Glasgow’s Strategic Housing Investment Plan

2020/21 to 2024/25

Contents

Executive Summary

Introduction

Context

SHIP Overview

Investment Priorities

Partners and Resources

Delivery

Contact Details

Executive Summary

The Strategic Housing Investment Plan (SHIP) sets out the key priorities and resources available for investing in Glasgow’s housing over the next five years, 2020/21 to 2024/25, in order to achieve the vision, six strategic priorities and housing supply targets set out in the overarching Glasgow Housing Strategy. It aligns with Glasgow City Council’s overarching Strategic Plan.

This SHIP was prepared in accordance with Scottish Government Guidance and informed by the views of key partners and stakeholders who were engaged and consulted with during 2018/19. The Council requires a developing Registered Social Landlord (RSL) to submit a Strategic Development and Funding Plan (SDFP) annually and the latest SDFPs (July 2019) inform this SHIP 2020-25. In addition, this new SHIP has been discussed at various forums and meetings, including a dedicated Developer Forum held on 6th August 2019.

A core feature of the SHIP is Glasgow’s Affordable Housing Supply Programme (AHSP). Since September 2003, the Council has been responsible for the management of AHSP development funding in the city on behalf of Scottish Government. This SHIP sets out potential for more than £500million AHSP funding to be invested across 175 development projects to deliver in excess of 8,000 new affordable homes over the next five years 2020-25, which will include social rent and intermediate Mid-Market Rent as well as low cost home ownership options.

Glasgow’s Housing Strategy sets a Housing Supply Target to deliver 15,000 new homes over 2017-22, including 7,500 new affordable homes. Over 2,000 homes (27% of the target) have been delivered already and the SHIP projects significant increases in completions over the coming years.

The SHIP details how the AHSP and associated investment and resources will contribute towards achieving the Glasgow Housing Strategy priorities, identifying five broad, interlinked features:

 Increasing Through the SHIP and the accompanying ‘Glasgow Standard’ design supply of schedule, the Council has set specific priorities for new housing new homes development to include:

 10% required to be wheelchair readily adaptable housing.

 60 new family-sized homes (four or more bedrooms) per year The SHIP also sets out details of innovative approaches for increasing housing supply to meet identified needs and demand including intermediate Mid-Market Rent options and new forms of housing delivery such as Build to Rent and the Glasgow Self Build programme.

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 Improving Annually, around £8million is targeted towards repairs, maintenance and existing accessibility improvements via the Private Sector Housing Grant (PSHG). homes A key focus is pre-1919 tenement homes. Registered Social Landlords are estimated to invest over £117million annually on planned and reactive maintenance to meet the required housing standards and energy efficiency. Glasgow’s Affordable Warmth Programme targets hard-to-treat private homes in areas of multiple deprivation. In 2019/20, the £million programme is funding 11 projects focused on delivering improvements for 770 homes.

 Targeting The Transformational Regeneration Area (TRA) Programme is a long- area-based term commitment to invest £665million across eight priority areas and regeneration deliver over 140 hectares of land for new housing, including the demolition of 9,500 ineffective properties and their replacement with 5,000 new, high quality homes within sustainable, mixed-tenure communities.

 Infrastructure The City Deal is over £1 billion infrastructure investment planned for the and land Glasgow City Region, complemented by £130million investment in employment and innovation. £385million is identified for five major infrastructure programmes and projects in Glasgow which will help unlock housing developments and economic growth potential.

 Support for Glasgow City Council is responsible for administering a range financial housing supports for housing costs, and this includes around £87.7million of net costs benefit expenditure (above income from DWP) towards discounting council tax, Discretionary Housing Payments and Scottish Welfare Fund, which are vital in terms of preventing, reducing and alleviating homelessness.

Glasgow’s SHIP 2020-25 sets out a clear plan for increasing affordable housing supply year on year and this is essential to meet Glasgow’s longer term housing needs and growth requirements. The Scottish Government has opened a dialogue about future national housing priorities beyond 2021. Draft consultation on ‘Housing to 2040’ invited initial views and further formal consultation is expected over the next 12 months. More Homes Scotland has provided a foundation for increased delivery and it is vital that all key partners and stakeholders across Glasgow’s Housing Sector are engaged with Scottish Government to consider how we can secure the necessary resources and commitments that will provide certainty for planning and sustaining outputs over the next 2-3 years as well as consolidating our longer-term strategic approach for achieving inclusive and sustainable growth for the city. ii

Introduction Purpose of the SHIP The Strategic Housing Investment Plan (SHIP) sets out the key priorities and resources available for investing in Glasgow’s housing over the next five years, 2020/21 to 2024/25, in order to achieve the vision, ambitions and housing supply targets set out in the overarching Glasgow Housing Strategy.

Background A central component of the SHIP is Glasgow’s Affordable Housing Supply Programme (AHSP). Since September 2003, the Council has been responsible for the management of development funding for affordable housing in the City on behalf of Scottish Government. The Council’s Development and Regeneration Services liaise with Registered Social Landlords (RSLs) and private developers in the City to determine and deliver Glasgow’s AHSP, which is a core resource for delivering Glasgow’s Housing Strategy investment priorities and continues to make a vital contribution towards the city’s regeneration.

This SHIP also defines Glasgow’s contribution towards meeting the Scottish Government’s ‘More Homes Scotland’ (MHS) target to deliver 50,000 additional affordable homes over the lifetime of the current parliament (2016-2021). As MHS is entering its final year, an important feature of this SHIP is looking beyond 2021 to consider longer-term investment priorities for housing in Glasgow to 2040 and reflecting upon the resources and investment requirements for Glasgow to continue to meet current and future residents’ housing needs and demand.

The SHIP also set outs priorities for investment in existing housing stock, and the associated capital and revenue resources that are available. These often support or are aligned with AHSP in order to maximise value for the city’s residents and communities.

Preparation of the SHIP 2020-25 In June 2017, Scottish Government provided the Council with Resource Planning Assumptions (RPA) covering the three years 2018/19 to 2020/21. In April 2019, the Scottish Government notified the Council of revisions to RPA for 2019/20 and 2020/21, which included an uplift of around £14million on previous reported figures due to Glasgow’s ambition and capacity for delivery. The SHIP 2020-25 was prepared using these updated RPA and developed in accordance with Scottish Government’s ‘Guidance on preparing Strategic Housing Investment Plans (MHDGN 2019/04)’, published August 2019.

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Impact Assessments The SHIP is the investment delivery plan for Glasgow’s Housing Strategy (GHS) 2017-22. It is encompassed within the GHS Equality Impact Assessment as well as the Strategic Environmental Assessment (SEA) Screening and Determination which was completed in December 2016.

Consultation on the SHIP

The purpose of consulting on the SHIP is to:

 Develop and enhance our knowledge and understanding of local housing needs and demand pressures through engaging with housing providers, local and national organisations, and 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 new and additional opportunities for targeting housing investment in the city; and

 Ensure the SHIP outlines any significant development constraints facing delivery partners so that the Council can work together with them to overcome or mitigate these as far as possible.

The SHIP 2019-24 was approved by Glasgow City Council City Administration Committee in October 2018. Since then, there has been an extensive, ongoing programme of consultation and engagement to develop and refine our knowledge and understanding as well as identify future investment priorities.

Glasgow City Council manages the Affordable Housing Supply Programme (AHSP). This involves regular engagement with RSLs, including individual bi-annual one-to-one programme meetings held with every developing RSL in the first and third quarter of the financial year to monitor and review strategic delivery, programme management, as well as any issues with specific projects.

The Council requires a developing Registered Social Landlord (RSL) to submit a Strategic Development and Funding Plan (SDFP) annually. The latest SDFPs were submitted to the Council in Summer 2019 and inform this SHIP 2020-25.

To enable efficient and effective delivery of its ambitious AHSP, the Council hosts regular Development Forums which provide the opportunity for developing RSLs to meet with relevant Council statutory services, to identify, discuss and resolve any particular issues, and to share best practice associated with the delivery of the AHSP.

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On 6 August 2019, Glasgow hosted its latest ‘Developer Forum’ event, which was attended by over 20 delegates representing Registered Social Landlords and development partners. In addition, the Council engaged with key partners and stakeholders over summer 2019 and distributed a consultative draft SHIP 2020-25 to all 68 RSLs with an operating interest in Glasgow, as well as private developers and contractors, voluntary sector organisations and other public bodies with an interest in housing policy, development and delivery. This consultation set out questions seeking views on a range of key issues, as follows:

 Do you agree with the cross-cutting principles that underpin the SHIP approach?

 Do you agree with the investment priorities as set out in the SHIP?

 Do you agree with the focus on innovative and alternative models of delivery?

 Do you agree with the key enablers and barriers for development that are identified?

As well as Housing Associations, key feedback on the consultative draft was received from a range of other partners including private developers, surveyors and partners in Health and Social Care services. The main messages are summarised below and these have informed the SHIP 2020-25.

Cross-cutting principles - All Investment priorities - repondents respondents agreed with the agreed. Pre-1919 stock condition principles. Additional insights included research was welcomed. Land pressures on tender prices and the disposals and opportunities are importance of balancing quantity and important for all developers. quality in our outcomes framework. Suggestions to consider grant benchmarks for achieving the Glasgow Standard.

