Housing Services Activity Update - Strategic Housing Investment Plan (Ship) Annual Update
Argyll and Bute Council · 4 March 2025
Back to Bute and Cowal Area Committee — 4 March 2025 and its agenda
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ARGYLL AND BUTE COUNCIL BUTE & COWAL AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 4th MARCH 2025 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 within the Bute and Cowal area. This report will detail the following housing activity:- • Housing Emergency • 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 - Energy Efficiency Scotland: Area Based Scheme(EES: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 BUTE & COWAL AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 4th MARCH 2025 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 the delivery of the Local Housing Strategy within the Bute and Cowal area. This report will detail the following housing activity:- • Housing Emergency • Housing Need and Demand • Homelessness • Affordable Housing Supply - Strategic Housing Investment Programme • Empty Homes • Private Sector Housing Grant Adaptations • Private Sector Housing Grant Repairs and Improvements • Energy Efficiency – 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, 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. Full Council approved the LHS 2022-27 in December 2021. It is subject to annual updates, which are published on the Housing Strategy pages of the Council website.
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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 details the housing activity taking place in Bute & Cowal. 5.2 Housing Emergency In June 2023, Argyll and Bute Council became the first local authority to declare a housing emergency. A number of key statistics informed the emergency. • In 2023 there were just under 3,300 people on social rented housing waiting lists, representing an increase of 8% since the previous year. • The average housing price in 2022 was £206,000 which is 7 times the average income level in Argyll and Bute. • 11% of all homes are ineffective stock, with 6% second homes and 4% empty. • 42% of the property sales are made to people living out with the Argyll and Bute area. • There were 131 private house completions in the last 5 years representing only 17% of the expected rate. • Constructions costs have seen a 22% increase in 2022 with island construction costs significantly higher. This trend is continuing currently. • 92% of residents responding to the Housing Emergency survey said that housing shortage was having an impact on their community • Of employers who responded to the workforce housing survey, 75% said a shortage of housing was a barrier to recruiting or retaining staff A copy of the Housing Emergency Summit Report held in November 2023 and associated progress reports are available here The housing emergency action plan developed in conjunction with partners at the Housing Summit has been appended to the Local Housing Strategy Annual update 2024, and will be fully embedded in to the next Local Housing Strategy. Members requested regular updates on activity to tackle the housing emergency including a set of metrics, which could be used as a benchmark to monitor progress. The housing system is complex and wide-ranging; the following table of statistics and indicators, which were approved by Council in November 2024, give a balanced representation of the housing system based on the issues across the housing market.
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* Consents Figure is June23-March24, & will be corrected for next year 5.3 HOUSING NEED & DEMAND IN BUTE & COWAL In addition there were 70 applicants for Bute and 151 for Cowal who received nil points according to the Common Allocation Policy and therefore would be deemed to have no housing need. For Bute & Cowal as a whole, the main requirement (59%) is for one bedroom properties, while 21% require 2 bedrooms; 13% require 3 bedrooms; and 7% need 4 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. HOMEArgyll Applicants RSL Lets 2023/24 (HOMEArgyll only) Pressure Ratio Bute 156 173 1:1 Cowal 368 146 3:1 B & C TOTAL 524 319 2:1 HOUSING EMERGENCY - METRICS Year Measures 2023/24 2024/25 2025/26 Housing Completions – All Tenures 144 Planning Consents Granted 512* Resource Planning Allocation(RPA) £18.26m Resource Planning Allocation(RPA) spend Available Mid 2025 Strategic Housing Fund (SHF) spend £1.057m Number of Homeless Applications 492 Number of Households on social housing waiting list 3209 Multiple of median wage to median house price 5x (£35k / £175k) Number of Registered Short Term Lets 3031 Number of Second Homes 2811 Number of Empty Homes 2364 HOMEArgyll WAITING LIST November 2024 – Active Applicants (excluding those with 0 points/no defined need) Minimum Bedroom Size Required TOTAL 0/1beds 2beds 3beds 4+beds Bute 97 26 22 11 156 Cowal 209 85 47 27 368 B & C TOTAL 306 111 69 38 524
