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

GLASGOW’S STRATEGIC HOUSING INVESTMENT PLAN 2017/18 - 2021/22 (Annex– Part 1)

Glasgow’s Strategic Housing Investment Plan 2017/18 to 2021/22

December 2016

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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

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:

 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.

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.

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.

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 housing investment priorities are delivered is of key importance to ensure there is a sustained legacy from this investment. Therefore, we have identified cross- cutting investment priorities or principles of housing investment which are outlined below.

 Quality in design of the final housing product: Making a positive contribution to the built form of the city and making Glasgow a city of housing design excellence. This is a priority whether the investment is for new build housing or the retention, conversion or repair of existing buildings. Quality design should enhance the sustainability of stock into the future, fit with the Council's Residential Design Guide and ensure that the quality of design externally as well as internally is of excellent quality.

 Community benefits: The importance of maximising benefit from housing investment particularly in relation to job and training opportunities for residents, helping to bolster the construction sector into the future as well as supporting Small and Medium Sized Enterprises (SMEs) via the supply chain. We would encourage all organisations to mainstream community benefits through the services they deliver and procure. This does not need to be limited to development contracts or repairs contracts but could include other services such as legal and financial services.

 Improving energy efficiency and tackling fuel poverty: Energy efficiency standards are in place for social housing, and all new developments are required to meet the Building 9

Regulations. It is important that all housing investment streams in all tenures maximise the ability for people to heat their homes, and live in affordable warmth, supporting people to live independently at home for longer as well as reducing carbon emissions and protecting the environment.

An example of this is that the Ecohomes energy efficiency standard is being phased out for Glasgow’s Affordable Housing Supply programme and in its place, there will be compliance with the revised Building Regulations 2016 Technical Standards Section 7, Silver Level, Aspects 1-8 which reflects current best practice in build quality and sustainable housing.

 Tackling Homelessness: Homelessness remains a significant issue and the Council and its partners need to bring their collective resources to tackle homelessness and support people to live independently or with support where required.

 Digital and technological innovation: Housing investment should support the expansion of digital infrastructure, increased connectivity and support digital skills. Access to high speed internet services is of vital importance to residents and business with lack of access to the internet being a modern form of social and economic exclusion. Innovations in this area can also help support some households (e.g. older people) to live in their own homes for longer and increase their wellbeing by reducing social isolation.

Area-Based Priorities

Regenerating areas to re-create thriving communities, and intervening to halt neighbourhood decline inform these area-based priorities for housing investment.

Transformational Regeneration Areas (TRAs)

Transforming Communities: Glasgow (TC:G) was established as strategic partnership between the Council, Glasgow Housing Association and the Scottish Government to oversee the delivery of a regeneration and development programme across Glasgow's eight identified Transformational Regeneration Areas (TRAs). The TRA Programme represents one of the most ambitious programmes of urban renewal in the UK.

 Gallowgate Red Road Maryhill  Laurieston Sighthill North Toryglen  Pollokshaws East Govan and Ibrox This partnership has since formed into a regeneration company and registered charity.

The key purpose of Transforming Communities: Glasgow (TC: G) is to create sustainable place transformation through mixed-use development and housing renewal, maximising the potential of public sector land assets, tackling infrastructure issues and the level and rate at which private sector investment is attracted to the programme and the TRAs.

The TRA programme aims to provide new sustainable mixed tenure communities through the provision of new housing, community facilities, green space and where appropriate, commercial units. Each TRA has its own local delivery group, with resident and community representation. December 2016 marks the 7th Anniversary of the establishment of the establishment of the TRA Partnership.

Govanhill

Govanhill is an area in the south of the city which has been experiencing a concentration of social and community issues for some time. These are giving rise to housing, health and environmental problems. The Govanhill area is predominantly constituted of pre-1919 tenements, many of which are in poor condition, a high concentration of private renting, overcrowding which has given rise to serious management and common repair issues and neighbourhood relation problems.

Glasgow City Council has directed substantial resources into Govanhill in recent years, supported by the Scottish Government and partner organisations such as Govanhill Housing Association, who have been key to delivering many of the strategic outcomes. There has been major investment in property condition, environmental improvements, health, social care and education provision. An excellent example of the joint partnership approach is the multi-disciplinary Govanhill Housing Support and Intervention Team (HIST) which has been funded by the Scottish Government and Glasgow City Council and works closely with the local community, identifying and resolving a full range of issues.

In parallel with the more reactive programmes in Govanhill, there is a move towards a pro-active strategy to stabilise the area over a 2 – 3 year period. This strategy involves pro-active housing management which protects previous capital investment in housing, as well as improving common areas which remain in poor condition and whose owners cannot, or will not, undertake necessary repairs and maintenance. Govanhill contains the first Enhanced Enforcement Area in Scotland. The pilot scheme cover four priority quadrangles of tenement blocks in the South Western sector of the neighbourhood. The Council now has greater powers to inspect properties and serve enforcement notices based upon incidence of overcrowding and anti-social behaviour.

Future Regeneration/ Development Areas

The City has a number of key regeneration priority areas and development. Many of these areas have infrastructure and remediation requirements for which solutions are being actively pursued. The City Deal is a £1Billion+ infrastructure investment plan which in the city will focus on the city centre, waterfront, canal corridor and Calton Barras. It will unlock development potential in these areas. For example, the Metropolitan Glasgow Strategic Drainage Partnership (MGSDP) is addressing such constraints across the city, and beyond, and the North Glasgow Integrated Water Management Strategy (NGIWMS) will deliver solutions to these issues for the Canal corridor and other areas in the north of the city.

As well as supporting the City Centre Strategy and the Strategic Development Framework (SDF) and Local Development Frameworks (LDF) in the Proposed City Development Plan , three main areas (outlined below) will bring opportunities for housing development, with partnerships being central to the development of longer-term housing solutions these areas.

These future regeneration areas are:

 North Glasgow – this area includes Sighthill and Maryhill TRAs, and also includes Port Dundas, Hamiltonhill, Cowlairs, and Ruchill Hospital. These six areas have an estimated capacity of 3,172 units, forecast to be developed in the period to 2032. This north is identified as a Strategic Development Framework area within the proposed City Development Plan, with housing and related regeneration being delivered through the Glasgow Canal Regeneration Partnership (between the Council, Scottish Canals and development partner) and the Canal Action Plan.

 Clyde Waterfront – including the River and Govan/Partick. Demand for housing is likely to rise as a result of the take up of existing housing development opportunities. There will be 12

restructuring of health provision in the area, specifically the Western and Yorkhill closure programme and the development of South Glasgow Hospital. There are further potential regeneration sites on both the north and south banks of the river, as well as the East Govan/Ibrox TRA.

 Inner East – the Commonwealth Games Village, and related investment, is an exemplar urban regeneration project which will inform current and future regeneration activities, including TRAs. This development is the catalyst for continued housing-led regeneration of the Inner East Strategic Development Framework area, including further phases at the Village, elsewhere in Dalmarnock and in other Clyde Gateway areas; current and future housing development in Glasgow’s sector of the Clyde Gateway area has the potential to deliver more than 4,000 homes in the period to 2024. This area also includes the Gallowgate TRA and Calton Barras.

There are a number of sizeable sites which are being prepared or marketed currently including sites in Easterhouse, Castlemilk and Drumchapel. In addition, the Council has commissioned a City Centre Residential Study to examine the potential for housing development in the city centre.

Type of housing

Our overarching strategic priority is to increase the supply of good quality housing in the city to house the growing population and drive the economy.

