Housing Services Activity Update - Strategic Housing Investment Plan (Ship) - Annual Update
Argyll and Bute Council · 8 March 2023
Back to Oban Lorn & The Isles Area Committee — 8 March 2023 and its agenda
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ARGYLL AND BUTE COUNCIL OBAN LORN AND THE ISLES AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 8 MARCH 2023 HOUSING SERVICES ACTIVITY UPDATE - STRATEGIC HOUSING INVESTMENT PLAN (SHIP) – ANNUAL UPDATE 1.0 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to update Members of Housing Services activity and progress with the Local Housing Strategy for the Oban, Lorn and the Isles area. This report will detail the following housing activity:- Housing Need and Demand Homelessness Affordable Housing Supply - Strategic Housing Investment Programme (SHIP) Empty Homes Private Sector Housing Grant Adaptations Private Sector Housing Grant Repairs and Improvements Energy Efficiency - Home Energy Efficiency Programme: Area Based Scheme(HEEP:ABS) Local Housing Strategy 2.0 RECOMMENDATIONS 2.1 Members are asked to consider the content of the report.
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ARGYLL AND BUTE COUNCIL OBAN LORN AND THE ISLES AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 8 MARCH 2023 HOUSING SERVICES ACTIVITY UPDATE - STRATEGIC HOUSING INVESTMENT PLAN (SHIP) – ANNUAL UPDATE 3.0 INTRODUCTION 3.1 The main purpose of this report is to update Members of Housing Services activity and progress on the Local Housing Strategy within the Oban, Lorn and the Isles area. This report will detail the following housing activity:- Housing Need and Demand Homelessness Affordable Housing Supply - Strategic Housing Investment Programme (SHIP) Empty Homes Private Sector Housing Grant Adaptations Private Sector Housing Grant Repairs and Improvements Energy Efficiency - Home Energy Efficiency Programme: Area Based Scheme Local Housing Strategy 4.0 RECOMMENDATIONS 4.1 Members are asked to consider the content of this report. 5.0 DETAIL 5.1 As the Strategic Housing Authority for this area, the Council has a series of important statutory housing functions to fulfil. A Housing Need and Demand Assessment (HNDA) is carried out every 5 years which enables Scottish Government funding to be brought into Argyll and Bute primarily to deliver affordable housing. A comprehensive revision of the local HNDA was approved as “robust and credible” by the Scottish Government’s Centre for Housing Market Analysis in December 2021. The Council also produces a Local Housing Strategy (LHS) every 5 years. The LHS 2022-27 was approved by Full Council in December 2021.
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The LHS has been developed in accordance with Scottish Government guidance and local priorities as identified in the new HNDA. .This sets out the vision for Argyll and Bute: “Everyone in Argyll & Bute has access to a suitable, high quality home which is affordable and located within a vibrant, sustainable and connected community.” This report will detail the housing activity taking place in Oban, Lorn and the Isles. 5.2 HOUSING NEED & DEMAND IN OBAN, LORN & THE ISLES HOMEArgyll WAITING LIST November 2022 – Active Applicants (excluding applicants with 0 points i.e. no need) Minimum Bedroom Size Required TOTAL 0/1beds 2beds 3beds 4+beds Lorn 327 133 88 37 585 Mull & Iona 48 14 3 4 69 Coll & Tiree 14 5 3 2 24 OLI Totals 389 152 94 43 678 In addition there was a registered demand from almost 307 applicants who received nil points according to the Common Allocation Policy and therefore would be deemed not to have a defined housing need. This included 271 applicants for Lorn; 30 for Mull & Iona; and 6 for Coll & Tiree. For the Oban Lorn and Isles area as a whole, the majority of applicants (57%) require one bedroom and 23% require 2 bedrooms.14% require 3 bedrooms and 6% need 4 bedrooms or more. However, to establish actual need, the available supply must be factored into this, based on the available lets within the RSL stock during a year. Applicants per available RSL Let (Pressure Ratios) HOMEArgyll Applicants RSL Lets 2021/22 (HOMEArgyll only) Pressure Ratio Lorn 585 199 3:1 Mull & Iona 69 16 4:1 Coll & Tiree 24 0 24:1 OLI Totals 678 215 3:1 (NB. 2020/21 lets were partially constrained due to covid measures) While the pressure ratios are only one factor in determining need and demand, they are useful indicators of areas where further analysis may be required. The fully revised Argyll & Bute HNDA 2021 takes account of a wide range of factors to determine existing need and future demand for new build housing, and demographic projections have a critical role in this assessment. Although the default population projections suggest a significant and continuous decline across Argyll and Bute, and consequently minimal or zero requirement for new