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While the pressure ratios are only one factor in determining need and demand, they are useful indicators of areas where further research and 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 build housing, the council has developed ambitious Housing Supply Targets based on an alternative, positive growth scenario for all areas. In this instance, 16% of the Argyll & Bute Housing requirement would be apportioned to Cowal and 6% to Bute; and over the next 5 years this could amount to around 340 new builds across all tenures for the Bute & Cowal area as a whole. 5.4 HOMELESSNESS There were 146 homeless presentations across Bute and Cowal in 2023/24. This was a decrease from 151 applications in 2022/23. There was an increase of 10% (41 up from 37) in homeless presentations on Bute during 2023/24. There was a decrease of 8% in Cowal (105 down from 114). During 2023/24, there were 46 homeless cases closed on Bute and 103 in Cowal. The figures below illustrate the number of homeless applications and cases closed for the period from 2019/20 to 2023/24. The main reasons for presenting as Homeless last year were “disputes with household/relationship breakdown”, “other action by landlord resulting in termination of tenancy”; and “being asked to leave”. 0 20 40 60 80 100 120 Applications Cases closed Applications Cases closed Bute Cowal Homeless Applications and Cases Closed 2019/20 - 2023/24 2019/20 2020/21 2021/22 2022/23 2023/24
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Rough Sleeping Bute and Cowal experienced an increase in the incidence of rough sleeping over the same period last year, with 7 cases (+3) in total across the area reporting that they slept rough the night preceding their presentation and 21 (+6) 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 2023/24 Night Before Application 3 Months Prior to Application Bute 1 3 Cowal 6 18 B&C Total 7 21 Argyll & Bute 33 56 0 5 10 15 20 25 30 1. Termination of tenancy/mortgage due to rent… 10. Dispute with household/relationship breakdown:… 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… 3. Applicant terminated secure accommodation 4. Loss of service/tied accommodation 5. Discharge from prison/hospital/care/other institution 6. Emergency (fire,flood,storm,closing order from… 7. Forced division and sale of matrimonial home 8. Other reasons for loss of accommodation 9. Dispute with household violent or abusive Bute and Cowal Reasons for Homelessness 2023/24 Cowal Bute
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5.5 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. Following completion of the ACHA development of 4 specific particular need units at Eton Avenue in October 2023, there have been no further Strategic Housing Investment Plan (SHIP) developments in Cowal and Bute during the reporting period of this report. Further sites/projects in the Cowal area are being progressed or in early stages of development and may be programmed in the SHIP in the future include: ACHA Alexander Street phases 1 and 2 plus other Dunoon site - 86 units in SHIP; 2027/30 Additional commitment to 50 property acquisitions, across whole local authority area. Fyne Homes Rothesay Academy site phases 1 and 2, Rothesay – site acquired March 2023, 65 units in SHIP; 2027/30 Ballochgoy, Rothesay – 8 units to be delivered in 2025/26 Tighnabruaich phase 2 – 10 units included in SHIP; 2029/30 Trust Housing Association Redevelopment of housing complex at Strachur – 15 units RSLs have also identified future opportunities, which they will continue to develop. These projects could be included in the later years of the SHIP. For example, ACHA and Fyne Homes are both exploring options for sites in Dunoon. 5.6 EMPTY HOMES In 2023/24 there were 8 private empty homes brought back into use in Bute & CowaI, amounting to 27% of all empty homes brought back into use across Argyll and Bute last year with assistance of Empty Homes Officer (30). 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 Bute & Cowal 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 2024 reports.