The Council is keen to work with a wide range of partners to facilitate a substantial increase in housing supply in the city.

The level of housing need for affordable rented housing (social rented and ‘below market rent’ which are definitions used by the SG Housing Need and Demand Assessment model) in the city is considerable with at least 1,400 units required each year.

TENURE

Social rented housing to meet housing need

Investment in the supply of social rented housing continues to be the priority of Glasgow’s Affordable Housing Supply programme (AHSP). This is where the majority of AHSP investment has been targeted in recent years with between 60-70% of funding being directed to increasing

social rented housing supply, which has helped to reinvigorate regeneration activity in the surrounding areas.

Intermediate Housing Options

Promoting a mix of tenures is an important factor in creating sustainable communities, increasing the range of affordable housing options in the city, as well as maximising the use of subsidy.

Mid-Market Rent (MMR) monitoring information suggests that it is meeting the housing needs of a range of household types including single households, couples and families. The Council is keen to explore other housing needs which MMR may be able to meet.

Glasgow's Mid-Market Rent Research (2012) provides information on the scope of the MMR market in the city’s neighbourhoods. As identified in the research, priority areas in the city for mid- market are:  pressured markets where the costs to purchase and to rent in the market are high relative to incomes, and the difference between costs for private renting and social renting are considerable  regeneration areas where the objective of Mid-Market Rent is to increase housing supply and create a range of housing options in the local area

Guidance on MMR is published by the Scottish Government and provides criteria for prospective MMR applicants. In general, applicants should be in employment, on modest incomes, with the household assessed as being able to afford the rent for the MMR.

Supporting Private Sector Housing Development

Owner Occupation The development of private sector owner occupied housing is important to the growth of Glasgow’s economy and is vital to housing growing population. The city’s approach to regeneration recognises the need for mixed tenure development and the role that new private housing can play in protecting previous public investment in social rented housing stock.

However, recent levels of private sector development in the city have been at a low level with average annual private sector completions being under 1,000, down from over 3,000 at the peak of the market.

It is recognised that there is limited capacity within the private housing sector and that house builders will develop in areas with greater returns. This may mean that Glasgow, and indeed Scotland, misses out on potential private housing investment as developers decide to invest in other cities in the rest of the UK. It is critical to local and national regeneration objectives that brownfield sites within the city are an economically viable development opportunity. It is also important that investment in housing stock is supported through the development of private sector housing in the city’s peripheral neighbourhoods. Sufficient funding for schemes like Help to Buy which help potential owners purchase newbuild property is also extremely important given the ongoing requirements of mortgage providers to access borrowing.

The Council welcomes the return of Partnership Support for Regeneration (PSR), to make private sector housing development on some key brownfield sites a more attractive option for developers.

The Council is keen to work with partners to make development in the city more attractive to house builders and developers through infrastructure works, transport links, and pump-priming development sites.

Investment in Private Rented Supply The Council is keen to discuss proposals for the development of well-managed new supply private rented housing with developer or investment organisations. 1 in 5 households in the city now live in a private rented property after two decades of considerable growth of the sector. The majority of the increase has been through the movement of owner occupied properties into the private rented sector at the same time as the development of new-build owner occupied housing has declined. The movement of housing units between tenures means that this has not led to a significant increase in the supply of housing in the city.

The private rented sector can play an important role in meeting housing demand by increasing housing supply and contributing to the range of housing options.

A range of organisations are looking at how to attract institutional investment into the private rented sector in Scotland.

SPECIALIST HOUSING PROVISION

Social Care Housing

There are significant social care housing needs in the city which need to be met. Providing care solutions where it is possible to provide that care in a more tailored home setting should ease pressure on health and social care provision. In the existing funding climate with the restriction of public sector budgets and with the introduction of welfare reforms, it is important that the Council and its partners look to develop new service models which recognise the housing requirements of a changing population with different needs and aspirations.

Since taking on the (Transfer of) Management of Development Funding (TMDF) in 2003 the City Council has dedicated a sizeable proportion of its resources towards the provision of specialist housing often on the basis of priorities agreed with Social Work Services. The commitment to the provision of specialist accommodation continues, however, due to the requirements for long term commitments regarding revenue funding, it is crucial that new models of housing provision are developed which will support people to live at home or in a homely environment.

The Integration Care Fund (ICF) has provided an opportunity for the Glasgow City Health and Social Care Partnership (GCHSCP) and local Housing Associations to work together to deliver innovative projects aimed towards prevention and shifting the balance of care for older people. Projects include Community Connectors, Housing Options for older people and Home from Hospital. The digital inclusion agenda is also being developed through the Technology Enabled Care (TEC) strand to the ICF with projects to support people with dementia and to assist the assessment of risk.

A significant level of resources is currently channelled into adaptations work, through the Affordable Housing Supply Programme budget, private sector housing grant and housing providers own resources. The current annual average expenditure totals over £6million.

The Social Care Housing Investment Priorities (SCHIP) has been a process where the Council has asked RSLs to express an interest in developing new or re-provision existing social care projects so that housing better meets the needs of tenants. In recent years, housing developments with high priority were to meet the needs of people in the following care groups: learning disability, physical disability and mental health, and most have been for the re-provisioning of existing services which are no longer fit for purpose. It is viewed that this process requires a review to 1) determine investment needs 2) determine how to better respond to these needs in the current financial climate by looking at design, technology or alternative sourcing of capital and/or revenue

funding.

Housing for Older People

It is recognised that given the flatted nature of housing right across the city, accessible housing is a need in almost every neighbourhood, particularly given the health inequalities and long term conditions experienced by residents. The peripheral estates and areas with concentrations of owner occupiers are projected to see particular growth in the older population where existing housing may not meet housing requirements in the future. The development of specifically designed housing to cater for households in all tenures will be important to ensure that a range of housing options are available for people to live independently for longer. In order to respond effectively to the future age profile of the city, new housing models, support services, and technological solutions are being piloted by a number of partner organisations to promote independent living and combat social isolation.

Houses and Flats

Over 80% of Glasgow’s Affordable Housing Supply Programme funds the development of flats. This is a product of the type of sites being developed which are mainly inner city sites, funding levels which make flatted developments more deliverable, and in the future, pressures from welfare reforms such as the lowering of the Benefits Cap. However, family housing and large family housing (4 or more bedrooms and 6 or more bedspaces) continues to be a housing need in the city, and therefore, the Council will endeavour to find ways of delivering more affordable family housing generally and specifically, an annual target for the delivery of larger family housing is below:

Citywide Large Family Housing Target (4 or more bedrooms and 6 or more bedspaces)  20 large family houses a year

Provision of Wheelchair Housing

In response to consultation feedback regarding the specific housing and locational requirements of wheelchair users, a specific wheelchair housing target is not included in this SHIP. However, the delivery of wheelchair housing through Glasgow’s AHSP will be monitored to ensure that wheelchair housing is being built to meet needs.

When designing new housing, delivery partners are urged to co-ordinate with potential tenants either directly or through services at an early stage to ensure that the specific design enhances the

independence of the tenant.

A City Plan policy is in operation requiring all housing developments of 20 units or over to deliver 10% of units as readily adaptable which should ensure that the housing stock across the city becomes more accessible.

Adaptations

Funding adaptations to allow people to remain in their own homes and to live independently will continue to be a strategic housing investment priority. In response to the SHIP consultation, RSLs have indicated the crucial role adaptations play in helping to live at home and have full lives. RSLs indicate that demand levels continue to be high for adaptations and this demand is increasing.

