Item 10 - More Homes West Dunbartonshire – WDC Affordable Housing Supply Delivery Programm
West Dunbartonshire Council · 20 November 2024
Back to Housing & Communities Committee — 20 November 2024 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer, Housing and Employability Housing and Communities Committee: 20 November 2024 __________________________________________________________________ Subject: More Homes West Dunbartonshire – West Dunbartonshire Council Affordable Housing Supply Delivery Programme 1. Purpose 1.1 This purpose of this report is to provide the Housing and Communities Committee an update on progress with West Dunbartonshire’s More Homes Programme which oversees the delivery of the Council’s new home building programme. 2. Recommendations 2.1 It is recommended that the Housing and Communities Committee: (i) Notes the content of the report and the progress made to date in the delivery of the Council’s More Homes West Dunbartonshire approach, including the first handovers of new homes at the zero carbon Clydebank East development which represents the 500th new build the Council has developed under the current More Homes programme; (ii) Approve the updated estimated costs for O’Hare (Bonhill gap site) development noted in section 4.4 of this report and authorise the Chief Officer – Regulatory and Regeneration to conclude the award of the Contract up to the updated estimated costs for the development of the new homes at the O’Hare site; (iii) Note the revised Resource Planning Assumption (RPA) following the allocation of an additional £309k to support acquisitions related to minimising the use of temporary accommodation referenced at sections 4.5-4.8 of this report: and (iv) Note the increased Affordable Housing Supply grant benchmark levels following a review undertaken by the Scottish Government highlighted at section 4.9 of this report. 3. Background 3.1 In West Dunbartonshire the Affordable Housing Supply Programme (AHSP) is delivered through a More Homes West Dunbartonshire strategic approach which has successfully delivered over one thousand new affordable homes in ITEM 10
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West Dunbartonshire to date and includes the Council’s own ambitious New House Building Programme. 3.2 The Council’s last full practical completion took place at the Queens Quay development in September 2022 delivering twenty-nine new Council homes in a key regeneration area as part of a wider development which has delivered 146 new social rented homes. The homes were the first residential properties to be heated from the Council’s Queens Quay District Heating Network. This development was recognised at national housing sector awards winning the following: - Best Residential Regeneration Project – Herald Property Awards Inside Housing Best Residential Development (Scotland) 3.3 These 29 new homes, are in addition to the completion of the Council’s first fully dementia designed development at Creveul Court, Alexandria and other exemplar developments in Haldane, Aitkenbar, Bellmsyre, Dumbarton Harbour and St Andrews, Clydebank. The Council have now completed twelve new build developments since 2013 and are the largest developer of social homes in West Dunbartonshire delivering 508 new homes and 137 acquisitions through our buyback scheme to date as outlined in Table 1 below. The 500th new build home in the More Homes West Dunbartonshire delivery programme was delivered in October 2024 at our current Clydebank East development: Table 1: Completed Council New Build and Acquisitions Project No. of Units Completion Date Granville Street (Phase 1), Clydebank 24 July 2013 Miller Road, Alexandria 15 October 2013 Granville Street (Phase 2), Clydebank 9 February 2014 Central Bellsmyre, Dumbarton 36 December 2014 Hillstreet Square, Dumbarton 37 August 2015 Second Avenue, Clydebank 40 April 2018 Creveul Court, Alexandria 22 April 2021 Aitkenbar Primary School 55 July2021 Haldane Primary School 58 August 2021 St Andrews, Clydebank 126 October 2021 Dumbarton Harbour, Dumbarton 45 December 2021 Queens Quay, Site B, Clydebank 29 August 2022 Clydebank East, Clydebank 12 Ongoing Buyback Acquisitions 137 Ongoing Totals 645 3.4 The Strategic Housing Investment Plan (SHIP) 2024-2029, outlining West Dunbartonshire’s Affordable Housing Supply Programme through the More Homes West Dunbartonshire approach was approved by the Housing and Communities Committee in November 2023. The SHIP outline plans to meet the Council Administration’s aim of delivering 2500 new affordable and social rented homes over the next 10 years. A refreshed SHIP will be submitted to the November meeting of the Housing and Communities Committee.