Innovative delivery models - there Key barriers and enablers - there were varying views. Alternative were varying views. Additional factors housing options in pressured areas noted for consideration included: use of can meet particualr needs, but council powers for land assembly; the continuing to build homes for social rate of land disposals and potential for rent is vital. Funding and long-term further acceleration; and joint working sustainability are key considerations. between public and private partners to unlock difficult sites.

Respondents also shared a number of general and specific comments regarding the draft SHIP 2020-25. The importance of fostering successful relationships between Glasgow City Council and partners was highlighted. Consideration of the impact of new build developments in terms of the

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Health and Social Care infrastructure and the potential need for additional services and resources was identified as a key area for joint working and shared strategic planning. Adopting a place- making approach was a recurring theme, with particular emphasis on the importance of creating successful, sustainable places with appropriate provision of and access to key amenities.

All these comments and feedback have informed the agreed SHIP 2020-25 and the Council will continue to engage regularly with housing stakeholders and development partners throughout the delivery of this SHIP.

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Context

Strategic framework for housing investment and delivery

National Context

Homes fit for the 21st Century (2011) In 2011, the Scottish Government set out its 10 year strategy for housing, ‘Homes fit for the 21st Century’, which focused on:  considering new, innovative and effective ways of investing in affordable housing;  making better use of existing housing stock;  supporting people in the housing market; and  reducing carbon emissions for housing.

Joint Housing Delivery Plan (JHDP) (2015) In 2015, The Scottish Government undertook a mid-term review of its 10 year Housing Strategy and brought together industry stakeholders to co-produce a joint plan focused on 34 priority actions to drive forward housing delivery and help achieve the national strategic vision that all people in Scotland live in high quality, sustainable homes that they can afford and that meet their needs.

More Homes Scotland (2016) The JHDP set out a central priority to enhance the pace and scale of housing delivery. In 2016, the Scottish Government committed to increasing the supply of affordable housing by delivering 50,000 affordable homes, including 35,000 social rented homes, over the lifetime of the parliament (2016-2021). Glasgow is determined to play a key role in delivering more homes, tailored to the housing needs and demands identified in the city, and contributing towards the national targets.

Ahead of the final year for the 10 year national Housing Strategy and the More Homes Scotland Affordable Housing Supply Programme, the Scottish Government has opened a dialogue about future national housing priorities beyond 2021. Draft consultation on ‘Housing to 2040’ invited initial views and further formal consultation is expected over the next 12 months. Priorities for housing investment in Glasgow for the next 5 years are outlined in this SHIP. It also outlines a longer-term view of housing need and demand and key considerations for future investment priorities and resources requirements.

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Local Context Glasgow’s Housing Strategy 2017-2022 ‘Sustainable Communities, Affordable Homes’, Glasgow's Housing Strategy 2017-2022 (GHS) establishes the key strategic and local context for the development and delivery of Glasgow’s SHIP 2020-25. The key themes and strategic priorities are outlined below:

Themes Increasing supply and improving quality Improving access to appropriate of housing available to Glasgow’s housing for Glasgow’s people people

Strategic 1. New build housing and area 5. Improve access to housing across Priority regeneration all tenures (SP) 2. Manage, maintain and improve 6. Promote health and wellbeing existing housing

3. Raise private rented sector standards 4. Tackle Fuel Poverty, energy inefficiency and climate change

As Scotland’s largest city, Glasgow is home to over 622,000 people and 300,000 households. It is at the heart of a metropolitan region of 1.8million people and supports a strong and growing economy with more than 48,000 businesses (28% of Scottish total) in the Glasgow city region.

Glasgow’s housing sector is diverse. There is strong demand and opportunities for growth as well as some of the most significant housing needs and challenges. With 68 Registered Social Landlord (RSL) organisations providing over 106,000 social rented homes, Glasgow has the largest affordable housing sector in Scotland. However, there remains significant need for increasing affordable housing supply. Over 28,000 applicants are registered and seeking homes with the Wheatley Group and Glasgow Housing Association and there are many more seeking homes with RSL partners across Glasgow.

Glasgow has the second largest private housing sector in Scotland, over 194,000 homes which include around 60,000 private rented homes (20% of city). Often referred to as a ‘city of flats’, a significant proportion of all private homes are older, pre-1919 tenements. This vital and iconic built heritage is an essential part of Glasgow’s housing system, providing a range of tenure options including opportunities for affordable home purchase. However, there are significant challenges in terms accessibility, quality and sustainability associated older housing stock which require substantial resources and investment to overcome.

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Housing Need and Demand – Housing Supply Targets The Clydeplan Housing Market Partnership is made up of eight local authorities including Glasgow city Council. The HMP was responsible for producing a regional Glasgow and Clyde Valley Housing Need and Demand Assessment (HNDA), published in 2015. A ‘Core Output’ of the HNDA was to calculate the net requirement for additional homes across the region and for individual local authorities, the ‘Housing Estimate’, to meet existing and projected future needs and demand. Glasgow’s Housing Strategy 2017-22 sets out Housing Supply Targets for affordable and private sector housing based on the ‘Housing Estimates’ and other ‘Core Outputs’ of the HNDA 2015.

Housing Supply Targets (HST) are a policy-based interpretation of the HNDA outputs for the number of homes to be delivered within a local authority area. They take account of a range of factors, as set out in Scottish Planning Policy and Scottish Government HNDA and Local Housing Strategy statutory guidance.

The HNDA indicated that Glasgow had approximately 48% of the total unmet housing need across the city-region and would require almost 33,000 homes (2012-2024) to meet both existing and newly-arising housing needs. Glasgow Housing Strategy (GHS) 2017-22 set out ambitious, five year Housing Supply Targets for new affordable and private sector housing, as shown below:

Housing Supply Targets 2017-22

Market including Private Rented Sector 7,500

Affordable including Social Rent and Below Market Rent 7,500

All Tenures 15,000

Following the financial crash in 2008, private sector housing development rates in Glasgow contracted by over 60% and an estimated 17,500 jobs (31% of all) were lost in the construction sector across the Glasgow City Region. Affordable housing investment provided a vital lifeline for the construction sector and is still an important economic support a decade later as private housebuilding completion rates in the city remain suppressed.

Housing development supports economic growth for the city, and the city drives economic growth for the wider region and country. Housing is a key pillar identified in both the Council’s Economic Strategy (2016-23), with its commitment to deliver 25,000 additional homes in Glasgow, as well as the wider Glasgow City Region Economic Strategy (2017-2035), with its ambitious target to deliver 110,000 additional homes over this period. Further detailed analysis on Glasgow’s housing system, neighbourhood profiles, and housing policy context which inform the housing needs being met through the SHIP are available on the Council's Housing Strategy webpages. 7

Glasgow’s City Development Plan

The Glasgow City Development Plan a vibrant (CDP) sets the development place with a framework, including a spatial strategy, growing economy polices and proposals for the future land use and infrastructure, including for new housing development. The CDP identifies four strategic outcomes, Glasgow City a thriving and a green place Development sustainable shown opposite. There is close Plan place to live alignment between the CDP, Glasgow’s Housing Strategy and the SHIP. The CDP commits to monitoring through the Housing Land Audit (HLA) to ensure a connected place to the city maintains a five-year supply of move around and do effective land for housing development. business in Further details and information are available at: www.glasgow.gov.uk/cdp

Local Strategic Agreements In 2016, Glasgow City Council established a three-year ‘Strategic Agreement’ with the Wheatley Group which sets a framework for joint working across a range of important housing matters for the city, the cornerstone of which is housing investment and delivery of new affordable homes. The agreement encompasses the investment programmes for Glasgow Housing Association (GHA) as well as Cube and Loretto Housing Associations. Since 2003, GHA projects were appraised by the Council and managed by Scottish Government under funding arrangements established following stock transfer. Cube and Loretto’s programmes were managed by the Council. From 2018/19, Glasgow Housing Association’s programme has been managed by the Council. Glasgow City Council is seeking to review the ‘Strategic Agreement’ and consider options for renewal and potential for establishing concurrent Strategic Agreement(s) with other Registered Social Landlord (RSL) partners seeking to invest in delivering new affordable housing across Glasgow.

