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.”

Door closed on right to buy

The right of council tenants to buy their homes at heavily discounted prices is set to be abolished in Scotland. Deputy First Minister Nicola Sturgeon confirmed the government’s decision to end the scheme on a visit to a housing association in Glasgow yesterday.

The ‘right to buy’ scheme was introduced by Margaret Thatcher’s Conservative government in 1980 and proved hugely popular with council tenants – for many, their new mortgage was cheaper than rent and it gave tens of thousands a first foot on the housing ladder. The best quality houses in the most popular areas were quickly snapped up at bargain prices – across Scotland, 455,000 homes have been sold under the scheme.

However councils were not allowed to use receipts from council house sales to build new homes, and the inevitable consequence was a growing shortage of good quality social housing and ever-increasing waiting lists which successive governments failed to adequately address.

The Scottish Government says that thousands of people will now benefit from improved access to social housing thanks to the decision to end the Right to Buy scheme – up to 15,000 social houses will be protected from sale over the next decade, . Earlier reforms to RtB and suspensions in pressured areas have already meant that the right to buy is already unavailable to many social housing tenants but the latest announcement safeguards social housing stock for future generations, helping to build more cohesive and sustainable communities.

Social housing tenant who still has the right to buy will have a period of three years to exercise it following royal assent of the Housing Bill, expected in Autumn 2014 and the Scottish Government will continue to assist people into home ownership through a range of shared equity schemes.

Making the announcement, Ms Sturgeon said: “It is absolutely vital that people can access social housing when they need it most. Social housing is under significant pressure and so too are the budgets that support it.

“The Scottish Government is doing everything possible to maximise our investment in housing and deliver on our target of 30,000 new, affordable homes over the lifetime of this Parliament. But, given the pressure on both the housing stock and budgets – and with 400,000 people on waiting lists for social housing – we can no longer afford to see badly needed homes lost to the social sector.

“That is why I am today announcing the final stage of the abolition of the Right to Buy – a decision that will safeguard Scotland’s social housing stock for the benefit of citizens today and for our future generations.

“Tenants who currently have a right to buy will have a period of three years from the date of royal assent of the Housing Bill in which they will be able to exercise that right – but after that date it will no longer be possible to buy social houses. This will mean that social houses will always be available for long term rent, helping to ease pressure on the social rented stock.

“More than 450,000 houses have already been sold through right to buy and although the policy has been restricted in recent years, its final abolition will safeguard an estimated 15,000 homes over the next decade.

“Notwithstanding our decision to end the right to buy, which has been fully consulted on, the Government remains committed to helping people buy their own homes and our shared equity schemes are helping – and will continue to help – thousands of people get a foot on the property ladder.”

Graeme Brown, Director of Shelter Scotland said: “We welcome the news that this outdated policy – which for a long time has had no place in Scotland’s housing landscape – is to be scrapped.

“Around half a million public sector homes have been sold off in Scotland since the policy was implemented. Meanwhile, 157,000 families and individuals are today stuck on council waiting lists for a home to call their own.

“Shelter Scotland has long-campaigned for the abolition of Right to Buy and praises the Scottish Government on their decision to protect existing and future council house stock in a bid to address Scotland’s chronic housing shortage.”

Andy Young, Scottish Federation of Housing Associations Policy and Membership Manager added: “We are delighted that the Scottish Government has decided to end all forms of the Right to Buy in Scotland. Right to Buy has had its day and has no place in 21^st Century Scotland. The SFHA and its members have campaigned for this for years and we thank the Scottish Government for listening closely to the arguments for abolition which we put forward.”

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.”

New complaints procedure for Bield residents

Bield. a leading provider of housing, care and community services for older people, has introduced a new complaints procedure. Designed to be more easily understandable and more accessible to the public, Bield reformed its complaints procedure as it strives to continue improving customer satisfaction.

Reflecting the model Complaints Handling Procedure (CHP) developed by the Scottish Public Services Ombudsman the procedure also gives the option for customers to make a complaint to other bodies such as the Care Inspectorate.

Under the changes the complaints handling procedure has been reduced to two stages instead of the previous three, but will continue to follow specific time-scales for responding to complaints.

Bield currently has 16 housing developments in Edinburgh – including properties in Stockbridge and Craighall Road. This range encompasses sheltered housing, very sheltered housing, amenity housing, and private retirement whilst day care services are also provided.

Brian Logan, Chief Executive at Bield, (pictured above) said: “While we have introduced a new procedure, our commitment to providing a first class service still remains firmly in place. The procedure reflects our commitment to valuing complaints. We know that on occasion we get things wrong and when this happens we want to put it right. We want to learn from our mistakes so we can do things better.

“Issues that arise can be about something we’ve done, or not done, or it could be about the standard of service provided by us, or on our behalf. Complaints give us valuable information that we can use to improve customer satisfaction. They provide a first-hand account of our customer’s views and experience, and can highlight problems we may otherwise miss.

“The new procedure will help us do our job better, improve relationships with our customers. It will help us keep the customer at the heart of the process, while enabling us to better understand how to improve our services by learning from complaints.”

