Item 9 - More Homes WD
West Dunbartonshire Council · 1 May 2024
Back to Housing & Communities Committee — 1 May 2024 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer, Housing and Employability Housing and Communities Committee: 1 May 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 recent site starts at the Pappert and Mount Pleasant developments which means 133 new council homes are at construction stage; (ii) Notes the amended housing mix within the Bonhill Gap Site (O’Hare) development project; (iii) Notes the anticipated 27% reduction in Affordable Housing Supply Programme funding available in 2024/25 in West Dunbartonshire and the ongoing work to refresh the Strategic Housing Investment Programme because of the funding reduction; and (iv) Approve the undertaking to conduct all necessary procurement exercises for the identified sites within the Future New Build – West Dunbartonshire Affordable Housing Supply Programme in section 4.4 of this report to deliver new council homes; 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. ITEM 9
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3.2 The Council’s last 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. The homes were the first residential properties to be heated from the Council’s Queens Quay District Heating Network. This development has been recognised at recent 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 12 new build developments since 2013 and are the largest developer of social homes in West Dunbartonshire delivering 496 new homes and 122 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 will be delivered in late Summer 2024 at our 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 Buyback Acquisitions 130 Ongoing Totals 626 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. 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
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plans, negating the impacts of the current cost of living crisis and combatting poverty including child 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. 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 (First handovers – August 2024) Pappert, Bonhill Alexandria 26 3 On site March 2024 Spring 2025 Mount Pleasant 19 19 On site April 24 Spring 2025 Willox Park 17 17 Summer 24 Autumn 2025 Bonhill Gap Sites* 29 4 Autumn 24 Winter 2025 Queens Quay Site C 100 10 TBC TBC Clydebank Health Centre* 38 22 Spring 25 Spring 2026 Bank Street, Alexandria 22 22 Autumn 24 Autumn 2025 Dennystoun Forge 20 20 TBC TBC Clydebank Gap Sites* 50 10 Summer 24 Summer 2025
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*Current Planning figures 4.5 Updates for each site are noted below: Clydebank East: 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 5 bed/8 person Net Zero 8 Cottage Flat 1 bed/2 person (Wheelchair) 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 Works commenced on this development in January 2023 and the first homes are scheduled to be handed over in August 2024. 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 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. Plans are being developed to mark the significance of the net zero element of the development and the development will see the 500th new home delivered through the More Homes West Dunbartonshire approach. We have now finalised the engagement with the Scottish Government for the above benchmark grant request dues to the complexities of the development (Gilmour Avenue) Silverton Regeneration Tbc Tbc tbc Tbc Buyback Scheme (60 per year) 300 36 2023/24 2027/28 709 units 172 units
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at Clydebank East and have been awarded £12,604,632.37 in Affordable Housing Supply Programme grant funding, this equates to over £143k grant per home. This is a positive outcome and ensures the delivery of the development without any potential 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 Mount Pleasant, Old Kilpatrick This is a 19-unit complex which is designed for elderly residents and will deliver high quality amenity housing. CCG have been appointed as the main contractor following the Tendering Committee in September, having been directly appointed from the Scotland Excel Framework. The site start date was successfully achieved on 15th April 2024 and construction will last approximately one year. Willox Park, Doveholm, Dumbarton The development of seventeen new homes to be delivered at the former care home site continues within the design phase and planning has been submitted by Housing Officers. A decision is expected, via delegated authority, at the end of February. 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. The development will also utilise PV (Photovoltaic) panels and a MVHR (Mechanical Ventilation with Heat Recovery) system. There has been positive dialogue in terms of the current plans with both the Willox Park residents and planning officers. Ongoing engagement will be maintained with the current Willox Park residents throughout the delivery process and the development will be tied to the wider regeneration plans for the Willox Park Sheltered Housing Complex which were approved by the Housing and Communities Committee in February 2024. Bonhill Gap Site Strategy
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The pre-planning application process has commenced on the development of the 2/3 separate gap sites which are contained within this wider development. We have now procured engineering consultants as we move closer to a full planning application. We are scheduled to submit planning week beginning 29th April 2024. We have amended the housing mix for the O’Hare gap site and will now deliver 6 one-bedroom cottage flats instead of the previous planned 5 three- bedroom terraced homes, this revised housing mix meets housing need and demand projections within the wider area. The projected costs of delivery meet our affordability threshold which the previous housing mix could not. We have also altered some of the initial design plans to incorporate two adaptable 6/7 bed homes within the development to meet identified housing need for larger families who are experiencing overcrowding. Bank Street, Alexandria The Council is currently developing a proposal for 22 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. Engineering works will be starting in January. The delay in appointing engineering consultants has pushed back the anticipated timescales of a planning application being submitted in May 2024. We are looking to appoint a contractor after May with an anticipated site start date in November 2024 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 2023 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 and seek to develop a mixed tenure approach to any expanded development site delivering one hundred new affordable homes. The discussions with CRL (Clydeside Regeneration Limited) to progress the possibility of acquiring this additional land have not yielded a positive conclusion and the reduction in funding highlighted later in this report in respect of the wider Affordable Housing Supply Programme will add a further challenge to the viability of this development. An options appraisal will be carried out over the next couple of months and the outcome of this will be reported to the next meeting of Housing and Communities Committee.