There are a range of funding streams for adaptations which average around £6million annually.

 Currently, owner occupiers and private renting tenants access private sector housing grant funding for adaptations (when assessed with sufficient priority by Council Occupational Therapist). The Council's Scheme of Assistance provides further information.

 AHSP- Stage 3 Affordable Housing Supply Programme (for RSLs excluding GHA) - The Affordable Housing Supply Programme includes an annual allocation of funding for stage 3 adaptations. Stage 3 adaptations are adaptation works carried out to existing dwellings in order to make them more suitable for residents where the adaptation work is structural. There have been 2,366 adaptations carried out over the last 3 years with £6.4million grant. During this SHIP period, £2.5million per year has been allocated for the provision of adaptations in recognition of the ageing population, the ill health and mobility issues experienced by many Glasgow residents, and the inaccessibility of much of the existing housing stock. This will be monitored and reviewed over the period of the SHIP to ensure needs are being met.

 Glasgow Housing Association fund adaptations to their own housing stock as an outcome of the stock transfer.

As part of the integration of Health and Social Care Services, responsibility for the Equipment and Adaptations budget funded by GCC’s Private Sector Grants transferred to the new Glasgow Health and Social Care Partnership (GHSCP). A Housing Contribution Statement, defining the role of housing within this new agenda, was approved by the GHSCP Integration joint Board in December 2016. A working group will be established early in 2017 to identify how to deliver equipment and

adaptations equitably across tenures in Glasgow in line with the Scottish Government’s Aids and Adaptations Working Group recommendations (2012).

Preserving older housing, particularly with common repairing responsibilities

We need to ensure that existing housing remains in the effective housing stock into the future so that it can continue to meet housing needs and that it meets resident aspirations.

Over 70% of Glasgow’s housing units are in flatted properties with common areas of joint owner repairing responsibility. In order to protect the existing housing supply in the city, support the vitality of established neighbourhoods and retain Glasgow’s iconic built heritage, it is important that the repair and improvement in the quality of both pre-1919 tenements and other housing with common repair issues is supported. The pro-active property management and factoring of buildings to undertake routine maintenance and repairs are fundamental to the future of this housing stock. This forms the key policy of Private Sector Housing Grant (PSHG) programmes where financial assistance is linked to the appointment of factoring services, introduction of maintenance plans and common building insurance for properties in common ownership. The aim is to encourage owners to take responsibility for the repair and maintenance of their property, and to safeguard investment.

In recent years, housing investment has supported the acquisition of property by RSLs to ensure that adequate property management arrangements are put in place to sustain existing housing supply, increase access to social renting and protect the built environment.

The Strategic Acquisition Programme is targeted at flatted dwellings:  without common repair or maintenance plans  without effective management in place  which are long term empty  with absentee landlords who are not paying their share of repair/ maintenance costs

Within this priority of sustaining existing supply, Govanhill has been a priority for intervention and investment. There are other areas in the city with concentrations of pre-1919 housing stock, and a number of smaller areas with localised or development-specific issues, where intervention and investment will ensure the sustainability of the housing stock into the future.

Resources

In order to deliver the SHIP and help achieve the strategic outcomes in Glasgow’s Housing Strategy, a range of resources and partners are needed. This section outlines who and what these resources are and include delivery partners, land and infrastructure, and financial funding streams and mechanisms.

The development of the SHIP should allow the identification of opportunities for partners to bring their resources together to maximise housing supply, improve housing quality and derive added value from separate investment streams.

Delivery Partners and Delivery Partnerships

The Planning and Co-ordination of Housing Investment Delivery

Glasgow City Council is the strategic housing authority in the city as established by the Housing (Scotland) Act 2001. The role of the Council is to develop the strategy for housing in the city, and facilitate the delivery of that strategy.

Glasgow City Council has been successful at establishing and maintaining strategic relationships with key organisations to deliver some of the most ambitious partnership housing and regeneration projects in the country, increasing housing supply and delivering on Scottish Government priorities. Undoubtedly this role has been enhanced by the Council directly managing Glasgow’s Affordable Housing Supply Programme (AHSP) budget since September 2003, co-ordinating a range of other funding streams including Private Sector Housing Grant and energy efficiency schemes, and working closely with partner organisations to ensure that housing needs are identified and solutions delivered. The Council has been able to support the viability of development in priority projects through bringing additional resources e.g. Council tax second homes revenue, as a key role for the Council is to ensure that resources are in place to deliver on SHIP priorities, and that any risks to delivery are effectively managed.

Registered Social Landlords (RSLs)

The RSL sector remains strong and is the key delivery partner for the majority of investment in the SHIP. The RSL sector in Glasgow is diverse with over 60 RSLs with housing stock in the city, and the sector continues to evolve and innovate. There has been considerable organisational change

with some RSLs moving into partnership-type arrangements and in Glasgow, there has been the establishment of the Wheatley Group.

The strength of the sector is this diversity, with each RSL bringing their own knowledge of their communities –geographical or communities of shared interest– their innovations, and their experiences from elsewhere.

 Locally based RSLs 60 local RSLs in Glasgow own 60% of the socially rented housing stock in the city, totalling around 65,000 properties. Many of these RSLs categorise themselves collectively to be Community Based or Community Controlled Housing Associations (CBHA/CCHAs) emphasising their roots in local communities. CCHAs in the city range from having a housing stock of a hundred housing units to many thousands of properties in their ownership. Each CCHA is different but each has a reach into the owner occupied and private rented market through factoring properties and/or through many of the community based activities which Associations facilitate and lead on, from supporting the social care agenda to providing community facilities and employment and training opportunities. CBHA/CCHAs have been undertaking physical and social regeneration for decades, with solid links to their communities and established delivery networks with local organisations and services.

 Regional/ National and Specialist RSLs Regional and national RSLs play an important role in providing housing options across the city, helping to deliver on strategic priorities through the AHSP and for providing the administration for some Scottish Government support schemes.

Wheatley Group has interests in 12 local authorities in Scotland and has its headquarters in Glasgow. Glasgow Housing Association, to which the City Council transferred its stock in 2003 and is the biggest RSL in Scotland with 40,000 housing units, is the largest part of the Group. Cube Housing Association and Loretto Housing Association are part of the Group and have considerable stock in the city. The Group also includes Yourplace property management with over 25,000 factored owners and Lowther Homes which provides private rented housing and mid- market rent housing.

The City has a number of RSLs which specialise in particular types of housing provision, who could be considered to be regional or national housing providers. Some of these providers work with specific client groups which include older people, people with disabilities, and veterans. These RSLs bring specialist knowledge about housing needs and requirements, and potential housing and support solutions.

Strategic Agreements with Delivery Partners

The Council and the Wheatley Group signed a strategic agreement in 2016. The purpose of the agreement is to protect Glasgow’s tenants and the stock transfer legacy into the future through setting out how GCC and Wheatley will work together to build on the outcomes achieved through transfer for the benefit of Glasgow and its citizens. Specifically, a key area for the strategic agreement is realising the full potential of the new finance that Wheatley has secured, through its asset base and revenue streams, to increase the supply of affordable housing in Glasgow. GCC as strategic housing authority, can impact the development opportunities available to Wheatley Group RSLs - GHA, Cube HA and Loretto HA. Therefore, the Strategic Agreement covers areas such as commitments to the delivery of new housing in the city by Wheatley and its constituent RSLs as well as the provision of housing for homeless households. The Agreement commits the Council to support new build development by Wheatley Group, making land available through nominated disposal, and to work together to raise additional funding for housing development in the city.