As well as the new procedures, Bield has introduced a new recording system for staff which promotes a more efficient method of monitoring complaints and will provide better reports that will help identify the cause of any raised incidents.

Brian added: “For staff, complaints provide a first-hand account of our customer’s views and experience, and can highlight problems we may otherwise miss. All of these changes have been designed solely with our customers in mind and implemented to improve the services they receive. We are continuously evolving and exploring ways we can meet and go beyond their expectations. We hope that this procedure will enable us to address a customer’s dissatisfaction and try ‘get it right first time’ and even help to prevent the same problems that led to the complaint from happening again.”

All Registered Social Landlords will use the same procedure making it clearer and easier for everyone to understand.

With more than 40 years experience, Bield, a registered charity, offers quality housing and services for older people. From humble beginnings in Bo’ness it now provides a wide range of housing and services for around 15,000 people across 22 local authority areas.

New affordable housing development opens in Leith

The latest affordable housing development in Leith has been officially opened, making a significant impact in the regeneration of the area. Port of Leith Housing Association (PoLHA) welcomed the first of 100 households to a block of new, high-quality properties in Fox Street at a ceremony last Friday.

Speaking at the event to mark the opening of the development, Councillor Cammy Day, Housing Leader for the City of Edinburgh Council, said: “These new modern affordable homes in the heart of Leith represent a significant investment by the Council and Port of Leith Housing Association. It is also a reflection of the shared commitment between the Council and housing associations to tackle the city’s shortage of affordable homes in the city. These new homes will also mean modern family homes and lower energy bills. This is our commitment to helping struggling families deal with the range of financial pressures they face.”

This £13m development comprises 60 social rent and 40 shared ownership homes – where people buy and own a percentage of the property and rent the remainder from the Association. There is a wide range of housing types from one bedroom through to four bedroom main door duplex apartments.

Features include secure underground parking and a central landscaped courtyard. 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.

This is the first of a number of affordable housing sites to be completed in Leith and North Edinburgh this year by the Association. Work is currently underway on four other sites and in conjunction with its subsidiary company, Persevere Developments, a further 189 new affordable homes – 101 for social rent and 89 for mid rent – will be completed this calendar year.

Keith Anderson, Chief Executive at PoLHA, said: “Fox Street is a significant development for PoLHA providing access to much-needed, high-quality, affordable housing for local people to buy and rent. This complements our existing affordable housing throughout Leith and North Edinburgh. It is the living embodiment of our commitment to developing vibrant and sustainable communities in homes people want to live.”

PoLHA worked closely with the City of Edinburgh Council which allocated £7 million of grant monies for the development. An additional £6.2 million was funded through private finance raised by the Association and from shared ownership sales receipts.

Millions pledged for social housing

Councils will receive a share of £40 million to help families into hundreds of new social homes, Deputy First Minister Nicola Sturgeon has confirmed. The total funding package is expected to deliver around 1,000 homes, mainly for social rent, and support up to 700 jobs in construction and related sectors, over the next two years.

Local authorities will allocate £40 million to meet the housing needs in their areas.

Ms Sturgeon said: “This funding will deliver up to 1,000 affordable homes that meet people’s needs, a central focus of our housing polices and a principle that underpins everything we do. It will help realise our ambition of 5,000 council homes as part of wider plans to deliver more than 30,000 affordable homes during this Parliamentary term.

“Quite simply, investing in new homes helps people into work by creating a jobs spin-off with the employment and training that takes place during construction. This funding illustrates that despite the 26% cut to our capital budget by Westminster, the Scottish Government is determined to continue investing in new social housing. If we want a strong economy, we must have access to all of Scotland’s resources, not just the portion of Scotland’s resources that the UK Government chooses to give us.”

Pauline Mills, Land & Planning Director for Taylor Wimpey East Scotland said: “As one of Scotland’s largest house builders delivering high-quality new homes is our area of expertise, and the provision of social housing is an integral part of our business across Scotland. The announcement today of funds for Councils to provide more new affordable homes, highlights the importance of the house building industry and the key role that it plays in creating a positive impact on the economic landscape of Scotland.”

This funding package brings the Scottish Government’s budget for housing supply to almost £860 million over three years.

Affordable Housing Supply Programme (AHSP)

The Bedroom Tax – a Poll Tax for the 21st century?

It could become the most hated piece of legislation to be inflicted on British people since the infamous Poll Tax. And it’s now only weeks away …

In April, a new measure is to be introduced that will apply to all tenants of working age – welfare reforms will cut the amount of benefit that people can get if they are deemed to have a spare bedroom in their council or housing association home.

Under the legislation, size criteria will restrict housing benefit to allow for one bedroom for each person or couple living as part of the household. Children under sixteen years old will be expected to share with others of the same gender, while children under ten will be expected to share regardless of gender.

Under the new legislation – labelled the bedroom tax – all claimants who are then deemed to have at least one spare bedroom will be affected and face an ‘under occupation’ penalty: a cut to their housing benefit.

