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HOUSING INVESTMENT PLAN 2017/18 - 2021/22 (Annex– Part 1)

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HOUSING INVESTMENT PLAN 2017/18 - 2021/22 (Annex– Part 1) GLASGOW’S STRATEGIC HOUSING INVESTMENT PLAN 2017/18 - 2021/22 (Annex– Part 1) 1 Glasgow’s Strategic Housing Investment Plan 2017/18 to 2021/22 December 2016 2 2 Contents Introduction Context Investment Priorities: SHIP 2017/18 - 2021/22 Resources Delivery Contact Details Appendix 1: SHIP Glasgow’s Affordable Housing Supply Programme (AHSP) Tables Appendix 2: Development Constraints Identified by RSLs 3 3 Introduction Purpose of the SHIP The purpose of the Strategic Housing Investment Plan (SHIP) is to set out the priorities for investment in housing in Glasgow over the next 5 year period 2017/18 to 2021/22, and outline how the Council and its partners will deliver these priorities within very challenging financial and economic circumstances. The focus of the SHIP is on Glasgow’s Affordable Housing Supply Programme (AHSP) which delivers affordable housing, either to rent or buy, in the city. Also included are housing investment streams relating to the existing housing stock, and revenue investment, as these support or are actively partnered with the AHSP to maximise value for the city’s residents and communities. The Scottish Government issued new SHIP Guidance to local authorities in July 2016 which sets the requirements for plans covering the period 2017/18-2021/22. For the whole of Scotland, the 5- year target is to provide 50,000 affordable homes, of which 35,000 will be for social rent. The guidance states that “SHIPs will be the key documents for identifying strategic housing projects to assist the achievement of the 50,000 target”. Consultation on the SHIP The draft SHIP went out to consultation on 24 October 2016 for 4 weeks, in parallel with a consultation on the new draft Glasgow Housing Strategy. This consultative draft SHIP was divided into 3 main sections 1) Housing Investment Resources: what resources are available to us for housing investment 2) Priorities for Housing Investment: what should we be spending investment on 3) How will we deliver more homes? We identified 34 consultation questions which were allocated to different sections throughout the draft SHIP, and we asked for responses to any or all of these. The SHIP was sent to over 500 organisations or individuals including all Housing Associations in the city, private housing developers, voluntary sector organisations, other public sector bodies and partnerships, plus many other stakeholders, including all elected members. The purpose of consulting on the SHIP was to: 4 offer local and national organisations another opportunity to identify the housing needs and pressures in their areas and in their communities of interest ensure the Council has considered the range of views of partner organisations in relation to the priorities for housing investment in the city identify any opportunities not identified in the SHIP for maximising and effectively targeting housing investment in the city ensure the SHIP outlines the development constraints that delivery partners are facing so that the Council and its partners can work together to overcome, or at least, mitigate as many of these as possible Feedback on the SHIP We received 12 detailed responses specifically on the SHIP alongside the responses to the Glasgow’s Housing Strategy (GHS) which raised a range of investment issues. The common themes identified by consultees related to uncertainty in the economic and policy climate, development constraints, the need to de-risk development for the delivery of both private and affordable housing, as well as identifying a number of policy, legislative, investment, and practical actions that will enable delivery of more new homes in the city. These are detailed towards the end of the SHIP. The consultation responses have informed the development of the final SHIP and will influence the ongoing development of Glasgow’s Affordable Housing Supply Programme. 5 Context More Homes Scotland The SHIP 2017/18-2021/22 is being developed in the policy context of the Scottish Government’s programme of More Homes Scotland. Nationally, the Scottish Government has committed to increasing the supply of affordable housing by delivering 50,000 affordable homes over the next 5 years with 35,000 of these being social rented. Glasgow is determined to play its part in delivering more homes, tailored to the housing needs and demands identified in the city, and contributing to national More Homes Scotland targets. Glasgow’s Housing Strategy 2017-2022 Glasgow’s strategic housing priorities as outlined in the Glasgow’s Housing Strategy 2017-2022 are: Promote area regeneration and enable investment in new build housing Manage, maintain and improve the existing housing stock Raise management standards in the private rented sector Tackle fuel poverty, energy inefficiency and climate change Improve access to housing across all tenures Promote health and wellbeing The SHIP is the affordable housing investment delivery plan for Glasgow’s Housing Strategy (GHS). The housing investment priorities outlined in the SHIP were examined through Glasgow’s Housing Strategy’s Equality Impact Assessment. Detailed analysis on Glasgow’s housing system, neighbourhood profiles, and housing policy context are available on the Council's Housing Strategy webpages. 