Appendix 1 - 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
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Appendix 1 Perth and Kinross Council Strategic Housing Investment Plan 2025/26 – 2029/30 “Everyone in Perth and Kinross has access to the right home, in the right place and at the right cost”
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Contents 1. Introduction 2. Strategic Context 3. Housing Need and Demand 4. Available Resources 4.1 Affordable Housing Supply Programme 4.2 Housing Revenue Account (HRA) 4.3 Developer Contributions 4.4 Council Tax Reserve Income from the Reduction of Discount for Empty and Second Homes 4.5 Housing Infrastructure Fund (HIF) 4.6 Vacant and Derelict Land Investment Programme (VDLIP) 4.7 Rural Housing Fund 4.8 Affordable Rural Homes for Key Workers Fund 5. Affordable Housing Delivery 6. Connection with other LHS priorities 6.1 Empty Homes 6.2 Gypsy Travellers 6.3 Child Poverty 6.4 Rapid Rehousing Transition Plan (RRTP) 6.5 Accessible Homes / Supported Housing 6.6 Rural / Community Led Housing 6.7 City / Town Centre Living 6.8 Energy Efficiency 7. Partnership Working, Consultation and Monitoring 8. Affordable Housing Policy 9. Prioritisation Framework 10. Development Constraints 11. Procurement Approaches 12. Equalities 13. Strategic Environment Assessment
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1. Introduction The Strategic Housing Investment Plan (SHIP) 2025/26-2029/30 outlines investment priorities for affordable housing over five years, aligning with the outcomes set out in the Local Housing Strategy (LHS) 2022-2027. The SHIP is designed to be a working tool which: • Improves long-term strategic planning. • Details how investment in affordable housing will be directed. • Sets out key investment priorities for affordable housing and demonstrate how these will be delivered and the resourced. • Forms the basis for detailed programme planning. • Focused on partnership working. • Informs Registered Social Landlord (RSL) development funding plans. • Allocates resources from a national to a local authority level. • Reinforces the local authority’s role as the strategic housing authority. The Council and its partners are committed to overseeing a programme of new affordable housing that will contribute to the Scottish Government’s Housing to 2040 ambitions for new affordable homes. To support this, the Scottish Government have confirmed a Resource Planning Assumption (RPA) for Perth and Kinross for 2024/25 of £12,594,000, which was a reduction on the previously published figure of £16,645,000. However, this SHIP period covers 2025/26–2029/30, where no funding has yet been announced. All projects identified as a priority for funding over this 5-year period are set out in appendix 3 and are recorded in the Scottish Government’s Housing and Regeneration Programme (HARP) system. Projects included within the SHIP will be delivered through new build, buybacks, regeneration, renovation, and remodelling. The Scottish Government will use this information to draft a Strategic Local Programme Agreement (SLPA). 2. Strategic Context Housing to 2040 sets out the Scottish Government’s vision that everyone in Scotland should have access to a warm, safe, affordable and energy efficient home that meets their needs in a community they feel part of and proud of. The strategy is based on the principles of social justice, equality and human rights and includes a target to deliver 110,000 affordable homes in the 10 years up to 2031/32, with 70% of these for social rent. The Perth and Kinross Local Housing Strategy (LHS) 2022-27 has been informed by the themes and aims set out in Housing to 2040 and aims to deliver on the vision that “Everyone in Perth and Kinross has access to the right home, in the right place, and at the right cost”. The four main priorities set out in the Perth and Kinross LHS 2022-27 that this plan helps to support are:
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• LHS Priority 1: Providing more affordable homes to support liveable and sustainable communities. • LHS Priority 2: Providing a range of housing options that people can easily access, afford, and keep. • LHS Priority 3: Delivering housing for people with varying needs. • LHS Priority 4: Delivering quality homes with affordable warmth, zero emissions, and SMART technology. In addition to ‘Housing to 2040’ vision, the SHIP considers the Scottish Government’s Housing and Planning Delivery Framework (HPDF). This framework promotes better collaboration between Housing and Planning Services, focusing on the Local Housing Strategy, Housing Need and Demand Assessment and Scottish Planning Policy The National Planning Framework 4 (NPF4) has been adopted, setting national planning policies and a development plan for Scotland. Along with other key documents like the Local Development Plan (LDP) and the Housing Land Audit (HLA), NPF4 has guided the investment decisions in the SHIP and ensures a steady supply of future projects. The SHIP also aligns with the aims of the Perth and Kinross Integration Joint Board Strategic Commissioning Plan 2020-2025. The Housing Contribution Statement, which acts as the bridge between the LHS and the Strategic Plan, reflects how housing contributes to the Strategic Plan priorities, emphasising the importance of providing suitable housing and support to help people live independently. This includes: • Working with housing developers to build adaptable, sustainable housing for changing household needs. • Ensuring residents and tenants can adapt their homes to meet their medical needs. • Providing sheltered housing accommodation and support. • Ensuring suitable housing and housing support is available to prevent admissions and prolonged stays in hospital and engage early with partners to deliver a seamless service for people discharged from hospital. • Supporting residents to live in warm, dry, energy-efficient and low-carbon homes that are affordable to heat. • Working in partnership with a range of services such as Adult Support and Protection, Mental Health, Drug and Alcohol Teams to prevent and address homelessness. 3. Housing Need and Demand The Perth and Kinross Housing Need and Demand Assessment (HNDA) was conducted in 2021 across Tayside, including Angus, Dundee, Perth and Kinross and Northern Fife. A report based on the HNDA was presented to the ‘Housing and Social Wellbeing Committee’ in March 2023, outlining the Housing Supply Targets.
