Help to Buy scheme launched

A £12billion scheme to help thousands of people buy a home of their own will be launched today (Tues 8 Oct) by the Prime Minister and Chancellor. David Cameron said Help to Buy will ‘turn the dream of home ownership a reality for many’.

High Street banks including Natwest, RBS, Halifax and Bank of Scotland will start offering new Help to Buy mortgages this week, and others are to follow: Virgin Money has also confirmed they will participate in the scheme, and will be offering new guaranteed mortgages to borrowers in the New Year. Aldermore Bank has confirmed that it is joining the scheme in January, and is exploring whether this date can be brought forward.

Natwest and RBS customers will be able to start the process of applying for a mortgage today, with other banks to follow in the next few days.

The Help to Buy: mortgage guarantee is aimed at thousands of people frozen out of the housing market because they cannot afford large deposits of up to 20 per cent of a property’s value.

It means someone trying to buy a £200,000 house currently needs to save up a deposit of £40,000.

Leading banks will offer a range of new Help to Buy mortgages – up to 95 per cent of the property’s value – for homes worth up to £600,000.

Under the scheme, buyers will only need a deposit of as little as 5 per cent.

Depending on the size of deposit, the government will then guarantee up to 15 per cent of the property’s value, in return for a fee from the lender.

There will be scheme advertisements in national newspapers from tomorrow, banks are braced for a flood of interest from the public.

The launch of the scheme has been brought forward by three months, as the details are finalised and lenders are in a position to start offering the mortgages.

Lenders can start offering the mortgages now, and they will be guaranteed by the government from January 2014. As it usually takes a few months for borrowers to go through the mortgage completion process, this delay is not a problem for lenders. If borrowers do complete before January their mortgage will be included in the scheme.

Prime Minister David Cameron said: “Too many hardworking people are finding it impossible to buy their own home – people who can afford the monthly mortgage payments but haven’t got rich parents and can’t pay the deposit up front.

“There is a need for Government to act. Buying your first home is about far more than four walls to sleep at night. It’s somewhere to put down roots and raise a family. It’s an investment for the future. Above all, it’s a sign that everything you’ve put in has been worth it.

“Our Help to Buy Equity Loans, have already helped over 15000 people buy a new home. But we’ve got to go further and finish the job we’ve started. So from today, thousands of people will be able to get a foot on the housing ladder by applying for the new Help to Buy mortgage guarantee. If you’ve got 5 per cent of the funds for a mortgage deposit, we’re providing a guarantee to the banks to help you get the rest.

“Help to Buy is going to make the dream of home ownership a reality for many who would otherwise have been shut out. This goes right to the heart of my vision for Britain – a country where everyone who works hard can get on in life. Moves such as Help to Buy will also encourage housebuilding. If potential buyers can’t buy, builders won’t build – so this is an important part of unlocking the market.”

The Chancellor of the Exchequer, George Osborne added: “Through Help to Buy: mortgage guarantee I want to help those families that have saved for years, earn decent salaries, but cannot afford the deposits currently being asked for by the banks. I want young people to have the same chance of getting on the property ladder as their parents and grandparents.

“Too many people are still being denied the dream of owning their own home, which is why we have brought forward the launch of this scheme, so as of today borrowers can start applying for a mortgage with a five per cent deposit.”

Shelter urges ten year plan to tackle homelessness

A new 10-year action plan to address homelessness prevention and crisis services must be put in place if Scotland wants to remain a world leader on the issue, according to Shelter Scotland.

The housing charity believes that an action plan will help Scotland to maintain focus and deliver the ongoing commitment made through the country’s landmark 2012 homelessness legislation – which gave every unintentionally homeless person the right to settled accommodation.

Graeme Brown, Director of Shelter Scotland, said: “We now need to build a homelessness service that has the person at its heart and enables homeless people to make choices that are right for them”.

The call for a 10-year action plan comes ahead of Shelter Scotland’s annual conference: ‘Housing, homelessness, advice and prevention’, which will see experts focus on the impact of bad housing on health inequalities in Scotland, and other key priorities for the sector.

The charity believes the 10-year action plan must respond to current and future challenges for housing and homelessness advice services and set out the key objectives at national and local level. It should be built with the aim of delivering person-centred services which allow flexibility and choice, and lead to sustainable housing outcomes forall service users.

Last year there were 39,827 homelessness applications in Scotland with 10,471 families and individuals in temporary accommodation.