The Council has had very initial discussions around developing a tailored strategic agreement with other RSLs in the city.

Current RSL Housing Development/ Investment Activity

Around 40 RSLs have one or more development projects planned to be approved in the first 3 years of the SHIP. 8 locally based RSLs (CCHAs/ CBHAs) have a significant development programme of 4 or more development projects, with some of these RSLs having up to 12 projects. GHA has a large programme of over 30 developments. A further 4 national or regional RSLs have between 4 and 10 projects. These projects are outlined in Table 1 in the Appendix. Projects for years 4-5 of the SHIP period are detailed in Table 2 in the Appendix.

CCHAs/ CBHAs have indicated to the Council over the last 13 years of TMDF that they should have the first opportunity to develop sites within their areas of operation and in the main, the Council has prioritised the involvement of local RSLs in the delivery of Glasgow’s AHSP in recognition of the role of CCHAs/CBHAs as community anchors. In practice CCHAs/CBHAs do not deliver every AHSP development as there may not be local RSLs operating in the area or the local RSL may not wish to develop new housing, along with other practicalities such as site ownership.

In addition to new build, all RSLs are carrying out significant capital and revenue investment and planned maintenance programmes in their existing housing stock, and developing business plans to respond to the ever-changing financial and policy environment.

Private Housing Developers

The level of new build in the private housing market has not yet recovered in the city since the Credit Crunch in 2008 and the subsequent recession which can be seen from the low level of private sector house completions (averaging under 1000 houses per annum over recent years), even by pre ‘housing bubble’ standards.

It is recognised that Glasgow is in competition with other UK cities for private housing investment as many cities, particularly in the north of England, have similar experiences in terms of the need for housing-led regeneration activity and increasing housing supply. The Council is keen to see sustainable growth in the sector in the short to medium term and will support the sector to increase the supply of housing in the city.

Pro-active partnership working is a key element in delivering private development in the city. The City Council has a successful track record in working in partnership with private developers to build in the city, and are keen to develop these relationships further.

Property Factors

Property factors and managers play an important role in organising maintenance and repairs to Glasgow’s housing stock, where over 70% is in flatted developments with areas of common repairing responsibility. Property factors can be private companies or RSLs, many of who work closely with the Council on repair schemes. There remain many residential and commercial properties in the city which do not have a property factor, and/ or do not have a current maintenance plan in place for their building.

The Council was instrumental in supporting a new website aimed at homeowners facing difficulties in relation to common repair and property factoring. A key outcome of the Glasgow Factoring Commission was the establishment of better and easy to access information on common property issues. Under One Roof, an independent information and advice web based service was launched in 2016, and early signs are that the information is assisting both homeowners and property factors to address these issues.

Construction Sector

A skilled construction sector of sufficient size is required to deliver the housing investment programme. The Scottish construction industry suffered significant job losses in recent years with future prospects still being described as challenging by many commentators. There are concerns over capacity within the sector to carry out new build programmes across the country, particularly in light of the scaling up of the housing new build programme in Scotland through the Scottish Government’s ‘More Homes Scotland’ programme, as well as the upward impact this may have on tender prices.

The limited size of the construction sector makes community benefits clauses within construction and maintenance and repair contracts of extreme importance to future housing investment programming.

Scottish Government

The Scottish Government (SG) is a key enabling partner to the City Council. Whether through the AHSP, various energy efficiency programmes or other mechanisms, funding provided by the Government has supported the City Council to deliver high quality new and improved housing for households and communities with other benefits in the form of jobs, apprenticeships and training for local people.

Other Partners and Partnerships

In order to deliver major regeneration projects across the city, a variety of differently constituted partnerships have been established, including Clyde Gateway and the Canal Partnership.

Transforming Communities: Glasgow (comprising the City Council, Scottish Government and Glasgow Housing Association) is an excellent example of an innovative housing-led regeneration company with each partner organisation bringing their resources and expertise to drive regeneration and increase housing supply in the city.

The Health Sector and many voluntary sector organisations are working in partnership with the Council to develop new solutions to many health, social care and housing issues.

Given the challenging environment and the policy dynamic driving reform of public services, the Council is keen to develop more effective partnerships which will to increase housing investment in the city.

Financial

Summary Table of All Financial Housing Investment (£Million)

Funding Stream 2017/18 2018/19 2019/20 2020/21 2021/22 Total Glasgow’s Affordable 128.770 122.640 96.990 67.801 63.035 479.236 Housing Supply (minimum) (minimum) Programme (GCC + SG GHA Programme) Infrastructure Fund 13.19 5.6 2.8 2.2 0* 23.790 Energy Efficiency tbc – Programmes HEEPS ABS in 16/17 £3.833m unlocking a total = 7.856m SEEP Pathfinder in 16/17 = £0.62m GCC Private Sector tbc – 7.982m in Housing Grant 2016/17 plus additional 4.5m SG funding Note: * Housing units must be delivered within the period of the SHIP so no Housing Infrastructure Funding has been identified for the last year of the SHIP. However, Infrastructure Funding will be required for the first years of future SHIPs.

Capital Investment

Glasgow’s Affordable Housing Supply Programme (AHSP)

In the last 13 years since the transfer of the management of development funding to Glasgow City Council, the Council with its partners has delivered a programme of 13,500 new and improved houses with grant funding totalling £965million.

Glasgow’s Affordable Housing Supply Programme Performance Review 2015/16 outlines in detail what type of houses have been built, who built them, how much they cost to build, and examples of excellent housing developments delivered through the programme.

AHSP Allocated Resources and Resource Planning Assumptions

The table below outlines the Resource Planning Assumptions provided by the Scottish Government for Glasgow’s Affordable Housing Supply Programme. These assumptions are the minimum level of investment required to deliver commitments in the AHSP and do not necessarily reflect what the actual budget will be in future years.

Glasgow’s Affordable Housing Supply Programme Resource Planning Assumptions (RPA) £million 2016/17 (Actual) 2017/18 2018/19 2019/20 2020/21 2021/22 GCC- managed 26.912* 26.912* TMDF budget 67.280 53.824 40.368 26.912 SG – managed 7.370 GHA budget 18.425 14.740 11.055 7.370 7.370 Glasgow total 85.705 68.564 51.423 34.282 34.282 34.282 *NOTE: SG have indicated this RPA from 2019/20 should be used for 2020/21 and 2021/22

The Scottish Government has indicated that they will provide 5 year RPAs following the spending review. Realistic 5 year RPAs are required in order to successfully forward plan with partners, encourage more development to take place, and enable longer term procurement arrangements i.e. to create more certainty.

This SHIP is concerned with the delivery of housing on the ground and is therefore based on a more realistic level of resources coming to the city. The level of resource required to deliver the

housing programme detailed in the SHIP tables is summarized in the table below.

Actual Planned Housing Investment Levels to Deliver Glasgow’s AHSP 2017-22 (£Million Grant Investment)

2017/18 2018/19 20 19/20 2020/21 2021/22 Total 128.770 122.640 96.990 67.801 63.035 479.236 Note: Includes all Affordable Housing Supply Funding (including GHA)

Private Finance for RSL Development Since the credit crunch, RSLs have told us that they face a tightening of lending criteria by banks and building societies with a much more rigorous scrutiny of projects which may impact on existing borrowing agreements and the terms and rates of future borrowing.

