£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!

Communities to benefit from social housing reforms

Social tenants and landlords are set to benefit from a number of reforms announced yesterday by Housing Minister Margaret Burgess. The reforms will change the way social landlords allocate and manage their housing. They will allow social landlords to address the specific needs of the local community, ensuring best use of available social housing, tackling antisocial behaviour and providing further protection for tenants.

Speaking at the Scottish Federation of Housing Associations’ Annual Conference, the Housing Minister outlined the measures, which are likely to form part of a forthcoming Housing Bill.

This includes:

Replacing prescriptive and outdated priority groups with a broader framework that gives landlords and their communities more local flexibility
Allowing landlords to consider any property that a social housing applicant already owns when allocating housing
Introducing a qualifying period before succession to a tenancy following the death of a tenant
Allowing a minimum period to be put in place before antisocial tenants are eligible for the allocation of social housing
Introducing a new right for tenants to appeal a landlord’s decision to suspend them from being allocated a property
Allowing landlords to give Short Scottish Secure Tenancies to applicants and tenants with a history of antisocial behaviour
Simplifying eviction procedures for tenants convicted of a serious offence

During the SFHA Conference Mrs Burgess also announced that initial or probationary tenancies will not be included in the Housing Bill.

She said:

“The changes I am announcing today will ensure that we deliver first-rate homes and services to tenants, residents and homeless people – the most vulnerable in our society. By giving landlords greater flexibility at a local level they will be able to respond to the needs of their local community.

“In order to provide affordable warm homes for people in Scotland it is vital that we continue to find ways to increase supply and quality across all tenures. Despite Westminster’s cuts to our capital budget, we have taken every opportunity to increase our investment in housing. By the end of April we had allocated £200m additional funding for housing supply, bringing total investment to almost £860m in the three years to March 2015.”

Home to Stay

HOME TO STAY PUBLIC MEETING

Thursday 13 June

We want private tenants to feel secure in their homes, and not be forced out of their houses without due cause. Currently, tenants can be asked to leave without reason, even if they have been good tenants. This leaves many unable to plan for the future, or generally feel secure in their homes. And many tenants won’t report repairs or bad practices for fear of being kicked out. ‘Home to stay’ is a grass-roots campaign to abolish the insecure ‘short assured tenancies’ in Scotland.

Join us for a public meeting:

Thursday 13th June, 7-9pm

Augustine United Church

George 4th Bridge

http://goo.gl/maps/lauUZ

Speakers:

Tenants telling their stories about the lack of security in the private rented sector; Shelter Scotland; National Union of Students Scotland; Edinburgh Private Tenants Action Group.

Read about first hand accounts of how insecurity affects private tenants, and submit your own stories here:

http://home2stay.tumblr.com/

Website: www.eptag.org.uk

Facebook: www.facebook.com/edinburghprivatetenantsaction

Twitter: @eptag

Edinburgh Private Tenants Action Group

Housing Minister welcomes Varcity North tenants

Housing Minister Margaret Burgess welcomed new tenants to the first completed phase of Miller Homes’ Varcity North development in North Edinburgh yesterday.

In total, 89 new apartments, consisting of one, two and three bedrooms, will be available at mid-market rental rates at the development.

In 2011, Miller Homes, the City of Edinburgh Council and Scottish Futures Trust (SFT) created a limited liability partnership (LLP) as part of the National Housing Trust’s initiative (NHT), aimed at fast-tracking the delivery of new homes for mid-market rental throughout Scotland.

The LLP is working with managing agent Places for People to manage the completed properties, identify potential tenants and manage the rentals over the contract term.

Rent First@Varcity North will be available for rent to selected tenants, (employed on a minimum salary of £10k per annum, but struggling to find an affordable home to rent).

Under the NHT initiative’s rules, homes must be available to rent for a five year period, following which, tenants will have the choice to purchase their house at the market value or move on. Should tenants select not to buy, Miller Homes will sell the property on the open market.

Housing Minister, Margaret Burgess said: “It is fantastic to see house developers like Miller Homes embrace the opportunities offered by the Scottish Government’s pioneering National Housing Trust initiative. These new homes at Varcity North will go some way towards providing much needed affordable rented accommodation for Edinburgh residents.

“The initiative has been hugely successful, with deals secured with 13 developers to deliver over 1000 high quality homes for families throughout Scotland at very little cost to the taxpayer. A vibrant, expanding housing sector stimulates growth and protects and creates jobs in the construction sector and wider economy.”

David Knight, Managing Director, Miller Homes Scotland said: “We are delighted to bring the mid-market rental homes to market slightly ahead of schedule. Securing affordable housing in Edinburgh remains difficult and the challenging lending environment also means that buying is still out of reach for some households.

“The 89 apartments will go some way to helping those in employment secure an affordable rental tenancy. The apartments are developed to Miller Homes’ high standards of the quality of the build, fixtures and fittings and will form part of vibrant, modern development, which is quickly establishing its own sense of community.

“Rent First@Varcity North provides much needed homes at affordable rents for key workers and has also created vital local employment opportunities within the house building industry.”

Rents per month are set at £457.20 for a one bedroom, £594.39 for a two bedroom en-suite apartment and a limited number of three bedroom apartments available. Further details are available from Miller Homes.

Councillor Norman Work represented the city council at the event. He said: “The affordable homes available at Varcity North are a welcome addition to the market in Edinburgh. We continue to tackle the shortage in affordable homes and look for opportunities like the LLP with Miller Homes and Scottish Futures Trust to bring these very welcome homes to fruition.