Related strategy, policy and legislation

Alongside the housing investment and development planning framework, there are a number of important strategy, policy and legislation developments, which influence Glasgow’s Housing Strategy and Glasgow’s Strategic Housing Investment Plan (SHIP) 2020-25. Further details are set out below:

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Focus National Glasgow City and Region

Climate In December 2017, the Scottish Glasgow City Council has already Change, Government published its ‘Energy met its carbon reduction 2020 energy and Strategy’. This was followed in targets. The Strategic Plan, sustainability February 2018, with publication of the approved 2017, commits the updated third Climate Change Plan council to achieve carbon neutrality (2018-32), as required under the by 2037. In February 2019, Climate Change (Scotland) Act 2009, Glasgow City Council established a which sets out a path to achieve Climate Emergency Working sustainable growth through Group and in May 2019 formally decarbonisation. resolved to declare a climate and ecological emergency. In May 2018, the Scottish Government launched the Energy The Council is revising its city Efficient Scotland Routemap. It is a Energy and Carbon Masterplan long-term plan for decarbonizing and developing a new integrated, Scotland’s buildings by 2050, with key whole systems Local Heat and milestone targets on Energy Energy Efficiency Strategy Performance Certificates (EPC) to be (LHEES) in 2019/20. achieved (where technically feasible Registered Social Landlord (RSL) and cost effective): providers across Glasgow have  2032: Maximise the number of invested substantial resources social rent homes at EPC Band B towards meeting the EESSH 2020 (this is the proposed next milestone target. The proposed milestone for the Energy 2032 milestone for EPC Band B Efficiency Standard for Social will require significant further Housing post 2020 (EESSH2) investment.  2040: All homes EPC Band C Under EES, Glasgow City Council The Fuel Poverty (Targets, Definition secured £74,500 to undertake a and Strategy) (Scotland) Act 2019 pilot ‘Able to Pay’ project. introduced important changes Kelvindale has been identified as a including: potential area based on socio-  A new national target for the economic assessment and reduction of fuel poverty by 2040 buildings energy performance. The council, working in partnership with  Provide a new definition of fuel an energy advice service, will visit poverty incorporating around 300 home owners to consideration of income required identify issues and barriers to for an acceptable standard of investment. The project will also living once housing and fuel costs work with Resource Efficient are deducted Scotland to target small businesses with support and incentives for investment including access to an interest free loan with an associated 25% cashback on the cost of the works.

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Health and The Public Bodies (Joint Working) Glasgow’s Health and Social Care Social Care (Scotland) Act (2014), required that Partnership was established and Integration Integration Authorities for adult health assumed responsibility for all and social care services were delegated functions on the 1st April established to assume responsibility 2016. In 2019, it published a new for strategic planning and delivery of Strategic Commissioning Plan these delegated functions. (2019-2022) for adult health and social care services, which includes a Housing Contribution Statement that sets out the scope and extent of actions to be delivered by housing providers and related services.

Homelessness In September 2018, the Scottish In February 2019, Glasgow City and Rapid Government published its ‘Ending Health and Social Care Partnership Rehousing Homelessness Together’ High (HSCP) launched its five-year Level Action Plan. Local Authorities Rapid Rehousing Transition Plan were tasked with developing five-year (RRTP) 2019/20 to 2023/24. The Rapid Rehousing Transition Plans RRTP commits to a dynamic (RRTPs), setting out how they and transformational programme community planning partners intend to founded upon three core principles: transform the use of temporary  Genuine partnership and accommodation over five years learning approach; (2019-2024) with the aim of promoting  Flexible solution focussed and rapid rehousing listening to lived experience  Building on our assets and effective challenge for change

Welfare UC replaces six other legacy benefits: Between September and Reform and Housing Benefit, Income Support, December 2018, Universal Credit Universal Child Tax Credit, Working Tax Credit, (UC) full service was rolled out Credit (UC) Income Related Employment and across Glasgow for new claimants. Support Allowance and income Based The Council set up 19 multi-agency Job Seekers Allowance. In February UC Hubs across Glasgow to assist 2019, the Convention of Scottish with financial and digital inclusion. Local Authorities (COSLA) reported Aligned to this approach, the that local authorities across Scotland Council is working closely with were incurring substantial additional partners at the Department for administrative costs due to UC rollout. Work Pensions (DWP), as well as UC impacts on housing providers are across the Health and Social Care significant. The Scottish Federation of Partnership, to develop appropriate Housing Associations (SFHA) processes for “safeguarding” reported that as of 31st March 2019, vulnerable people unable to 63% of tenants in receipt of UC had comply with UC claimant rent arrears as oppose to 28% not in commitments. This is closely linked receipt of UC. to the Rapid Rehousing Transition Plan approach.

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Council tax on The Local Government Finance During 2018/19, approximately empty and (Unoccupied Properties etc.) £1.6million increased council tax second homes (Scotland) Act 2012 and subsequent was collected for long-term empty Council Tax (Variation for Unoccupied homes in Glasgow. Combined with Dwellings) (Scotland) Amendments previous years, there are Regulations 2016 give local cumulative resources of around authorities powers to charge £4.7million for investment in increased council tax on certain housing. homes that have been empty for 1 year or more. This is intended to help local authorities encourage owners to bring properties back into use, both to increase the supply of housing for those who need homes and to reduce neighbourhood blight caused by empty homes allowed to fall into disrepair.

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SHIP Overview

Glasgow’s SHIP 2020-25 sets out a five-plan for investment in delivering new affordable housing as well as a profile of ongoing investment priorities for existing homes, communities, land and infrastructure, and supporting Glasgow’s people to meet their housing needs. It is closely aligned to the Glasgow Housing Strategy (GHS) 2017-22 which sets out key themes and strategic priorities shown below:

Themes Increasing supply and improving quality of Improving access to appropriate housing available to Glasgow’s people housing for Glasgow’s people

Strategic 1. New build housing and area 5. Improve access to housing Priority regeneration across all tenures (SP) 2. Manage, maintain and improve 6. Promote health and wellbeing existing housing

3. Raise private rented sector standards 4. Tackle Fuel Poverty, energy inefficiency and climate change

The SHIP is both a medium-term delivery plan for increasing housing supply as well as a monitoring framework for engaging communities, partners and stakeholders to steer investment towards achieving the shared priorities set out in the GHS 2017-22.

Within the ‘Investment Priorities’ and ‘Partners and Resources’ sections, the SHIP 2020-25 aims to set out the full range and scope of all housing and related investment and resources that are committed towards delivering these shared priorities. There are multiple, interlinked sources of funding which align to achieve specific and cross-cutting outputs that contribute towards meeting the GHS Strategic Priorities (SP). Full details are provided within these sections.

This SHIP sets out potential for more than £500million Affordable Housing Supply Programme (AHSP) grant funding to be invested in delivering in excess of 8,000 new affordable homes over the next five years 2020-25. The table below provides an overview of the main investment and resources available in relation to increasing housing supply, development and place-making, and support for people and households. It indicates the scope of funding and resources and how they contribute towards delivering the six GHS Strategic Priorities (SP). The ‘key features and impacts’ highlights resources that are tailored towards achieving cross-cutting and integrated outcomes.

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Investment priorities and Annual Key features and impacts resources SP1 SP2 SP3 SP4 SP5 SP6 (£ million)1 1. Increasing supply of new The Glasgow Standard design schedule ensures that new      130.400 homes homes provided via the AHSP are:  highly energy efficient and sustainable - including low Affordable Housing Supply     111.000 and zero-carbon Passivhaus standards; Programme (AHSP)  contribute towards improved health and wellbeing and including Partnership Support for support independent living, including a priority for 10% Regeneration (PSR) (£7.2m) to be wheelchair accessible GHA Scottish Government budget     8.300 PSR provides a key mechanism for supporting balanced housing markets and sustainable communities by enabling

Help to Buy      8.100 developers to deliver low cost home ownership (LCHO) in priority neighbourhoods. LAR Housing Trust     3.000 Innovative delivery includes new Mid-Market Rent options Build to Rent      tbc provided by LAR Housing Trust and Places for People working in partnership with Scottish Government. Help to Glasgow Self Build     tbc Buy also provides an important LCHO support to around 330 Glasgow households per year. 2. Improving existing homes     135.700 Glasgow 68 RSL organisations invest significant resources to ensure homes meet energy efficiency and Scottish RSLs’ maintenance and investment Housing Quality Standards.

supply and attributes andsupply     117.000 programmes Private sector housing improvements are supported Glasgow’s Private Sector Housing      8.000 through Glasgow’s Scheme of Assistance, which includes: Grant, including:  Adaptations support for independent living which aligns  Adaptations (£2.2m)    closely with the HSCP Strategic Commissioning Plan

Housing Housing (SCP) 2019-22 priorities;  Common Repairs (£4.2m)     Common repairs, including for Glasgow’s pre-1919  Govanhill* (£1m)     tenement built heritage Affordable Warmth Programme  Govanhill Enhanced Enforcement Area    9.100 including: The affordable warmth programme targets areas with hard to treat homes and high risks of fuel poverty to improve  HEEPS:ABS Round Seven (£4.2m)    home insulation and energy efficiency. Council Tax empty and 2nd homes     1.600

1 Rounded figures (to nearest £100,000) are derived from multiple sources and are used to illustrate the scope and extent of housing resources and associated funding. They do not indicate an annual budget. 13

Investment priorities and Annual Key features and impacts resources SP1 SP2 SP3 SP4 SP5 SP6 (£ million)1 3. Targeting area-based The master-plan approach to TRAs ensures that new       5.000 regeneration affordable housing development is considered as part of a Govanhill       5.000 wider sustainable place-making approach, which includes health and wellbeing impacts. Transforming Communities: Glasgow See AHSP      Govanhill is a key example of integrated, partnership (TCG): (c.£27million part of AHSP) (above) working and a whole systems area-based approach which Housing-led regeneration priority See AHSP includes investment in new supply and existing homes as      areas: (included within AHSP) (above) well as a focus on promoting effective housing Strategic Acquisition Programme: See AHSP management and standards through a balance of      (included within AHSP) (above) incentives and enforcement works.