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The Housing Supply Target is incorporated into the LHS as an annual target over five years. This determines the scale and type of affordable housing required to meet housing need and demand throughout the LHS period. The LHS has set a target of 210 new supply affordable homes per year. This is across a range of delivery types including new build, buybacks, conversions, and empty homes, by both council and RSL partners with a mix of social rent and other tenure, e.g. shared equity, mid- market rent (MMR). For development planning purposes, the Perth and Kinross housing market is divided into five Housing Market Areas (HMAs). These are: • Greater Perth • Highland • Kinross • Strathearn • Strathmore & The Glens Currently there are no specific housing supply targets for these HMAs. 4. Available Resources 4.1 Affordable Housing Supply Programme (AHSP) The Affordable Housing Supply Programme is part of the Scottish Government’s More Homes Scotland approach. It aims to increase affordable homes across all tenures and meet the objectives set out in ‘Housing to 2024’. This Programme supports the Council in delivering its affordable housing priorities. The SHIP sets out investment priorities over a 5- year period, and these priorities then inform the Strategic Local Programme Agreements (SLPA’s). The SLPA is a 3-year programme, containing SHIP projects, with year one being the finalised list of projects with approval to make applications for funding from the Scottish Government. There are published grant benchmark rates for these applications with figures varying depending on location, tenure, applicant, and provision of additional quality standards. To support the delivery of affordable homes, local authorities are provided with Resource Planning Assumptions (RPAs) by the Scottish Government. RPAs are the yearly grant allocation that helps finalise the programme and act as a guide for planning over the 5-year period of the SHIP. The Scottish Government had previously provided RPAs up to and including 2025/26, however the recent cut to the housing budget has meant that the figures provided are no longer valid and a one-year RPA was provided for 2024/25 at a reduced rate, with no funding certainty beyond that. The RPA for 2024/25 reduced from £16.645m to £12.594m and Scottish Government guidance on forming this SHIP requires us to use the reduced figure with future carry forward restrictions, rather than the pre-cut figure, with a minimum 25% over provision to cater for any slippage. However, as noted, currently there is no RPA for years 2025/26 and beyond.