Wheatley Group Bond The Wheatley Group has £300m bond finance for development. The majority of this private finance will be directed towards new housing development in Glasgow and will generate an increase in much needed construction jobs, training places and apprenticeships through Wheatley Group’s approach to community benefits in its contracts. Glasgow City Council appraises all AHSP projects in the city, whether funded through the Council or the Scottish Government, ensuring that the developments meet the strategic objectives of Glasgow’s Housing Strategy and SHIP, and that a consistent and high level of quality is achieved in terms of housing quality, design and technical standards.

Council Tax Funding An annual allocation is made from the Council Tax Second Homes Discount to support affordable housing development. This funding is ring fenced and in the past has been used to supplement grant levels particularly for problematic inner city brownfield sites. Currently, specific projects for allocating this resource over the period of the SHIP are under development.

Proposed Shape of the Future Glasgow Affordable Housing Supply Programme The appendix includes the detailed summary tables by year and by project of the AHSP for the next 5 years. The shape of the AHSP programme for the period of the SHIP is outlined below. This table includes all of Glasgow’s Affordable Housing Supply Programme (including the GHA programme which is directly funded by Scottish Government). These projects will require at least £479.236million grant funding over the next 5 years to deliver.

Proposed Shape of the Future Glasgow Affordable Housing Glasgow’s Affordable Housing Supply Programme 2017/18-2021/22

P artnership Support Mid-Market Rent for Regeneration Social Rent (MMR) Shared Equity (PSR) TOTAL 4124 1972 302 1285 7683 54% 25% 4% 17% 100% Note: Unit approvals outlined in table

The majority of the programme will be composed of social rent. In order to deliver mixed communities, Mid-Market Rent accounts for a quarter of the programme and it is envisaged that mixed tenure development on sites will continue. Enabling the development of private housing in the city means that Shared Equity and Partnership Support for Regeneration (PSR) are supported by the programme, totalling 17% of the housing unit approvals planned over the SHIP period. The majority of the programme – over 90% - is planned to be new build with the rest comprised mostly of the strategic acquisition programme.

As can be seen in the detailed tables (in Appendix) and as is always the case with strategic planning for housing development with long lead in times, there is more detailed information available for projects in the first 3 years of the SHIP as the Council and its delivery partners actively manage the projects for delivery in years 4 and 5.

Projects outlined in the AHSP tables meet the strategic priorities outlined in this SHIP and given a priority of High and Medium based on the criteria below. These priority categories assume that the Infrastructure Fund will be made available for the sites identified in the Appendix.

High: Projects which will contribute the greatest to meeting strategic priorities and in priority areas, and which are moving towards an advanced stage of project delivery.

Medium: Projects which will contribute to meeting strategic priorities with any project delivery issues being actively identified and addressed.

Low: No projects included in this SHIP have been assessed as low priority. All projects have been assessed as contributing to strategic housing priorities and have a low risk of not being delivered assuming that no unforeseen issues arise.

Private Sector Housing Supply Following the credit crunch from 2008 onwards, private sector housing completions reduced year on year to around 700 in 2014/15. In the most recent year, 2015/16, there has been a considerable recovery to around 1,200 completions, with 300 of these houses completed in the Athletes Village at Dalmarnock. Average new build house prices range from monthly averages of £145,000 to £180,000. Although the private housing market has not recovered following the credit crunch, there are still significant levels of private sector investment in housing in the city, supporting jobs and the wider construction industry.

Help to Buy (Scotland) Affordable New Build Information on Help to Buy (Scotland) Affordable New Build Scheme is available for Glasgow City up to December 2015. Between October 2013 and December 2015, there were 870 sales through this scheme in Glasgow (11.2% of Scottish total), which resulted in £28.7million investment through the scheme (9.6% of Scottish total). The average stake taken by Scottish Government in Glasgow was £33,000 and the average value of a property purchased through the scheme was £166,000.

Open Market Help to Buy The Scottish Government fund the Open Market Help to Buy Scheme in Scotland. Nationally, this budget is £80million for 2016/17 and we are awaiting data on the outcomes to date for Glasgow City for this programme.

Scottish Government Mid-Market Rent Investment The Scottish Government put out a call to housing organisations in spring 2016 for bids for investment in additional MMR housing to be submitted by end of July 2016. Housing organisations required the support of Glasgow City Council for their bids. The final outcome of the process is awaited, however, a number of housing organisations made bids which would deliver a significant number of mid-market properties on a range of sites throughout the city.

Local Affordable Rented Housing Trust (LAR) The Local Affordable Rented Housing Trust (LAR) is a Scottish charity set up to provide long term mid-market rent (MMR) housing and is funded by a £55million loan from the Scottish Government with the expectation of matching this with private investment.

The first LAR development is in the East End of Glasgow with 40 flats being available from early- mid 2017.

Investment Support for Infrastructure/ Ground Preparation

Glasgow City Region City Deal Glasgow City Council is working with neighbouring local authorities to deliver £2.2bn of additional economic activity and 29,000 new jobs over the next twenty years through the Glasgow City Region City Deal. These proposals are centred on the Infrastructure Fund, and have parallel streams of activity to support Skill and Employment, and Innovation and Business Growth. This will support the continued growth in the city region by enhancing transport infrastructure, unlocking new sites for housing and employment including connectivity between Sighthill Transformational Regeneration Area and the City Centre, and enhancing public transport over the next 10 to 15 years.

Housing Infrastructure Fund (HIF) As part of the Scottish Government’s (SG) More Homes Scotland approach, the Scottish Government is introducing a new five-year Housing Infrastructure Fund with up to £50m available nationally in 2016/17. The Housing Infrastructure Fund comprises two main elements:

 Infrastructure loans (to non-public sector organisations)

 Infrastructure grant available to local authorities and registered social landlords (RSLs) to support affordable housing delivery The SG states that the definition of what infrastructure can be supported is intentionally wide and could include on site and off site elements. Eligible works include physical infrastructure generally required to start a project, such as roads, sewers, SUDS ponds, decontamination, flood remediation and demolition work. It is understood that £40m of national 2016/17 budget is earmarked for infrastructure loans and £10m for grants. The SG guidance is clear that the fund will not support  The provision of community infrastructure required as a consequence of new housing development, for example, funding for schools.  Works or other items which local authorities/RSLs would normally fund from their own resources including for example, acquisitions of property and land made under Compulsory Purchase Order (CPOs) or for general land acquisitions.  Major road works such as upgrading/ realignment of trunk roads which are not directly linked to the provision and delivery of housing within the 5 year period. Local authorities were invited in the summer to identify priority housing sites that could be unlocked to bring forward housing within the next five years. Glasgow City Council put in a bid for potential projects. At the end of September, the SG advised the Council that they had completed their initial prioritisation of sites on which they will enter into further discussion. This totals 9 sites across the city with the potential to unlock the potential for at least 600 new houses. So far one project has 30

been issued with a grant offer of £1.3m. Local authorities have now been requested to identify projects through the current SHIP process as priority housing sites that could potentially be unlocked with support from the fund. Eligible criteria includes  Grant will be provided for the delivery of affordable housing sites where the scale and nature of infrastructure costs would prevent the types of works being supported through the Affordable Housing Supply Programme (AHSP)  Priority will be given to projects which, with support from the fund, can deliver affordable housing to meet identified need within the 5 year period  The site is part of a local authority agreed planning framework supported by place making principles, capable of achieving statutory consents and agreed obligations to allow a site start no later than 2019  The project is unable to progress without additional support  Applicants need to demonstrate that the project could progress quickly if funding for infrastructure was provided

Table 3 in the Appendix details the housing projects which could be accelerated to deliver housing more quickly if infrastructure funding is made available. Other sites included in the Infrastructure Funding table have been deemed not viable in the past due to the infrastructure costs associated with delivering housing on them. The importance of having clarity on whether Infrastructure Funding will be made available for these projects cannot be understated if the housing supply programme in the city is going to be delivered at an accelerated rate.