4. Infrastructure and Land     3.500 The City Deal is over £1 billion infrastructure investment planned for the Glasgow City Region, complemented by

- City Deal (£385million total)     not annualised £130million investment in employment and innovation. £385million is identified for five major infrastructure Housing Infrastructure Fund* programmes and projects in Glasgow.    *HIF bids submitted Glasgow City Council has a long-term commitment to regeneration, which is progressed via initiatives such as the Vacant and Derelict Land Fund (VDLF)    3.500 eight Transformational Regeneration Areas (TRAs), as well

as the Clyde Gateway Urban Renewal Company and the Glasgow Canal Regeneration Partnership. Glasgow’s VDLF Delivery Plan 2019/20 sets out the key projects and

Development and place making priorities that will be taken forward in the next 12 months.

5. Support for housing costs    409.000 Across Glasgow, approximately 80,000 households receive financial support for housing costs. Alongside welfare Housing Benefit, Universal Credit   322.300 payments, Glasgow City Council contributes around Council tax reduction (including single 70.400 £87.7million towards supporting households via Council   person discount) Tax discounts, as well as DHP and SWF. Glasgow’s Private Rented Sector (PRS) Housing and Discretionary Housing Payment (DHP) 9.500    Welfare Team, supports families significantly affected by UC and the Council is monitoring UC impacts. This project Scottish Welfare Fund (SWF) 6.800    and assessment will inform a new Financial Inclusion

People and households Strategy 2020-25. Total       683.600

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Investment Priorities

This section outlines the priorities that will guide housing investment in the city for the next 5 years, which are consistent with the vision and outcomes set out in Glasgow’s Housing Strategy 2017-22. It is ordered into five broad, interlinked sections as set out in the SHIP Overview and listed below:

6. Priorities and Resources Themes Increasing supply of new homes Housing supply Improving existing homes and attributes Targeting area-based regeneration Development and place- Infrastructure and Land making People and Support for housing costs households

The SHIP is a five year planning document which is maintained and updated annually. Given the longer-term nature of housing developments, as well as repair and improvement works, there are projects in progress which have existing priority and funding commitments.

Cross-cutting principles There are a number of cross-cutting principles that underpin our approach:

 Ensuring The AHSP and associated housing investment, such as the Private Sector Housing Grant and Affordable Warmth Programme, are designed to enable Best Value additional private investment funding to be leveraged to achieve best value for Money for money.

 Ensuring The ‘Glasgow Standard’ design schedule specifies requirements for all new design homes built with AHSP subsidy to include inclusive and sustainable features, quality including meeting a higher energy efficiency standard.

 Procuring Across all procurement approaches and frameworks, the Council seeks to wider secure community benefits that include employment and training community opportunities for local residents as well as supporting a robust and resilient benefits construction sector supply chain inclusive of Small and Medium Sized Enterprise (SME) businesses.

 Meeting 10% of all AHSP funded homes are required to be wheelchair adaptable. The diverse Council works closely with the Health and Social Care Partnership to identify needs particular Social Care Housing Investment Priorities. This includes ensuring that new housing supply contributes effectively towards enabling people to live independently, as well as addressing homelessness and supporting the transition towards rapid rehousing.

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 Increasing supply of new homes

An overarching strategic priority is to increase the supply of good quality housing, including affordable homes and central to this is the Affordable Housing Supply Programme managed by Glasgow City Council under the Transfer Management of Development Funding (TMDF) arrangements, which have been in place since 2003. The tables below set out the scope and extent of Glasgow’s AHSP, including options and attributes.

North West Tenure North East South All Glasgow % of Total and Govan

Social rent 1,549 1,696 1,645 4,890 59.9%

Intermediate Mid- 900 1200 609 2,709 33.2% Market Rent New Supply Shared 153 82 64 299 3.7% Equity Partnership Support 0 81 191 272 3.3% for Regeneration

Total 2,602 3,059 2,509 8170 100.0%

The majority of the programme is focused on delivering social rent. The other tenure options include intermediate Mid-Market Rent, New Supply Shared Equity and Partnership Support for Regeneration for promoting low cost home ownership options. These mechanisms support mixed tenure development and diversification which promotes affordable housing within sustainable communities.

Scottish Government also has affordable housing schemes designed to help people buy their first property and help existing homeowners move home. On average, around 330 households per year in Glasgow have been assisted to buy a home under Help to Buy (Scotland). Other schemes include the shared equity approaches for open market and new build homes under the Low-cost Initiative for First Time Buyers (LIFT). For further information: www.gov.scot/policies/homeowners/

North West Attributes North East South Total units % of Total and Govan

General Needs 2,206 2,681 2,199 7,086 86.7%

Wheelchair adaptable 188 278 214 680 8.3%

Supported 0 5 0 5 0.1%

Amenity 208 95 96 399 4.9%

Total 2,602 3,059 2,509 8,170 100.0%

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Glasgow’s Health and Social Care Partnership (HSCP) sets out a detailed assessment of particular health, care and support needs of Glasgow’s diverse population within its Strategic Commissioning Plan (SCP) 2019-22. A Housing Contribution Statement defines the key links between this plan and Glasgow’s Housing Strategy. Both inform the development and updates of the HSCP Social Care Housing Investment Priorities (SCHIP), which identify any particular requirements for additional housing with support. High priority SCHIP projects have revenue funding agreed and the document includes accommodation requirements specifying the built form with any geographical or site requirements. RSLs are asked to express an interest in developing new or re-provision existing social care projects so that housing better meets the needs of residents.

In addition to requirements for accommodation via the SCHIP, HSCP continue to require access to good quality individual housing lets for people returning to the community from a range of statutory and non-statutory care and support settings. Discussions are in process to progress the development of an elderly village housing model, which would assist in meeting both current and future needs of the city’s ageing population.

Focus on: Targets for Meeting Particular Housing Needs Glasgow’s Housing Strategy, aligns with the Health and Social Care Partnership’s Strategic Commissioning Plan and sets out as a shared priority supporting independent living for households with particular needs. Through the SHIP and the accompanying ‘Glasgow Standard’ design schedule, the Council has set specific priorities for new housing development to include:  10% of all new homes required to be wheelchair readily adaptable housing.  60 new family-sized homes with four or more bedrooms to be delivered each year

Innovative models for affordable housing Intermediate Mid-Market Rent (MMR) As part of the More Homes Scotland approach and to contribute to the national target for 50,000 new affordable homes by 2021, the Scottish Government has established a MMR scheme, backed by £47.5million Scottish Government loan funding and an initial equity investment of £10million from Castle Rock Edinvar Housing Association. The intention is that this will enable further private funding to be leveraged to achieve around £150million investment to deliver 1,000 MMR homes across Scotland. In June 2018, the Minister for Local Government and Housing announced that the Placemaking and Regeneration Group, Places for People, were successful in securing this loan funding. A key priority is to ensure Glasgow continues to benefit from MMR investment, as part of a mixed economy approach to balanced housing development that promotes sustainable growth and regeneration.

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LAR Housing Trust – Inner East Glasgow 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. It provides an innovative financing option for funding new affordable housing, which require less subsidy. Glasgow’s SHIP seeks to promote opportunities for such development, particularly as part of area-based approaches for regeneration.

Focus on: Partnership Support for Regeneration (PSR) Glasgow’s City Development Plan sets out a Spatial Vision and plan for urban renewal, regeneration and sustainability. This includes focus on promoting brownfield sites to support economically viable development. PSR is an innovative approach to ‘platform’ sites in targeted areas and unlock their development potential. These are sites that have a variety of development constraints which render them unviable to the market. PSR provides eligible developers with funding to bridge the gap, wholly or in part, between the cost of a development project and the sales value of the houses upon completion.

Build to Rent BTR is a relatively new form of housing delivery that offers purpose-built accommodation for rent within high-quality, professionally managed developments. The Scottish Government has set out Planning Delivery Advice on Build to Rent and established a Rental Income Guarantee Scheme (RIGS) to help support growth of the sector which is operated by Scottish Futures Trust. For more information see: https://rigs.rent/storage/uploads/buildtorentopportunity.pdf

Glasgow’s City Development Plan has set out a spatial strategy and priorities for meeting housing needs and demand and it is recognised that Build to Rent PRS can contribute towards sustainable growth. In particular, there is opportunity to meet increasing demand to live in Glasgow city centre and the Council is enabling this growth through the Glasgow City Regional City Deal which is investing over £110million in public realm improvements.

Glasgow Self Build Glasgow City Council’s innovative Self Build programme is a first for Scottish local authorities. It is a priority action within both the Council’s Strategic Plan and the Glasgow Housing Strategy which seeks to enable investment in new build and promote area regeneration. The Council has established a Register of Self Builders and committed to a pilot project within the Maryhill Transformational Regeneration Area (TRA) which will include a rolling release of serviced plots for self-build. The Glasgow Self Build Programme is seeking to address the three main issues and constraints to self-build which include land availability, planning permissions and access to finance.

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Land availability At Maryhill, vacant and derelict land has been remediated and services installed to plots to enable release for self-build.

Planning permission Working with Planning Services, Glasgow’s Self Build Programme has developed an innovative ‘Planning Passport’ which provides a ground- breaking design code and a plot passport route for Self-Builders, streamlining the planning process.