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build housing, the council has developed ambitious Housing Supply Targets based on an alternative, positive growth scenario for all areas. In this instance, 28% of the Argyll & Bute Housing requirement would be apportioned to Lorn; 4% to Mull & Iona; and around 1% to Coll & Tiree. Over the next 5 years this could amount to at least 480 new builds across all tenures for the OLI area as a whole. 5.3 HOMELESSNESS Homeless applications across the area increased by 22% (74 up to 90) in the Oban, Lorn and the Isles area during 2021/22. These applications included 1 homeless application on Mull. During 2021/22 there were 81 homeless cases closed in the Oban, Lorn and the Isles area. 78 of the cases were in the Oban and Lorn area 2 cases on Coll and Tiree, and 1 case was on Mull. The figures below illustrate the number of homeless applications and cases closed for the period from 2017/18 to 2021/22. The main reasons for presenting as Homeless last year were “disputes with family/relationship breakdown – non-violent, “asked to leave” and ‘other action by landlord resulting in the termination of tenancy’. 0 20 40 60 80 100 120 Applications Cases Closed Applications Cases Closed Applications Cases Closed Coll and Tiree Lorn Mull and Iona Homeless Applications and Cases Closed 2017/18 -2021/22 2017/18 2018/19 2019/20 2020/21 2021/22
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Rough Sleeping The Oban, Lorn and Isles area experienced an increase in the incidence of rough sleeping over the same period last year, with 7 cases (+2) in total across the area reporting that they slept rough the night preceding their presentation and 13 (+8) reporting that they had slept rough in the 3 months preceding their homeless application. These were disaggregated as follows:- AREA Number of Rough Sleepers in 2021/22 Night Before Application 3 Months Prior to Application Oban, Lorn area 7 13 Mull and Iona 0 0 Coll and Tiree 0 0 OLI Total 7 13 Argyll & Bute 17 28 0 2 4 6 8 10 12 14 16 18 20 1. Termination of tenancy/mortgage due to rent arrears/default on payments 10. Dispute with household/relationship breakdown: non-violent 11. Fleeing non-domestic violence 12. Harassment 13. Overcrowding 14. Asked to leave 15. Other reason for leaving accommodation/household 2. Other action by landlord resulting in the termination of the tenancy 3. Applicant terminated secure accommodation 4. Loss of service/tied accommodation 5. Discharge from prison/hospital/car/other institution 7. Forced division and sale of matrimonial home 8. Other reasons for loss of accommodation 9. Dispute with household violent or abusive Oban, Lorn and The Isles Combined Reasons for Homelessness 2021/22
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5.4 AFFORDABLE HOUSING SUPPLY This continues to be a very challenging period for the construction sector and there is ongoing slippage in the new build programme due to disruption and shortages with materials and staffing. The Strategic Housing Investment Plan (SHIP) delivered 119 new affordable homes in Lorn in 2021/22. RSL PROJECT Units Funding WHHA Kirk Road, Dunbeg (conversion) 4 £257,362 LINK Dunbeg Phase 3 115 £63,687,000 Oban, Lorn and the Isles Total 119 £63,944,362 The Council recognises that households in the area have difficulty in affording to buy property for principal occupation and in that regard the Council encourages RSL’s to deliver Shared Equity properties in their developments. The Shared Equity model enables eligible households to obtain mortgages from as low as 60% of the value of the property with the Scottish Government retaining the remaining equity in the property. 40 Shared Equity properties are being delivered in Dunbeg as part of the LINK phase 3 development. Further sites/projects in the Oban, Lorn and the Isles area which are in early stages of development and may be programmed in the SHIP include: ACHA North Connel Phase 2(2 units currently on hold) Mull – Craignure, Salen, Dervaig – subject to further feasibility Appin & Connel – pending further analysis LINK “Hospital Site”, Oban (50 units – subject to further feasibility) Lonan Drive, Oban (44 units by 2024) Dunbeg, Phases 4,5 & 6 (150 units in total by 2025) Glencruitten, Oban (100 units in total by 2026 subject to agreement) WHHA Tobermory, Mull Phase 3 (12 units) Port Appin (6 units)
