Scottish Government

Housing Supply Task Force Final Report- (pdf format )

HOUSING SUPPLY TASK FORCE FINAL REPORT: PROGRESS ON RECOMMENDATIONS 21 MAY 2010

1. INTRODUCTION

1.1 In February 2009, the Housing Supply Task Force published a report, providing an overview of our work since inception and setting out a series of recommendations for the actions that we considered necessary to bring about robust and long-lasting improvements to support the delivery of new housing.

1.2 Following publication of that report, the Task Force reconvened on 16 March 2009 with an expanded membership and a new remit: "To build on the work undertaken by the Housing Supply Task Force to prepare for a recovery in house-building; strengthen relationships between key stakeholders; act as a cross sector forum for consideration of the implications for all the housing supply systems of the economic downturn; and champion new ideas and innovative solutions to support the delivery and funding of increased housing supply across all tenures."

1.3 Since that meeting, the members of the Task Force have met on five further occasions throughout 2009 and 2010 to: (i) discuss and debate the ongoing impacts of the economic downturn on the housing system and the actions that should be taken in response; and (ii) monitor the progress made on our recommendations (which remain, in our view, critical to efforts to increase future housing supply levels).

1.4 During our discussions we have considered a wide range of issues, including the implementation of planning reform, infrastructure investment, land supply, building standards, the future role of the private rented sector, capacity in the house-building industry and the availability of finance. [1] Our discussions have shaped each member's response to the downturn and contributed to the development of the housing actions set out in the Scottish Government's Economic Recovery Plans.

1.5 This report now: (i) provides an updated commentary on the situation in the housing market and the outlook for the future; and (ii) sets out an overview of the progress which members of the Task Force and other organisations have made on our recommendations. It also signals the end of the Housing Supply Task Force's programme of work, although not our determination to take action to increase the supply of housing. All members are committed, individually and with each other, to develop the innovative approaches required to achieve that. And many of the organisations represented in the Task Force will take part in the new housing policy advisory group established by the Minister for Housing and Communities to consider the future direction of housing policy, with an explicit recognition of the dramatically changed environment within which we are all operating and the pressing need to adopt new thinking and fresh approaches to fund affordable housing in the years ahead.

[1] Minutes of meetings at: http://www.scotland.gov.uk/Topics/Built-Environment/Housing/supply-demand/housing-supply-task-force/minutes

2. MARKET OVERVIEW AND OUTLOOK

2.1 Our last report provided some commentary on the impacts of the economic downturn on the housing system, noted the actions taken in response by the Scottish Government and others and set out some forecasts for the future. Since then, the volume of private house-building activity has continued to be significantly lower than pre-credit crunch levels, with NHBC statistics showing a particularly stark decline in some areas; as high as 90% in both Edinburgh and the Borders and 85% in Glasgow and Fife [2]. The availability for finance, both for individuals and developers, also remains restricted, while the number of repossessions has increased.

2.2 More recent statistics have however offered tentative signs that levels of private supply may be recovering, albeit from a low base. And the Scottish Government's accelerated investment in social housing is increasing the provision of affordable housing.

2.3 More specifically, in relation to starts and completions:

• NHBC statistics show that 1,949 new homes were registered in Jan-Mar 2010, compared to 1,280 in Jan-Mar 2009, an increase of 52%. 1,691 new homes were completed in Jan-Mar 2010, compared to 1,867 in Jan-Mar 2009.

• While the most recent official Scottish Government statistics (third quarter 2009) show an overall 41% decrease in supply compared to the same quarter in 2008, they also showed that starts were 11% higher than in the same quarter the previous year (albeit 35% lower than in 2007).

• A total of 7,122 social sector new build homes were started in Scotland in 2009, (the highest number since the 1970's) funded by the Affordable Housing Investment Programme (AHIP), the Incentivising New Council House Building Fund for council house building and through councils' own budgets.

2.4 Figures also show that the mortgage market is slowly recovering after a severe retraction, that lowering interest rates have generally brought a reduction in interest payments as a proportion of income, that wholesale mortgage funding costs are now lower and that some higher loan to value mortgage products are now appearing in the market. However:

• There are effectively a limited number of active lenders in the mortgage market. The specialist lenders who relied solely on wholesale funds have all but exited the market and the bulk of activity is being undertaken by those banks and building societies which can access the Special Liquidity Scheme (SLS) and Credit Guarantee Scheme (CGS).

