Agenda item

Consider report by Service Director Regulatory Services. (Copy attached).

There had been circulated copies of a report by the Service Director Regulatory Services seeking Council approval of the Strategic Housing Investment Plan (SHIP) 2018-2023 due to be submitted to the Scottish Government by 30 October 2017.  Local Authorities were required to produce an annual SHIP submission to the Scottish Government.  Scottish Borders Council - with the involvement of its key partners via the SHIP Working Group -had prepared this SHIP submission.  The SHIP articulated how the Council and its RSL partners would seek to deliver the Border’s affordable housing investment needs and priorities identified in the Council’s Local Housing Strategy (LHS) 2017-2022 over a rolling five year planning horizon.  Homes delivered would be counted towards the Scottish Parliament’s national target of 50,000 Affordable Homes.

3.2     Based on a Resource Planning Assumption (RPA) from Scottish Government Officials of £43.957m for the period 2018-2021, £4.6m from charitable bonds, RSL partner private sector borrowing and a commitment from the Council’s Affordable Housing Budget, approximately 674 new homes could be delivered over the three year period.  However, in response to the Scottish Government’s request to over-programme in order to manage any potential project slippage, this SHIP set out an ambitious plan that could potentially deliver up to as many as 1,177 affordable homes over the five-year period of the SHIP.  This latter figure assumed that all identified challenges and infrastructure issues were resolved in a timely manner, funding was available, and that agreement was reached between all interested parties and the construction sector had capacity to deliver projects. The SHIP also included a number of new build extra care housing developments in key Borders towns.

3.3     Members discussed the report and received answers to their questions from the Group Manager (Housing Strategy and Services).  It was explained that part of the remit of the work currently being undertaken to produce an Integrated Strategic Plan for Older People’s Housing, Care and Support Needs was to reflect the housing needs and aspirations of older people at a local level.  With regard to areas of high demand for housing within the Scottish Borders, it was advised that there was high demand in the central borders, particular Galashiels, Peebles and areas of Berwickshire.  Members then discussed deliverability of the project and were advised that availability of land was less of an issue than the challenges around infrastructure investment and resources, many construction workers being attracted to higher wages offered by large national companies in urban areas.  SBHA and Eildon Housing were ‘packaging’ developments into one larger project to make these more attractive to building companies.  The Project Priority Weighting matrix, detailed in the report, had been developed as a mechanism to assess priority; deliverability had the highest weighting and was underpinned by Registered Social Landlords’ (RSLs) financial capacity to deliver projects.  Reference was made to demographic change and the role of private house builders.  It was explained that the SHIP was framed in guidance to set out the investment for affordable housing, although officers anticipated being able to provide the evidence to encourage the private sector to develop a mix of social and private housing to address the needs of older people.   

3.4     The Housing Strategy Manager was also in attendance and in response to a question regarding revitalising redundant commercial and industrial sites, advised that officers continually worked with RSLs to identify opportunities. He referred to the acquisition of the former Castle Warehouse site by Eildon Housing Association to construct extra care housing. There had also recently been a development of flats in Innerleithen on a former garage site.  Consideration would be given to other sites in the future, although cognisance had to be made to supply and demand and the displacement of existing tenants.  However, many land owners were reluctant to sell their land having expectations of a greater value for their land or that there could be an increase in land valuations in the future.   Members congratulated officers on the ambitious target to maximise delivery of affordable homes in the Scottish Borders and unanimously commended the SHIP.

DECISION

AGREED to approve the Strategic Housing Investment Plan 2018-2023 attached as Appendix 1 for submission to the Scottish Government More Homes Division by 30 October 2017.

DECLARATION OF INTEREST

Councillor Mountford, as Chair of Scottish Borders Housing Association, declared an interest in the above report but remained during the discussion.