Graeme Brown said: “Scotland has the most progressive homelessness legislation in the world, but that doesn’t mean that homelessness has gone away. It still exists in all its various forms. Meeting the 2012 commitment was an important landmark but we now need to look forward to the next ten years to ensure that progress continues and we don’t take any backward steps.

“We now need to work in partnership and build a homelessness service that has the person at its heart and enables homeless people to make choices that are right for them. This is about people, not processes.”

He concluded: “We expect the coming years to be extremely challenging as a result of welfare reforms and the introduction of Universal Credit – which is set to bring even more disruption to people’s lives. While we hope there isn’t a rise in homelessness, we must be prepared for the challenges that undoubtedly lie ahead. A ten-year action plan would be the best place to start.”

Ainslie Park housing consultation today

Community Consultation Exhibition

Former Telford College North Campus (Ainslie Park School) Crewe Road North

Miller Homes is hosting a second consultation regarding its proposal to develop this site. A drop-in exhibition to view the latest proposals is being held today:

Thursday 3 October between 2pm and 7pm

At Varcity North – Sales Centre

Crewe Road North

Further information from Caroline Owen at GVA on 0131 469 6068 or caroline.owen@gva.co.uk

Work under way on West Pilton’s 21st Century Homes

Pupils from St David’s and Pirniehall Primary Schools rolled their sleeves up to lend a hand when work on the new 21st Century Homes development at West Pilton Crescent got underway last week. The children had the honour of cutting the first little sods … and no, definitely no further comments!

Our thanks for Councillor Vicki Redpath for the photographs

Affordable housing development opens in Lindsay Road

The latest affordable homes – and the first mixed-tenure development – by Port of Leith Housing Association (PoLHA) and its subsidiary Persevere Developments Ltd, has been officially opened.

Councillor Andrew Burns, Leader for the City of Edinburgh Council, welcomed 111 households to a block of new, high-quality properties in Lindsay Road, making a significant impact in the regeneration of the area.

The £13.6 million waterfront development, compromising 58 social rent and 53 mid-market rent (MMR) properties, contains a wide range of housing types from one bedroom through to four bedroom apartments.

Features include car parking for 29 spaces and a communal landscaped garden area. Solar thermal panels located on the roof will provide hot water for a number of properties with condensing gas boilers supplying heating and hot water.

Councillor Burns said: “This is a fantastic development, forming an integral part of North Edinburgh’s regeneration. It is vital that we tackle the city’s shortage of affordable homes and projects like this are an important step in the right direction.

“The success of this project is testament to the partnership working between the Council, housing associations, Forth Ports and the community – a model that will continue to use in order to provide much-needed homes but also to create jobs and boost the local economy.”

This is the second affordable housing project within the Western Harbour development on Edinburgh’s waterfront, the first being Goosander Place completed in May 2010.

Keith Anderson, Chief Executive at PoLHA, said: “This is our second affordable housing development in Western Harbour and complements our existing mix through Leith and North Edinburgh.

“Much-needed, high-quality, affordable housing for local people to buy and rent is at the top of our agenda and we’re pleased to be able to offer both social and MMR properties. MMR is a new type of tenure to help households on modest incomes to rent high quality accommodation at an affordable level.”

PoLHA worked closely with the Scottish Government and City of Edinburgh Council which allocated £6.4 million of grant monies for the development. An additional £7.2 million was funded through private finance raised by the Association.

Council leader Andrew Burns is pictured with PoLHA Chief Executive Keith Anderson, PoLHA Chairperson Jack Hunter and Councillor Eric Milligan at Friday’s event

£62million boost for homebuyers announced

People across Scotland are to be helped on to the housing ladder with a £62 million funding boost announced today by Housing Minister Margaret Burgess.

The funding for the Open Market Shared Equity Scheme will be available over the next two years for eligible buyers on low to moderate incomes who are looking to buy their first home. This increases the overall investment in the scheme over the next two years to £90 million.

Eligible buyers will be able to purchase a home by paying a majority share in it, while the Scottish Government provides the remaining amount which is secured under a security on the home.

The announcement comes after plans were unveiled last week to end the Right to Buy. A decision which will safeguard social housing stock for future generations – protecting up to 15,000 social houses from sale over the next decade.

Speaking during a visit to a home in Cruden Estates’ Golspie Street development in Govan where the homeowner benefited from support from the Open Market Shared Equity Scheme, Mrs Burgess said: “People in Scotland who should rightly be able to afford a mortgage are still facing real challenges buying a home. This overall investment of £90 million over two years demonstrates our commitment to do all we can to help credit worthy buyers to buy their first home.