• Lenders are being required to hold back more capital by the FSA for liquidity reasons, reducing the amount they have available to lend.
  
• Lenders are, in the main, having to rely on retail deposits, the SLS and the CGS to fund lending. The wholesale money markets have not truly opened up again, although there have been a limited number of mortgage backed securities issuances.
• The actual demand for mortgages has fallen. In the view of the CML, supply and demand now match more closely than they did in 2008.

2.5 In terms of specific facts and figures:

• According to the CML, gross mortgage lending was an estimated £11.5bn in March 2010, a 24% rise from £9.3bn in February and a 3% rise from £11.2bn in March 2009 [3].
• At an estimated £29.5bn, gross lending for first quarter 2010 was the lowest quarterly lending total since the first three months of 2000. The figure is down 24% from quarter 4 2009 (£38.9bn) and 9% from quarter 1 2009 (£32.4bn). [4] It should however be noted that the increased level of activity in quarter 4 of 2009 has been linked to the stamp duty holiday coming to an end in January 2010.
• For the UK as a whole, mortgage arrears were higher at the end of 2009 than at the end of 2008. At the end of last year, the number of UK mortgage loans in arrears of 2.5% or more of the outstanding balance was 188,300 according to the CML, compared with 182,600 in 2008.

2.6 Most sources say Scotland's house prices are continuing their year on year growth in 2010 with Nationwide, Lloyds and RoS figures all reporting rises ranging from +3.4% to +5.7% for Q1 2010. House sale transactions in Scotland also started to rise again towards the end of last year. Transactions in March 2010 were 26% higher than in March 2009 at 5,429, although the comparison is with a low level.

2.7 However, while we may now be seeing some recovery in the market and an easing of the availability of mortgage finance, members of the Task Force are clear that this trend will not result in a speedy bounce back to pre-credit market conditions and supply levels. The Council of Mortgage Lenders has stressed the very significant uncertainty about the extent to which lenders will be able to refinance the funding required when the UK Government's special liquidity and credit guarantee schemes expire between 2011 and 2014. Analysis by Homes for Scotland has shown that, dependent on a range of factors, it could take a significant period of time for private housing supply to increase back up to pre-credit crunch levels. And the public sector faces a substantial squeeze on its capital resources, with obvious implications for its future capacity to support the provision of affordable housing through traditional approaches.

[2] Building for their Future, Homes for Scotland. Available at: http://www.homesforscotland.com/buildingfortheirfuture.aspx?Site=1

[3] CML News Release, 19 April "Gross Mortgage Lending up 24%" http://www.cml.org.uk/cml/media/press/2609

[4] Ibid

3. RECOMMENDATIONS

3.1 This section outlines the progress made on the recommendations set out in the four priority themes identified in our February report: (i) Advance Funding of Infrastructure; (ii) Implementing the Reformed Planning System; (iii) Capacity in the House-Building Sector; and (iv) Public Sector Land. In addition it considers two further recommendations on the use of compulsory purchase orders and support for rural housing enablers.

Priority 1: Advance Funding Of Infrastructure

Recommendation 1.1 and 1.2

• The Scottish Government, following on from its current review of planning circular 12/96, to consider with Local Authorities, developers and other stakeholders appropriate options for new models of financing infrastructure provision to accelerate the construction of housing and other development.
• Local Government, in discussion with its partners, to consider the scope for using the accelerated sums made available to it from the Pre-Budget Report consequentials to support up-front infrastructure development.

Commentary

3.2 In recognition of the impact of the economic downturn on traditional approaches to funding infrastructure associated with house-building, our report set out the need for the Scottish Government to consider alternative approaches, particularly for larger and more complex developments.

3.3 The Task Force has subsequently discussed the issue of infrastructure on a number of occasions, recognising that it remains very significant and that lenders are, in the main, unwilling to provide developers with funding to support the up-front provision of infrastructure. In addition, many of the Task Force's members (Homes for Scotland, Scottish Property Federation, COSLA, Heads of Planning Scotland) are considering this issue through active membership of the Development and Infrastructure Partners group set up by the Scottish Government's Directorate for the Built Environment.