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4. Main Issues More Homes West Dunbartonshire - Delivery Programme 4.1 Building new affordable homes has an important role to play in revitalising local economies and assisting with post-pandemic and economic recovery plans, negating the impacts of the current cost of living crisis and combatting poverty principally child and fuel poverty. It is also clear that the need for affordable homes has and will increase in the current ongoing economic environment. 4.2 Our More Homes West Dunbartonshire approach is an ambitious plan that aims to continue the positive momentum of the delivery of much needed Council homes in West Dunbartonshire and will significantly assist the Council’s aim to deliver 2500 new social and affordable homes by 2032. 4.3 As the biggest affordable housing developer in West Dunbartonshire, the Council has identified several future development sites for new council homes to address existing and new housing need. The design of these homes will further develop, improve, and exceed current best practice, providing sustainable homes using innovative technology and delivering on our low carbon ambitions including passivhaus and other net zero carbon opportunities. 4.4 The Strategic Housing Investment Plan and HRA Capital Plan outlined the plans the Council have for meeting their new build ambitions. An update on each development site is provide below: - Clydebank East: This development will deliver eighty-eight new homes and has been designed to meet the housing need within the wider West Dunbartonshire area. The table below shows the housing mix: House Type Sustainability Standard Number of New Homes Wheelchair Bungalow 3bed/4person Net Zero 3 House 3bed/5person Net Zero 15 House 4 bed/7person Net Zero 12 House 5 bed/8 person Net Zero 8 Wheelchair Cottage Flat 1bed/2 person Net Zero 4 Cottage Flat 2 bed/4 person Net Zero 4 Flat 1 bed/2person Net Zero 16 Flat 2 bed/4 person Net Zero 24 Wheelchair Flat 1 bed/2person Net Zero 2 Works commenced on this development in January 2023. The first 12 units were handed over on 7th October 2024. Sectional handover number 2 is
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scheduled for 18th November 2024 and will include 3-, 4- and 5-bedroom houses. All houses are designed to the Housing for Various Needs Standard (HfVN). There will be nine fully Wheelchair (WCH) accessible properties. The 4- and 5 -bedroom homes have ground floor double bedrooms. The development at Clydebank East will see the completion of a major housing led regeneration of a key priority regeneration area identified in the Local Housing Strategy and will be the first fully zero carbon housing development in West Dunbartonshire and marks a significant milestone in our transition to net zero new homes approved at the August 2022 meeting of the Housing and Communities Committee. We have previously reported award of above benchmark grant due to the complexities of the development at Clydebank East this resulted in a total grant award of £12.6m, this equates to over £143k grant per home and around £4.68m more than the benchmark grant award this ensured the delivery of the development without any negative impact on the wider Housing Revenue Account. Pappert, Bonhill This project enjoyed a site start date in early March, delivering the housing mix as follows: - House Type Sustainability Standard Number of New Homes House 3bed/5 person Passivhaus 6 House 3bed/5 person Net Zero 6 House 4bed/6person Net Zero 4 House 4bed/7person Net Zero 1 Flat 2bed/3person w/c Net Zero 3 Flat 1 bed/2person Net Zero 6 The development should be complete for handover in summer 2025. Mount Pleasant, Old Kilpatrick The site started on 15th April 2024 and construction will last approximately one year. This is a 19-unit complex which is designed for elderly residents and will deliver high quality amenity housing, the housing mix is outlined below for information. House Type Sustainability Standard Number of New Homes Bungalow 1bed/2person Net Zero 3 Flat 1bed/2person w/c Net Zero 4
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Flat 1bed/2person Net Zero 4 Flat 2bed/4person Net Zero 8 Willox Park, Doveholm, Dumbarton The development of seventeen new homes to be delivered at the former care home site. House Type Sustainability Standard Number of New Homes Flat 2bed/3person Net Zero 2 Flat 1 bed/2person Net Zero 15 This development has now been granted planning permission and a contractor, McTaggart Construction, has been appointed to begin the construction phase. Construction will commence in November on this project. The net zero heat strategy will be delivered by ground source heat pump, as it was felt that this solution to be preferable than an air source heat pump for each home. Current tenants at Willox Park have been consulted throughout the design process and this has continued with the contractor holding Q&A sessions. Bonhill Gap Site Strategy The pre-planning application process has commenced on the development of the three separate gap sites delivering thirty-four new homes which are contained within this wider development project outlined in the table below. Planning has been submitted for all sites with approval expected to be granted for Braehead and Campbell St in November and O’Hare determination date set for 25/11/2024. Site Braehead Campbell St O’Hare 1 bed 8 (4 WCH + 4 GN) 6 6 2 bed 3 (WCH) 3 bed 3 4 bed 2 5 bed 4 6 bed 7 bed 2 Total 17 11 6