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The reduction of funding and future funding certainty is one challenge that needs to be managed carefully as this has the potential to slow down the pace of developments as both PKC and partner RSLs do not have the certainty of future funding allocations and carry forward restrictions mean that a more cautious approach is required for some projects. PKC are managing this by exploring alternative funding sources, where possible, to reduce the reliance on the grant available and to provide assurance until funding is announced as well as front funding projects to enable sites to progress. Regular discussions with the Scottish Government, partner RSLs and developers are being had to methodically work through options to ensure sustained delivery in difficult financial circumstances. This SHIP has been over provisioned by 39% to ensure our full grant allocation is met, but also enable us to react quickly should there be a change in circumstances and additional funding being available. If there is a further reduction in the RPA, the plan will contract, and outputs will naturally reduce. The SHIP has been front loaded to manage slippage with space in later years should projects slip and a notional grant allocation has been attributed to each project at benchmark levels to demonstrate that we are effectively planning the programme. Partners are aware of the challenging situation, however all projects have been retained in the SHIP that can reasonably be expected to be delivered in the 5-year period. Running parallel to the SHIP is a programme of ‘pipeline’ projects, this both ensures a good supply of projects to come into future SHIP’s as well as reflecting a renewed focus on projects that are deliverable. Whilst this SHIP is predominantly new build, PKC has a target to deliver 40 buybacks per year and encourages partner RSLs to identify opportunities to do this also, where it meets their strategic needs. Buybacks not only increase the supply of good quality affordable housing in areas of need but can also reduce maintenance costs by targeting those properties that bring majority or full ownership of a block back. These properties are typically 1, 2, or 3 bed properties and can meet the housing needs of a variety of households, including those with a medical need. The Council, in consultation with the Scottish Government, will continue to manage the AHSP in conjunction with its Housing Capital Plan, Housing Revenue Account investment, Council Tax 2nd Homes Funds, and Commuted Sums to maximise the delivery of affordable housing in priority areas during the SHIP period. 4.2 Housing Revenue Account (HRA) Prudential borrowing via the HRA is a key funding component used in addition to Scottish Government housing subsidy to support the delivery of Council affordable homes. The financial viability of all potential Council projects is assessed in terms of the Housing Revenue Account 30-year business plan. This ensures that the capital costs generate a reasonable return on investment over the long term. The new build programme is monitored as part of the HRA capital monitoring process between Finance, Housing, and Property. The Council has a new build programme target of 80 new build affordable homes per annum during the 5-year period of this SHIP.
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4.3 Developer Contributions Applications for Developer Contribution can be made to PKC to support the delivery of affordable homes. Despite numerous discussions on prospective use of these funds, as of 30th August 2024, there have been no applications made by partner RSL’s for these monies since publication of the last SHIP. The lack of applications is often due to the policy requiring funds to be invested in the same HMA where they were collected. Currently, there is £1.5million available within Developer Contributions to assist in delivering affordable housing initiatives throughout Perth and Kinross. These funds can be used to support grant funded projects to become viable and, where appropriate, can be considered as a complement to Scottish Government grant funding. 4.4 Council Tax Reserve Income from the Reduction of Discount for Empty and Second Homes The Council has funding available through income raised each financial year from Council Tax (Empty Homes and 2nd Homes). This funding assists in supporting the provision of all affordable homes delivered by the Council (new build and Empty Homes) and new builds for RSLs. PKC have, from 1st April 2024, implemented a 100% council tax surcharge on second homes, with the aim being to re-invest this money to improve housing opportunities. As of 1 April 2024, the balance of funds from Council Tax for the delivery of affordable housing was £5,609,000. Since 2015/16 through the delivery of new build affordable housing and Empty Homes, the Council has used funding of over £11m from the Council Tax to assist with the delivery of affordable homes. For new supply affordable homes, these funds, as well as developer contributions, are used on a case-by-case basis depending on the nature and funding position of the project. In 2021/22 these funds supported one PKC project to deliver 10 affordable homes. In 2022/23, there were 3 projects supported, PKC and partner RSL, delivering 50 new affordable homes. For 2024/25, there is a commitment to support 5 projects which will support the delivery of 55 new affordable homes. These funds have been earmarked to also support future projects – resulting in the delivery of up to 272 new supply affordable homes over the 5-year period of the SHIP. Beyond supporting specific affordable housing projects, and the operation of PKC’s Empty Homes service, the funds are also cover some staffing costs within Housing Strategy, as well as contributions to Council Tax and Missing Shares posts. 4.5 Housing Infrastructure Fund (HIF) The HIF funds stalled housing developments due to the excessive cost or nature of the infrastructure works required. Whilst PKC has considered use of this fund to enable progress of some sites, none has been deemed suitable by the Scottish Government to progress and no suitable sites have been identified for HIF funding in this SHIP. However, consideration will be given as and when potential sites become known or available.