In summary, Table 3 Infrastructure Fund projects include 28 projects which could be accelerated or become viable if funding is made available. These sites would deliver 1330 affordable housing units, 535 market housing units, and 35 private rent within the timescale of this SHIP period, and would require £23.790million investment from the Infrastructure Fund. In addition, 795 other housing units could be ‘unlocked’ in future phases of housing development in the affordable and market sectors enabled by the Infrastructure Fund investment in the period of this SHIP. In terms of the management of Glasgow’s Affordable Housing Supply Programme, the direct management of the Infrastructure Fund by the Council would result in less complexity through application processes, and more resources to focus on accelerating housing delivery. As required by the Scottish Government, projects proposed for the Infrastructure Fund have been prioritised. Infrastructure Fund projects have been prioritised to reflect the deliverability for the timescale of the fund. All projects meet the criteria of the fund and meet strategic priorities outlined in this SHIP. Housing projects in Table 1 and Table 2 of the Appendix assume that all projects contained in Table 3: Infrastructure Fund will be funded, thereby unlocking these sites for development. 19 projects have been ranked as High, 6 as Medium, and 3 as Low. 31

High: Projects which will contribute the greatest to meeting strategic priorities within priority areas. Project delivery is moving towards an advanced stage once these clearly identified infrastructure constraints are addressed.

Medium: Projects which will contribute to meeting strategic priorities within priority areas. Further work is required to assess any identified infrastructure constraints to allow project delivery within the timescale of the fund.

Low: Projects which will contribute to meeting strategic priorities within priority areas. Sites have been identified as having infrastructure constraints and further work is required for assessment and to move the project forward to meet the delivery timescale of the fund i.e. housing units delivered by the end of the SHIP period.

Revenue Funding

Housing Benefit

At any point in time, there are 84,000-85,500 people claiming Housing Benefit (HB) in the city of Glasgow. This translates into around £340million in funding coming into the city each year.

HB is extremely important to RSLs in carrying out their housing management, area regeneration and housing development functions. RSLs on average receive 61% of their rental stream from HB. Around 60% of RSLs in Glasgow receive over 60% of their rental income from HB, with only 5 RSLs in the city receiving below 40% of their rental income from HB. Some supported housing providers receive between 80-90% of their rental stream from HB.

HB is paid directly to the landlord from the Council, as the Council administrates HB on behalf of DWP. Lenders have viewed this funding stream as extremely secure as it reduces the risk of tenant arrears. RSLs and housing development has benefitted from this view of lenders through the provision of loans on good terms to RSLs to develop new homes. Welfare Reform is creating uncertainty and making the rental stream of RSLs less secure. It will be important to monitor the ongoing impact of welfare reforms on the ability and appetite of RSLs to develop new housing supply.

Discretionary Housing Payment DHP can be provided to households if they are receiving housing benefit or housing costs within universal credit but are still having difficulty meeting rental payments.

Priority is given to applications:  Where separated parents have a formal arrangement for shared care of a child, or children, and an additional bedroom is a requirement of the agreement.  To help with ongoing rental costs for a disabled person in significantly adapted accommodation.  To help with short term rental costs while the claimant seeks employment or secures alternative accommodation.  To help with short-term rental costs where the claimant is at risk of losing their tenancy resulting from an unexpected financial crisis.

Discretionary Housing Payment allocated to Glasgow Removal of the Initial SG Final/ Total Spare Room addition for Anticipated funding/ Subsidy RSRS Non- DWP RSRS SG for RSRS anticipated (Bedroom Tax) RSRS TOTAL 2016/2017 £1,216,603 £808,939 £2,025,542 £5,061,826 £1,569,607 £8,656,975 2015/2016 £1,116,191 £535,563 £1,651,754 £5,122,162 £1,846,265 £8,620,180

The Scottish Government has a stated intention to fully mitigate the 14% and 25% reductions applied as a result of the Removal of the Spare Room Subsidy (Bedroom Tax). The DWP DHP Contribution is being allocated to Scottish Government who has responsibility for DHP from April 2017 as part of the devolution of an element of social security power to Scotland.

Social Care/ Homelessness/ Housing Support Funding

There are several funding streams which support people to remain in their homes. About £70m was spent in 2015/16 on housing support and long term purchased care for older people. The Integrated Care Fund, a fund to aid the transition to integrated health and social care involving housing related projects/input, had a budget of £13.3million in 2015/16. Homelessness Services, now part of the Glasgow City Health and Social Care Partnership, has a budget of around £76m for the wide range of services provided.

Maintenance and Repair of Existing Housing Supply

RSL Investment Programmes

RSLs invest millions of pounds in planned and reactive repair and improvement programmes which makes an enormous contribution to Glasgow’s economy and to the sustainability of the city’s housing supply for the future.

Property Owners Investment

Owner occupiers and private landlords invest in their homes, through repair, maintenance and improvements although the full extent of this investment is not captured anywhere. The Council is keen to support owners to invest in the fabric of their property to ensure the property remains in good condition into the future and has therefore, supported the development of the Under One Roof Website which has a specific section on paying for repairs,

Private Sector Housing Grant

The private sector housing investment programme provides support and grant assistance to owners to help with repair and improvement in the private sector. It is not part of the mainstream Affordable Housing Supply Programme budget but is included within the SHIP as additional funding which helps to tackle issues of disrepair and therefore, maintaining the existing housing supply in the private sector. The table below outlines investment through the Private Sector Housing Investment Grant Programme.

The Private Sector Housing Grant budget for 2016/17 is £7.982 million.

Expenditure Profile of Private Sector Housing Grant Programme Proposals

Voluntary Common Repair Works £3.450m

Disabled Adaptations £2.000m

Statutory Common Repairs £0.560m Govanhill £1.000m Maintenance Notices £0.150m

Decant Provision £0.012m Energy Efficiency/Small Scale Repairs £0.330m Housing Initiatives £0.250m Slum Clearance/ Sundry Costs £0.050m Care and repair £0.170m BTS/Lead pipe £0.010m Total £7.982m

The Scottish Government and Glasgow City Council have jointly funded the Govanhill Housing Intervention and Support Team (HIST) which is a multidisciplinary team to tackle the specific housing related issues in the area, and supports the Strategy for Govanhill.

Year Glasgow City Scottish TOTAL Council Government 2014/15* £ 300,000 £ 300,000 2015/16 £5,828,000 £2,000,000 £7,828,000 2016/17* £2,500,000 £4,500,000 £7,000,000

*GCC and the Scottish Government originally committed £9.3m for a 2 year acquisition and repair pilot. This has since been increased with the Scottish Government announcing in October 2016 an additional £2.5m to take their financial commitment to £4.5m for 2016/17. The Council committed significant additional resources to this programme in 2015/16. Govanhill was an area priority in the previous SHIP and it is anticipated that there will be an ongoing commitment to housing investment in Govanhill in the coming years.

