14 October 2005
A new efficiency plan showing how resources for affordable homes can be made to deliver more has been produced by Communities Scotland, the executive agency responsible for housing and regeneration.
Its investment plan sets out how a target of £14m in efficiency savings will be met. The money will be re-invested to build more homes in an affordable housing programme.
Alistair Dickson, head of investment at Communities Scotland, said: 'Our greatest challenge is to change how the construction of new homes is procured. In this, our objectives are clear – more new homes with improved quality.
'We want to see development teams with a greater range of skills who can provide the best possible service to registered social landlords. We are not advocating standardisation and we certainly do not want to dilute the role of committees, tenants or local communities.'
The plan covers four areas of activity. The first includes measures to reduce or contain the capital cost of providing new homes by tackling land availability and cost, infrastructure and the cost of construction and supply.
Communities Scotland says it has been working with the Scottish Federation of Housing Associations and has commissioned the Collaborative Working Centre, a consultancy, to develop a new procurement strategy. Its aim will be to slash the number of registered social landlords or groupings to pool staff and drive better deals with construction companies and suppliers.
Other measures aim to increase net revenues, including the use of private sector borrowing; to improve processes such as the simplification of funding programmes and the targeting of investment; and to promote new plans such as the recently introduced shared equity scheme.
The policy and practice director for the SFHA, Linda Ewart, said it supported the planned work for a new procurement strategy. But she stressed there was considerable caution about what might result.
'The efficiencies agenda must secure improvements in quality and sustainability, as well as outputs, and the SFHA will measure proposals against these criteria during the planned consultation process,' she said.
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