The cut will be a fixed percentage of the Housing Benefit eligible rent, which the Westminster government has stated will be set at 14% for one extra bedroom and 25% for two or more extra bedrooms.

Those affected – around 660,000 working-age social housing tenants (over 30% of existing Housing Benefit claimants in the social sector) in the UK – will lose an average of £14 per week, with Housing Association tenants expected to lose around £16 per week.

The architect of the scheme is investment banker and Welfare Reform Minister Baron Freud of Eastry – who incidentally lives in an eight-bedroom Kent mansion when he is not staying in his four-bedroom townhouse in London’s Highgate. The noble Lord believes that ‘spare council house bedrooms are a luxury the country can no longer afford: “It’s not fair or affordable for people to continue to live in homes that are too large for their needs when, in England alone, there are around five million people on the social housing waiting list and over a quarter of a million tenants are living in overcrowded conditions. It’s only right that we bring fairness back to the system and make better use of the social housing stock.”

He went on: “Nearly a third of working-age social housing tenants on housing benefit are living in accommodation which is too big for their needs, in spite of the fact of severe overcrowding. We are stopping the practice of the state paying for rooms beyond claimant needs, and that should go in some way to help tackle the social housing shortage that has been blighting too many lives.”

Lord Freud and his ministerial chums hope that more households will chose to ‘downsize’ to smaller, more affordable properties – and in the process slash £500 million from the Housing Benefit bill. So the government reduces the national debt and tenants get suitably-sized homes: a win, win situation, then – everybody’s happy?

Sadly not. There’s a desperate shortage of suitable, smaller accommodation, as Shelter Scotland Director Graeme Brown explained: “The UK Government is simply failing to listen to the voice of reason being put forward by housing professionals, social landlords, MSPs and individuals. Penalizing low-income people for having an extra room assumes that there is a ready supply of smaller properties for them to move to. This is simply not the case. So the only consequence will be people stuck in homes with mounting rent arrears and a further descent into debt. Even at this late stage, we urge the UK Government to modify its proposals.”

According to the latest Scottish government figures, there are 586,000 households in the social rented sector in Scotland, and 105,000 of these – roughly one in five – will be affected by the Bedroom Tax, each losing an average of around £50 per month.

Advice organisations have already seen a significant increase in demand for their services, and the imminent welfare reforms will inevitably lead to even more desperate cries for help.

Citizens Advice Scotland (CAS) Chief Executive Margaret Lynch gave evidence about the impact of welfare changes on advice services at the Scottish Parliament earlier this month.

She said: “We expect demand for benefit advice, to increase even further along with an increased need for other areas of advice such as debt, housing, and budgeting due to changes in benefits. This increase in casework, as well as the increasing complexity and time-consuming nature or many issues, is of course having a knock-on effect on the ability of our service to help our clients.

“We are already at breaking point so desperately need to be adequately resourced to enable us to help those who need it most as we aim to mitigate the impact of welfare reform as much as possible. The recent benefits uprating bill debate highlighted the statistics showing how the poorest are paying the price for cuts. The evidence we are publishing today is not just statistics but is based on the real lives of real people. It is not just about the numbers of people affected, but the severity of the individual cases. We have seen a big rise in the number of people in crisis situations, either because of the direct impact of a benefit cut or because they have fallen through the gaps in the safety net that is meant to protect them.

“The evidence we are publishing shows who is really being hit hardest by current policies and it includes thousands of people who are genuinely sick, disabled, and vulnerable and deserve support. The impact of current policies don’t just hit the individual claimant but can also have a huge effect on children and others being cared for. Pushing people further into poverty and financial difficulties will lead to an increase in other problems such as homelessness, health inequalities, and family breakdown, as well as lead to rising debt and an increase for food hand-outs. Tackling these issues in future years will only add to the overall public spending bill, not reduce it. The UK government must heed this evidence and question whether they really want to continue on a track of devastating reforms which can only damage more lives.”

Shelter Scotland has issued advice to tenants likely to be hit by the imminent benefit cuts, and urge them to ACT NOW:

If you’re going to be affected by a deduction to your housing benefit then it’s very important that you prepare for the change before April 2013.

There are several things you can do:

take in a lodger – renting out a spare room would bring in extra income, but make sure you get the agreement of your landlord first and check whether this will affect any other benefits that you’re currently receiving
ask for a contribution to your rent – your family members may be able to pay more towards your rent
move to a smaller property – you may be able to transfer to a smaller property, speak to your council or the housing association you’re renting from to see if you can apply to do this
apply for a discretionary housing payment – your local council may be able to give you temporary support to help you stay in your home through a discretionary housing payment.

If you can’t pay all your rent after the reduction you may have to think about finding somewhere else to live or you will risk falling behind with your rent and possibly being evicted. Speak to an adviser in your area as soon as possible if you’re worried that this may happen to you.

For Local advice:

Granton Information Centre 134-138 West Granton Road. Telephone 552 0458 Email info@gic.org.uk

Pilton CAB, Drylaw Shopping Centre: Telephone 202 1153 Email pilton@caed.org.uk