“With around one half of the national uptake of NHT being in Edinburgh that gives us a sizable amount of homes available for rent. Not only will it enhance the local community, it will also offer a significant boost for those who are in work, who can’t afford to rent at full market rent.

“It is a great model to increase availability of the number of homes for rent in the city and gives people a real opportunity to become tenants and secure a home of their own and save for the future.”

Christa Reekie, commercial director at Scottish Futures Trust said: “I am delighted that the first phase of homes is now complete, providing hundreds of people in the capital with high-quality homes at affordable rents. We are pleases with the high standards of the Varcity North development which has already attracted a great deal of interest.”

Miller Homes purchased the Varcity North site as part of a larger transaction from Telford College, which comprised three campuses (Telford South, Telford West and Telford North). The development of Telford West campus for Home Scotland Housing Association (40 affordable dwellings) was completed in 2010.

Telford South is now known as Varcity South and has become one of the city’s – and Miller Homes’ – flagship developments. The last campus, now known as Varcity North, comprises 327 apartments within five new build blocks and a possible converted building. The apartments under the NHT initiative are within the Dundas Campus and the Dean Campus.

New Varcity North tenant Claire Wilson chats to Housing Minister Margaret Burgess

TPAS award for Port of Leith Housing

Port of Leith Housing Association (PoLHA) is celebrating after becoming the first community-based housing associaiton in Edinburgh to achieve TPAS accreditation – marking it as one of the most innovative and tenant focused organisations in the country.

TPAS Accreditation is awarded by the Tenant Participation Advisory Service (TPAS) to social landlords that go the extra mile to involve their customers in the shaping of services, and TPAS were particularly impressed by what they saw at Port of Leith. TPAS was also impressed at the range of PoLHA’s traditional engagement techniques, including the recent successful welfare reform information day, quarterly Port Call newsletter and registered tenant organisation consultation.

Lesley Baird, Chief Executive of TPAS Scotland, explained that PoLHA has fostered a real partnership with its customers. Lesley said: “We’ve been impressed by the way Port of Leith works together with its customers to set standards and scrutinise services. Their hard work has established a framework for involving tenants in self-assessment and measuring performance that others in the sector can learn from.”

PoLHA provides affordable rented housing throughout Leith and north of the city. It has created a range of opportunities for tenants and residents to get involved and influence the way services are provided. These range from community events to formal processes for tenants to influence decisions about housing services and investment, either as individuals or in formal groups.

Following a thorough consultation process, PoLHA has developed a Customer Charter to enhance assessment and scrutiny of services. The charter reflects the standards of the Scottish Social Housing Charter, whilst also factoring in important local priorities. It also sets service standards, outlines activities to achieve them and explains how performance will be measured. To ensure tenants are involved in the process, PoLHA also carries out mystery shopping in order to test services and facilitated a range of customer service reviews.

PoLHA Chief Executive Keith Anderson said: “Port of Leith Housing Association is committed to serving its tenants and we are delighted to receive this honour. To be the first community – based housing association in Edinburgh to be recognised for its achievements is testament to the hard work and efforts put in by our staff working in partnership with our tenants.”

Pictured (Left -Right): PoLHA Chairman Jack Hunter, TPAS Scotland Chief Executive Lesley Baird and Keith Anderson, PoLHA Chief Executive

TIPping point – Tenant Information Packs launched

Tenants and landlords in the private rented sector are to benefit from a new Tenant Information Pack (TIP) which will improve access to information on renting and help ensure that accommodation is good quality and well managed.

Launched by Minister for Housing and Welfare Margaret Burgess yesterday, landlords have a legal duty to provide the TIP to new tenants. The easy to read document, which has been made available on the Scottish Government website, contains a summary of legislation relevant to private tenants and landlords.

During a public consultation on its introduction, the TIP received broad cross-sector support as a means of providing consistent and reliable information to tenants, and the TIP will be reviewed on a regular basis to ensure that it provides an accurate, user friendly, summary of housing law.

The launch of the pack is supported by a new website which offers practical renting guides for tenants and landlords in Scotland’s private rented sector. Funded by the Scottish Government, the Renting Scotland website has been created by Shelter Scotland and industry partners and contains key tenant and landlord information on renting in the private rented sector.

Mrs Burgess said: “The Tenant Information Pack provides vital information for tenants and landlords in an easy-to-read format. There is already a lot of good information available to tenants and the pack is not intended to replace existing material, but to create a benchmark for information available across the whole sector.

“The introduction of the pack will contribute towards ensuring that the private rented sector provides good quality and well managed accommodation, where both landlords and tenants understand their respective rights and responsibilities. The Renting Scotland website, which went live today, is another important form of support, offering crucial advice to tenants and landlords.”

A spokesperson for the Scottish Association of Landlords said: “We are encouraged by the possibility offered by the Tenant Information Pack to improve and maintain landlord-tenant relationships. The pack is a helpful resource which will raise awareness of both landlord and tenant rights and responsibilities.”

Graeme Brown, Director of Shelter Scotland, said: “The introduction of the Tenant Information Pack by the Scottish Government is a positive step forward for tenants and landlords alike, who will be clear on their rights and responsibilities from the day a tenant moves in. By improving access to key information, Tenant Information Packs will build trust and respect on both sides. It will help avoid problems at an early stage and empower tenants as consumers should something go wrong.

“An informed tenant is a good tenant, and likewise a landlord who is aware of their rights and responsibilities can better manage their property to anticipate and avoid problems, allowing both parties to get off to a good start.”