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Clydebank Health Centre Our appointed design team are doing some feasibility work based on a housing mix of 20 units of sheltered housing and 18 units to be a mix of family housing and cottage flats within the development site. The aim of the 20 units of sheltered housing is to introduce the potential; to reprovision existing sheltered housing currently provided at Young Street, therefore strategically improving the provision of sheltered accommodation within Clydebank. This is in advance of the demolition of the buildings within the site which is currently scheduled to start imminently. 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. Unfortunately, we have since been informed that no new projects will receive funding until April 2025 at the earliest, as a result we are proposing that the development forms part of the wider Affordable Housing Supply Programme and have engaged with the Scottish Government to progress this. This will mean the development is included within the Strategic Housing Investment Programme pending a successful conclusion to current discussions with the Scottish Government’s More Homes Team. 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 Council is preparing a demolition programme to allow the site to be cleared as soon as possible following the recent departure of Council staff teams who were using the premises. A feasibility study is being undertaken to inform how best to develop the site, taking into consideration housing need and demand for the area. This programme is running parallel with the pre-demolition works.
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Gilmour Avenue, Hardgate (Clydebank Gap Sites) 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 proposed development would see two three bed semi-detached homes to be delivered utilising modular construction methods. A planning application was submitted in early February 2024, and we await approval. Silverton Regeneration The 2 identified sites in Smollett Road and Dumbuie Avenue are progressing towards demolition and building warrants for demolition in place. We are currently undertaking a feasibility development study to assess the suitability and potential capacity for the delivery of new homes within these sites. Buyback Programme The Council’s buyback programme which incorporates the Mortgage to Rent Scheme purchased 16 new homes in 2022/23. In 2023/24 we purchased 40 new homes at an average purchase cost of £100,000. 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 2024/25 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 will be added to the Council housing stock. 4.6 In December 2023, the Deputy First Minister and Cabinet Secretary for Finance set out the Scottish Government’s proposed spending and tax plans for the Scottish Budget 2024/2025. The announcement revealed that the Scottish Government was proposing a reduction in the overall Housing and Buildings Standards budget from £738m this year to £533m next. This represents a cut of around £200m or 26%. These proposals were agreed in February 2024. 4.7 The More Homes budget, which provides grant aid for affordable new homes, is shown to reduce from £564.6m this year to £375.8m in 2024/25. While the capital funding side of this budget which supports the delivery of Strategic Housing Investment Plans was expected to be protected from such a significant reduction with a smaller reduction of £75m or 14%, it appears that
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this is no longer the case, and while we await formal notification of the Affordable Housing Supply Programme budget in early May there is likely to be a significant negative impact on new social housing delivery. 4.8 The planned West Dunbartonshire Council Annual Resource Planning Assumption (RPA) from the Scottish Government to help the delivery of the Council’s Strategic Housing Investment Plan (SHIP) and subsequently the Council’s own new build programme was £10.795m. We have since been notified that the revised RPA for 2024/25 will be £7.922m, this represents a reduction of 27%. 4.9 Our SHIP 2024/25 – 2028/29 uses this projected budget to plan the wider development programme. We are in ongoing discussion with our colleagues in the Scottish Government’s More Homes Division over what the reduction in funding will mean for our programme and a programme meeting is scheduled for 7th May 2024 to agree a revised programme. 4.10 In advance of the programme meeting we are scenario planning the impact of the 27% reduction in the 2024/25 RPA this may have the following impacts: - • No new projects being approved in 2024/25 because of existing commitments within the programme without the developing organisations front funding their development; • A reduced RPA allocation of £2.873m (27%), this also represents a loss of a minimum of that figure to the wider West Dunbartonshire economy; • A potential 32 less homes being delivered on an annual basis in West Dunbartonshire because of the reduction in funding (160 within the lifecycle of the current Strategic Housing Investment Plan); • High levels of homelessness and housing need 4.11 While the proposed reduction in funding presents a challenge to realising the Council’s new housing ambition, it is one that we will strive to manage effectively with strategic planning. The Strategic Housing Investment Plan will be managed through the More Homes Project Board to minimise the impact of the reduction in funding and to maximise delivery of the programme priorities. To mitigate the impact of the cuts it may be necessary to delay some projects and to stretch the programme. It is intended that Council Officers will refresh the Strategic Housing Investment Plan after the programme meeting in May and will report the revised to the Housing and Communities Committee meeting in August with additional proposed actions to mitigate the impact of the significant reduction in funding. 4.12 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.
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5. People Implications 5.1 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. 6.3 The proposed actions as a result in the reduction of Scottish Government Affordable Housing Supply Programme funding is outlined in Section 4 of this report. 6.4 As previously reported to Committee as of 1st April 2024, Local Authorities are now exempted from LBTT ADS (Land and Building Tax Additional Dwelling Supplement). This will have a positive impact on the buyback budget. Procurement 6.10 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 capital spend detailed in this report to suppliers providing the most economically advantageous offer to the Council. 6.11 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
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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 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.
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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 the Council’s strategic priorities. Peter Barry Chief Officer, Housing and Employability Date: 17th April 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