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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 Bute & Cowal there are 446 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 (210) • Class 7A = Dwellings Empty Under Statute – Closing or Demolition Order (33) • Class 6A = Deceased owners – where estate has not been settled (149) • Class 8A= Held for demolition (16); • Class 5A= Living/detained elsewhere and Person in Prison (23); • Class 2A= Unoccupied-renovation (8); • Class 13A= Repossessed dwelling (7) Second Homes As at 1st November 2024 there were 404 registered Second Homes on Bute and 523 in Cowal. The number second homes for Bute and Cowal (927) represents 35% of the total number of Second Homes in Argyll and Bute (2,666). This has reduced by 148 from 1075 for same period in 2022/23. Self-Catering Lets As at 1st March 2024 there were 417 self-catering lets on the Rates register in the Bute & Cowal area. 19% of the Argyll and Bute total (2,210). BUTE & COWAL Council tax data as at 01.11.24 Number of properties on Council Tax register Empty Homes Properties subject to 200% council tax levy Total EMPTY Isle Of Bute 4,396 112 103 215 Cowal 8,906 179 195 374 B & C TOTAL 13,302 291 298 589 Bute & Cowal Rates data as at 01.03.24 Number of self-catering properties Bute 103 Cowal 314 Bute & Cowal TOTAL 417
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Short Term Let Licence As at 1st March 2024, there were 525 applications for short-term let licences in Bute & Cowal. This was 17% total applications (3,031). These can apply to wide range of properties and can include home sharing, home letting, and secondary letting. There is a public register for all short-term lets, which can be accessed here. 5.7 PRIVATE SECTOR HOUSING GRANT (PSHG) – ADAPTATIONS In 2023/24, there were 14 individual adaptations installed in Bute (8) & Cowal (6) with PSHG aid. 5.8 PRIVATE SECTOR HOUSING GRANT – REPAIRS AND IMPROVEMENTS In 2023/24, there were a total of 5 PSHG repair and improvement grants completed in Bute & Cowal, (across Argyll and Bute, the total was 41). Total cost of the works was £438,231.65 of which PSHG covered £31,388. 5.9 ENERGY EFFICIENCY (ENERGY EFFICIENT SCOTLAND: AREA BASED SCHEME (EES:ABS)) There were 91 individual energy efficiency measures fitted to 62 properties across Bute and Cowal in 2023/24 via the Scottish Government’s Energy Efficient Scotland – Area Based Scheme (EES-ABS), at a total cost of £515,961.46 with EES-ABS grants in support of this work amounting to £496,311.68. Bute & Cowal Data as at 01.03.24 Number of short term let licence applications Bute 145 Cowal 380 Bute & Cowal TOTAL 525 PSHG ADAPTATION COMPLETIONS 2023/24 HMA Grant Value Works Value ADAPTATION INSTALLED Ramp Stair lift Access Hoist Bathroom Adaptation Wash and Dry Unit External Drainage Collection Bute £33,940.98 £44,083.62 0 3 1 0 4 0 0 Cowal £19,406.40 £69,133.98 1 1 0 1 3 0 0 TOTALS £53,347.38 £113,217.60 2 4 1 1 7 0 0
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Current estimates of local Fuel Poverty are based on Home Analytics data (Scottish figures sourced from The Scottish Fuel Poverty Advisory Panel):- Area Likelihood of Households in Fuel Poverty Extreme Fuel Poverty Bute 29% 16% Cowal 28% 21% Argyll and Bute 30% 25% Scotland 34% 23% 5.10 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 was formally launched in April 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 Cowal and Bute HMAs over the next 5 years and beyond. Work has commenced on the preparation of the next HNDA due to be approved in 2026. The Local Housing Strategy is subject to annual updates and the 2024 update can be found in the Housing Strategy pages of the Council website Microsoft Word - Local Housing Strategy Annual Update 2024 - FINAL as at 170924 6.0 CONCLUSION 6.1 This report provides the detail of the Council Housing Services team activity in the Bute and Cowal area and outlines progress with the Local Housing Strategy. 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. The scale of the challenge is shown in statistical evidence and the declaration of the Housing Emergency and the subsequent
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Housing Emergency Summit has shown that many concerns are common across agencies and communities. 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. 7.9 The Rights of the Child (UNCRC) – the housing activity described in the report will deliver affordable housing for families with children Kirsty Flanagan Executive Director with the responsibility for Development and Economic Growth Cllr Jim Lynch Policy Lead for the Economy and Rural Growth January 2024 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) Cowal Appendix 2 – Extract from LHS 2022 - 2027 (data as of 2021) Bute
