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This item was published during the term of a previous administration that ended in April 2007

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Renewed focus on housing supply

21/11/2003

Executive Ministers have made a renewed commitment to tackling affordable housing problems, and have encouraged the sector to work with them to get beneath a debate about numbers and address some of the real and complex issues.

Deputy Communities Minister Mary Mulligan said the Executive would lead the way in a constructive, rational discussion about requirements for additional housing taking into account local circumstances and looking imaginatively at new approaches.

Addressing the annual conference of the Scottish Federation of Housing Associations in Edinburgh, the Minister said: "We must be careful to avoid focussing only on the numbers of new houses. What matters is that we have sufficient housing of the right size, type and quality in the right places.

"We also need to bear in mind that conditions vary considerably in different parts of Scotland. In some areas there is a surplus of housing so the main need is to improve the quality of the stock; in other areas, where population and household numbers are growing, increasing house prices result in a lack of affordable housing."

"We need to face some tough issues, which may mean uncomfortable changes."

She highlighted six challenges that need to be addressed:

* How do we get the right balance between the new building required to assist in improving the quality of the stock, often linked to regeneration initiatives, and new building to provide more affordable housing in pressured housing markets?
* How much new affordable housing should be provided for social rent and how much through low cost home ownership initiatives?
* We need a more sophisticated view of where the shortages are. Some local authorities may have no overall shortage, but may have serious pressures in particular areas. Other local authorities may appear to have substantial shortages, but may be right next to areas with substantial surpluses.
* We need to distinguish more rigorously between needs and preferences. We must seek to meet preferences, but give priority to needs.
* The role of the planning system, including planning agreements, in meeting our objectives for affordable housing in mixed tenure developments.
* Are we squeezing the maximum output from the current, substantial investment levels that Ministers are making available?

The Minister added: "All of us who share the commitment to finding the best housing solutions for Scotland's communities need to recognise that we face some serious challenges. We need to recognise that we have to be more innovative in developing new approaches to tackling these problems. The Executive will show leadership in these areas, but we cannot act alone.

"We will therefore take the initiative to engage with all those who have a direct interest in looking at issues of housing supply. This must include local authorities, private housebuilders and lenders as well as the RSL sector.

"Accordingly, we shall shortly invite all of these groups to join us in a constructive, rational discussion about how we can together get a better understanding of the complexity of the issue and develop potential approaches. This will include a series of workshops in which, in line with our work on anti-social behaviour, we can get the views of those at the sharp end of delivery."

The Minister was also able to announce that the Wider Role initiative for Registered Social Landlords, which encourages housing associations to play a part in helping build sustainable and safe communities, was to receive a funding boost. She said:

"This year we agreed to double the funding to RSLs to develop their Wider Role from 4 million pounds to 8 million pounds because wanted to see activities widened and strengthened. I am pleased to announce today that the budget will be maintained at this 8 million pounds level for the next two years to give greater security to plan projects over a reasonable timescale.

"The Wider Role makes a real practical difference to communities, with over 400 projects funded so far covering a range of initiatives from health to education and community safety to employment. I want to see this built on and for RSLs to be creative and dynamic in how they work with others to help people back into work, to tackle poverty and to close the opportunity gap."

Page updated: Wednesday, July 21, 2004