3.4 While specific new initiatives have yet to emerge, the Scottish Government has made significant progress in a number of areas, including:

• The secondment of two GVA Grimley employees into the Scottish Government to undertake, on its behalf, an audit of development and infrastructure issues across Scotland.
• Good progress on the development of a JESSICA (Joint European Support for Sustainable Investment in City Areas) Holding Fund in Scotland, which could support the development of e.g. business, transport and renewable energy infrastructure. This would allow European Regional Development Fund (ERDF) grant allocations, together with other sources of funding, to be used as a source of loans, equity investment and guarantees that would help to de-risk urban regeneration developments currently considered too marginal for commercial lenders or investors. While a JESSICA initiative would not initially be able to support housing developments specifically, returns from initial investments could support such projects in the longer term, beyond the end of the current EU grant funding programming period in 2013. In addition, Scottish Government officials have begun a conversation with the European Investment Bank (EIB) about the possibility of a recyclable infrastructure fund for areas outside JESSICA eligible areas and housing projects.
• Publication, in February 2010, of a circular 1/2010 on Planning Agreements, taking account of the impact of the economic downturn on past approaches to agreements. The Scottish Government will shortly be consulting on Regulations prior to implementing section 23 of the Planning etc (Scotland) Act 2006, updating and improving procedures for the use of Planning Agreements.
• Establishment by the Scottish Government of a workshop on developer contributions and infrastructure on 18 March 2010, bringing together public and private sector practitioners to share good practice.

3.5 A number of local authorities throughout Scotland have also taken action. Some examples of this are set out below:

• Aberdeenshire Council has instigated the FIRS process (Future Infrastructure Requirements for Services), which brings together input from all Council Service providers and key external agencies to advise developers of the likely infrastructure and affordable housing requirements of a particular site or area for development within the Shire. Cross boundary liaison with Aberdeen City has also resulted in a FIRS group being established with Aberdeen City and a satellite group considering specific issues with critical cross boundary implications The process is intended to ensure both that landowners and developers have a realistic expectation of the costs involved in development and that the majority of allocated sites that are eventually put forward into the local plan can actually be delivered. The industry has generally welcomed this very pro-active approach to infrastructure and affordable housing requirements and the FIRS process is also being included in the PAN74 revision as an example of innovation in delivery.
• Aberdeenshire Council is also looking at the provision of up-front funding for infrastructure to allow development to begin, with costs clawed back through the course of the development with a suitable charge for risk and indexation. And the Council's Planning Gain Service is in constant dialogue with its clients and willing to discuss revised payment schedules in order to facilitate development progress during the current financial uncertainties.
• Under the umbrella of a Council-wide response to the current economic situation, City of Edinburgh Council's Planning Committee approved an Economic Resiliency action plan to promote a more flexible response to dealing with developer contributions. This was discussed with internal consultee services. An internal audit of Section 75 and planning gain issues has also resulted in an action plan which is being progressed through to April 2010 to bring efficiencies to the process.
• Since the beginning of the year, Midlothian Council's Cabinet has met with many of the developers operating in Midlothian and engaged actively with developers who have sought to vary legal agreements. The Council has taken a flexible approach in seeking to minimise the impact on developer cash-flow by being prepared to restructure and reschedule developer contribution payments to allow development to commence/continue when sites would otherwise lie dormant. In practice the depth of the economic slowdown has been so severe as to limit the benefits arising from this approach, but it has in principle been well-received by developers. In terms of the wider extent of planning agreements in Midlothian, the Council has a Developer Contributions Steering Group comprising officers drawn from services across the Council, and which meets regularly to monitor/review policy, as well as the operation of current arrangements/agreements on a site by site basis.
• East Renfrewshire Council has met with developers to discuss both existing and potential Section 75 Agreements and has been working with them to amend agreements to, for example, lengthen timescales for the provision of planning gain.
• Scottish Borders Council has an "open book" assessment within its Developer Contribution policy, enabling developers to ask for contribution requirements to be waived or amended where it can be demonstrated that they would render the development unviable. The council also permits staged payments of contributions, allowing developers to link contributions to anticipated income streams and avoid the need for upfront payments.
• In South Lanarkshire Council, a number of S75 Agreements have been reviewed by the Planning Service in relation to community benefit payments. Such payments are expected in lieu of the non-provision of community facilities within a site and for off-site road works triggered by the development in question. In all instances the alterations were made in relation to large residential developments where developers were unable or unwilling to pay the required funding up front. S75's were revised to allow payments over a longer time period, tying in with the developers phasing of works on site.
• Stirling Council has reviewed timings of payments on S75's to take account of current economic circumstances. This has included allowing for deferrals of payments and amendments to timescales for provision of payments in already operational S75 agreements.