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4.6 Vacant and Derelict Land Investment Programme (VDLIP) The VDLIP transforms long-term vacant and derelict sites. There are no projects in this SHIP being funded by VDLIP, however regeneration is a key component of this SHIP and aligns with Housing to 2040’s ‘brownfield first’ approach. In 2023/24, 26 new affordable homes were built on brownfield sites. Over the course of this SHIP, we project that 324 new affordable homes can be delivered on brownfield sites, which is 32% of new build delivery over this 5-year plan. 72 new affordable homes will be delivered on sites that are on the Vacant and Derelict Land Register. PKC recently adopted a new policy, agreed at committee, that priority for affordable housing would be given when disposing of surplus land or buildings. This reflects the ambition to enhance the provision of affordable housing on brownfield sites and move towards achieving the LHS ambition to deliver 50% of affordable homes on brownfield sites. Whilst there are no housing sites with VDLIP funding attached to them, support was provided to a local development trust in Alyth to assist in the award of VDLIP funding for the ‘Millhaugh Phase 1’ project, which will see the redevelopment of an unused sawmill into a community space. 4.7 Rural Housing Fund The Rural & Islands Housing Fund (RIHF) support affordable housing in rural areas and is open to: • Community organisations • Development trusts • Private landowners • Private developers • Registered Social Landlords (RSLs) PKC is exploring sites and partnerships to use RIHF funds alongside other housing funds. This community-lead approach helps address the lack of affordable homes in rural areas, aligning with the Scottish Government’s Rural & Islands Action Plan (2023). 4.8 Affordable Rural Homes for Key Workers Fund Up to £25 million is being made available from the Affordable Housing Supply Programme budget over 2023 to 2028 for the Rural Key Workers Housing Fund. The funding enables local authorities and RSLs to purchase existing suitable properties in rural areas which can be rented directly or leased to employers to provide affordable homes for key workers. Opportunities to utilise this fund on bulk purchases are being explored to ensure that key workers can be housed in the areas of identified need.
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5. Affordable Housing Delivery The programme, outlined in appendix 3, is based on operating at 139% of the current RPA. This is done to effectively manage slippage and respond to funding increases, and the outputs listed in the table below should be considered on that basis. The table below excludes sites with no funding during the SHIP years. Projects without grant funding for 20225/26 or beyond are not included. The table in appendix 2 contains actual delivery data for the 5-year period, and below is the headline data from that table. 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 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 current RPA level. This means that if RPA is not restored to pre-cut levels, targets will not be met. 6. Connection with other LHS priorities 6.1 Empty Homes The Council’s aim is to bring 135 privately owned empty properties back into use each year. The Empty Homes Service and the Private Sector Housing Team work collaboratively to provide advice and assistance to owners of long-term empty properties and work towards set targets. The Empty Homes Service covers both residential and non-residential properties to provide a holistic approach to solving the problems caused by empty buildings. The Private Sector Housing Team works in tandem with the Housing Options Team to ensure empty homes are targeted in appropriate areas and to those in housing need. Having empty homes as an integral part of affordable housing provision ensures a coordinated approach within Perth and Kinross. Our Empty Homes Initiative grants, administered by our Private Sector Housing Team, enable owners to upgrade or repair their properties in return for the properties being let out at Mid-Market Rent levels for a 5-year period, which both returns an empty property to use and increases the supply of affordable housing.
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These properties are let through the Rent Bond Guarantee Scheme which aims to help people access housing opportunities in the private rented sector. In 2023/24, 20 Empty Homes Initiative grants were issued to owners to repair or renovate their properties with a view to them being let out at Mid-Market Rent levels. Furthermore, through Vacant Property Feasibility Grants, funding of professional fees for owners allows them to undertake feasibility studies to enable repairing or re-purposing of their empty properties. The Scottish Government guidance on the SHIP content, specifies that we should set out an overview of the numbers of empty homes brought back into use over the last three financial years. This information is contained in appendix 4. 6.2 Gypsy Travellers There are two permanent sites operated by PKC, Double Dykes and Bobbin Mill, providing 26 units of chalet-style accommodation. There are no temporary or short stay pitches on these sites and occupancy levels at these sites are typically 100%. There are also 24 pitches across 3 private sites. The two PKC sites have been transferred over to the HRA, which will enable planned maintenance programmes to ensure Scottish Housing Regulator standards are maintained. The HNDA identifies the need for more permanent Gypsy Traveller sites and the LHS sets out an objective to work with the Gypsy Traveller community to better understand their accommodation needs and preferences, and to develop workable solutions. A major capital project at the Double Dykes site is underway to replace the 20 chalets with high-quality, energy efficient accommodation. This transformative project will not only upgrade the accommodation itself but also the services, boundaries, pathways, drainage and amenity space. PKC have secured nearly £4m in funding from Scottish Government’s Gypsy/Traveller Accommodation Fund, with the remaining cost being covered by the Housing Revenue Account (HRA). Feasibility studies are planned for the other site at Bobbin Mill to establish what improvements can be made and significant progress is being made to develop a transient site in Perth City. 6.3 Child Poverty The Council’s Child Poverty Action Report prioritises new affordable housing in areas with high child poverty. This helps those in need access quality homes, improving life chances. In 2023/24 there were 18 new properties delivered in the Scottish Index of Multiple Deprivation (SIMD) lowest quintile (lowest 20%), reflecting 17% of new build delivery. Over this 5-year SHIP, there is projected to be 116 new supply properties funded in SIMD lowest quintile (lowest 20%), which equates to 11% of new builds being given grant assistance.