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5.5 EMPTY HOMES In 2021/22 there were 11 private empty homes brought back into use in OLI, with the assistance of the Empty Homes Officer, amounting to 29% all the empty homes brought back into use across Argyll and Bute last year (38). Council Tax Information on Empty Homes The following table breaks down the numbers of empty homes including those subject to premium Council Tax charge across the OLI area. The table does not include properties which are empty and exempt from Council Tax. The numbers of recorded empty homes can vary from day to day due to natural changes and reported numbers are snapshot from November reports. Council Tax Exemptions There are also a number of empty properties which are on the Council Tax register which are exempt from paying council tax. In OLI there are 238 properties which are empty and exempt from Council Tax. The categories for empty properties include: Class 4A = Properties recently occupied but now empty and unfurnished (123) Class 7A = Dwellings Empty Under Statute – Closing or Demolition Order (12) Class 6A = Deceased owners – where estate has not been settled (76) Class 5A= Living/detained elsewhere (19); Class 2A= Unoccupied-Renovation (8) Class 6A= Deceased owner (76) Second Homes As at 1st November 2022 there were 785 registered second homes in Oban, Lorn and the Isles. This figure represents 28% of the total number of second homes in Argyll and Bute (2,815). OLI Council tax data as at 01.11.22 Number of properties on Council Tax register Empty Homes Properties subject to 200% council tax levy Total EMPTY Lorn 8,924 100 87 187 Mull & Iona 1,923 22 37 59 Coll & Tiree 700 6 14 20 OLI TOTAL 11,547 128 138 266
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Self-Catering Lets As at 3rd November 2022 there were 982 self-catering lets on the Rates register in the Oban, Lorn and the Isles area 42% of the Argyll and Bute total (2,321). 5.6 PRIVATE SECTOR HOUSING GRANT – ADAPTATIONS In 2021/22, there were 21 private sector properties adapted with PSHG aid in OLI, and a total of 23 individual adaptations installed. 5.7 PRIVATE SECTOR HOUSING GRANT – REPAIRS AND IMPROVEMENTS In 2021/22, there was a total of 1 PSHG repair and improvement grants completed in OLI, (across Argyll and Bute, the total was 19). 5.8 ENERGY EFFICIENCY (HOME ENERGY EFFICIENCY PROGRAMME: AREA BASED SCHEME – HEEPS:ABS) There were 252 energy efficiency measures installed across Argyll and Bute in 2021/22 via the HEEPS:ABS programme; and 7% of these measures (18) were in Oban, Lorn & the Isles. In total, 13 properties were improved across the Oban, Lorn and the Isles area, at a total cost of £68,658. Grant aid in support of this work amounted to £67,953, 99% of the total costs. Current estimates of Fuel Poverty are based on Home Analytics data:- Area Likelihood of Households in Fuel Poverty Extreme Fuel Poverty Lorn 33% 34% Mull and Iona 26% 30% Coll and Tiree 30% 41% Argyll and Bute 30% 25% Scotland (SHCS) 25% 12% OLI Rates data as at 03.11.22 Number of self-catering properties Lorn 529 Mull & Iona 365 Coll & Tiree 88 OLI TOTAL 982 PSHG ADAPTATION COMPLETIONS 2021 -2022 HMA Grant Value Works Value ADAPTATION INSTALLED Ramp Stairlift Access Bathroom Adaptation Hoist Wash & Dry Unit Oban, Lorn & Isles £ 94,292.32 £ 119,926.15 0 2 5 12 1 3 TOTALS £ 94,292.32 £ 119,926.15 0 2 5 12 1 3
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5.9 LOCAL HOUSING STRATEGY (LHS) 2022-2027 As the strategic housing authority for Argyll and Bute, the Council has a statutory duty to develop, implement and monitor a Local Housing Strategy over a five-year planning cycle, based on a robust and credible Housing Need and Demand Assessment (HNDA) for the area. Following completion of the previous Argyll and Bute LHS (2016-2021) last year, a comprehensive revision and update of the strategy has been approved by the council and formally launched in March 2022. The planning process was based on a robust process of consultation and stakeholder engagement, which has been acknowledged as an exemplar model for other local authorities by the Scottish Government, the CHMA, and the Scottish Housing Network LHS Forum. The revised HNDA was approved as “robust and credible” by the Scottish Government’s CHMA in 2021, and this has informed the revised Housing Supply Targets set out in the new LHS. These targets are based on a positive demographic and economic growth scenario for Argyll & Bute and include ambitious and challenging Housing Supply Targets for the Lorn, Mull & Iona, and Coll & Tiree HMAs over the next 5 years and beyond. 