Scots RSLs and councils ‘could build more homes for less’

15 Nov 10
Scottish councils and housing associations could together build more affordable homes with less public funding, academics said today.
By Vivienne Russell

 

15 November 2010

Scottish councils and housing associations could together build more affordable homes with less public funding, academics said today.

Research by Heriot-Watt and York universities found that better use could be made of borrowing and planning powers to increase the number of new builds. The study, which was commissioned by the Scottish Government, examined the building capacity of the social housing sector as a whole in Scotland.

Currently grant funding is available for housebuilding in the social rented sector but is unevenly distributed. Registered social landlords receive about 60% of build costs while councils receive just 25%.

The study found that even if grant rates were harmonised at 25%, housebuilding could remain at current levels (about 5,300 homes collectively), but save the Scottish Government about a third in grant.

Harmonising the rate at 35% would mean 6,300 affordable homes could be built each year. This would cost the Scottish Government £309m a year in grant, only slightly more than the money available to RSLs in this year’s Affordable Housing Investment Programme budget.

Commenting on the report, housing and communities minister Alex Neil said: ‘Scotland’s housing sector faces the prospect of a reduction in funding for low-cost homes.

‘As this research highlights, if housing associations and councils work together to lever in resources to make Scottish Government funding go further, there is untapped potential to build significant levels of new housing at a lower cost to the taxpayer.’

The study was led by three leading housing academics: Glen Bramley and Hal Pawson, professors at Edinburgh’s Heriot-Watt University, and Steve Wilcox, professor of housing policy at the University of York.

Their findings will inform the Scottish housing policy paper, due to be published in early 2011.

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