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However, as the Child Poverty Action Plan 2023/24 highlights, the SIMD identifies deprived areas, not people, and this can be problematic for Perth and Kinross due to having substantial rural areas where poverty is dispersed. A focus on rural areas where housing costs are high is also important to alleviate pockets of child poverty, particularly those within the six recognised priority groups at greatest risk of poverty. These are, minority ethnic families, lone parent families, families with a disabled person, families with three or more children, families with children under 1, families with mothers aged 25 or under. The delivery of adapted housing is set out below, though in 2023/24, 37 of the new build properties were delivered with 3+ bedrooms, making them suitable for larger families, this equated to 37% of new build delivery. Projections for this SHIP are that 250 new properties will be delivered suitable for larger families, which is 24% of this plan. It should be noted, that as this is a 5-year plan, some projects are further progressed than others and some do not have a finalised design. This means that the figures used are based on current plans / estimates and subject to change. Using Common Housing Register waiting list information can be difficult as applicants choose several areas for rehousing. This data helps negotiate the housing mix for new sites to ensure larger family homes are provided where needed. 6.4 Rapid Rehousing Transition Plan (RRTP) Adopted in April 2019, the PKC’s Rapid Rehousing Transition Plan (RRTP) aims to prevent homelessness and minimise its impact. It supports the Local Housing Strategy, is an integral part of the Strategic Housing Investment Plan (SHIP) and influences the delivery of the Health and Social Care Partnership’s Strategic Plan. The main objective within the RRTP is: To deliver a service which is focussed on preventing homelessness and minimising the impact of homelessness where it cannot be avoided. This is achieved by continuing to: • intervene early and prevent homelessness through enhanced advice, assistance and support. • offer and provide a route for homeless people to move directly to settled accommodation. • reduce the need for temporary accommodation and minimise the length of time people spend in temporary accommodation where it cannot be avoided. Increasing the supply of suitable affordable housing will assist in meeting the RRTP strategic aims of prevention of homelessness. It will also support the commitment to ensuring that those in housing need find the fastest route to safe and secure accommodation and help them resettle in their new homes quickly and successfully with support. Strong partnership working with Housing will ensure that new housing through the SHIP reflects the required needs of people facing homelessness.
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6.5 Accessible Homes / Supported Housing In 2019 the Scottish Government published ‘Guidance for setting of Local Housing Strategy (LHS) targets to support the delivery of more Wheelchair Accessible housing’. Following on from this, the PKC LHS 22-27 set out a target that 10% of new build affordable homes to be wheelchair accessible or and adaptable. Whilst we encourage and support developers to provide wheelchair adapted homes in areas of need, there is no target in place for wheelchair standard housing in the private sector as there is no mechanism to enforce this. In 2023/24, 3 fully wheelchair adapted properties were delivered via the SHIP with 8 adapted properties suitable for older / ambulant disabled households, which was 10% of new build delivery for the year. PKC will continue to work with developers and partner RSLs at an early stage in developments to achieve this target and enhance the provision of adapted properties in the locations that they are most needed. Over the course of the 5-year SHIP, 104 fully wheelchair adapted properties will be funded, which equates to 10% of new build delivery. Achieving a target such as this can be challenging as many developments not achieving the 10% will already be in the SHIP at a progressed stage. Where this is the case, and where appropriate, and an amendment to planning, or new application will be made to ensure this target is met. Off the shelf opportunities often do not come with the required contribution and so consideration needs to be given to, where possible, enhancing provision of those sites with early involvement. The Council submitted a response to the Scottish Government Housing for Varying Needs (HfVN) Proposed Guidance Consultation (extended to Dec 2023), and plan to adopt new guidance subject to further revisions and publication. For those who have been assessed as having care and support needs to live independently in the community, a home in the right place can be crucial. PKC’s Housing Strategy Team works closely with the Independent Living Panel (ILP), which provides an integrated approach to meeting housing, health and social care needs for those people who have been assessed as requiring support to enable them to live in the community. To ensure that appropriate accommodation can be planned for, referrals made to the ILP inform the programme of new build provision for this group including identifying suitable locations and primarily through consideration of the ‘core and cluster’ model of supported accommodation where a Support Provider is based in a property and provides 24/7 shared support to several individuals clustered around this. In 2023/24 a supported housing project, part funded via the SHIP, was delivered at Bertha Park, Perth by Kingdom Housing Association to meet independent living needs. Five properties were delivered as part of a core and cluster supported accommodation model in partnership with Perth and Kinross Health and Social Care Partnership (HSCP). A further property was provided as a 24/7 staff base which will support five individuals with varying levels of care need, with Technology Enabled Care set up to assist them to live as independently as possible.
