quality cost advice and management

Affordable housing in Scotland – how successful have our government been?

23 Sep 2019 2:38 PM

July 31 2019 was a significant date for those of us working in housing and construction. It marked a celebration of 100 years of council housing in the United Kingdom – the Addison Act 1919 - and gave those of us in the sector the opportunity to examine how successful (or otherwise) the nation has been in providing affordable housing for families across every demographic.

 

The Addison Act – a watershed moment for affordable housing

Parliament passed the Addison Act after World War I and it set the pace for developing a nationwide system of public housing for the first time in history. The scheme was financed by government and delivered at a local authority level across the UK. The security of tenure gave generations of families gave safety – at long last – in the knowledge they had the right to stay in their homes for the rest of their lives.

The generous governmental subsidies of the Addison Act came to an end in 1921, but the principles remained and influenced the housing sector for the majority of the 20th century.

 

The Addison Act in Scotland

As with the rest of the UK, council housing in Scotland was incredibly diverse – ranging from large houses in leafy suburbs, to towering blocks of flats in concrete schemes. Often families moving in had the chance to leave behind poor living conditions. For many, this was the first time they enjoyed running water and inside toilets. Positive steps to abolish poor living conditions across the country continued, however, two key developments brought about massive and seemingly irreversible change to the sector.

In the early 1980s, the combination of the government’s ‘right to buy’ scheme and an increase in housing developments from construction firms greatly reduced the government’s responsibility to provide affordable housing to those who needed it most.

 

The Right to Buy in Scotland

The thirty years between 1980 and 2010, saw over half a million council homes sold*. As a result, quality social housing became scarce as larger homes, or houses in more desirable areas sold quickly. Many local authorities stopped building new homes all together. As a result, council house lists, and waiting times, grew longer and many local authorities shifted their remaining council house stocks on to housing associations, closing their Housing Revenue Accounts for good. To muddy the waters further, the issue of reductions to the Housing Association Grant (HAG) funding – which, combined with rising construction costs meant that housing associations struggled to procure developments.

Following pressure from housing charities such as Shelter, the Right to Buy scheme finally ended in 2016, with 150,000 people on housing waiting lists. [Source]

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The Scottish Government Affordable Housing Targets

In 2016 the Scottish Government started to address the great need for affordable housing and committed to building 50,000 by 2021.

The Accounts Commission and Auditor General have announced an audit of the provision of affordable housing in Scotland. The audit will assess the Scottish Government’s progress toward the target. The results are set for release in Spring 2020, however, the most up-to-date figures are encouraging.

Two reports published in the latter half of 2018 (Housing Statistics Annual Key Trends and Housing Statistics for Scotland Quarterly Update), indicate that the Scottish Government is on track to reach the target by 2021. Whilst these figures show that progress is being made, it has been slow up to this point. In the Aberdeen local authority area, the Scottish Government promised 2000 homes by 2022 with only 10% of the target met by 2017. [Source]

 

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BDG TG supporting Aberdeen City Council towards affordable housing target

Working as Project Manager alongside Fairhurst and Ogilvie Construction, BDG TG has supported the completion of a development of affordable housing in Dyce, Aberdeen. The development boasts 283 new homes ranging from one-bedroom to four-bedroom. The site includes green space and covered seating areas as well as two well-equipped children’s play parks. This is one of the largest social housing schemes in the city in recent times and goes towards delivering a substantial number of homes to meet the affordable housing targets of Aberdeen City Council.

 

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Scottish Government shortfall in meeting targets

Whilst the figures are encouraging across many local authority areas in Scotland, there is a worry that targets are not being met in more rural areas of the country.

According to Scottish Housing News, a £25m Rural Housing Fund – established to provide 500 homes in rural areas by 2021 – has resulted in just 80 approvals and 23 completions. Elsewhere – a £5m Islands Fund to provide 100 new homes has seen only 14 approved and just 4 completions.

Shirley Thomson of BDG TG provides useful insight from the industry perspective:

“Most success has been achieved in urban areas where large developments are possible. In more rural areas, these are not relevant, as waiting lists will not support them. Under the previous funding arrangements, additional funding was provided for what was called location factors, and although there is a small proportion of this retained, it is not sufficient to provide adequate funding for small schemes in remote areas, which might only be 3 or 4 units.  This isn’t just about waiting lists, but ensuring that developments fit with the character of the community where they are being built.”


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Affordable housing in Scotland beyond 2021

With over 23,000 families [Source] living in unsuitable, temporary accommodation such as B&Bs and even metal shipping containers across the UK it is more important than ever for the Government – UK and Scotland – to put everything behind hitting the affordable housing targets for 2021 and to work across all parties and agencies to continue to stride on with social housing beyond 2021.

 

BDG Thomson Gray is proactive in supporting and advising the residential construction industry in the development of social and affordable housing.

Have a look at some of the residential projects we've been involved in. If you'd like to chat about an affordable housing project, contact Shirley Thomson at BDG Thomson Gray today.

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