6 Strategic Importance of Housing Investment The strategic importance to the Glasgow economy of housing investment cannot be understated. During the housing crash, the affordable housing supply programme created stability in the sector, kept the housing industry afloat, people in employment and retaining a skilled workforce. Uncertainty in the wider economy makes housing investment even more vital. Housing activity supports economic growth for the city, and the city drives economic growth for the wider region and country. This is recognized in the Scottish Government's Economic Strategy (2015) linking the importance of affordable housing investment to growth of the economy. Various studies have found that housing investment creates ‘multiplier effects’ with the related support for the construction industry having a larger economic impact than other industries by directly creating jobs, not just for new supply housing but jobs and training opportunities which support repair and maintenance of existing housing. An example of the scale of this ‘multiplier effect’ is that for every £100 million invested in housing construction realises over double that again in economic output and sustains over 1000 jobs. The availability and quality of Glasgow’s housing and neighbourhoods will encourage employers to locate their businesses in the city and help the city to retain its skilled workforce, which in turn will support the city’s commercial, cultural and leisure industries. Glasgow is competing with other cities in the UK for private housing investment. Maximising the attractiveness of Glasgow for private house building will retain investment in Scotland bolstering the Scottish economy. The reality is that private housing developers and investors may view other parts of the UK as alternative investment locations rather than other parts of Scotland. The provision of good quality and affordable housing makes public expenditure savings in other areas; living in good quality, warm housing improves health and with appropriate support, is vital in reducing admission to hospital and care settings, delayed discharges, and other public sector services. A good supply of affordable housing helps to prevent the social and financial costs of homelessness and reduces the cost to social security. There has been considerable development work undertaken by the Scottish Government and RSLs around Social Return on Investment. Evaluations for housing-led regeneration projects have indicated considerable impacts on the health and wellbeing of tenants, residents, the wider community and local stakeholders. In practical terms this impacts on outcomes for increased training and skills development, reduced police presence, homelessness prevention, more people in employment and job ready and reduced health costs. Every project is different and will deliver different levels of social return, however, one study commissioned by a Scottish Housing 7 Association assessed that for every £1 investment in the housing-led regeneration initiation, £4.63 social value was created (Study commissioned by Cunninghame Housing Association/ conducted by Social Value Lab UK ‘Social Return on Investment for the Vineburgh Regeneration Initiative’). If the same scale of multiplier effect (i.e. 4 times) could be applied across the whole of Glasgow’s SHIP programme, then the real value of strategic housing investment to communities, other public services and the wider community can be better appreciated. 8 Investment Priorities: SHIP 2017/18-2021/22 This section outlines the priorities which will guide housing investment in the city for the next 5 years which are consistent with the vision and outcomes outlined in Glasgow’s Housing Strategy www.glasgow.gov.uk/housing Existing Commitments Given the long-term nature of housing developments and repair and improvement projects, there are existing projects which are at some stage of development or implementation to which priority and funding commitments have already been made. For example, Glasgow’s Affordable Housing Supply Programme has a number of projects that have already received tender approval which legally commits the Council to funding the project. Cross Cutting Investment Priorities / Principles of Housing Investment The way housing is developed and
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