3.6 In addition, three Scottish local authorities (City of Edinburgh, North Lanarkshire and Glasgow City) have expressed an interest in using the Tax Increment Financing (TIF) model and are working with the Scottish Futures Trust (SFT) to develop business plans (City of Edinburgh have now submitted their plan for the development of the Edinburgh Waterfront while North Lanarkshire have submitted a draft business case for Ravenscraig). The Scottish Government has also tasked the SFT with developing appropriate criteria for the potential application of TIF in Scotland. The TIF model, which is widely used in America, involves local authorities borrowing to invest in up-front infrastructure, with an expectation that these funds would be repaid through receipts from the additional development generated as a consequence of the original investment. In Scotland, these revenues would come from Non Domestic Rates, which means that the proposed infrastructure must be able to unlock appropriate commercial development.

Recommendation 1.3

• All parties to investigate existing models of infrastructure delivery co-ordination within the UK to support development plan action programmes.

Commentary

3.7 Even where sufficient infrastructure funding is in place, our discussions have highlighted the need for effective mechanisms to be established which can help to ensure delivery. This is particularly the case for more complex developments involving a range of partners and where development is likely to be phased over a period of time.

3.8 In that context, we welcome the Scottish Government's decision to commission work to explore the potential roles that an independent broker could play to ensure the effective partnership delivery of developments, including facilitating cross local authority working, easing blockages, and ensuring the appropriate phasing of funding. A number of members of the Task Force are kept directly up to date with this work through membership of the Development and Infrastructure Partners Group and look forward to further discussions on this idea.

3.9 We also welcome the efforts of key agencies (Architecture + Design Scotland, Historic Scotland, SEPA, SNH, Scottish Water and Transport Scotland) to co-ordinating their programmes of work to assist in the delivery of planning reform, for example on the availability of information and advice and liaison with stakeholders such as Homes for Scotland.

Priority 2: Implementing The Reformed Planning System

Recommendations 2.1, 2.2 and 2.3

• Local Authority political and executive leadership to ensure that efforts to modernise the planning system result in:
• improvements to the efficiency and effectiveness of their planning processes, including up-to-date development plans and faster and smoother processing of planning applications; and
• the implementation of the new housing and planning delivery framework embodied in the new SPP 3, Housing Need and Demand guidance and local housing strategy guidance.
• The Scottish Government, Local Authorities, developers, public sector agencies, and other relevant parties to work together to ensure that the planning modernisation package - including the commitments announced in Delivering Planning Reform - results in genuine improvements to the planning process.
• Everyone involved in building new homes and communities to assist the wider public's understanding and acceptance of the need for development and its potential benefits.

Commentary

3.10 Given its importance for future levels of housing supply we have discussed planning reform and modernisation at a number of meetings, principally in March 2009, November 2009 and February 2010. The Chief Planner has joined us on two occasions, together with officials from the Directorate for the Built Environment.

3.11 Those meetings have provided a very useful opportunity for members to highlight and discuss issues emerging in the planning system. In addition, our discussions have highlighted the significant progress that has been made throughout the public and private sectors, both in relation to the implementation of the new housing and planning delivery framework and in taking forward Delivering Planning Reform. While this is an ongoing process, which will take time to bed in and require a continued focus on improvement, progress has been made in a number of areas:

