Item 12 - More Homes West Dunbartonshire - West Dunbartonshire Council Affordable Housing Supply Delivery Programme
West Dunbartonshire Council · 3 May 2023
Back to Housing & Communities Committee — 3 May 2023 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer, Housing and Employability Housing and Communities Committee: 3 May 2023 __________________________________________________________________ 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) Note the content of the report and the progress made to date in the delivery of the Council’s More Homes West Dunbartonshire approach; (ii) Approve the undertaking to conduct all necessary procurement exercises for the new identified sites within the Future New Build – West Dunbartonshire Affordable Housing Supply Programme identified in section 4.4 of this report to deliver new council homes; (iii) Approve the acquisition of the former Clydebank Health Centre site at the cost of £584,500 from NHS Greater Glasgow and Clyde for the delivery of new Council homes; (iv) Note the addition of Gilmour Avenue, Hardgate to the More Homes West Dunbartonshire development programme; (v) Note the scaling up of the Council’s buyback programme and the actions required to meet this ambition; (vi) Note the reduction in housing units within the Pappert development from 27 to 26 and note that this will maintain 112 bedspaces within the development; and (vii) Note the success of the Council’s Queens Quay housing development which has been shortlisted for the Homes for Scotland Awards, Development of the Year (Large) ITEM 12
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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 1000 new affordable homes in West Dunbartonshire to date and includes the Council’s own ambitious New House Building Programme. 3.2 The Council’s latest practical completion took place at the Queens Quay development in September 2022 delivering 29 new Council homes in a key regeneration area as part of a wider development which has delivered 146 new social rented homes. These are first residential properties to be heated from the Council’s Queens Quay District Heating Network. This development has also been shortlisted in the prestigious Homes for Scotland Awards 2023 in the Large Development of the Year category, the award will be presented to the chosen development on 26th May at a ceremony in Edinburgh. 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 12 new build developments since 2013 and are the largest developer of social homes in West Dunbartonshire delivering 496 new homes to date as outlined in Table 1 below: Table 1: Completed Council New Build 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 Totals 496 3.4 The Strategic Housing Investment Plan (SHIP) 2023-2027, 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 2022. 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. The Council has recently received positive feedback from the Scottish Government in respect of our recent SHIP.
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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 recovery plans, negating the impacts of the current cost of living crisis and combatting poverty. It is also clear that the need for affordable homes has and will increase in the current ongoing economic environment. 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. 4.2 As the biggest affordable housing developer in West Dunbartonshire, the Council has identified a number of 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. 4.3 The Strategic Housing Investment Plan and HRA Capital Plan outlined the plans the Council have for meeting their new build ambitions. Some of the initial plans were and continue to be impacted as a result of global issues revised new build targets for the Council are outlined below: Table 2: Council New Build Programme Site/Developer Number of Units Number of Specialist Provision Est Site Start Est Completion Date Clydebank East, Clydebank 88 9 On Site January 2023 Spring 2025 Pappert, Bonhill Alexandria 26 3 Autumn 2023 Winter 2024/25 Willox Park 17 17 Winter 2023/24 Winter 2024/25 Bonhill Gap Sites* 34 4 Winter 2023/24 Winter 2024/25 Bank Street, Alexandria 20 20 Winter 2023/24 Winter 2024/25 Mount Pleasant 19 19 Winter 2023/24 Spring 2025 Queens Quay Site C 100 10 Winter 2023/24 Spring 2025
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*Current Planning figures 4.4 Updates for each site are noted below: Clydebank East: Works commenced on this development on 23 January 2023, as reported to the Housing and Communities Committee in February 2023 the initial programme is for the remedial works and external drainage, a construction site start is programmed for May/June 2023. The total programme for the works will be 116 weeks. This development will deliver 88 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 4 bed/9 person Net Zero 8 Cottage Flat 1 bed/2 person Net Zero 4 Cottage Flat 2 bed/3 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 All houses are designed to the Housing for Various Needs Standard (HfVN). There will be 9 fully Wheelchair (WCH) accessible properties. The 4 and 5 bedroom homes will all have ground floor double bedrooms. The development at Clydebank East will see the completion of a major housing led regeneration of a key priority area identified in the Local Housing Strategy and will be the Council’s first fully zero carbon housing development and marks a significant milestone in our transition to net zero approved at the August 2022 meeting of the Housing and Communities Committee. We will ensure the construction site planned for May/June this year is communicated to all stakeholders. Clydebank Health Centre* 38 5 Winter 2023/24 Spring 2025 Dennystoun Forge 20 20 Spring 2024 Winter 2024 Clydebank Gap Sites* (Gilmour Avenue) 50 10 Spring 2024 Summer 2025 Buyback Scheme (60 per year) 308 36 2023/24 2027/28 720 units 153 units