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As has been noted to committee previously, the original design proposal for the O’Hare development site did not achieve a positive financial viability assessment and the design was revised, Committee is asked to note and approve the updated estimated costs for the O’Hare project of £1,505,000 and to develop a procurement strategy to appoint a contractor up to this estimated cost. The previous estimated costs for he revised design was £1,424,221.26. This is a 5.7% increase that assumes an inflationary cost increase for when the tender submissions return. Bank Street, Alexandria The development will consist of twenty-two sheltered/amenity housing units in partnership with the HSCP. Planning has been submitted. House Type Sustainability Standard Number of New Homes Flat 1bed/2person w/c Net Zero 22 Communal Room Net Zero 1 Staff Office Net Zero 1 A planning decision is expected at the end of November along with the return of the tender submissions from contractors. Similar to Willox Park, tenants at Gray Street have been consulted throughout the design process. Clydebank Health Centre Having received the feasibility report for the site, we aim to develop 20+ units of sheltered housing to strategically improving the provision of sheltered accommodation within Clydebank. We also aim to build around eighteen units of mostly family housing. We have discussed proposals with tenants at Young Street on the proposition of developing a new sheltered complex on the old Clydebank Health Centre site. This was met with a largely positive reaction and consultation with tenants, staff and other stakeholders will continue throughout the design process. A multidisciplinary design team, led by Collective Architecture, who carried out the feasibility study, have been appointed through the Scottish Procurement Alliance framework to carry forward the above-mentioned site proposal designs. The demolition of the Health Centre was awarded to Caskie Ltd and works commenced on the 3rd of June and the demolition programme is scheduled for around 20 weeks. There has been a delay in the demolition due to issues with gas disconnections. The estimated completion date of the site is now 2/12/2024. Gilmour Avenue, Hardgate
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As part of the wider development of our Clydebank Gap Site strategy we identified a Housing Revenue Account site in the Hardgate area at Gilmour Avenue. The site was previously the location of timber garages on concrete bases. These have long since been demolished and the site has been beset with fly tipping issues for several years. The development started on site on 23/9/2024 and has a completion date of 14/2/25. Connect modular, the contractor, is having a day of learning about construction with the local primary school, Goldenhill Primary, and the pupils will be invited to watch the housing modules arrive on site. Dennystoun Forge Gypsy/Traveller Site The project has been scored and assessed as a priority in the new SHIP 2025 -2030, with a proposed site start next financial year. Our in-house design team and Procurement colleagues are proceeding to detail our plans. Engagement continuous with the Dennystoun Forge community. Our focus remains on decant options, where we are engaging with our Assets and Planning colleagues on the possible use of an identified alternative site for decanting during the works, and on procurement, where we have consulted with other local authorities with experience of similar projects. The decant arrangements have thrown up a series of questions which we will be discussing with the community. While the costs for the decant site are likely to be high, overall, we expect a saving to be achieved through giving the eventual works contractor free access to the Dennystoun Forge site. Queen Mary Avenue, Clydebank (Clydebank Gap Sites) The transfer of the site at Queen Mary Avenue, Clydebank with vacant possession at the cost of £140,000 from the Council’s General Fund to the Housing Revenue Account for the delivery of new Council homes was approved at the February meeting of the Housing and Communities Committee and has now been concluded. The demolition contract for the units was awarded to Caskie Ltd. The programme started on 6th July and was completed in September 2024. An Employer’s Agent/QS has been procured to assist moving this Design and Build project forward. Silverton Regeneration The demolition for the two identified sites in Smollett Road and Dumbuie Avenue started on 2/10/24 and the contract period is 6 weeks. We are currently developing a design for future replacement housing on the site.