3.12 In terms of the overall planning system, we can point to progress in a number of areas, including:

• The new system for development planning commenced in February 2009, and the first round of Main Issues Reports are now coming forward. They are the precursors to the new style Local Development Plans which all councils must prepare every 5 years, and the Strategic Development Plans for the four biggest city regions (Aberdeen, Dundee, Edinburgh and Glasgow) which must also be prepared every 5 years.
• The e-planning system was launched in April 2009, backed by a £11.2 million investment that aims to improve planning service delivery and deliver efficiencies.
• The second National Planning Framework (NPF) was published in June 2009, setting out the vision for Scotland's strategic development until 2030 and establishing the need for a number of developments of national importance.
• New development management procedures commenced in August 2009, introducing significant changes to the way that planning applications are dealt with. They included a new hierarchy of local, major and national developments to encourage a more proportionate approach to processing planning applications. The range of planning applications which have to be notified to Scottish Ministers was significantly reduced.
• In February 2010, the Scottish Government published an updated circular on planning agreements (Circular 1/2010 Planning Agreements), together with the consolidated Scottish Planning Policy (SPP). This brings together the existing SPP and National Planning Policy and Guidance series (including SPP 3 Planning for Homes), replacing them with a single, shorter document.

3.13 While much progress has clearly been made, there is an ongoing need for leadership throughout the system to ensure the necessary culture change is brought about, that reform measures translate quickly into results on the ground and that planning helps to achieve sustainable economic growth.

3.14 Whilst the process remains at an early stage, the early evidence we have considered suggests that the new housing and planning delivery framework is also bedding in. Much closer working is now taking place between housing and planning services at local level and the establishment of Housing Market Partnerships has strengthened relations across housing market areas. The first Housing Need and Demand Assessments (HNDAs) and Main Issues Reports from local authorities have factored in economic development ambitions and demonstrated a commitment to supporting new housing development through the allocation of a generous supply of land through the planning system.

3.15 We are also encouraged by the extent to which the private sector is engaging, and being engaged, in Housing Market Partnerships throughout Scotland. The Scottish Government will continue to promote early stakeholder engagement and Homes for Scotland will help Partnerships identify private sector representation where this has not yet happened. We expect work on most HNDAs to have been completed by the end of 2010 and for most local authorities to have published Local Housing Strategies and Proposed Development Plans by the end of 2012.

Priority 3: Capacity in the House Building Sector

Recommendations 3.1 and 3.2

• The house building sector, its professional bodies, central and local government and relevant agencies to work together in support of a vibrant and diverse industry, including through support for skills development, the development of graduate entry programmes, management development and the promotion of careers at all levels in construction.

Construction Skills to:

• Undertake a detailed analysis of the house building sector's skills and training requirements in order to help assess its ability to make a swift return to full capacity.

• Keep track of the individuals leaving the industry due to diminishing workloads or redundancy and maintain contacts to enable efforts to be made to attract them back into the sector once the market has recovered.
• Consider new models for apprenticeship programmes, including expanding college training programmes and alternative routes to the 4 year MA framework.

Commentary

3.16 Our report recognised the critical importance of workforce capacity in relation to future housing supply, with relevance not just to the number of people employed but also the nature of their skills and knowledge.

3.17 In response to the economic climate, and during the lifespan of this Task Force, the Scottish Government has introduced a number of schemes aimed at protecting and continuing apprenticeship training in Scotland and increasing skills training opportunities to thousands of individuals across Scotland. ConstructionSkills Scotland, the Sector Skills Council and Industry Training Board for the construction industry in Scotland, have also been involved in developing and supporting these helpful initiatives, including:

• The Adopt an Apprentice scheme, launched on 10 June 2009, to help deliver on the Scottish Government's guarantee to find apprentices alternative employment so that they can complete their Modern Apprenticeship. The scheme, a £1.7m initiative supported by the European Social Fund, gives employers a £2,000 helping hand to take on a redundant apprentice. Unlike other countries, this scheme is open to all ages of apprentice and all sectors. Where apprentices cannot get further employment, colleges are offering alternative related training opportunities.

• Safeguard an Apprentice, intended to support employers in the sectors worst affected by the economic downturn. This scheme, which ran to 31 March this year, provided a weekly wage subsidy of £75 to employers in the construction, manufacturing and engineering sectors at risk of making their apprentices redundant.

• Invest in an Apprentice - offering all businesses in Scotland £1000 to take on a new apprentice. As at 2 March 2010 the Construction and related sectors had received approval of applications from 90 companies for the £1000 Apprenticeship Grant, supporting over 400 apprentices.