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Appendix 1 - Extract from LHS 2022 -2027 (data as of 2020) Cowal Cowal is projected to see a significant demographic decline if recent trends continue. It is the mainland housing market most influenced by house purchasers from out with Argyll and Bute – only 44% of sales in the area are to local residents. Average house prices have actually been lower than most other HMAs in Argyll and Bute in recent years, while household incomes are roughly average for the authority, making this one of the relatively affordable housing market areas within the authority. Since 2015 the total dwelling stock increased by over 5%, and currently Cowal accounts for 18% of the authority’s housing. At the time of the last LHS, in 2015, almost 14% of the dwelling stock was deemed ineffective to meet local needs, i.e. second/holiday homes and long-term vacant properties. This has improved to 11% of the total, albeit this remains a substantial proportion of the housing stock. Over the last five years RSL homes have increased by around 3%, bringing the total social rented stock in 2020 to 1,476 which is 17% of the Argyll and Bute sector total. There are approximately 3 waiting list applicants for every available let, and 20% of all homeless cases are located here; therefore it is evident that despite some development activity and historic population decline, a degree of unmet need remains. Parts of rural Cowal also fall within the planning remit of the Loch Lomond & Trossachs National Park, and issues regarding high levels of second/holiday homes, and affordability for permanent residents are often exacerbated in these areas. Key issues for Cowal HMA: Although the rate of population decline would suggest that a surplus supply might be generated from within existing housing stock and therefore the need for new build would be minimal; nevertheless there are ongoing levels of unmet need in terms of long waiting lists and relatively high homelessness, and a judicious, strategically planned programme of new build could in fact help to support economic growth and reverse the population decline as well as addressing specific unmet needs, such as demand for specialist accommodation. 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 14,003 7,362 8,722 11% 1,476 400 131 3:1 £65,375 £14,617 4.5 Cowal
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Appendix 2 - Extract from LHS 2022 -2027 (data as of 2021) Bute Bute HMA is one of the least self-contained housing markets in Argyll and Bute, with only 38% of house sales being to local residents. Almost 35% of purchasers originate elsewhere in Scotland. Despite the lowest average household income in Argyll & Bute, historically it has been by some way the most affordable area in the authority with a local price to income ratio of 4.0. Over the course of the last LHS, the number of dwellings increased very marginally (0.4%), although total RSL stock has declined (due to a demolition/reconfiguration programme), while the number of households decreased by around 1%. Over 19% of the general housing stock is unavailable to meet local need i.e. second/holiday homes or long-term vacant. While evidence remains of potential over-supply in the RSL sector - with relatively high annual turnover, areas of low demand, and the main landlords sustaining a number of voids– nevertheless there are indications of increased market activity and growing pressures. Key issues for Bute HMA: The main focus for Bute remains maintaining, repairing, improving and managing the existing stock, across all tenures. However, emerging perceptions on the island suggest that need for additional, affordable housing may be growing as greater pressures are becoming evident with increased market activity and more properties potentially being lost from the effective, permanent housing stock. Tackling fuel poverty, improving energy efficiency and targeting Housing Options advice and assistance remain priorities; as does supporting those with particular needs to remain independent in their home or within the community as far as possible. 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 5,981 3,372 4,247 19% 1,054 148 172 0 £45,000 £11,093 4.0 Bute