Finance Front-funding requirements, including a significant deposit coupled with limited options for mortgage lending, are key constraints for self-build projects. Glasgow Self-Build Programme is engaging with lenders and mortgage brokers to identify potential for developing new, bespoke products that would increase opportunity and access for households interested in self-build. Potential options include an equity backed loan scheme, similar to Help to Buy (Scotland).

 Investing in existing homes Preserving older housing and Glasgow’s iconic built heritage Over 70% of Glasgow’s homes are flats and tenements, often with multiple owners in a block. Maintenance and repair of common elements is a responsibility between these owners. 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. Pro-active property management and factoring of buildings to undertake routine maintenance and repairs are fundamental to the future of this housing stock. Therefore, financial assistance via Glasgow’s Private Sector Housing Grant (PSHG) programme 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 also to safeguard investment.

Over 2019/20, Glasgow City Council is carrying out a 12 month research project to undertake comprehensive stock condition surveys, including the use of drone and thermal imaging technology to assess external fabrics and heat efficiency, for a representative sample of 500 tenement properties across the city. This will inform and support the development of a comprehensive property condition dataset for Glasgow’s pre-1919 tenement buildings.

Supporting households to live independently Funding adaptations to allow people to remain in their own homes and to live independently continues to be a strategic housing investment priority. RSLs indicate that need and demand for adaptations remains high. The SHP allocates £3m annually to RSL adaptations (excluding stock

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transfer stock which is funded directly by relevant RSLs).

Improving efficiency and transition towards low and zero carbon homes The Scottish Government’s Home Energy Efficiency Programme for Scotland: Area Based Schemes (HEEPS:ABS) targets funding towards tackling fuel poverty and poor energy efficiency within private sector homes, particularly focused towards areas with hard to treat properties. It is intended to align with the UK Government’s Energy Company Obligation (ECO) regulations. Eligible households benefit from an ECO payment alongside the HEEPS:ABS grant, which together with their contribution is able to fund significant improvement works, such as external wall insulation.

Energy saving advice and assistance Alongside the national Home Energy Scotland service which provides free, independent and impartial advice and assistance, Glasgow City Council also commission local information services to provide targeted advice and support to households. This service also links closely with tackling poverty and community planning service to offer holistic advice and support on options for budgeting and saving on energy and fuel costs.

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 Targeting Area-Based Regeneration Glasgow’s Area Housing Investment Teams are responsible for investment planning across three distinct areas which broadly align to the city’s Housing Market Area framework. Glasgow City Development Plan sets out a Sustainable Spatial Strategy which outlines a clear vision of the planning policies and proposals for development and land use. As part of this approach, detailed Strategic Development Frameworks informed by further analysis of specific local challenges and opportunities are developed for six priority areas across the city. Aligned within the CDP and these frameworks, there are long-standing commitments to housing-led regeneration, which includes eight Transformational Regeneration Areas. The TRAs aim to regenerate areas and re-create thriving communities, by intervening to halt neighbourhood decline. The table below summarises the overlaps and links as part of the overall strategic development planning and housing investment framework.

Strategic Transformational Area Housing Other spatial and housing Development Regeneration Areas Investment priorities Frameworks (SDF) (TRAs) Team  City Centre  Laurieston South, Further phases of the  River Clyde  Gallowgate North East Commonwealth Games Development  Red Road Village and development of Corridor adjacent sites including:  Inner East Dalmarnock Riverside Collegeland Calton Barras, including the Meat Market

 Glasgow North  Maryhill North West & Port Dundas, Hamiltonhill,  Sighthill Govan, North Cowlairs and Ruchill Hosital. East  Govan / Partick  East Govan and Water Row Masterplan Ibrox  Greater North East Community Growth Areas: Easterhouse Easterhouse / Gartloch; Robroyston / Millerson

The CDP also sets out commitments to develop Local Development Frameworks to deliver planning change at a local level where it is recognised that an additional layer of planning intervention is required.

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Local Development Transformational Area Housing Other spatial and housing Frameworks Regeneration Areas Investment priorities (TRAs) Team  South Central  Toryglen South Govanhill  Pollokshaws  Drumchapel North West & Established as a ‘New Govan Neighbourhood Initiative’, this remains a priority area for developing housing options and physical regeneration

Transforming Communities: Glasgow (TC: G)

TC: G is a Special Purpose Vehicle (SPV) regeneration company formally established as a strategic partnership between the Council, Glasgow Housing Association and the Scottish Government that oversees 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 with a total estimated expenditure of £665million. It aims to deliver over 140 hectares of land for new housing, the demolition of 9,500 ineffective units and replacement with 5,000 new, high quality homes within sustainable, mixed-tenure communities.

Most of the TRAs are located in parts of the city that did not benefit significantly from previous investment and have particular challenges associated with lower housing demand, quality and choices, as well a public realm and economic regeneration needs. The key purpose of Transforming Communities: Glasgow (TC: G) is to create sustainable places through housing renewal and replacement and mixed-use development. It seeks to tackle constraints such as infrastructure issues and maximise the potential of public sector land assets as well as the level and rate at which private sector investment is attracted to the programme and the TRAs. More information on the TC:G and the TRA programme can be found here

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Local Development Frameworks and Priority housing areas Govanhill Govanhill has experienced significant changes over the past 10-15 years, shaped by movement of population and households as well as market trends and patterns of housing investment. These have contributed towards a concentration of particular challenges in terms of housing standards, health and environmental problems. In terms of its built residential environment, Govanhill area is predominantly constituted of pre-1919 tenements, a number of which are in poor condition. There is a high concentration of private renting and significant incidence of overcrowding. There are serious management and common repair issues, and associated neighbourhood problems.

Glasgow City Council has directed substantial resources into Govanhill in recent years, supported by the Scottish Government and partner organisations including Govanhill Housing Association, which includes establishing Scotland’s first Enhanced Enforcement Area. Targeted improvement and regeneration works have included major investment in property condition, environmental improvements, health, social care and education provision.

Drumchapel There are plans to develop new homes for social rent in Drumchapel during the period of the SHIP as well as supporting development of low cost home ownership (LCHO) options in the area. Linked to the housing investment, there are a range of land and infrastructure initiatives ongoing to support development, including a strategic Surface Water Management Plan which will have a direct positive impact on the development potential of vacant and derelict land in this area.

Focus on: Strategic Acquisition Programme The Strategic Acquisition Programme is targeted at flatted dwellings in specific areas of focus:  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

The SHIP allocates £5m annually to the acquisition strategy (in addition to the £2.5m allocated to the Govanhill Strategy) and this supports targeted open market purchase. Govanhill is a priority for intervention and investment and there are other areas in the city with concentrations of pre-1919 housing stock, as well as 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. Due to the scale and extent of these issues, the Council has identified developing a long-term strategy for pre-1919 stock as a key strategic priority.

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 Infrastructure and Land As part of an integrated, strategic planning and investment approach, Glasgow City Council has always worked closely with housing providers and the development sector to enable delivery of new homes. The council has expanded its programme of nominated land disposals in order to facilitate and increase in the pipeline for delivery of new homes via the Affordable Housing Supply Programme (AHSP). Aligned with the AHSP and as part of major area-based initiatives for growth and regeneration, Glasogw City Council’s City Property has also accelerated release of large residential sites.

Glasgow's Housing Strategy 2017-2022 (GHS) and City Development Plan align to enable the delivery of housing led regeneration in the city. Glasgow has a number of key priority areas for development and regeneration. Many of these areas have infrastructure and remediation requirements for which solutions are being developed.

The City Deal is over £1 billion infrastructure investment planned for the Glasgow City Region, complemented by £130million investment in employment and innovation. £385million is identified for five major infrastructure programmes and projects in Glasgow. These include the citywide Metropolitan Glasgow Strategic Drainage Partnership (MGSDP) as well as four broad area-based projects, as detailed below (see also the Strategic Development Frameworks):

City Deal Projects Investment Programme and projects overview (£million) Canal and North 83.6 The Sighthill Transformational Regeneration Area

Gateway (TRA) is a core component of this gateway project for unlocking the potential and opening up the north of the city. The Masterplan approach is anticipated to unlock £250million of investment, of which £86.3million comes from City Deal. It will deliver site remediation, servicing, new bridges, roads access and public realm improvements in Sighthill, Port Dundas, Cowlairs and Speirs Lock. Clyde Waterfront and 113.9 The CWWEIQ project covers an area that extends West End Innovation along the river corridor from the City Centre to Govan Quarter (CWWEIQ) and northwards to the west-end and is home to economic assets of national importance. Collegelands Calton 27.0 Linked to the Inner East SDF, this project incorporates

Barras site remediation and access improvements as part of the Calton Barras Action Plan, Collegelands and the Bellgrove Abattoir (known as the Meatmarket). It also enables enhancements to the rail infrastructure.

Avenues 115.0 The Enabling Infrastructure Integrated Public Realm (EIIPR) programme is more commonly known as the ‘Avenues’ programme. It will see streestscape improvements made to the public realm, supporting a key strategic objective of the City Centre Strategy and

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City Deal Projects Investment Programme and projects overview (£million) Action Plan to create an integrated network of continuous pedestrian and cycle priority routes.