• Creation of new dedicated apprenticeship frameworks for specialist trades which had not previously had one, such as the carpet fitting and floor covering industry.

• Establishment of a new Scottish Traditional Skills Forum in conjunction with the Scottish Qualifications Authority and Historic Scotland to look at the implications of the climate change agenda for the construction industry.

3.18 These schemes have benefited a range of sectors, including the construction sector. However, the scope for employers to take on apprentices has of course been limited by the decline in activity in house-building, which has made it difficult to retain people and skills. In that context, we also note and welcome the work being undertaken by local authorities to provide opportunities for apprentices on new housing schemes. That includes, but is not limited to:

• Glasgow City Council's Commonwealth Games Initiative, which offered attractive subsidies to encourage companies to take on apprentices.
• The establishment of a scheme by West Lothian Council offering opportunities to 3rd and 4th year apprentices to work on a housing build contract with Bett Partnerships, building 248 new council houses on 4 sites in West Lothian.
• North Lanarkshire Council's insertion of clauses into their contracts with developers for new build aimed at ensuring that the council's aim of promoting economic benefit from investment in local areas is met. This provides training to a number of people during the construction period of the contract, helping to raise awareness of routines and practices within the workplace, develop work-based skills and establish links with employment opportunities. Training is delivered under the auspices of North Lanarkshire Council's Regeneration Service Employability Initiatives and will include (but not exclusively) an agreed number of trainees as part of a work experience programme. The first phase of the new build programme with Lovell Construction started on site in June 2009, with two training places provided to local people though that contract.
• Edinburgh City Council's work in partnership with Dunedin Canmore Housing Association to provide an apprenticeship training programme offering 5 apprentices hands on experience of working in the housing construction industry. It is anticipated that this will be a long term programme that will continue to encourage and support new talent into the housing industry.
• Development of a joint Renfrewshire Council and Kibble Construction programme that will provide 20 individuals with waged training opportunities over the next 12 month within the Kibble Construction programme which will refurbish and return 5 flats to the market. Participants will gain experience, skills and qualifications across a range of construction sectors in preparation for accessing further training and/or apprenticeships.

3.19 Elsewhere, we secured a commitment from Graeme Ogilvy, ConstructionSkills Director for Scotland to update their Labour Market Intelligence Report (LMI) to identify the impact of the economic downturn on the skills and training requirements of the construction industry. The 2010-14 LMI report, published on 27 January 2010, provides forecasts for growth in the various parts of the construction sector, including private and public house-building, together with projections for future employment requirements in a range of relevant trades. [5]

3.20 Looking ahead, it will be essential for all the relevant organisations, both public and private, to focus on working together closely and maximising the impact of the limited resources available.

Priority 4: Public Sector Land

Recommendation 4.1

• Scottish Government and Local Authorities to give further consideration to how the sale of surplus public sector land can comply with Best Value requirements in support of wider policy aims on provision of housing and sustainable economic growth, in order to avoid conflict between Local Authority and other public agencies' land sale policies.

Commentary

3.21 We understand that the Scottish Government has considered the current local authority land disposal regime and has made recommendations for revision of the current system. Subject to Parliamentary approval they will come into force on 1 June 2010.

3.22 We recognise that Best Value should be based on local circumstances and that it can be based, for example, on a partnership approach focused on meeting housing need. A local authority with a surplus piece of land could, for example, sell it on to an RSL at nil value to develop affordable housing, generating best value through the financial contribution that it makes to meeting local housing need. We also recognise that Best Value must be responsive to market situations and that local authorities have to be sure that they are selling off their assets at the right time and gaining the best value based on their business plans and service delivery commitments.

3.23 Since our report, evidence presented to us by Scottish Government officials has highlighted that significant volumes of surplus public land are not available in any one year, at least in the pressured market areas where it could have most impact. However, some strategic public sector sites could be locally important in delivering Local Housing Strategies. In order to ensure that all possible opportunities are explored, Scottish Government officials have asked house-builders to inform them of any surplus land that is not being offered for development.

3.24 Where surplus public land is available, we encourage the development of innovative new approaches to support its use. Accordingly, we welcome the Scottish Government's work on the idea of deferred receipts and the two events held to promote a range of related ideas. We also note that the new wave of council house building programme, in encouraging councils to bring forward a range of resources to support new housing, is unlocking public land which might not otherwise have been made available.