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There is currently a project onsite in the SHIP at Ryan Place in Crieff being built by Hillcrest Housing Association which will provide a further eight properties for individuals with support needs as well as 24/7 staff base. There are several sites in the SHIP where supported housing opportunities are being explored in collaboration with the Independent Living Panel. 6.6 Rural and Community Led Housing PKC faces unique demographic challenges due to having a large rural population and a city within its boundary. The LHS 22-27 sets out the aim that the Urban / Rural population split (53%/47%) should be reflected in new affordable housing delivery. In 2023/24, 36% of new affordable housing delivered through the SHIP was in urban areas, whereas 64% was in rural locations. This SHIP will fund 398 new affordable homes in rural areas with 625 in urban locations, which equates to a 61% / 39%. However, these projections do not include buybacks or new delivery supported via the Rural Housing Fund. The SHIP is only one funding mechanism that can aid delivery of affordable housing. PKC’s Housing Strategy Team works closely with communities to enable Community Led Housing to be delivered through funding streams such as the ‘Rural Housing Fund’ and the ‘Scottish Land Fund’. These approaches not only allow greater community input into the provision of affordable homes but also reduces reliance on the main programme grant. We have supported the completion of five Housing Needs Assessments in rural areas and have a further three planned for 2024-25. We are currently enabling four communities in rural areas to deliver affordable homes through working with Communities Housing Trust to support four projects. One is currently at tender stage, one is awaiting a planning decision, and two are expected to have planning applications lodged in 2024-25. These projects will deliver 36 new affordable homes. Following on from the rural Housing Needs Assessments, PKC are working to deliver a ‘Key Worker Policy’ which will include an updated definition of key worker priority groups as part of ongoing work to seek to address the shortfall of suitable housing in some rural areas for key workers. This work has allowed PKC to pursue projects that could make applications to the ‘Affordable Rural Homes for Key Workers Fund’ and will in future offer clear guidance to RSL partners should they be keen to explore this avenue also. This is a fund for local authorities and RSLs to acquire existing permanent affordable homes for key workers where there is identified need. Any opportunities in the areas where we have identified need will be explored for the period in which this fund remains open. 6.7 City / Town Centre Living Perth and Kinross has a substantial urban population with a city and a number of large towns. Many wish to reside in town and city centre locations and a focus on town centre living can boost the local economy and community vibrancy. In this SHIP, we are projecting that 104 new affordable homes will be funded that are situated in or very near city and town centre boundaries of the Perth and Kinross, as defined in the Local Development Plan.