Investment in Empty Homes

Empty Homes Loan Fund There has been considerable progress in tackling empty homes and bringing them back into the housing supply since 2012 when the Scottish Government introduced an Empty Homes Loan Fund. The purpose of the initiative was to support a range of projects to bring empty homes back into use as affordable housing.

The Glasgow Empty Homes Loan Fund Partnership Programme was successful in obtaining an initial £700,000. Two RSLs in Glasgow were successful in obtaining loan funding. Glasgow Housing Association obtained £460,000 which enabled them to bring 19 empty properties back into use. Lochfield Park Housing Association also obtained £240,000 which enabled them to bring 10 properties back into use within the Brucefield Park area.

Town Centre Empty Homes Fund The Scottish Government introduced the Town Centre Empty Homes Fund in June 2015. The aim of the fund was to convert disused commercial premises into residential properties whilst targeting empty homes that required extensive work to make them habitable. Four RSLs were successful in obtaining grant and loan funding under the scheme which will result in 37 additional homes across a range of different of housing types.

RSL Number of Grant Loan Units Funding Funding Southside HA 14 units £420,000 £280,000 GHA 2 units £37,000 £37,000 Glenoaks HA 2 units £30,000 £30,000 Shettleston HA 19 units £475,000 £475,000

Glasgow Shared Services Project The Glasgow Shared Services Project, a tri-part project in conjunction with Glasgow City Council, Glasgow Housing Association, and Shelter Scotland commenced in mid-2015. An advisory board was developed to oversee the project with a dedicated officer employed from August 2015. The Empty Homes Project has focused on the priority areas within the city, as designated by Glasgow City Council Housing Services.

The Empty Homes Officer offers a range of practical assistance dependent on the individual circumstances to enable the owner to bring the property back into use. The types of assistance range from signposting owners to forms of loan assistance, energy efficiency measures, as well as assisting owners to develop successful strategies to bring their property back into use.

The Empty Homes Officer also provides assistance on the responsibilities of owners if they decide to rent their empty property in the private sector. As part of the Strategic Acquisition Strategy, Glasgow City Council are working in partnership with locally based housing associations primarily within the designated priority areas, as well as other areas where maintenance or common repairs have been identified. It is envisaged that this strategy will lead to positive outcomes in relation to 36

factoring, planned maintenance, and wider regeneration of the area.

A matchmaker scheme was developed within Glasgow in November 2015. The aim of the scheme is to match owners of empty properties in the private sector with potential purchasers to assist in bringing empty properties back into use. The scheme has initially focused on empty properties within the priority areas.

Glasgow Shared Services Project: Summary of Key Achievements to Date  330 empty properties brought back into use across a range of tenures in the first 13 months of the project, more than double the highest ever total in Scotland.  Assistance provided to partner housing associations which has resulted in funding of nearly £2million for 37 additional social housing units across a range of house types.  Around £900,000 VAT savings delivered for partner housing associations in a range of projects across the city where these were not previously identified. Similar savings are anticipated in year 2.  Partnership established with GCC Council Tax Services and the identification of £90,000 in unpaid council tax revenue in year 1.

Glasgow’s Affordable Warmth Programme 2015/16

Home Energy Efficiency Programme for Scotland – Area Based Schemes (HEEPS-ABS) This programme is an area based approach to delivering insulation measures to owner occupiers. It is supported by funding from the Scottish Government and is delivered by local authorities.

Glasgow’s HEEPS-ABS Programme 2016/17 In the fourth year of the HEEPS-ABS programme the Scottish Government awarded Glasgow City Council £3.833m from the Home Energy Efficiency Programme for Scotland: Area Based Schemes (HEEPS:ABS). Glasgow continues to secure the largest award for any Scottish local authority.

The HEEPS funding will unlock a total funding package in excess of £7.8m for projects in the city. Most projects will involve solid or external wall insulation measures. Some projects are continuing phases (Haghill, Toryglen and Greenfield). Projects will be delivered working in partnership with Housing Associations in mixed tenure areas and in wholly owner occupied areas.

In addition the Scottish Government announced 2 further bids for HEEPS funding. The Council secured funding from both awards. GHA secured funds to deliver external wall insulation in blocks where they have minority ownership. In addition, 5 Housing Associations secured funding from the Capital Stimulus Acceleration Programme which allowed RSL’s bid for funding to meet the Energy Efficiency Standards in Social Housing (EESSH) requirements. Measures being installed include external wall insulation, heating replacements and new windows.

The figures below reflect all HEEPS awards in 2016/17. It is anticipated over almost 1,000 insulation measures will be carried out during 2016/17.

HEEPS-ABS 2016/17 Funding Source Amount HEEPS:ABS £4.673,265 ECO £495,780 Owner Contribution £436,670 Social Landlord Contribution £1.876,580 Other £374,320 Total £7,856,616

Scotland’s Energy Efficiency Programme (SEEP)

In June 2015, the Minister for Environment, Climate Change and Land Reform announced Scotland’s Energy Efficiency Programme (SEEP) would be the cornerstone of the National Infrastructure Priority. Over the next 15 to 20 years, SEEP will offer support to ensure that all buildings (domestic and non-domestic) in Scotland can achieve a good energy efficiency rating. There are four broad themes at the core of SEEP • Integration • Innovation & Incentives • Advice & Information • Standards & Regulation

SEEP Pathfinder Programme 2016/17

In 2016/17, the first year of the SEEP pathfinder programme, the Scottish Government awarded Glasgow City Council £620,400 from Scotland’s Energy Efficiency Programme. The funding will be part grant (£258,500) and part Low Carbon Infrastructure Transition Programme (LCITP) loan (£260,500). The HEEPS funding associated with this project is £247,000. In addition £114,900 resource funding will be provided to assist with the delivery of the programme. The funding for the non-domestic projects is provided from the Scottish Government’s Low Carbon Infrastructure Transitional Programme (LCITP). The funding can be offered as a grant or an interest free loan or a combination of both.

The SEEP scheme requires a coordinated approach to the delivery of energy efficiency measures in domestic and non-domestic properties as part of the Scottish Government’s national energy infrastructure.

The pathfinder projects being funded include:

 External wall insulation to a community facility  External wall insulation to flats and the shop units below  Connecting a new nursery school to the recently constructed energy centre which currently provides heat to the Commonwealth Games village and the local care home that will supply heat and power.  Providing an energy efficient heating system for an existing Nursery building and associated new building extension. A secondary element is the fabric upgrade of the existing nursery building. 39

The mixed nature (domestic and non-domestic) of the SEEP programme requires a Corporate Delivery Group to be established, led by the Affordable Warmth Team, to oversee and monitor the programme and forward plan future projects and programmes

Delivery

The SHIP is not just a delivery plan for housing investment in the city, but it provides a focus for a very practical dialogue about how to deliver more homes for our communities. The Scottish Government SHIP Guidance outlines that that SHIP should identify the resources required to deliver the SHIP priorities, and whilst continuing to deliver Glasgow’s Affordable Housing Supply Programme it is important that the Council and its partners actively assess, monitor and manage risks associated with development and ongoing service provision.

Housing Delivery Targets

Glasgow’s Housing Strategy outlines that over the period of the strategy (2017-2022), the targets for the delivery of housing for the city currently stands at 7,500 in the private sector, including the private rented sector, and 7,500 in the social rented and below market rent sector (e. g. mid-market rent). In terms of the social rented and below market rent sector, we are meeting our target of 1500 homes a year and as can been seen in this SHIP, we plan to exceed this target in the delivery of new supply housing. We want to ensure the efficient delivery of this SHIP programme and we want to ensure that we are prepared to accelerate the programme further.