Metropolitan Glasgow 45.8 Delivering a programme of drainage schemes targeting Strategy Drainage areas of the city where rainfall adversely impacts

Partnership communities. Total investment 385.3

Vacant and derelict land Over the past 15 years, Glasgow City Council has secured significant resources via the Scottish Government’s Vacant and Derelict Land Fund (VDLF), which align to the long-term national Regeneration Strategy ‘Achieving a Sustainable Future’ (2011) and have contributed towards major urban renewal projects within Glasgow designated as ‘national regeneration priorities’, including the Commonwealth Games Village and the Clyde Gateway. Glasgow City Council has a long-term commitment to regeneration, which is progressed via initiatives such as the eight Transformational Regeneration Areas (TRAs), as well as the Clyde Gateway Urban Renewal Company and the Glasgow Canal Regeneration Partnership. The award-winning ‘Stalled Spaces’ initiative is successful in bringing vacant sites back into temporary use and forms a key part of short and intermediate-term regeneration progress. Glasgow’s VDLF Delivery Plan 2019/20 sets out the key projects and priorities that will be taken forward in the next 12 months.

 Support for housing costs In Glasgow, it is estimated there are estimated to be around 80,000 people claiming financial support for housing costs each year, including Housing Benefit and Universal Credit (UC). Approximately 60% of all social rented tenants are estimated to be in receipt of some form of financial support. Therefore, secure and regular payment of financial benefits are essential to Glasgow Registered Social Landlord (RSL) housing providers to collect rents and continue to fund investment and maintenance in their new and existing homes.

During 2018/19, Glasgow’s Private Rented Sector (PRS) Housing and Welfare Team, set up through ‘Invest to Improve’ funding, supported 203 families significantly affected by UC and the benefit caps helping to mitigate impacts, offer housing options advice and prevent homelessness. Overall, the Council is monitoring UC impacts and mitigation approaches and this analysis and assessment will inform a new Financial Inclusion Strategy 2020-25.

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Partners and Resources

In order to deliver the SHIP and help achieve the strategic priorities 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.

Key delivery partners

Partners Key role and responsibilities

Glasgow City  Since 2003, under Transfer Management of Development Funding Council (GCC) (TMDF) arrangements, responsible for directly managing Glasgow’s Affordable Housing Supply Programme (AHSP) budget.  Coordinating a range of other funding streams, including the Scheme of Assistance Private Sector Housing Grant and Affordable Warmth Programme energy efficiency schemes.  Engaging with partner organisations and stakeholders including local communities to ensure that housing needs are identified and solutions delivered.  Working to attract and secure additional resources for Glasgow.

Registered  A diverse range of 68 RSL organisations providing homes across Social Glasgow, including for specific client groups such as older people, Landlords (RSL) people with disabilities, and veterans. Sector  Applying specialist knowledge about housing needs and requirements, and potential housing and support solutions.  Investing significant capital and revenue in planned and reactive maintenance programmes for their existing housing stock.  Developing, maintaining and updating long-term (30 years) business plans to undertake investment in new housing supply, as well and mitigate risks and ensure financial resilience of their organisations in response to the changing financial and policy environment.

Scottish  Providing grant funding including for the Affordable Housing Supply Government Programme (AHSP) and Affordable Warmth Programme.  Providing a national steer on Housing and Regeneration Objectives as well as for related priorities including health and wellbeing, Climate Change and sustainability.

Private Housing  Identifying development opportunities to build new housing for sale Developers across Glasgow.

 Undertaking viability assessments and liaising closely with GCC Development and Regeneration Services to prepare planning proposals 26

Partners Key role and responsibilities that fit with the City Development Plan and progressing to new housing development.

Construction  Providing the necessary supply of labour and skills to meet the needs of Sector new development, including private and affordable homes, as well as retrofit improvement works to maintain or upgrade existing homes.

Property Factors  Organising maintenance and repairs to Glasgow’s housing stock, where (including private over 70% is in flatted developments with areas of common repairing companies and responsibility RSLs)  Many residential and commercial properties in the city do not have a property factor or current maintenance plan in place for their building. This is a priority to address within the Glasgow Housing Strategy.

 Increasing supply of new homes AHSP - Resource Planning Assumptions (RPA) In 2016, the Scottish Government launched More Homes Scotland, committing £3billion investment to deliver 50,000 additional affordable homes over the lifetime of the parliament (2016- 21). To assist the planning and delivery of this ambitious Affordable Housing Supply Programme (AHSP), in June 2017 the Scottish Government amended its approach to provide local authorities with three year Resource Planning Assumptions (RPA), with guarantees of minimum capital grant resources over the period 2018-21. These have subsequently been further increased to allocate additional capacity from within the overall AHSP.

Current RPA and preparing the SHIP 2020-2025 In April 2019, Glasgow City Council were provided with updated RPA by the Scottish Government: 2019/20: £104.044 million 2020/21: £110.896 million

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.

Scottish Government’s ‘Guidance on preparing Strategic Housing Investment Plans (MHDGN 2019/04), indicates that the 2020/21 RPA should be used for planning purposes for the future years of the SHIP period. Prior to the More Homes Scotland approach, the RPA generally decreased over subsequent years meaning that forward planning based on the last year RPA was a less expansive and indicative planning figure. However, due to the year on year RPA increases of More Home Scotland period, the final year (2020/21) RPA is the highest capital grant figure that Glasgow has ever had for affordable housing investment, and is being directed to use this for the last 4 years of the SHIP period. Therefore, the SHIP 2020-25 plans for over £500million grant funding over this period. 27

Future requirements – Housing to 2040 The investment priorities for Glasgow clearly demonstrate the ongoing requirement for significant resources over the final 4 years of the SHIP and beyond. Scottish Government has begun a dialogue on ‘Housing to 2040 with the aims of updating and renewing its long-term housing strategy as well as commitment to future investment. The move to three year RPAs was welcomed by the housing and development sector and provided greater certainty for forward planning. There is an opportunity to build upon the success of the More Homes Scotland approach by providing a long-term commitment and extending RPAs to cover a minimum of five years. This would facilitate effective strategic planning by providing funding certainty unlocking potential for improved economies of scale and value for money procurement arrangements, as well as providing security for developers and housing providers to make necessary investments in recruiting and retaining staff as part of a sustainable housing and construction industry.

Benchmarks and Tender prices Increasing targets and resources to fund new affordable housing development can contribute towards inflationary pressures where supply of land, construction skills, labour and materials, are less elastic in keeping up with demand. Glasgow City Council also undertakes regular review of tender prices to ensure best value for money.

Trend in Average Works Costs (2015-2019) £1,600 £1,545

£1,500 £1,450 £1,443 £1,402 £1,400 £1,363 £1,324 £1,310 £1,300

£1,200

£1,100

£1,000 2015/16 (Baseline) 2016/17 2017/18 2018/19

Average Cost of Works per M² Baseline costs adjusted by CPI (2.9%)

The figure above tracks average works costs per metre squared (m2) associated with approved new build projects, with 2015/16 costs as a baseline. It compares average actual costs to the baseline costs adjusted by average Consumer Price Index (CPI) growth over this period (estimated 28

at 2.9% per year). This shows that average works costs have increased by 7.2% above the rate of inflation.

The average size of new build home delivered via the programme has increased from 84.0m² to 92.5m² over this period (2015/16 to 2018/19) and this is a factor which influences costs. It is anticipated that average tender prices will be higher in 2019/20 and 2020/21, in particular due to the strategic priorities for delivering additional family-sized homes.

Leveraged funding RSLs capital investment RPA benchmarks on average contribute towards 60% of the total development costs. To fund the remaining balance, developing RSLs commit their own capital funding raised via prudential borrowing, bond issues or other financial mechanisms. It is estimated that over the period of this SHIP, 2020-25, RSL providers may leverage over £400million private capital funding in addition to the £500million AHSP grant funding, indicating a potential for £0.9billion investment in delivering over 8,100 new affordable homes over the next five years.

As well as new build affordable homes, there are options for increasing affordable housing supply through open market purchase. As part of a strategic acquisition programme, RSL partners are able to buy homes in the private market and convert these to a social tenancy. This can provide an efficient and value for money means of increasing affordable housing supply in priority neighbourhoods across the city as well as address challenges for investment and improvement in multi-tenure blocks and tenement flats through consolidation of ownership. Some RSLs are also exploring options for private finance to fund new build programmes that will deliver market housing for rent.

Council Tax on Second and Empty Homes During 2018/19, approximately £1.6million was collected as increased council tax on long-term empty homes in Glasgow. Combined with existing resources that are carried forward, there is approximately £4.7million funding available to support the delivery of new affordable housing.

Private Sector House Sales Although housebuilding completions for sale remain low across Glasgow, there are significant levels of private sector investment in housing across the city. Help to Buy (Scotland) contributes to the delivery of private sector housing in the city. Over the past three years (2016-19), approximately £24million Help to Buy funding has supported around 1,000 sales across Glasgow with a total value of properties purchased exceeding £165million.

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Innovative finance models for new housing supply Build to Rent Drum Property Group are developing the first forward funding BtR development in Scotland, with 324 apartments planned at Buchanan Wharf in Glasgow adjacent to Barclays' new European Hub. Due to the availability of large sites close to the city centre and a focused planning framework, Glasgow is positioned as a prime location, accounting for over half the BTR pipeline identified across Scotland. A key priority is to ensure Glasgow continues to benefit from BTR investment, as part of balanced housing development which promotes sustainable growth and regeneration, particularly within the Strategic Development Framework areas including Glasgow city centre.

