Strategic Housing Investment Plan 2025/26 - 2029/30
Perth and Kinross Council · 2 October 2024
Back to Housing and Social Wellbeing Committee — 2 October 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
PERTH AND KINROSS COUNCIL Housing & Social Wellbeing Committee 2 October 2024 STRATEGIC HOUSING INVESTMENT PLAN 2025/26 – 2029/30 . Report by Strategic Lead - Housing and Communities and Strategic Lead - Economy, Development & Planning (Report No. 24/276) 1. PURPOSE 1.1 To seek approval of the Strategic Housing Investment Plan (SHIP) 2025/26 – 2029/30. (Appendix 1) 2. RECOMMENDATIONS 2.1 Committee is recommended to approve the: • Content of the Strategic Housing Investment Plan 2025/26 – 2029/30. • Ongoing development of the SHIP and give delegated authority to the Strategic Affordable Housing Board to ensure that where projects fall out of the plan, alternative projects are prioritised. • SHIP, contained in the appendices, being submitted to the Scottish Government. 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background/Main Issues • Section 5: Proposals • Section 6: Conclusion • Appendices 4. BACKGROUND / MAIN ISSUES 4.1 The context for the SHIP is set within a: • National o Housing to 2040 which sets out the Scottish Government’s vision and strategy for housing.
Page 2
• Local o The Local Outcomes Improvement Plan and Corporate Plan, which set priorities for the Council and its partners and identify the importance of delivering new affordable homes to meeting those priorities. o The Council’s Local Housing Strategy (LHS), which was approved at the Housing & Social Wellbeing Committee on 15th March 2023, sets out the vision and priorities for housing in Perth and Kinross. 4.2 The SHIP sets out the investment priorities for affordable housing over a 5- year period and how the strategic vision set out within the Local Housing Strategy (LHS) to ‘provide more homes at the heart of great places’ will be achieved. The LHS sets out an annual target of 210 new affordable homes to be delivered in Perth and Kinross. 4.3 In the first two years of the LHS, 220 affordable homes were delivered in 2022/23 and 173 in 2023/24. The projection for 2024/25 is 223 affordable homes. 4.4 The SHIP sits alongside the LHS as one of its core delivery mechanisms. It has been developed through engagement with tenants and community members, relevant Council Services, the Health and Social Care Partnership, developers and the following Registered Social Landlords (RSLs): • Hillcrest Housing Association • Kingdom Housing Association • Places for People • Caledonia Housing Association • Ark Housing Association 4.5 The Council prepares the SHIP annually in its role as Strategic Housing Authority. It ensures that the Council, and its partners, deliver housing that meets the needs of the community, reflecting and aligning with outcomes and housing policies as set out in our LHS. 4.6 Affordable housing within the SHIP includes new build projects, refurbishment and renovation projects, off the shelf acquisitions and buybacks which are delivered in following tenure types to meet local needs: • Social Rent • Mid-Market Rent • Shared Equity The Scottish Government will use this information to draft a Strategic Local Programme (SLP) Agreement which, once agreed, will form the basis of the Council and our Partner Programme Agreements. 4.7 Each year the Scottish Government provide a Resource Planning Assumption (RPA), which is the funding allocated to help deliver affordable housing in each council area.
Page 3
The funding for Perth and Kinross for 2024/25 was £12,594,000. This was a reduction from the previously published figure of £16,645,000 and was the result of the cut to the housing budget. Currently, there is no confirmed RPA for 25/26 and beyond. Scottish Government guidance on forming this SHIP requires us to use the post housing budget cut figure as a guide with carry forward restrictions. The SHIP has been formed on that basis. 4.8 All projects identified as priorities for funding over the 5-year period are identified within Appendix 3. These projects have been recorded on the Scottish Government’s Housing and Regeneration Programme (HARP) system. 5. PROPOSALS 5.1 The SHIP 2025/26 – 2029/30 is set out in the appendices, with the selected projects contained in appendix 3 with a notional grant allocation listed to demonstrate the funding required. The grant allocations are based on estimates using benchmark figures. The table in appendix 3 does not include any sites that have no funding during the SHIP years and so projects currently onsite, or due to go onsite this year with no grant funding allocated in 2025/26 or beyond, are not included in that table. 5.2 The SHIP 2025/26 – 2029/30 has been over-programmed by 39% to allow for slippage as well as enabling a quick response should funding be returned to pre-cut levels. Scottish Government guidance indicates that plans should be over provisioned by a minimum 25%. 5.3 Appendix 2 sets out in detail the anticipated starts and completions over the 5-year period; however, the headline outputs are listed below. Financial Year Starts (including buybacks) Completions (including buybacks) 24/25 177 223 SHIP Period 25/26 – 29/30 25/26 341 159 26/27 224 265 27/28 212 259 28/29 174 269 29/20 209 200 Total 1160 1152 Yearly Average 232 230 5.4 Projecting yearly outputs can be challenging and subject to change, however based on current projections the LHS target of delivering 210 new affordable homes can be delivered through this SHIP period by operating at 39% over existing RPA levels. This means that should our RPA not be returned to pre- cut levels; these targets will not be achieved.