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6.8 Energy Efficiency The Council seeks to maximise energy efficiency and reduce fuel poverty by meeting the ‘Greener’ energy efficiency standard in new builds, where practical. To meet this standard, homes must meet Section 7 (Aspect 1 & 2) of the 2011 Building Regulations in relation to Carbon Dioxide emissions and energy for space heating. The standard may not be achievable in all projects, particularly where an existing building is to be redeveloped or where homes form part of a larger development for market provision or through the PKC Buyback scheme. The Council supports RSL partners to develop to Silver Standards as a minimum and to provide enhanced levels as set out within the Scottish Government’s Housing to 2040 vision. The Council has published a new Design Guide for Sustainable, Inclusive Homes – a Net Zero Approach. It is anticipated by 2023/24 that all PKC new build affordable homes will meet the ‘Gold Standard’ as a minimum and meet some of the key objectives within the Council’s Climate Change Strategy and Action Plan (November 2019). 7. Partnership Working, Consultation and Monitoring This SHIP has been developed through collaboration with the Scottish Government, RSLs, and other stakeholders such as Health and Social Care Partnership and tenants’ groups. Housing and Planning are also key partners for the development and ongoing delivery of the SHIP. PKC continues to have 6 weekly updates with the RSL partners to discuss affordable projects both current and future opportunities. These meetings bring an opportunity for partners to discuss the wider programme and strategic issues including updates from the Scottish Government, Scottish Water, the SHIP, and site prioritisation. Every 6 weeks, updates are provided to the Scottish Government on areas relating to planning, public utilities and slippage impacting current/future year funding. Regular contact is maintained outwith these set meetings to ensure a well-functioning programme is maintained. PKC has now established an LHS Delivery Group to ensure delivery of outcomes set in the LHS. This Group feeds into the Strategic Affordable Housing Board, which provides oversight on the delivery of Perth & Kinross’s Affordable Housing Supply Programme and ensures implementation of new affordable housing objectives contained in LHS and wider national strategies. The Board comprises senior managers and officers from Housing, Planning, Property, and Finance alongside an RSL representative. In developing the SHIP 2025/26 – 2029/30, all RSLs were asked to submit project proposals for any new sites. All proposals were assessed alongside Council projects using the SHIP prioritisation Framework (see Appendix 5) and the programme was then approved by the Strategic Affordable Housing Board.
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As outlined above, the Perth and Kinross multi-agency Independent Living Panel (ILP) provides key information to the SHIP to enable the provision of supported housing in the most appropriate locations and in the correct form. The ILP meets monthly and is made up of over 20 members working across Housing, Health and Social Care Partnership teams. The Panel provides an integrated approach to meeting housing, health and social care needs of people who have been assessed as requiring support to enable them to live as independently as possible in their own home or within a specialist provision. The Council also has frequent meetings with developers to discuss development sites and how their developments can contribute to LHS priorities through inclusion in the SHIP. The private sector play an important role in supporting the delivery of affordable homes through affordable housing contributions on sites as well as the sale of ‘off the shelf’ properties. 8. Affordable Housing Policy The ‘Developer Contributions and Affordable Housing Supplementary Guidance’ (2023) is linked to Policy 20 in the Perth and Kinross Local Development Plan 2 (2019). It outlines the contribution developers must make towards affordable housing to enable planning applications for new residential developments to be supported. This guidance was updated in 2023 and requires new housing developments to provide a 25% affordable housing contribution on applicable sites. The guidance outlines PKC’s policy for affordable housing contribution where onsite provision is preferred, followed by offsite provision, and then a commuted sum if the first two are not possible. Housing Strategy works with developers and RSLs early on to ensure the affordable housing component meets the local housing need. 9. Prioritisation Framework All new affordable housing proposals for the SHIP are prioritised using the SHIP Prioritisation Framework (see appendix 5). This framework assesses proposals based on the Council’s strategic aims, priorities, and project deliverability. The Council balances investment decisions through a mix of Council, RSL and developer delivery, considering various affordable housing tenures to meet housing need across all the HMAs. A renewed focus on deliverability has resulted in some less deliverable sites in the previous SHIP moved to the ‘pipeline’ list, with more deliverable projects introduced. 10. Development Constraints There are several challenges that can affect development, including: • market volatility in the construction sector, impacting on private sector delivery timescales. • increased energy prices. • high material prices and shortages. • shortages of labour • economic uncertainty • inflation
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These issues need careful management, especially with reduced grant allocation. However, they also present opportunities for affordable housing providers. Off-the-shelf opportunities with private developers are explored to increase affordable housing supply. 11. Procurement Approaches PKC encourages collaborative procurement to deliver programmes effectively. The Council is part of the Scotland Excel framework and will also use the HUB framework for procuring services, where appropriate. They will also explore offsite and modern construction methods for new projects to ensure quality and speed. 12. Equalities PKC’s Impact and Value Assessment (IVA) process screens and monitors every Council proposal against statutory and non-statutory environmental, social and economic criteria. 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. This screening showed that an Equality & Fairness Impact Assessment was not required for the SHIP. A full assessment was done during the LHS process, which informs the SHIP outcomes. 13. Strategic Environment Assessment The Strategic Environmental Assessment (Scotland) Act 2005 requires plans, programmes, and strategies to be screened for environmental impact. The SHIP, as part of the LHS, was pre-screened and found to have no or minimal environmental effects, making it exempt. The SEA Gateway has been notified.