Agenda item

Consider Report by Director Infrastructure and Environment.  (Copy attached.)

4.1         There had been circulated copies of a report by the Director Infrastructure and Environment seeking approval to allocate £500,000 from the second homes Council Tax affordable housing investment budget to provide grant assistance to owners of empty properties to help bring them back into use as housing.  The Housing (Scotland) Act 2001 placed a statutory requirement on Local Authorities to develop a Local Housing Strategy (LHS).  The strategy set the strategic direction for housing investment and service delivery and identified the need to bring empty properties back into effective use.  The most common hurdle for empty home owners was the financial cost of bringing property back into use.  The report proposed to contribute to strategic objectives for empty homes highlighted in the Local Housing Strategy, as well as objectives of the Strategic Housing Investment Plan and the Rapid Re-housing Transition Plan.  With reference to paragraph 4 of the Minute of the Meeting held on 20 April 2021, 1,543 homes were registered as long-term empty, accounting for 2.6% of total housing stock in the Scottish Borders, compared to the national average of 1.8%.  Grant Assistance was suggested to incentivise the creation of new affordable homes.  On average, there were over 1,200 lets every year among the four Scottish Borders Registered Social Landlords and collectively there were 21,602 bids made for available properties, an average of 16 bids per property, in 2019-20.  Costs required by second home owners to bring properties back into use typically ranged from £6,000 to £25,000.  Amongst the conditions of grant, property must have had significant equity as the grant sum would have been secured against the property with conditions.

4.2         In response to questions from Members, Ms Bogdanovic advised that the grant would be for residential buildings.  Ms Bogdanovic advised that they would assess that the grant would follow the procurement strategy adding that it is the responsibility of owners to secure three quotes.  Mr Robertson added that they would encourage owners to follow procurement guidance but that it would not be mandated.  The grant would be a Borders-wide grant and funded by Second Home Council Tax.  The grant was not proposed to be means tested as assumption would be made that appropriate equity would be associated with properties.

4.3         In response to a question from Councillor Mountford, Mr Robertson advised that properties being occupied would offset funding from Second Homes Council Tax to fund the grant and that a six-month progress report would be made available from when the grant was established and asked that a further recommendation be added to delegate powers to himself and the Director of Environment and Infrastructure to allow the allocation of more than £25K should exceptional circumstances arise.  Members agreed to approve this request.  Establishment of the grant was anticipated to be from March 2022.

DECISION

AGREED:

(a)          To allocate an initial £500k from the second homes council tax affordable housing investment budget to provide grant assistance to owners of empty properties to help bring them back into use as housing, subject to conditions,

(b)          To Note that should grant assistance prove successful, Officers would bring back proposals recommending an ongoing annual allocation from the revenues raised from second homes council tax,

(c)          That Officers provide a progress report after six months from the grant having been established; and,

(d)          That powers be delegated to the Director of Environment and Infrastructure in consultation with the Director of Finance and Corporate Governance to approve grants in excess of £25k where there were exceptional circumstances.