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Pappert, Bonhill We have reviewed the design proposals for the Pappert development and following an assessment of housing demand information we have maximised the number of the 3 bedroom homes with a ground floor bedroom. While this has the net effect of reducing the number of units in the wider development from 27 to 26, it does not impact on the number of bedspaces within the development. 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 It is anticipated that a planning approval will be granted in August 2023, and a site start in late 2023/early 2024. Willox Park, Doveholm, Dumbarton The development of the new homes to be delivered at the former care home site continues within the design phase towards a full planning application. A landscape architect has been procured for the design team, however the appointment of engineering consultants (structural, civil, mechanical and electrical) has been delayed as we were unable to appoint following a recent tendering exercise. Our development timescales have been updated as a result of this setback. Bonhill Gap Site Strategy The pre-planning application process has commenced on the development of the 3 separate gap sites which are contained within this wider development. We are in the process of procuring engineering consultants as we move closer to a full planning application. We have altered some of the initial design plans to incorporate a number of adaptable 6/7 bed homes within the development to meet identified housing need. Bank Street, Alexandria The council is currently developing a proposal for 21 sheltered/amenity housing units in partnership with the HSCP. This will include an options appraisal in terms of the existing provision within the local area.
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A landscape architect has been procured for the design team and engineering consultants (structural, civil, mechanical and electrical) will be procured shortly. Mount Pleasant, Old Kilpatrick The demolition of the former care home at the site completed in December 2022 ahead of schedule. We have had an initial consultation with the Old Kilpatrick Community Council where we presented our concept of providing housing in a similar style to Creveul Court, Alexandria. An Employers Agent (NBM) have been appointed for this project, they were previously the EA for the recently completed Queens Quay development. The construction procurement strategy is well advanced and will be implemented following the completion of ongoing site investigations and feasibility studies for the development. Queens Quay, Site C, Clydebank The Council has been developing a design to deliver a projected 20 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 carried out 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. We anticipate discussions with CRL (Clydeside Regeneration Limited) in May to progress the possibility of acquiring this additional land. Clydebank Health Centre The Council are continuously looking for opportunities to provide additional new build council homes and this includes through the Scottish Government’s trawl process which seeks to utilise public sector land sales for the delivery of key national ambitions which includes the delivery of new homes. The former Clydebank Health Centre in Kilbowie Road, Clydebank was identified through this process and approval was granted to acquire the site from NHS Greater Glasgow and Clyde at the November meeting of the Housing and Communities Committee for £707,400. However, as reported to the February meeting of the Housing and Communities Committee NHS Greater Glasgow and Clyde chose not to
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complete the transaction in financial year 2022/23, instead choosing to conclude the sale of the land in financial year 2023/24. As a result the Council and NHS Greater Glasgow and Clyde reinstructed the District Valuer to revalue the site to allow the acquisition to conclude in 2023/24. A plan of the area is included as Appendix 1 to this report and has a gross site area which extends to 0.98 ha (2.43 acres). A valuation carried out by the District Valuer in March 2023 placed a valuation of £1.5m for the site. Tripartite discussions involving the Scottish Government, NHS Greater Glasgow and Clyde have revised the previous agreement on a financial assessment on the levels of abnormal costs within the site resulting in an offer of £584,500 subject to Housing and Communities Committee approval. If approval is granted the transfer will be carried out using the process set out in the Scottish Public Finance Manual - Guidelines for the Transfer of Property within the Scottish Public Sector. Dennystoun Forge Gypsy/Traveller Site A submission was made to the Scottish Government for support funding from their Gypsy/Traveller Accommodation Fund for significant improvements to the Dennystoun Forge site, including new energy efficient chalet type accommodation following a consultation exercise with site residents. However, we were notified that this submission was unsuccessful at this point. We have since engaged the Scottish Government following the outcome of this and have provided additional information to the Scottish Government in support of the application. In another positive development the Council’s Housing Development Officer has been providing support to the tenants within the Dennystoun Forge site to establish a registered tenants association, the absence of a recognised tenants group and ongoing site presence was seen as a relative weakness in terms of the initial submission. We anticipate that following the new information provided to support our application for funding Scottish Government officials will reassess the application in advanced of the parliamentary recess 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. We are preparing a demolition programme to allow the site to be cleared as soon as is practically possible.