“Over the past four years this scheme has helped over 2,700 people on low to moderate incomes buy a home. And it has reduced pressure on the social rented sector through freeing up properties and reducing demand expressed through housing waiting lists.

“Last week we announced the end of Right to Buy – a decision that will help to protect social housing for future generations to enjoy. This Government remains absolutely committed to helping people buy a home and our shared equity schemes are helping – and will continue to help – thousands of people get a foot on the property ladder.”

Link Group Chief Executive, Craig Sanderson said: “Having been involved in the administration of the OMSE scheme since its inception, we have considerable experience of the most positive effect this programme is having on the lives of so many who could otherwise have not been able to secure affordable home ownership. I therefore welcome and applaud this additional funding support from the Scottish Government.”

Managing director of Cruden Estates, John Gallacher, said: “Schemes like OMSE are beneficial for buyers and housebuilders alike. At Cruden Homes we’ve made a point of advising potential buyers who are concerned about affording a mortgage that there are options open to them through such Scottish Government schemes. This has allowed us to continue to build and sell homes for the First Time Buyer market as well as established buyers.”

Social housing cash boost

Local authorities and registered social landlords (RSLs) are to benefit from a £44 million increase in housing subsidies, allowing them to create more social housing.

Deputy First Minister Nicola Sturgeon announced the increase, which will give councils and housing associations an extra £16,000 per home, on the same day as the publication of a report on Affordability, Financial Capacity and Subsidy Rates, which recommended introducing higher subsidy levels.

The report was put together by a short life working group, with representatives from the Chartered Institute of Housing Scotland, the Scottish Federation of Housing Associations (SFHA), the Glasgow and West of Scotland Forum (GWSF), the Association of Local Authority Chief Housing Officers (ALACHO) and the Convention of Scottish Local Authorities (COSLA).

Councils currently receive up to £30,000, towards the cost of building a new home, while RSLs get around £42,000.

Ms Sturgeon said: “I would like to extend my thanks to the working group for their hard work and commitment on this report. We are aware of the pressures being faced by councils and housing associations, and support the recommendations of the working group in full, including increasing subsidies by £16,000. Housing is and will remain a priority for this Government and today’s announcement of £44 million in funding brings our total budget for affordable housing to nearly £900 million over three years. Increasing the supply of affordable housing is a vital part of our efforts to build a better and fairer Scotland.

“We are now two years into our five year target of delivering at least 30,000 additional affordable homes and we are collectively making good progress towards making this target, with last month’s housing statistics showing that we have already completed almost 12,900 additional affordable homes. In announcing the end of Right to Buy last week I also signalled our commitment to ensuring that we keep and make the best use of our existing housing stock.

“Housing is central to the health and wellbeing of individuals and communities and I am confident that the additional resources announced today will strengthen our commitment to provide the people of Scotland with high quality, sustainable homes that they can afford and which meets their needs.”

COSLA President Cllr David O’Neil said: “COSLA is pleased that councils and housing association will receive an increase in the development subsidy for social housing. This increase will assist councils in responding to local housing need. It will create greater confidence amongst councils to plan for a sustainable new build social housing programme. This in turn will provide a boost to local economies and employment opportunities.”

Susan Torrance, Policy Manager for Investment, Asset Management and Development, who represented SFHA on the Working Party said: “I am delighted that the recommendations of the Working Party have been approved by the Scottish Government, representing as it did, the unanimous views of all of us who are working to build social rented and affordable housing for those in need in Scotland. New homes are needed urgently and these measures will enable us to build with the right level of subsidy to ensure rents remain affordable to those working in low paid jobs and on low incomes.”

Jim Hayton, Policy Manager for the Association of Local Authority Chief Housing Officers (ALACHO ) added: “ALACHO very much welcomes the announcement that subsidies for new social housing construction are to be increased by an additional £16,000 per home for councils and RSLs alike.

“There is a pressing need for social housing throughout Scotland, and this increase will give councils and their partners much needed scope to plan and deliver sustainable social housing development programmes for their communities. We also commend Scottish Government for the inclusive manner in which the working group has been encouraged to develop its report and recommendations on this important issue.”

Rise in rent arrears as ‘bedroom tax’ bites

The UK Government’s “disastrous” welfare reform programme has led to a rise in rent arrears and a rise in emergency housing payments across local authorities, Deputy First Minister Nicola Sturgeon said yesterday. Data collected by the Scottish Government and COSLA shows that UK Government changes to housing benefit have added significant financial pressures on Scottish councils.