Scottish Government Mid-Market Rent (MMR) scheme Places for People (PfP) Capital were successful in securing the £47.5million Scottish Government loan funding and have set up a MMR Fund to attract investors to deliver 1,000 new MMR homes across Scotland. Initial construction is anticipated in to start in 2019 and 392 MMR homes are planned across three sites in Glasgow.

Local Affordable Rented Housing Trust (LAR) The first LAR development was completed in Spring 2017, 40 flats in the East End of Glasgow. In Summer 2019, LAR will complete its single biggest development with 64 homes provided by Cruden Estates Limited on Helenvale Street, just a short walk from the Sir Chris Hoy Velodrome, closely linked to the Dalmarnock Riverside and Inner East regeneration priority areas.

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 Investing in Existing Homes Private Sector Housing Grant Glasgow City Council’s Scheme of Assistance (SOA) provides advice and financial support to owners to help with repair, maintenance and investment in private sector homes. It is not part of the mainstream Affordable Housing Supply Programme budget but is included within the SHIP as funding which helps to address issues of housing standards, quality and conditions. The table below outlines SOA investment through the Private Sector Housing Grant Programme, which was £7.982 million for 2018/19.

Private Sector Housing Grant Expenditure 2018/19 (£million) Voluntary Common Repair Works 3.000 Disabled Adaptations 2.000 Statutory Common Repairs 0.825 Govanhill 1.000 Missing Shares 0.100 Others - General 0.037 Small Scale Repairs 0.250 Housing Initiatives 0.600 Care and repair 0.170 Total 7.982

Registered Social Landlord (RSL) - maintenance and investment programmes There are 68 RSL providers within Glasgow providing homes to around 106,000 tenants. They are responsible for ensuring these homes meet and maintain the Scottish Housing Quality Standards (SHQS), including the Energy Efficiency Standards for Social Housing (EESSH) 2020 milestone targets. RSLs submit an annual return to the Scottish Housing Regulator detailing their performance on the Scottish Social Housing Charter, which includes these measures. Based on the most recent available and published annual returns, it is estimated that RSL providers in Glasgow invested over £117million on planned and reactive maintenance to meet required standards and 95% of all homes meet the required 2020 milestone targets.

Property Owners Investment Owner occupiers and private landlords invest in their homes, through repair, maintenance and improvements, however there is no available source for systematic data collation on private investment. 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.

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Investment in Empty Homes In August 2015, working in partnership with Scottish Government and Shelter Scotland, Glasgow set up the Glasgow Shared Services Empty Homes Project. This project ran to the end of 2017 and achieved significant successes including:  Over 200 empty homes brought back into use and £1million identified VAT savings in relation to renovation costs for partner housing associations.  £2million secured via the Town Centre Empty Homes Fund to deliver 37 reclaimed empty homes across 5 projects, which also identified additional VAT savings of £0.5million.  Developed the innovative ‘matchmaker’ scheme which links owners of empty properties with potential buyers.

Building upon the success of this project, Glasgow City Council has employed two full-time Empty Homes Officers to develop and implement an Empty Homes Strategy, which will be launched in 2019/20. The table below sets out the increased council tax on empty homes collected and used to deliver affordable homes from 2017-2020.

Funding used for Budget Cumulative Carry forward affordable housing (£million) (£million) (£million) (£million)

Pre 2017 2.916

2017/18 2.324 5.240 2.610 2.630

2018/19 1.704 4.334 1.191 3.143

2019/20 1.595 4.738

Over the past two years (2017-2019), 3.801million increased council tax empty homes funding has enabled delivery of 167 affordable homes across seven developments by unlocking developments where there were barriers and financial constraints, for example key infrastructure works and abnormal costs associated with site and land conditions.

Glasgow’s Affordable Warmth Programme For 2019/20, the Scottish Government awarded Glasgow City Council £4,195,636 under the Home Energy Efficiency Programme for Scotland: Area Based Schemes (HEEPS: ABS). This funding will go towards delivering 11 projects focused on over 770 homes of non-traditional construction and hard to treat which are wholly privately owned, located within the lowest Scottish index of Multiple Deprivation (SIMD) 2016 areas and assessed as within Council Tax Bands A-C.

As part of the strategic approach, Glasgow’s Affordable Warmth Programme seeks to leverage additional resources including Energy Company Obligation (ECO) funding and align wherever possible private sector housing investment with Registered Social Landlord (RSL) investment in

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existing housing stock with multi-tenure blocks and terraces. Overall, funding for 2019/20 is projected to be over £9million, as detailed in the table below:

Expenditure HEEPS 2020/21 Programme AWP Funding Sources 2018/19 (£million) As in previous years, it is expected local

HEEPS: ABS 4.195 authorities will not be advised of their HEEPS allocation until after the

ECO 0.322 Spending Review. Following the

Owner Contribution 1.332 announcement, the Council will prepare a programme of works for Scottish Social Landlord Contribution 3.294 Government approval. Total 9.145

 Targeting area-based regeneration Transforming Communities: Glasgow (TC: G) Since TC: G was formally established in 2012, it has overseen £108.1million investment in demolitions and infrastructure improvements across the eight Transformational Regeneration Areas (TRAs), aligned to their respective Masterplan strategic development frameworks. This has contributed towards bringing back into effective use 23 hectares of vacant and derelict land. Almost £200million has been invested to deliver 1,291 new homes as well as 138 refurbished homes for Mid-Market Rent. A further 511 new homes are due to complete in 2019. This construction work has contributed towards achieving wider regeneration and economic development objectives, adding value by creating key community benefits including:  58 apprenticeships;  69 work experience placements;  95 new entrants; and  72 trainees participating in New Start/Get Ready for Work training programmes.

An ‘Activation Agreement’ is a legal agreement between the three partners (Glasgow City Council, the Scottish Government and Glasgow Housing Association) which determines the specific delivery plan and programme for a TRA. Activation Agreements have been signed for six TRAs and two are planned to be activated in 2019/20.

Activation Agreement signed Activation Agreement to be signed 2019/20 Gallowgate North Toryglen Red Road

Laurieston Sighthill East Govan and Ibrox

Maryhill Pollokshaws

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Govanhill Strategy: 2017-2021 Govanhill is the focus of a four-year, partnership strategy involving Scottish Government, Glasgow City Council and Govanhill Housing Association. The associated investment strategy for 2017–21 is comprised of the following funding commitments:

Partner 2017-21 (£million) Scottish Government 20.000 Glasgow City Council (TMDF and PSHG) 14.000 Govanhill Housing Association 3.240

Total 37.240

 Infrastructure and land Glasgow City Region City Deal The City Deal is over £1 billion infrastructure investment planned for the Glasgow City Region, complemented by £130m investment in employment and innovation. £385million is identified for five major infrastructure programmes and projects in Glasgow. These include the citywide Metropolitan Glasgow Strategic Drainage Partnership (MGSDP) as well as four broad area-based projects, (see also the Strategic Development Frameworks):  Canal and North Gateway;  Clyde Waterfront and West End Innovation Quarter;  Collegelands Calton & Barras; and  The Avenue.

Following an initial Outline Business Case (OBC), further Full Business Cases (FBC) are undertaken for progressing specific projects as part of the overall programme management for City Deal. In May 2019, approval was given for £2.686million towards the Full Business Case (FBC) element and funding requirement in relation to infrastructure projects in the Glasgow Canal and North Gateway to fund enhancements of the public realm, a new road network and cycle route.

Housing Infrastructure Fund (HIF) As part of the More Homes Scotland approach, the Scottish Government introduced a Housing Infrastructure Fund (HIF) which targets resources towards unlocking site constraints and enabling housing development. HIF is a competitive fund with strict criteria and local authorities are asked to submit proposals. Glasgow City Council has submitted HIF proposals for £4.713million to fund seven projects with potential for unlocking development of 992 affordable homes.

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AHSP HIF Project Infrastructure works required homes £million

Hamiltonhill The Hamiltonhill development is located within North 319 2.488 Glasgow and covers a total of 18.1hectares spread over 3 distinct sites. The main infrastructure challenge is surface water drainage and the capacity of the existing sewer system. Scottish Water, Scottish Canals and Glasgow City Council have developed the North Glasgow Integrated Water Management Strategy (NGIWMS), under which surface water can be discharged from the North Glasgow major development sites (Sighthill, Hamiltonhill, Port Dundas, Cowlairs and Applecross) to the Glasgow Branch of the Forth & Clyde Canal. Glasgow City Deal funding does not cover the infrastructure required to provide appropriate routes to connect the Hamiltonhill site to the canal. HIF funding is required to create routes into the claypit basin where the water will be attenuated and discharged into the Canal. This is an essential requirement for planning permission.

Water Vole The East End of Glasgow is a priority location for targeted 180 0.250 Mitigation area-based regeneration. Extensive investment is planned including housing, commercial and industrial development. However, the areas are known to contain fossorial water voles, which are classed as a priority protected species. It is an offense to intentionally disturb, damage or destroy their burrows. Five current SHIP projects are directly affected and this will be an issue for future projects. The Council has commissioned experts to devise a strategy to address this issue. Solutions are anticipated to include specialised fencing, scraping of vegetation, identification of relocation sites and works to create new habitat. Without such appropriate mitigation measures the developments will not go ahead and will not be able to obtain planning consent.

