Plans to end the right to buy on new build social housing built by councils and housing associations are amongst the plans to reform housing provision across Scotland announced by Health and Wellbeing Secretary Nicola Sturgeon.
The plans aim to give first time buyers and tenants a better deal, and Sturgeon said that there was a need to develop a 'fresh approach' to ensure an adequate supply of affordable housing across all tenures.
A discussion document 'Firm Foundations - The Future of Housing in Scotland' was published today giving details of the Scottish Government's proposals.
The paper recognises the central role that home ownership plays in the housing system – and in society – by offering help for more people to buy their homes, but also accounts for the need for a thriving social sector that can adapt to changing demand and offer more choice to those who cannot afford to, or do not wish to buy.
Communities, councils, social landlords, developers, tenants and lenders are being invited to comment on the proposals, which challenge Scotland's local authorities, developers and builders to increase the rate of new housing supply in Scotland to at least 35,000 a year by the middle of the next decade.
Sturgeon also confirmed that the Government will proceed with the introduction of the single survey scheme for house sales from late 2008.
She said: “The current rate of new house building - 25,000 new houses a year – is simply inadequate. It can and must increase if Scotland's housing requirements are to be met.
“I therefore propose to set a national goal to raise the rate of new housing supply to 35,000 a year by the middle of the next decade. This is necessary if we are to reverse declining affordability and I believe it is achievable.”
On the back of recent research which shows that as home ownership is the ambition of most people in Scotland, Ms Sturgeon said the Scottish Government is determined to help people realise that goal.
She said: “To do so, we will establish a Low-cost Initiative for First Time buyers – LIFT for short. Through LIFT, we aim to expand assistance for first-time buyers through a mix of Government grants, shared equity schemes, and mortgage related products and services.
“I can also confirm that we will take forward the Single Survey which will typically save first time buyers at least £200-£300 and ensure that all buyers have good information on the quality of a house before they place a bid for it.”
Mary Scanlon, the Conservative’s Shadow Cabinet Secretary for Health & Wellbeing, said: “Nicola Sturgeon’s statement was well intended, but her prescription missed the mark.
“The total debt of councils in Scotland is over £9 billion, £2 billion of which is council housing debt. Given the new role for local government to build and manage more homes, how will the Scottish Government ensure that the debt will not continue to increase and that council tax payers in Scotland will not have to pay their share of even higher debt charges in future?
“Why did the SNP campaign against Council House Stock Transfer in the Highlands – in the knowledge that £153 million of housing debt would be written and more investment in homes as a result – when we now have a situation where Highland Council have sought exemption for 4250 homes which will not meet the Scottish Housing Quality Standard? Why should people in Highlands live in sub standard properties due to SNP campaigning?
“I am distressed that the SNP government insists in pushing ahead with single seller surveys. There is no evidence that this scheme is wanted by the market, or has worked in trials.”
Green MSP Patrick Harvie said: "I welcome the opportunity to question the Cabinet Secretary on housing issues - though it's very clear that we need to push the government to do much better.
"There are some positive aspects to the consultation on housing, like ending the Right to Buy for new build social housing - although this had been well trailed in advance. However the proposal to give £2,000 grants is a terrible idea, and will only fuel house price inflation. If Ministers want to do something more useful with that money, they should target it at improvements in the energy performance of buildings - this would cut people's fuel bills, help reduce climate change emissions, and wouldn't contribute to inflation in the same way.”
UNISON welcomed the increased roll in the plans for councils.
Dave Watson, UNISON’s Scottish Organiser said: “We have been saying for many years that Scotland’s housing problems cannot be solved unless the power and resources to regenerate communities and the ability to build and manage public sector housing is returned to local democratic control.
“We are pleased that initial steps are being proposed to continue and develop councils’ landlord role and to put the development of sustainable communities under democratically accountable, local control. We will however, need to get further details of what kind of support is being proposed to authorities who retain their stock.
“But we are concerned that proposals to remove one quango seem to replace it with a combination of another quango and central control. We hope that this will not be a missed opportunity to devolve central functions to local control.”
Sarah O’Neill, Legal Officer at the Scottish Consumer Council says the new single survey system will be good for consumers: “This is simply a fairer, consumer-centred way to do things. Buyers will no longer have to pay for multiple surveys, and they will have better information about the property before bidding. The single survey will also be in the interests of sellers: most sellers are also buying, and will benefit from the new system as purchasers. The single survey will also flag up any major problems to sellers at an early stage, providing an opportunity to address them early in the process.
One person has commented on this article. 1. Sturgeon announces plans to end right to buy
Dave Llewellyn, Unregistered It was with great relief that I heard the statement by Nicola Sturgeon. I am a builder and subcontractor on the largest affordable housing site in Highland region. My company are at present with 100% private capital looking to build 300 affordable homes in Highland region over the next 10 years and have always come up against the problem of Right to Buy. This statement of intent gives us the incentive we need to go ahead in providing these necessary homes in a sadly neglected sector.
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