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Private Sector Housing Grant - proposed change to regime in Housing Regeneration Areas CaH 07 03 23

Renfrewshire Council · 7 March 2023
Back to Communities and Housing Policy Board — 7 March 2023 and its agenda

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___________________________________________________________________
To: Communities & Housing Policy Board 
On: 7 March 2023
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Report by: Director of Communities and Housing Services
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Heading: Private Sector Housing Grant – proposed change to Scheme of
Assistance in Housing Regeneration Areas
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1. Summary 
1.1 The Council’s housing-led regeneration and renewal programme will bring
forward up to £100m additional investment over the next ten years to deliver
high quality energy-efficient homes and environmental improvements. The
eight areas within the programme contain 1,648 properties of which (at the
outset) 1,147 were in Council ownership and 501 privately owned.  Working
positively with owners and providing a menu of options to allow them to
participate in improvements or to sell their properties to the Council is crucial
to full delivery of this programme.
1.2 This paper sets out a proposal to amend the existing levels of financial
assistance available through Private Sector Housing Grant for participating
owners who live in properties that are included in the approved Housing
Regeneration Areas to provide an enhanced rate of assistance for resident
owners.  
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2. Recommendations
2.1 It is recommended that the Policy Board:
i. agree that the Council’s Scheme of Assistance be altered only in
respect of Housing Regeneration Areas included in the Housing-
Led Regeneration Programme to increase the level of Private Sector
Housing Grant for eligible properties in mixed tenure blocks from 25% to
non-resident owners, 35% to resident owners and 50% to resident
owners on benefits, to an enhanced level in which it pays 25% to non-
resident owners (as before), 50% to resident owners and 75% to
resident owners on benefits.
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3. Background
3.1 The Council’s housing-led regeneration and renewal programme will bring
forward up to £100m additional investment over the next ten years to deliver
high quality energy-efficient homes and environmental improvements.
3.2 The eight areas within the programme contain 1,648 properties of which (at
the outset) 1,147 were in Council ownership and 501 privately owned, so
working positively with owners and providing a menu of options to allow them
to participate in improvements or sell their properties to the Council is crucial
to full delivery of this programme. 
3.3 Of the 501 privately-owned properties, 89 are in blocks recommended for
demolition and the council is currently acquiring those so that demolition can
take place – by 16 February 2023 fifteen had been acquired. 
3.4 Of the remaining 412 privately-owned properties, the majority are in mixed-
tenure blocks in which the Council hopes to carry out improvement works but
around 90 properties are in blocks with no Council ownership. 
3.5 In the mixed-tenure blocks, as an alternative to participating in improvement
programmes, owners will be offered the opportunity to sell to the Council at
the market value of their properties. The cost of acquiring these properties will
be met from the Housing Revenue Account and at present Scottish
Government grant funding is available through the Affordable Housing
Programme at £30,000 per house for a limited number of these (50 in the next
five years between the Council and the local housing associations). 
3.6 In these circumstances owners can:
 Sell, with occupiers making their own arrangements for alternative
housing – housing options advice will be provided;
 Sell to the Council in exchange for another Council property of a similar
value in a different location (excambion); or
 Sell, remain in the property and become a tenant of Renfrewshire Council
(available to resident owners only).
3.7 Where owners in mixed-tenure blocks do not sell to the Council, they will be
provided with estimated costs for the improvement work and the options
available to pay for it. Information will be provided on the different elements of
work and the benefits they will bring. As most of the work required will be an
improvement, the agreement of all owners within each block will be needed
before it can proceed. There may be some work that could be undertaken
through a “scheme decision” provided for by the Tenements (Scotland) 2004
Act whereby each property has one vote and works can proceed if there is a
majority vote in favour. We will notify owners and clearly explain the voting
process.
3.8 Due to the comprehensive nature of the whole house retrofit approach, base
costs for owners will be relatively high in comparison with previous mixed
tenure investment programmes. The Council will try to reduce this cost as
much as possible, without compromising the specification.