6.0 CONCLUSION 6.1 This report provides the detail of the Council Housing Services team activity in the Oban, Lorn and the Isles area and an overview of the progress achieved with the Local Housing Strategy Action Plan. There are a variety of housing issues within the area which are being tackled by Housing Services and partner agencies with the aim of delivering a functioning housing system which meets the needs of the communities we serve. 7.0 IMPLICATIONS 7.1 Policy - Complies with approved SHIP and Local Housing Strategy. 7.2 Financial - none arising from this report. 7.3 Legal - we have a statutory duty to deliver statutory housing functions. 7.4 HR – none. 7.5 Fairer Scotland Duty: positive in terms of delivering affordable housing. 7.5.1 Equalities - protected characteristics – none. 7.5.2 Socio-economic Duty - positive in terms of delivering affordable housing. 7.5.3 Islands – positive in terms of delivering affordable housing on the islands 7.6. Climate Change – the strategy and housing service deliver positive impacts for energy efficiency and climate change. 7.7 Risk – none. 7.8 Customer Service – none.
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Kirsty Flanagan Executive Director with the responsibility for Development and Economic Growth Councillor Robin Currie Policy Lead for Strategic Development January 2023 For further information contact: Douglas Whyte Team Lead – Housing Strategy E-mail: douglas.whyte@argyll-bute.gov.uk Tel: 01546 604 785 APPENDICES Appendix 1 – Extract from LHS 2022 - 2027 (data as of 2021) Lorn Appendix 2 – Extract from LHS 2022 - 2027 (data as of 2021) Mull & Iona Appendix 3 – Extract from LHS 2022 - 2027 (data as of 2021) Coll & Tiree
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Appendix 1 - Extract from LHS 2022 - 2027 (data as of 2021) Lorn LORN HMA is centred on Oban and includes a number of the small, inner isles such as Easdale, Luing and Lismore. Despite the influence of in-migration, it is the most self-contained housing market in Argyll & Bute with 64% of house sales going to local residents. There was limited interaction with neighbouring HMAs in the local authority (3%) but over 17% of demand is from the rest of Scotland and over 13% from the UK. Overseas house purchasers have only marginal impact in this area, at just over 1% of sales. Average house prices are comparatively high and affordability remains an issue, with a high price-to-income ratio of 6.7 (lower quartile). There has been significant development activity in recent years, and the total dwelling stock increased by 8% between 2015 and 2020, with significant new builds in development or in the pipeline, particularly at Dunbeg. Lorn has 18% of the total housing stock in Argyll and Bute. However, 8% of the stock comprises second/holiday homes and long-term vacant properties. With 1,649 RSL homes in 2020 the area also has the highest provision of social rented stock – over 19% of the authority total. Nevertheless, this area still has the largest waiting list in Argyll and Bute by far, as well as one of the higher levels of homelessness (30% and 18% respectively of the authority totals). In addition HNDA analysis suggests that this area has the second greatest level of backlog need (21% of total backlog need). Population Households Dwellings Ineffective Stock (%) RSL Stock Waiting List Applicants RSL Lets (2019/20) Pressure Ratio Lower Quartile House Price Lower Quartile Income LQ Affordability Ratio 16,053 7,648 8,604 8% 1,649 737 139 5:1 £120,000 £17,892 6.7 Lorn Key issues for Lorn HMA: Increasing the supply of affordable housing remains a critical priority for this HMA. The provision of Housing Options advice and information; and targeted Tenancy Support also remains important. Fuel poverty is an issue and improving energy efficiency will be important too. Ensuring that sufficient specialist provision (accommodation, adaptations, support services etc.) is available to meet the requirements of the ageing population and those with particular needs will also be key to a well-balanced, effective housing system.