Recommendation 4.2

• All public sector agencies to investigate mechanisms to share information on the release of surplus public sector land, with the Scottish Government and Local Authorities exploring ways to begin this process.

Commentary

3.25 Effective arrangements are in place for the Scottish Government, local authorities and other public sector bodies to advertise surplus land or property when it ceases to have an operational use. Any property is placed onto the Scottish Public Sector Property web-site ( www.scottishproperty.gov.uk) so that e.g. developers and RSLs have the chance to purchase and develop it. Typically there can be around 1,000 properties on the site at any one time.

3.26 We will continue to raise awareness of the property website amongst our members to ensure that all relevant organisations can consider whether it offers opportunities for them.

Other Recommendations

Recommendation

• The Scottish Government should take steps to improve the processing of Compulsory Purchase Orders (CPOs) to ensure that they are used as efficiently and effectively as possible. In doing so, the Scottish Government should consider with all relevant stakeholders any barriers and concerns about their usage.

Commentary

3.27 Since publication of our report, the Scottish Government has begun a programme of work, with stakeholders from across the public sector and development industry, to promote good practice in the use of CPOs. We welcome this work, which will result in clear and up to date guidance on the use of CPOs and easy to understand, plain English guidance to owners whose land may be purchased.

3.28 The Scottish Government is also facilitating training events and other opportunities to share and promote good practice, including a seminar to be held in Autumn 2010. All relevant members of the Task Force look forward to working with the Scottish Government to shape the form that these training events should take. [6]

Recommendation

• In view of the valuable work undertaken by housing enablers in rural Scotland and the benefits that the Highland Housing Alliance has delivered, Local Authorities should consider whether there is scope to provide enhanced support for enabling activity in their area or to establish a Housing Alliance or Landbanking Fund, with appropriate financial support.

Commentary

3.29 Both Moray and Aberdeenshire Local Authorities provide financial support to Rural Housing Enablers (RHEs) operating in their respective areas. The Moray service has recently been reviewed and extended until March 2011.

3.30 The Rural Housing Service (RHS), which runs these enabling initiatives, has recently received confirmation of Scottish Government funding for 2010/11 through the Housing Voluntary Grant Scheme. As part of funding arrangements, RHS will work in partnership with two local Housing Trusts (Highland Small Communities Housing Trust and Dumfries & Galloway Small Communities Housing Trust) to help coordinate the Scottish Government's support to rural communities across Scotland. This will assist in the delivery of more affordable housing within rural communities through the development of a network of RHEs across Scotland.

3.31 The new RHEs will be funded by local funding partnerships involving the local authority, charitable trusts and others. This funding model engenders support and joint working with local partners, improving the effectiveness of RHE work.

[5] Available at: http://www.cskills.org/supportbusiness/businessinformation/csn/csnoutputs/outputsscotland.aspx

[6] Further details are available at the Scottish Government's website at www.scotland.gov.uk/cpo

4. CONCLUSION

4.1 As this report shows, significant progress has been made over the past year in relation to the key recommendations set out in our February 2009 report.

4.2 The new housing and planning delivery framework is firmly in place and working well, the significant modernisation and reform of Scotland's planning system is underway, clear progress has been made on new approaches to the planning, funding and delivery of infrastructure and we can point to a number of initiatives aimed at supporting the future skills needs of the house-building industry.

4.3 However, while there are many positive developments to reflect on, we are clear that more needs to be done, whether to ensure that emerging changes are fully embedded or to turn consideration of innovative ideas into practical action on the ground. We are in no doubt that there is an ongoing need for focus, effort and leadership from all of the organisations represented in the Task Force. We are committed to playing our part.

4.4 We recognise too that the dramatically changed economic context, together requires the development of new and innovative approaches to supply. Against that context, we welcome the Scottish Government's intention to engage extensively with stakeholders on the future direction of housing policy over the summer and the radical measures which will be needed both to increase supply and meet the range of other pressing housing challenges we face over the medium to long term. We look forward to contributing to and shaping the debate over the course of 2010.

Housing Supply Task Force

May 2010