE QC, Chair of the TDS Charitable Foundation, said: “With similar remits, both the TDS Charitable Foundation and SafeDeposits Scotland Charitable Trust work to raise standards in the private rented sector by advancing education on housing rights and obligations.

“This research is another example of the support we have given to many diverse and far-reaching projects within the rental industry. Together we are committed to bringing about a positive change that will benefit both renters and landlords.”

John Duff, Chair of the SafeDeposits Scotland Charitable Trust, added: “We are proud to support initiatives like this that support the work we do within the private rented sector.

“This is a comprehensive piece of research which we hope will stimulate debate across the industry, and ultimately create solutions to the issues identified as we work to continually improve the sector.”

The full report can be found at: https://housingevidence.ac.uk/publications/improving-compliance-with-private-rented-sector-legislation

The report has been published alongside two briefing papers:

Green light for Gilmore Place student accommodation

A planning application by S1 Developments for the St Joseph’s Nursing Home site at Gilmore Place has been granted unanimously – subject to conditions – by the city council’s Development Management Sub-Committee yesterday.

The committee voted in favour of a 230-bed student scheme, over 29 cluster flats, on the former Little Sisters of the Poor nursing home site. This C-listed main building includes a chapel.

The proposed project will see communal facilities installed in the retained and refurbished chapel, while existing east and west outbuildings and extensions will be demolished and replaced with new three storey accommodation around a retained landscaped courtyard. These buildings will be of high-quality stone and zinc and this will be a predominantly car free development with provision for 230 cycle parking spaces.

The proposal ensures an effective new use for a unique listed building and its grounds whilst causing the least possible harm.

The potential to deliver the site for another care home was not considered suitable for modern requirements, and upgrades to meet Care Commission standards were prohibitively expensive. Delivering housing was severely constrained by a number of factors including access constraints and the layout of the site.

The introduction of new build elements in order to deliver a viable proposal will only deliver  a 4 per cent increase in the current building footprint, while the delivery of a high-quality courtyard will see a 12 per cent increase in the green space.

The site is in an accessible location and close to university facilities.

Provision of new purpose-built student accommodation (PBSA) will support the growth and development of the higher education sector in Edinburgh. In doing so it will increase the range and choice of accommodation offered to students.

The current ratio of approximately three students per one bed space in Edinburgh, demonstrates the demand for new purpose-built student accommodation (PBSA).

A spokesperson for S1 Developments, said: “I’m delighted with the decision taken today by councillors. As an Edinburgh-based family company, we are thrilled to see this exciting project given the green light and look forward to breathing new life into this former nursing home.

“Redevelopment will restore the existing care-home building into high quality student accommodation, allowing the retention of the central chapel in its existing form.

“We look forward to getting these proposals underway and to continue working with council officials and the local community to deliver them.”

Urban Union sees an increase in new home reservations during lockdown

Since lockdown began at the end of March, Urban Union – a construction company which delivers large-scale, housing-led regeneration projects across Scotland – has handed over 23 properties and secured 52 reservations at its developments in Glasgow, Perth and Edinburgh.

To ensure none of its clients found themselves homeless during the coronavirus pandemic which put much of the UK housing market on hold, Urban Union has been using key safes, hosting video demonstrations and conducing handovers via FaceTime in order to continue operations in line with social distancing guidelines.

Urban Union, which is part of Robertson, one of the largest family-owned construction, infrastructure and support services businesses in the UK, has also been providing advice to those moving on how to do so responsibly to respect social distancing measures.

Neil McKay, Managing Director of Urban Union, said: “Coupled with the raising of the Land and Buildings Transaction Tax threshold for residential properties, it’s a promising sign for the industry that we have continued to see strong interest from new homebuyers.

“Despite the economic uncertainty and temporary hold on the property market, the extra time we’ve been spending at home has given many people the opportunity to reflect on what they want from their living spaces.

“Whether it’s extra room to work from home more comfortably or access to an outdoor space, many people will have re-evaluated their priorities when looking for a new place to call home and this has been reflected in the interest we have received over the last few months.” 

Urban Union currently has a collection of properties ready to be called home at Muirton Living in Perth.

The Anderson and the Grant at Muirton Living in Perth are one-bedroom apartments perfect for first-time buyers ready to get onto the property ladder, with prices starting from £105,000. Featuring a bright open-plan kitchen and lounge, the properties also benefit from wide hallways, a spacious bathroom and built-in storage throughout, giving a real sense of modern living.  The development also sits close to a number of shops and offers good transport links for those commuting to Perth city centre and Dundee.

Key workers interested in buying a new home at the Muirton Living development are also eligible to receive up to £2,500 from Urban Union as a thank you for their help and dedication during the COVID-10 crisis. 

The Ross and the Adam at Pennywell Living in Edinburgh are one and two bedroom apartments available from £140,000. 

Located only a few miles from the centre of Edinburgh, the development is ideal for those who work in the city centre with good bus services to and from the area. With a selection of primary and secondary schools, as well as a wealth of useful amenities in the area, the development would suit young professionals and families.

At Urban Union’s newest development – Pollokshaws Living in Glasgow’s Southside – there are a number of apartments available, including The Stewart, a one bedroom apartment priced from £160,000.

In addition, there are three types of two bedroom apartments – The Glen, The Collins and The Monteith – all of which start from £175,000.

For more information on the properties available, please visit

www.urbanunionltd.co.uk

Pay rises – but house prices rise higher

The team at Coulters Property have looked into the housing landscape for first-time buyers to discover how much you would need to be able to afford a 10% deposit around the country, how much this is as a percentage of average annual income, and how this has changed over the last 20 years.

https://www.coultersproperty.co.uk/first-time-buyer-changes

Scotland First Time Buyer Landscape (1999-2020)

1999202010 YEAR DIFFERENCE (£)10 YEAR DIFFERENCE (%)
House Price£49,924£152,469£102,545.00205.40%
Deposit£4,992£15,247£10,255205.43%
Earnings£16,914£30,000*13,08677.37%
Deposit % Earnings29.50%50.70%21.20%

*2019 earnings data used


You can clearly see that in Scotland, house prices have risen by 205.40% but earnings have only risen by 77.37%. The deposit as % of earnings has increased by 21.20%.

How Has Housing Affordability Changed in the UK?

  • In 1999, the average house price in the UK was just £77,961. Fast forward twenty years and that figure has almost trebled, to £230,735.
  • At the same time, the average income has also increased, but only from £17,803 a year to £30,353, an increase of 70%.
  • In 1999, a 10% deposit would have worked out at about 43.8% of your annual salary, these days, that figure has risen by about three quarters to 76%.

You can see the full research here.