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3.9 Any additional funding that can be accessed to bring down the costs for
owners will be sought. The main Scottish Government programme currently is
the Home Energy Efficiency Programme for Scotland Area Based Schemes
(HEEP:ABS). The programme is targeted at private sector homeowners to
assist their participation and ensure projects to improve energy efficiency can
proceed. Local authorities act as coordinating agents for all HEEPS:ABS
programmes for their area. Renfrewshire Council has a successful track
record in utilising this funding, levering in £17million since the programme’s
introduction in 2013/14. This has enabled a range of external wall insulation
projects to be carried out in multi tenure blocks to support the Council’s
Housing Revenue Account investment programme, as well as external wall
insulation programmes by local housing associations. At present the funding
in Renfrewshire is for schemes covering properties of a solid wall construction
type. Under this criterion the only areas which would currently benefit in the
regeneration and renewal programme are the Howard Street and Auchentorlie
areas.  However, officers are working to seek any further opportunities that
may be available to expand the range of work that could fall under
HEEPS:ABS funding.
3.10 As the push towards net zero carbon emissions continues, it is likely that over
the next few years we will start to see changes to Government programmes
and options to support owners to make improvements to their homes. It will be
important for officers to keep abreast of all opportunities and be flexible and
creative in using any external funding options. Home Energy Scotland (HES)
offers a range of support to owners and landlords, namely the form of loans at
present, to help them undertake energy efficiency work. These schemes are
subject to change, and there are various eligibility criteria to be met. Staff will
refer owners who are considering participating to HES for the most up-to-date
advice on schemes available.
3.11 The Council’s Scheme of Assistance sets out the support provided to private
homeowners to repair and improve their properties. Owners being asked to
participate in mixed tenure works are eligible for Private Sector Housing Grant
with the levels depending on their personal circumstances. The existing levels
of assistance are: 
 50% for resident owners on benefits
 35% for resident owners
 25% for non-resident owners (commercial or private landlords)
3.12 Owners participating in the programme will be able to agree a repayment
plan, based on their financial circumstances and the level of debt. They may
also be offered a form of equity release in which the Council would take
security over the house and take repayment when it was next sold. 
3.13 Given the relatively high costs of the improvement works in the Housing
Regeneration areas, and the desirability of securing a high level of
participation to secure the area transformation that it proposed, it is
recommended that the Scheme of Assistance for properties in the Housing
Regeneration Areas, is revised to 25% for non-resident owners (no change),
50% for resident owners and 75% for resident owners on benefits.

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3.14 For the avoidance of doubt the Council’s Scheme of Assistance only allows
the payment of Private Sector Housing Grant in mixed-tenure blocks and
there is no proposal at this time to extend eligibility for it to owners in wholly
privately-owned blocks.
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Implications of the Report
1. Financial – the Financial implications of these proposals will be included
within the Council’s General Fund forward planning assumptions and
managed as part of the annual budget setting proposals in line with the
relevant financial year. 
2. HR & Organisational Development – none. 
3. Community/Council Planning –  
 Reshaping our place, our economy and our future – increased take-up of
Private Sector Housing Grant will make it more likely that housing-led
regeneration will include mixed-tenure blocks.
 Tackling inequality, ensuring opportunities for all – the proposed changes
to the levels of Private Sector Housing Grant available will address
economic inequalities between owners.
4. Legal – none. 
5. Property/Assets – none. 
6. Information Technology – none. 
7. Equality & Human Rights – recommendations contained within this report
have been assessed in relation to their impact on equalities and human rights.
No negative impacts on equality groups or potential for infringement of
individuals’ human rights have been identified arising from the
recommendations contained in the report.  If required following
implementation, the actual impact of the recommendations and the mitigating
actions will be reviewed and monitored, and the results of the assessment will
be published on the Council’s website. 
8. Health & Safety – none. 
9. Procurement – none. 
10. Risk – the proposed changes to the levels of Private Sector Housing Grant
available will make it less likely that mixed-tenure blocks are excluded from
improvement contracts.
11. Privacy Impact – none. 
12. COSLA Policy Position – none. 
13. Climate Change – none.

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___________________________________________________________________
List of Background Papers 
The contact officer within the service is Ray Walkinshaw, Housing Regeneration and Development
Manager, Communities & Housing, ray.walkinshaw@renfrewshire.gov.uk 
___________________________________________________________________ 
Author: Ray Walkinshaw, Housing Regeneration and Development Manager 0141 487 2189
ray.walkinshaw@renfrewshire.gov.uk.