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Queens Quay, Site C, Clydebank The Council has been developing a design to deliver a projected twenty units on this site to complement the housing mix within sites A and B. This development will also be designed to meet low/zero carbon principles and linked to the Queens Quay district heating network. . Pre-planning response was received on the 25 February highlighting concern of the WDC development proceeding in isolation. We have adopted a proactive response to this issue and have developed masterplan diagrams incorporating the surrounding sites and have conducted valuations on the adjacent site to Queens Quay C with a view to purchasing additional land to deliver more affordable housing in the Queens Quay regeneration site. If this is achieved, we would seek to develop a mixed tenure approach to any expanded development site delivering one hundred new affordable homes. We are seeking discussion with CRL (Clydeside Regeneration Limited) to progress the possibility of acquiring this additional land and will be able to draw down Scottish Government grant to enable this. However, because of the uncertainties surrounding potential delivery timescales for this project and the reduced funding it is no longer allocated funding within the current Strategic Housing Investment Programme. Buyback Programme Total number of properties purchased in 2024/25 financial year 17 Total Purchase Value £1,673,700 We have completed nine purchases since the last board and that includes five larger family properties comprising of three bedrooms or more. 4.5 The West Dunbartonshire Strategic Housing Investment Plan 2024/25 – 2028/29 (SHIP) was approved by West Dunbartonshire’s Housing and Communities Committee in November 2023 and submitted to the Scottish Government. Our Council Annual Resource Planning Assumption (RPA) from the Scottish Government supporting the delivery of the SHIP was £10.795m. The budget cut has reduced this figure to £8.167m for 2024/25, a cut of 24%. 4.6 In September 2024, the Scottish Government revised 2024-25 RPAs with immediate effect to take into account an additional £40m acquisition funding. While the Scottish Government recognised that all local authorities are facing a range of housing and homelessness pressures, the allocation of this funding was predicated on the Scottish Government’s perception that because of enduring pressures experienced by a handful of local authorities over a number of years have that this funding should be targeted. 4.7 Using a methodology based on consistently high temporary accommodation numbers as an indicator of acute need this funding was targeted to five local authorities, and 80% of the £40m was allocated to these five local authority areas (Edinburgh, Fife, Glasgow, South Lanarkshire, and West Lothian). The
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remaining 20% of the £40m has been allocated across the other twenty-seven local authority areas, using the same distribution methodology, to inform each local authority area’s share. 4.8 The additional allocation of the £40m for West Dunbartonshire Council is £309k and the total RPA for 2024-25 for the Council is now £8.477m. The additional £309k requires to be directed towards acquisitions to help address temporary accommodation pressures. 4.9 As of 10th October 2024, updated affordable housing investment grant benchmark levels were introduced. These were informed by adjusting the data from the Scottish Social Housing Tender Price Index for the entire 2023 calendar year – resulting in an increase of 5% across the board. An additional quality measure benchmark of £4,560 per unit (at the three-person equivalent level) has also been introduced to account for key changes introduced by the February 2023 revision of building regulations. The revised benchmark levels are illustrated in the table below: - Revised Affordable housing investment benchmarks (from 10/10/24): Baseline benchmarks Project type West Highland, Island authorities, and remote/ rural Argyll Other rural City and urban RSL social rent £117,222 (3 person equivalent) £101,878 (3 person equivalent) £95,741 (3 person equivalent) Council social rent £101,878 (3 person equivalent) £92,673 (3 person equivalent) £87,763 (3 person equivalent) RSL mid- market rent £71,806 (3 person equivalent) £69,351 (3 person equivalent) £65,669 (3 person equivalent) Council mid- market rent £65,055 (3 person equivalent) £63,214 (3 person equivalent) £60,145 (3 person equivalent) Additional quality measure benchmarks Homes delivered to Section 7, Silver Level, of the 2019 Building £2,455 per home
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Regulations in respect of Energy for Space Heating (that is, full Bronze Level plus Aspect 2 of Silver Level).1 (3 person equivalent benchmark) Homes delivered to the updated provisions for energy performance, ventilation and assessment of overheating risk introduced through building regulations in February 2023.2 £4,560 per home (3 person equivalent benchmark) Provision of balconies within flatted developments to enable people to sit outside, where the provision of private or communal outdoor space cannot otherwise be accommodated. £4,910 per home (3 person equivalent benchmark) Provision of space for home working or study – to note that this benchmark does not apply to projects meeting current Housing for Varying Needs standards3. In all other circumstances, grant applicants should demonstrate that additional space is necessary to deliver this measure in order for this benchmark to apply i.e. it is not possible to incorporate this within the design of the homes under current space standards.4 £4,297 per home (3 person equivalent benchmark) Digitally-enabling – when a tenant gets the keys to their home they should be able to arrange for an internet connection to ‘go live’ without the internet service provider having to provide additional cabling to the premises.5 £369 per home (3 person equivalent benchmark) Installation of ducting infrastructure for electric vehicle charge point connectors. £614 per connector (3 person equivalent benchmark) Installation of electric vehicle charge points (excluding installation of ducting infrastructure).6 £614 per charge point (3 person equivalent benchmark) Installation of automatic fire suppression systems. £3,682 per home (3 person equivalent benchmark)