Page 4
5.5 Once approved, the SHIP will be submitted to the Scottish Government through the HARP system before 25th October 2024, which is the required date. 5.6 The appendices will be published on the Perth and Kinross Council website so that the public can easily find the approved Strategic Housing Investment Plan 2025/25-2029/30. 6. CONCLUSION 6.1 The SHIP, as per the appendices, outlines the investment plan for affordable housing in Perth and Kinross for 2025/26 – 2029/30. Author Name Designation Contact Details Kevin Divin Housing Strategy (01738) 475000 EPLCommitteeReports@pkc.gov.uk Approved Name Designation Date Elaine Ritchie Strategic Lead, Housing and Communities 11 September 2024 APPENDICES • Appendix 1 – Strategic Housing Investment Plan 2025/26 – 2029/30 • Appendix 2 – SHIP Delivery Tables • Appendix 3 – SHIP Funding Tables • Appendix 4 – Empty Homes Returns • Appendix 5 – Prioritisation Framework
Page 5
ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial Yes Workforce No Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment None Strategic Environmental Assessment None Sustainability (community, economic, environmental) None Legal and Governance None Risk None Consultation Internal Yes External Yes Communication Communications Plan None The Impact & Value Assessment (IVA) has been designed to screen every Council project, strategy or proposal against statutory and non-statutory environmental, social and economic requirements. It has replaced the previous existing Integrated Appraisal Toolkit (IAT). It covers a range of assessment areas including: Strategic and Resource implications, and impact assessment for Climate Change, Equality & Fairness, Child Rights & Wellbeing, Sustainable Procurement & Supply, and Strategic Environmental Assessment. SHIP Impact and Valuation Report 1. Strategic Implications Community Plan/Single Outcome Agreement 1.1 This report supports the following priorities within the Perth and Kinross Community Plan 2022-27: 1. Reducing Poverty 2. Physical and Mental Wellbeing
Page 6
Corporate Plan 1.2 This report supports the objectives of the Corporate Plan 2022/23 to 2027/28: (i) Children and young people grow up safe, respected, well-educated, and confident in their ability to realise their full potential. (ii) People and businesses are increasingly able to prosper in a local economy which support low carbon ambitions and offers opportunities for all. (iii) People can achieve their best physical and mental health and have access to quality care and support when they need it. (iv) Communities are resilient and physically, digitally and socially connected. (v) Perth and Kinross is a safe and vibrant place, mitigating the impact of climate and environmental change for this and future generations. 2. Resource Implications Financial 2.1 Resource implications arising directly from this report come from the proposed local authority new build housing programme (as detailed in the SHIP appended). In addition to the Scottish Government Grant, the second home Council Tax fund and developer’s contributions for affordable housing will be used to support the delivery of the programme including prudential borrowing. Detailed resource assumptions on the use of these funds will be reported to the respective Council Committees when final details are known. 2.2 The Team Leader, Finance and Governance was consulted on these proposals as part of the Capital Budget and HRA Capital Plan budget setting process. Workforce a. There are no direct workforce implications regarding this report. Asset Management (land, property, IT) b. Some of the sites identified in the SHIP 2025/26 – 2029/30 are in ownership of the Housing Revenue Account and the General Fund. Discussions are ongoing with various departments regarding potential valuations, transfers to the Housing Revenue Account for the delivery of affordable housing. Perth and Kinross Committee (Report 24/150) approved that first consideration will be given to affordable housing for any assets being disposed by PKC.
Page 7
3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allow the Council to demonstrate that it is meeting these duties. 3.2 This report has been considered under the Corporate Equalities and Fairness Impact Assessment process with the following outcome: (i) Assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. An Impact and Value Assessment (IVA) has been carried out and having considered the criteria set out in the Act, the Council considers that the Strategic Housing Investment Plan 2025/26 – 2029/30 is unlikely to have significant environmental effects. The relevant policy has been subject to assessment through the SEA of the Local Development Plan 2 (2019) so significant environmental effects as a result of the guidance that have not already been assessed elsewhere are unlikely. The Council has therefore determined that SEA is not required. Sustainability 3.4 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets. • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. 3.5 The information contained within this report has been considered under the Act. However, no action is required as the act does not apply to the matters presented in this report. Legal and Governance 3.6 Not applicable.
Page 8
Risk 3.7 Not applicable. 4. Consultation Internal 4.1 Strategic Leads and senior managers from Housing, and Planning have been consulted on the content of this report. Colleagues from the following services are regularly engaged with throughout SHIP process: • Planning • Health and Social Care Partnership • Housing • Estates • Finance • Asset Management External 4.2 Consultation through various organisations progressed through external meetings with the following: - • Scottish Government • Housing Developers • Registered Social Landlord Partners 4.3 The Tenant Committee Report Panel was consulted on this report and a hybrid meeting was held to allow tenants to question Lead Officers. Overall, the Panel felt that this was an excellent piece of work. The SHIP demonstrated how the Council was delivering more and more by adopting a proactive approach in spite of budget reductions. The Panel supported the prioritisation framework and the links with wider outcomes that the SHIP delivers in relation to the other Local Housing Strategy priorities. 2. BACKGROUND PAPERS 2.1 The following background papers were used to inform this report: • Scottish Government – Guidance on preparing Strategic Housing Investment Plans: Guidance Note MHDGN 2024/01 • Scottish Government - Affordable Housing Supply Programme: Process and Procedures MHDGN 2023/01