Development Constraints and Risks to Delivery

Through the SHIP consultation, RSLs and Private Housing Developers identified a list of development issues which are slowing or halting housing development. These are listed in detail in the Appendix.

The top ranked development issues were:

1) The chop and change of subsidy levels has created uncertainty and has lost the trust of RSL Committees 2) Lack of long term funding commitments to RSL programmes 3) Building costs are outstripping inflation and rising tender prices

“Avoiding increases in tender costs is almost impossible in the current economic climate where shortages of labour and increases in material costs will be factored into every tender. This is part of a much bigger Scottish and UK picture and the ability to influence it in Glasgow is minimal.” Glasgow RSL response to the draft SHIP November 2016

Other significant development constraints raised during the consultation included: 4) Lack of GiPSE to assist in developing sites with abnormal costs 5) Land ownership being a problem where there are missing owners or title problems and the only route is a Compulsory Purchase Order (CPO)

RSLs and Developers also identified risks to delivery of the SHIP and these included: - Small number of contractors who deliver the majority of Glasgow’s Affordable Housing Supply Programme - Sustained and continued rise in building costs - Shortage of development staff in RSL sector - Shortage of building trades - Further announcements or additional policy changes to welfare reform policy environment which impact housing investment

Managing the Delivery of the SHIP

It is clear that the Housing Sector in Glasgow, along with Scottish Government and others organisations and agencies, need to enter into a very practical discussion about how to sustain an up-scaled programme in the city in this period of economic uncertainty. This discussion needs to include how we can create more certainty and confidence in the housing system, what we need to do to tackle development constraints and manage risks to delivery, and what we could do to maximise the community and economic benefits of investment of this scale.

Outlined below are some very specific actions which have been highlighted throughout the development of this SHIP which would support the delivery of the SHIP and its contribution to More Homes.

- The Scottish Government need to provide realistic local resource planning assumptions for 5 years to create certainty for strategic planning and to allow RSLs to forward plan.

- The Scottish Government need to provide a continued commitment to existing subsidy levels through the AHSP programme to regain the confidence of RSL Committees so that they will commit to development in the future.

- The Scottish Government need to give a longer term commitment of assistance for prospective house buyers to help access mortgages e.g. Help to Buy, to give the development industry confidence to build. 42

- The introduction of the Housing Infrastructure Fund is welcomed. However, the Scottish Government should work with local authorities to identify where the Fund can work in better alignment with the development of the SHIP and the practical delivery of the AHSP, particularly for Councils who have the direct management of the AHSP.

- All RSLs in the city with a development programme need to deliver the housing that they have committed to build timeously, unless there are valid reasons for developments slipping into future years.

- Housing delivery organizations (RSLs and private developers) in partnership with the Council need to actively develop: o detailed plans for future housing projects for year 4 and 5 of the SHIP o plans for delivery of housing beyond the timescale of this SHIP in order to take full advantage of Housing Infrastructure Funding which will be available in years 4 and 5 of this SHIP

- The Council needs ongoing joint work between RSLs in their property management role, Private Factors, and the Scottish Government to ensure the future of Glasgow’s existing housing stock. We would also urge that VAT on building work and materials for existing housing be set at zero. This would contribute greatly to the delivery of more quality sustainable housing.

- We need RSLs, private landlords as well as Council Services to work through the implications of the welfare reforms, particularly in relation to the Local Housing Allowance Cap and the Benefits Cap, the impact this has on need and demands for different sized properties across our neighbourhoods, and how this will influence Glasgow’s Affordable Housing Supply Programme.

The Council will commit to:  Monitor the delivery of the SHIP. o As part of the monitoring framework, the Council will undertake an analysis of what issues either delayed development starts or stopped developments advancing in the current financial year 2016/17, and will develop specific actions around these to mitigate against them being issues in future. o Work to ensure that strategic priorities are met and that sustained upscaling of the programme in terms of numbers in no way undermines the strategic investment priorities, particularly around quality and design. 43

o Highlight the contribution of the housing sector to the wider economy and work to maximize this contribution in any new and creative ways.

 Work with delivery partners to manage the risks to the effective delivery of the SHIP. o Managing the risks to delivery of the SHIP will also include recognizing the opportunities that this may provide e.g. the opportunities for increasing community benefits from a limited number of contractors.

 Further consider the development barriers identified in SHIP consultation responses, and find practical ways with delivery partners to upscale delivery of housing in the city. The aim of this is to progress some of the issues raised consistently by respondents to SHIP consultations.

 Develop a strategic agreement/s with Community Controlled and Community Based Housing Associations in the City which covers many areas, including development.

 Look at new models of housing delivery including re-examining the viability of Rent to Buy.

 Review of Social Care Housing Investment Priorities to 1) determine investment needs 2) determine how to better respond to these needs in the current financial climate by looking at design, technology or alternative sourcing of capital and/or revenue funding.

Contact Details

We are keen to discuss any potential projects or delivery mechanisms which may contribute to meeting our strategic priorities for housing investment in the city.

Please contact us:

Patrick Flynn Head of Housing & Regeneration Services Development & Regeneration Services Glasgow City Council 231 George Street Glasgow G1 1RX

Steve McGowan Group Manager – Strategy (Housing & Regeneration Services) [email protected] 0141 287 8648

Duncan Thomson Group Manager – Private Sector Housing (Housing & Regeneration Services) [email protected] 0141 287 8452

Appendix 1: SHIP Glasgow Affordable Housing Supply Programme Tables

See attached tables

Appendix 2: Development Constraints Identified by RSLs

Lenders/ Private Borrowing Availability of loan finance on ‘acceptable’ terms Loan finance terms are shorter and business plans have to factor in re-financing costs Some RSL loan covenants that preclude development because of their restrictive nature

Scottish Housing Regulator Perception of Scottish Housing Regulator and wariness of engagement level being raised Concern over keeping rents affordable with level of subsidy and requirement for private borrowing level

Subsidy/ Funding Issues Chop and change of subsidy levels has created uncertainty – loss trust of Committees Differential/ higher land and property acquisition costs not reflected in average HAG subsidy level (one size does not fit all) Lack of Development Allowances for RSLs Little use of PSR/ Issues accessing PSR Difficulty in getting large housing or specialist housing to ‘stack up’ under 3p calculation Interest incurred by RSLs during development stage which is not reimbursed Lack of incentive to develop mixed tenure development which includes New Supply Shared Equity

Ground Issues – brownfield, contamination Ground issues or contamination and these can delay development and add to costs while these issues are dealt with Lack of GiPSE to assist in developing sites with abnormal costs

Forward Planning Uncertainty in whether projects will be funded whilst RSL is incurring potentially abortive costs Lack of long term funding commitments to RSL programmes Risks associated with predicting final works costs at tender stage

Capacity Issues Lack of development expertise: RSL staff and/ or development consultants Lack of sufficient contractors – related to escalating costs Over-reliance of programme on a 2 or 3 contractors

Opportunity cost of RSL focus on development rather than on other areas Building costs are outstripping inflation and tender prices are rising

Other Issues Land ownership can be a problem where there are missing owners or title problems and the only route is a CPO Uncertainties over impact of welfare reforms Delays and related escalating costs in relation to: -Scottish Water -Planning -Building Control -Road Consents Uncertainty created by Brexit Lack of understanding/ awareness of benefits of RSLs and private developers working together