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Gilmour Avenue, Hardgate (Clydebank Gap Sites) As part of the wider development of our Clydebank Gap Site strategy we have identified a HRA gap 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 a number of years. We are currently undertaking site investigations, and are proposing to construct 2 semi-detached three bedroom homes at this location. As a result of some of the complexities and the scale of the site we are looking at the potential for a modular construction process. This would be the first of this type of construction within our wider More Homes West Dunbartonshire approach. Buyback Programme The Council’s buyback programme which incorporates the Mortgage to Rent Scheme purchased 16 new homes to date in 2022/23. A further 4 completed in early April 2023. In 2023/24 and following approval of the Strategic Housing Investment Plan by the Housing and Communities Committee in November 2022 and subsequently the decision by West Dunbartonshire Council in March 2023 to deliver an enhanced Housing Capital Investment Programme including additional funding for buyback purchases we are now scaling up ambition around our buyback programme. In 2023/24 and in each of the subsequent years up to and including 2027/28 we plan to deliver 60 new homes each year meaning a minimum of 300 new Council homes to meet identified need. The additional funding that was approved by the West Dunbartonshire Council meeting of 1 March 2023 will target larger family homes to meet this specific need. To meet these defined targets we will add additional resource within the Housing team, and we will also refresh our Buyback Policy. This update policy will be submitted to the meeting of the Housing and Communities Committee in November 2023 4.5 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 5.1 An additional Senior Housing Development Officer role is required to deliver the increase and scaling up of the Council’s buyback programme. This will be met within the existing resources outlined in Section 6 of this report. We will also review surveying resource within the team.
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6. Financial and Procurement Implications Financial 6.1 On 1 March 2023 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 The acquisition of the Clydebank Health Centre site will be delivered within the approved expenditure budget outlined in paragraph 6.1 of this report. The addition of the Gilmour Avenue is also incorporated within this expenditure budget. 6.3 The anticipated uprated Affordable Housing Supply Programme grant benchmark assumptions will not be in place from 1 April 2023, and we await clarification from the Scottish Government as to when these will be published and implemented. Notwithstanding the expected increase in benchmark assumptions 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 with 4.4 of this report will continue to be prioritised. 6.4 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 capital spend detailed in this report to suppliers providing the most economically advantageous offer to the Council. 6.5 All procurement activity carried out by the Council in excess of £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
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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. Equalities Impact Assessment (EIA) 8.1 The proposal does not alter any existing policy or pattern of service delivery and so is not considered to require an equalities impact assessment. 9. Consultation 9.1 As part of our previous 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 are provided to the West Dunbartonshire Tenants and Residents Organisation at the bi-monthly liaison meetings. 10. Strategic Assessment 10.1 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. 10.2 Having considered all the Council’s strategic priorities, this report and the provision of new supply social housing for rent contributes greatly to all strategic priorities. Peter Barry Chief Officer, Housing and Employability Date: 18 April 2023
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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 Appendices: 1. Clydebank Health Centre site plan Background Papers: West Dunbartonshire Council’s Local Housing Strategy Local Housing Strategy, Health Inequalities Impact Assessment DVS Valuation Report Development Site: Clydebank Health Centre Wards Affected: All