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Appendix 2 – Extract from LHS 2022 - 2027 (data as of 2021) Mull & Iona MULL AND IONA are combined for planning purposes as one HMA. As a housing market area, these islands exhibit the lowest level of self-containment in the authority area apart from Coll & Tiree, with less than 45% of house sales going to local purchasers. Around 16% of properties are bought by persons from elsewhere in Scotland; and over a third of all sales (34%) are to purchasers originating elsewhere in the UK, by far the highest proportion of any HMA in Argyll and Bute. Interaction with the rest of the authority is minimal with only 1.4% of sales originating in another local HMA. Mull & Iona have among the highest house prices in Argyll & Bute, well above the average for the authority as a whole and 3 times higher than Bute for example; and along with Islay, Jura & Colonsay; and Coll & Tiree, this is one of the least affordable housing markets for local residents. This area has seen less than 1% rate of growth in total stock, between 2015 to 2020; despite a range of RSL and community-led projects being proposed and progressed in recent years. This still amounts to only 4% of the total dwellings in Argyll & Bute. There is also a high proportion of ineffective stock here, with second/holiday homes and long-term vacant properties making up 15% of the total (albeit this is significantly lower than the last census recorded). The social rented sector totalled 236 homes in 2020, less than 3% of the sector total for Argyll & Bute as a whole and around 13% of the total housing stock on the two islands. There are around 6 applicants for every available let in the area, one of the higher pressure ratios in the authority. Population Households Dwellings Ineffective Stock (%) RSL Stock Waiting List Applicants RSL Lets (2019/20) Pressure Ratio Lower Quartile House Price Lower Quartile Income LQ Affordability Ratio 3,054 1,524 1,851 15% 236 113 20 6:1 £129,375 £18,189 7.1 Mull & Iona Key issues for Mull & Iona HMA: A small-scale targeted programme of affordable new build housing will help to sustain remote island communities. Tackling fuel poverty and improving energy efficiency remain key targets; and ensuring sufficient specialist provision is available to meet the requirements of those with particular needs will also be important.
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Appendix 3 – Extract from LHS 2022 - 2027 (data as of 2021) Coll & Tiree Coll & Tiree constitute the smallest HMA in the authority, and are most affected by house purchasers from out with the area – less than 20% of sales are to local residents, with almost half of purchasers originating elsewhere in Scotland and a further quarter from elsewhere in the UK. More house buyers originate from overseas (5.6%) than from the rest of Argyll & Bute itself (1.4%). Average house prices have been among the highest in Argyll & Bute (albeit the number of sales are very small) and this area has been one of the least affordable to local households with the highest price–to-income affordability ratio of 7.7. Since 2015, the total number of dwellings on the islands increased by almost 8% while the number of households increased by around 12%. Proportionately, this HMA has the highest level of ineffective stock in Argyll & Bute, by far, with almost a third being second/holiday homes or long-term vacant properties. In 2020 there were 54 social rented homes, which amounts only 0.6% of the total RSL sector in the authority. Demand for RSL properties is numerically low but given the limited turnover in existing stock the pressure ratio remains high at 6:1 (i.e. 6 applicants per available let). Population Households Dwellings Ineffective Stock (%) RSL Stock Waiting List Applicants RSL Lets (2019/20) Pressure Ratio Lower Quartile House Price Lower Quartile Income LQ Affordability Ratio 753 452 680 32% 54 19 3 6:1 £128,750 £16,644 7.7 Coll & Tiree Key issues for Coll & Tiree HMA: There is evidence of unmet need on these islands and minimal new build in recent years. Small-scale development of affordable housing for social rent could help to address the demand. The requirement for some form of specialist provision, particularly on Tiree, remains a potential gap which could be addressed by joint working between Housing and the Health & Social Care Partnership. Fuel poverty and energy efficiency also remain priorities for this area.