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Installation of zero direct emissions heating systems.7 £4,910 per home (3 person equivalent benchmark) 4.10 The increase in the grant benchmark is welcomed and will assist in ensuring the affordability of the new build programme. However, the additional grant funding requires to be delivered from the current RPA for 2024/25 which will increase pressure on the funding available this financial year. For future years we await the outcome of the Scottish Government budget proposals in December this year which we hope will provide some added certainty regarding future years funding availability to deliver the Affordable Housing Supply Programme. 4.11 The Housing Development Team are continuously looking for opportunities to provide additional new build council homes and will bring any potential site to the Housing and Communities Committee with as much information as possible as part of the regular More Homes update paper. 5. People Implications 5.10 The delivery of the More Homes delivery programme is managed through existing resource within the Housing Development & Homelessness team funded from the Housing Capital Investment Programme. 6. Financial and Procurement Implications Financial 6.1 On 6 March 2024 Council approved the Housing Capital Programme 2023- 2028 which saw significant resources committed to the delivery of new council homes in West Dunbartonshire. An expenditure budget of £155m for the affordable housing supply programme is factored into the HRA Capital Programme this will be updated to reflect the income and expenditure highlighted within this report. As it currently stands, it is anticipated that this programme will complete on project life budget. 6.2 Housing and Finance Officers will continue to assess the ongoing affordability of future developments within the context of the Housing Revenue Account Business Plan. Procurement 6.3 All new development sites will be subject to new detailed procurement strategies and the opportunities highlighted within 4.5 of this report will continue to be prioritised. Where the contract award is less than £213,000, authority is delegated to the Chief Officer in consultation with the Procurement Manager to instruct the award of contracts for the planned revenue and
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capital spend detailed in this report to suppliers providing the most economically advantageous offer to the Council. 6.4 All procurement activity conducted by the Council more than £2m is subject to a contract strategy. The contract strategy for new housing development within the HRA Capital Programme will be developed by the Corporate Procurement Unit in consultation with Housing Development Officers. The contract strategy will include, but is not limited to; contract scope, service forward plan, the market, procurement model and routes – including existing delivery vehicles, roles and responsibilities, risks, issues and opportunities and on-going contract management. Opportunities to maximise the positive social, economic, and environmental impact for the Council through the relevant procurement processes will be developed in line with procurement policy. 7. Risk Analysis 7.1 All Council new build projects have their own Risk Register which highlights the risk within and out-with the project team’s control. These are maintained and adjusted on an on-going basis. 7.2 With any new build project there is a risk that as the projects develop the cost increases beyond the estimated contract cost. Any additional borrowing requirements, or conversely, cost savings will be reported to future meetings of the Housing and Communities Committee. However, this is mitigated through a target cost model approach in our current contract arrangements within the Scottish Procurement Alliance (SPA) framework and Scotland Excel. 8 Environmental Sustainability 8.1 The delivery of new homes is within the approved More Homes zero carbon approach. Our current and future approach to strategic housing asset management will continue to prioritise a ‘zero carbon’ approach to decision making and deliverability and this will be done the aims of the Housing Asset Management Strategy and the Council’s Climate Change Strategy. 9. Equalities Impact Assessment (EIA) 9.1 The proposal does not alter any existing policy or pattern of service delivery and so is not considered to require an equalities impact assessment. 10. Consultation 10.1 As part of a rent consultation exercise, 92% of respondents indicated their support for the Council’s ambitious plans to deliver the Housing Revenue Account (HRA) new council house build programme. In addition, there was positive support for the wider delivery of new build housing as part of the recent Local Housing Strategy. Regular updates on new build development
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are provided to the West Dunbartonshire Tenants and Residents Organisation at the bi-monthly liaison meetings. 11. Strategic Assessment 11.1 The Local Housing Strategy is the overarching document setting out the strategic direction for housing across all tenures and informs the future investment in housing and related services across West Dunbartonshire. 11.2 Having considered all the Council’s strategic priorities, this report, and the provision of new supply social housing for rent contributes greatly to all the Council’s strategic priorities. Peter Barry Chief Officer, Housing and Employability Date: 7 November 2024 Person to Contact: John Kerr – Housing Development and Homelessness Manager, Housing Development and Homelessness Team, Housing and Employability, telephone: 07793717981, email: john.kerr@west-dunbarton.gov.uk Mikayla Deeley, Senior Housing Development Officer, Housing Development and Homelessness Team, Housing and Employability: email mikayla.deeley@west- dunbarton.gov.uk Appendices: None Background Papers: West Dunbartonshire Council’s Local Housing Strategy Local Housing Strategy, Health Inequalities Impact Assessment Wards Affected: All