Water Row The Water Row masterplan fits within the Govan/Patrick 213 0.500 Strategic Development Framework and is linked to the East Govan and Ibrox Transformational Regeneration Area. It includes commercial and residential development alongside regeneration of the public realm and new infrastructure, including a Clyde bridge providing access to key amenities and improving connectivity. This is a strategically important development and HIF funding is required to address funding shortfalls due to abnormal costs associated with contamination, extraordinary site investigations and additional requirements for compliance measures to address amended SEPA recommendations on Climate Change mitigation flood levels as well as the surface water drainage issues.

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AHSP HIF Project Infrastructure works required homes £million

The former Milton Primary School is a key site for housing 94 0.500 development. The current road links allow for limited connectivity and this is identified as a development constraint. Without addressing this infrastructure constraint, there is a significant risk that any initial development may serve to compound the problem and effectively block the potential for further development and Milton Road regeneration. Therefore a new carriageway access road Link with four-way traffic lighting is required to open up the area, which would serve to unlock nearby vacant and derelict land for potential housing development. This is separate from any potential housing site in Milton, but will be an enabling project that unlocks short-term development as well as ensuring that future housing development is not blocked.

Tollcross Site investigations at Tolcross have revealed a disused 55 0.150 mine works mineshaft under a site at Altyre street and this will require to be addressed before development can commence.

Gowanbank Project to develop 75 social rent homes at former Gowanbank 75 0.700 Primary School and nearby Craigbank nursery cleared sites. Scottish Water applying a policy of not permitting discharge of surface water into the local combined drainage system. Therefore, circa 700m of additional piping is required to take the surface water from sites to the Levern Water.

Oxford Street, Project to develop 28 social rent and 28 mid-market rent homes. 56 0.125 Laurieston Scottish Water applying a policy of not permitting discharge of surface water into the local combined drainage system. Therefore, circa 125m of additional piping is required to take the surface water from sites to the Levern Water.

Vacant and Derelict Land Glasgow City Council has secured £3.528million to take forward its Vacant and Derelict Land Fund (VDLF) Delivery Plan for 2019/20. Though not eligible for housing development works, this resource can be used for temporary and permanent greening of adjacent land as well as supporting the economic development of sites, which contributes towards creating sustainable communities.

 Support for housing costs

Glasgow City Council is responsible for administering Housing Benefit payments. The 2019/20 budget projects £322million expenditure on HB payments which is to be covered by income payments from the Department for Work and Pensions. In addition, Glasgow City Council has budgeted expenditure for Council Tax Reduction at around £70million, the majority of which 36

contributes towards discounts for single person households. Approximately £9.5million is budgeted for Discretionary Housing Payments (DHP), which contribute towards mitigate shortfalls due to under-occupancy deductions. There is also £6.8million Scottish Welfare Fund to provide emergency relief payments for households facing crisis and is vital in terms of preventing homelessness. Overall, Glasgow City Council’s net benefit expenditure (above income from DWP) in 2019/20 is projected to be £87.7million.

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Delivery

Performance Review 2018/19 During 2018/19, £94.066million was invested in delivering Glasgow’s Affordable Housing Supply Programme (AHSP). £2.910million of the £94.066million total investment was used to fund Stage 3 works to adapt 1,033 homes so that they were suitably accessible for households with particular needs and would support people to live independently in their own home in the community.

The AHSP Annual Performance Review Report 2018/19 outlines in detail the type of houses which have been built, who built them and how much they cost to build. The table below provides a summary of performance by housing investment areas:

North West SHIP Overview North East South Total & Govan

Completed affordable homes 167 325 508 1,000

New Build unit approvals 534 201 514 1,249

Housing Supply Targets (HST) Glasgow’s Housing Strategy has set out Housing Supply Targets for new affordable and market homes to be delivered over five years, 2017-2022. The table below outlines progress towards delivering the five year target:

Progress (April 2017 to March 2019) Housing Supply Target 2017-2022 Completed Units % of HST delivered

Affordable 7,500 2,051 27%

New build affordable housing completions are projected to increase. There are over 2,000 planned approvals for 2019/20. The AHSP and associated funding and resources, such as Partnership Support for Regeneration, are also important in contributing towards achieving the HST, across all tenures. Average outputs for private new build housing for market sale were up in 2018/19 compared to the previous year.

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SHIP 2020-25 summary table

SHIP Overview 2020/21 2021/22 2022/23 2023/24 2024/25 Total Site starts (units) 1,943 1,501 1,329 287 54 5,114 Completions (units) 3,200 1,026 1,545 1,123 1222 8,116* Investment (£ millions) 129.745 126.103 110.945 89.773 55.593 512.159

*Overall, the SHIP 2020-25 sets out investment funding with potential to deliver a total of 8,170 new affordable homes. Due to timing of development projects, it is anticipated that a development of 54 homes will start in 2024/25 and complete just outwith the end of the financial year, hence the total completions within the financial years period (2020/21 to 2024/25) is 8,116. AHSP projects meet the strategic priorities outlined in this SHIP and are considered basis of delivery potential during 2020-25. The Council and its delivery partners will actively manage all projects for delivery in years 2-5, as well as any projects next year (2020/21) should additional funding be allocated by Scottish Government to Glasgow beyond the existing budget and RPAs.

This SHIP 2020-25 sets out potential for 175 projects with an estimated capacity for the delivery of over 8,000 homes across the three main Housing Investment Areas. These include priority projects carried forward from the previous approved SHIP, as well as projects with current funding commitments and new sites that are prioritised (as above) on the basis of deliverability over the five year plan period. The table below provides an overview of potential delivery 2020-25:

North West & Govan North East South Total 2,602 3,059 2,509 8,170 31.8% 37.4% 30.7% 100.0%

Development barriers and enablers Development constraints and risks are reviewed on a regular basis through engagement with key partners and stakeholders. These key issues were considered as part of the development of the SHIP 2020-25 and the table below outlines the main potential barriers and enablers which have been identified through this process, which will be monitored and reviewed throughout the period of the SHIP.

Potential barrier / constraint Managing risk and enabling development

 Higher costs of meeting space The Glasgow Standard sets a high benchmark for design and sustainability standards quality which is consistent with the City’s priorities for addressing Climate Change and delivering suitable and sustainable homes that will meet current and future residents’ need. The Council will seek to promote

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Potential barrier / constraint Managing risk and enabling development information sharing between partners to support wider delivery.

 Construction sector capacity Encouraging developments, working together and use of and resilience community benefit clauses to increase local training and employment opportunities.

 Building costs inflation and The Council will continue to undertake regular review of rising tender prices tender prices and work closely with developer partners to ensure the AHSP delivers value for money.

 Contractors Works are undertaken by a pool of contractors. There is a good range of developing RSLs providing a diverse mix of development projects and opportunities.

 Infrastructure and remediation Using Masterplanning approach to regeneration and seek costs to secure additional funding where possible to support housing development.

 Capacity and timescales for Working closely with planning services to streamline completing statutory consents approach.

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Future needs and sustainable growth Glasgow’s SHIP 2020-25 sets out a clear trajectory for increasing affordable housing supply year on year and this is essential to meet the longer term housing needs and growth ambitions set out in the Glasgow Housing Strategy, Glasgow City Council Strategic Plan and the Glasgow City Region Economic Strategy. More Homes Scotland has provided a foundation for increased delivery and it is vital that all key partners and stakeholders across Glasgow’s Housing Sector are engaged with Scottish Government to consider how we can sustain outputs and consolidate future growth for the city.

Key considerations include what we can do to create more certainty and confidence in the housing system, tackle development constraints and manage risks to delivery, as well as maximise the community and economic benefits of investment of this scale. Outlined below are specific actions and commitments that have been highlighted by key partners and stakeholders:

 Rolling, three-year Resource Planning Assumptions to enable longer-term strategic development planning up to 2028 to align with the next Glasgow Housing Strategy.

 Continued commitment and support for low cost home ownership and assistance for prospective house buyers to help access mortgages, for example Help to Buy (Scotland).

 Timely delivery of planned new homes by all partners (RSLs and private housing developers) in the city with development programmes.

 A reintroduction of Grant to Improve the Physical and Social Environment (GPSE) as part of the Affordable Housing Supply Programme.

The Council commits to:  Actively manage and monitor the delivery of the SHIP and work with partners to improve the HARP system for operational investment programming and for SHIP submission.

 Balance acceleration and upscaling of AHSP outputs with ensuring developments deliver new homes of sufficient design quality to meet our agreed strategic housing priorities.

 Allocate resources and use the powers available to proceed with Compulsory Purchase Orders (CPOs), where necessary.

 Further develop innovative housing and support options to enable households and people with particular needs to live independently in their own home in the community for longer.

 Ensure new affordable housing developments bring additional value to communities, including opportunities for training and employment.

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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

Michelle Mundie Group Manager – Housing Investment (Housing & Regeneration Services) [email protected] 0141 287 8601

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

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