The research showed that all, but one, of Scotland’s local authorities with housing stock, had seen an increase in rent arrears. Three quarters of councils said that the bedroom tax is directly responsible for the increase in arrears.

Of that rent now due to be collected from tenants affected, 60 per cent of councils reported receiving 40 per cent or less and 80 per cent of councils reported receiving 50 per cent or less (based on responses from 20 of the 26 councils with their own housing stock).

Ms Sturgeon said that it was ‘absolutely imperative’ that the DWP review and evaluate the impact of their welfare reforms as a matter of urgency.

Last month, research showed that local authorities had received 22,000 requests for emergency Discretionary Housing payments by the end of May. Nineteen local authorities saw a 400 per cent rise compared to the same period last year. And by the end of May, 22 per cent of the £10 million funds made available in Scotland for DHPs by the Department for Work and Pensions had been allocated.

Ms Sturgeon said: “This new data shows a drastic increase in the number of people applying for emergency funding to help them deal with the impact of the UK disastrous welfare reform programme. Local authorities across Scotland are having to deal with the appalling aftermath of the bedroom tax, which is hitting our most vulnerable citizens, including a high proportion of disabled people, extremely hard in these challenging economic times.

“The Scottish Government and COSLA have had little indication from the UK Government about how they intend to review the impact of the bedroom tax to date – even though it is clear from this research that it is driving up rent arrears and requests for emergency funds. That is why we have made a commitment to the people of Scotland that we will scrap the bedroom tax following a successful referendum vote next year. This will be done within a year of independence and we will have the practical arrangements in place to ensure that this happens.

“Working with our partners in local government we have provided £40 million to protect households from the 10 per cent cut in successor arrangements to Council Tax Benefit. We have also allocated funding to support people affected by the bedroom tax with an additional £7.9 million for advice and support services, of which £2.5 million is ring fenced for social landlords.

“We cannot mitigate the full impacts of the UK Government’s cuts to the welfare system without full powers over welfare or access to all our resources – but we will continue to oppose the bedroom tax. It is unfair and divisive policy that hit some of our most vulnerable groups hardest, and it undermines and jeopardises the work this Government is taking forward to create a fairer, more successful, and prosperous Scotland.”

Green light for City Park development

A local campaign to stop the development of City Park has failed. At a meeting of the city council’s Development Management Sub-Committee of the Planning Committee this morning councillors accepted officer recommendations to approve a substantial housing development on the site off Ferry Road.

The decision will be a huge blow to local residents who have fought a long campaign against the redevelopment of the site which was formerly home to Spartans. campaigners argued for the need to retain open green space in a heavily developed area, but councillors gave the go-ahead for the new residential development which will consist of seven apartment buildings with associated car parking.Earlier this month Save City Park campaigners thanked local people for their support. In a statement on their website, the group said: ‘Thank you all for your support of our campaign to Save City Park. We submitted a petition with almost 1000 signatures to the Council and approximately 300 comments were received by the planning office regarding the proposed residential development of City Park/West Winnelstrae. This was a superb effort by all and your ongoing support is very much appreciated. Our next step is to secure the long-term future of City Park as public green open space.’

It now appears that the long-term future of City Park will not be green, but housing.

Edinburgh’s top, say tenants

Edinburgh tenants have given Council housing in the city a vote of confidence in a new survey. Over 1000 Council tenants took part in the survey, which showed that satisfaction ratings are among the highest of any similar landlord in the UK.

Of those questioned, 89% were satisfied with the quality of their home, giving Edinburgh the highest score among similar landlords. 90% of participants responded that they are happy with the housing service they receive and only 4% responded that they are dissatisfied. Satisfaction levels with key services, customer care and engagement were either equal to or higher than other large landlords in the UK.

Neighbourhoods were also rated highly with 92% of tenants stating that they are happy with their neighbourhoods and only 2% were not.

Housing Convener, Councillor Ricky Henderson, said: “This feedback from tenants reinforces the high reputation of the Council’s housing service and is a real vote of confidence.

“The Scottish Housing Regulator has already awarded our housing service the highest grade of any local authority, so it is encouraging to see that our tenants are also satisfied with their homes and the service they receive.”

The Council has worked closely with Edinburgh Tenants Federation in designing the survey. Both organisations will work together to develop an action for any necessary improvements identified from the results.

Betty Stevenson, Convener of Edinburgh Tenants Federation, said: “The Federation has been closely involved in developing the survey and we are pleased with the results showing high satisfaction. We will be working with the Council to make sure that any identified improvements are put in place.”

Do you agree with those survey results? Are you saisfied with the city council’s housing service? Let us know!