15 - Strategic Housing Investment Plan 2024-29
North Ayrshire Council · 7 November 2023
Back to Cabinet — 7 November 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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NORTH AYRSHIRE COUNCIL 07 November 2023 Cabinet Title: Strategic Housing Investment Plan 2024 – 2029 Purpose: To seek Cabinet approval of the Strategic Housing Investment Plan 2024 – 2029 Recommendation: That Cabinet (i) approves the Strategic Housing Investment Plan 2024-2029 at Appendix 1 for submission to Scottish Government; and (ii) gives delegated authority to the Executive Director (Place) and the Cabinet Member for Green Environment and Economy to liaise directly with the Scottish Government in agreeing the North Ayrshire development programme and the rescheduling of projects as required. 1. Executive Summary 1.1 The Strategic Housing Investment Plan (SHIP) 2024 - 2029 sets out the priorities and locations for affordable housing investment by the Council and registered social landlords in North Ayrshire over the next five years. The Strategic Housing Investment Plan is based on projected Scottish Government grant funding of £124.000m for the Council and its partner landlords from April 2023 to March 2029. 1.2 The Council’s projects detailed within the plan represent Council investment of £194.464m, supported by £78.070m of Scottish Government Grant. An estimated additional £3.869m is required beyond the funding allocated in the latest HRA 30-year Business Plan, supported by an estimated additional £0.461m in grant funding to support the Council projects within the plan. This will be considered within the current review of the HRA Business Plan, prior to it being presented to Council in February 2024 as part of the 2024-25 HRA budget and rent setting. 1.3 It is proposed that delegated authority is assigned to the Executive Director (Place), in consultation with the Cabinet Member for Green Environment and Economy, to liaise with the Scottish Government and agree the rescheduling of projects detailed in the Strategic Housing Investment Plan, as required. Any additional projects that are not contained within the approved Strategic Housing Investment Plan will require further Cabinet approval. 1.4 The Strategic Housing Investment Plan 2023 – 2028, approved by Cabinet in November 2022, noted that the Council and its RSL partners would deliver 1,652 new affordable homes by March 2028. A total of 274 new build homes and five buybacks were completed during 2022/23 from the 1,652 five-year target.
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1.5 Cabinet also reaffirmed the Council’s own commitment to construct 1,625 new build homes over the 15-year period from April 2013 to March 2028 and to buy back 30 homes through the Strategic Housing Investment Plan 2023 - 2028. To date the Council has delivered 885 new build homes, with 740 homes still to be completed. The Council acquired five homes through the 2023 - 2028 buyback scheme during 2022/23. 1.6 The Council and its partners are experiencing significant affordability challenges due to changes in the rate of inflation, higher than budgeted interest rates for borrowing and increasing housing standards and specifications, compared to the level of grant funding available to offset these pressures. For the second consecutive year, reflecting the current issues with new build affordability, no new build sites have been nominated for the Strategic Housing Investment Plan by either the Council or its registered social landlord partners. 1.7 In order to increase affordable housing supply despite the affordability challenges outlined above, the draft Strategic Housing Investment Plan 2024 - 2029 proposes to revise the cumulative Council new build target to 1,615 and utilise the funding previously earmarked for 10 properties currently within the ‘unallocated regeneration block’ to support the buyback of an additional 40 properties by 2028, increasing the total planned over the next five years to 65 units. This proposal would result in increased affordable housing stock overall and provide the opportunity to quickly acquire specific house types and sizes to reflect applicants’ needs. 1.8 Cunninghame Housing Association’s 27-unit scheme at Harbour Road has been removed from the new plan due to affordability challenges. Cairn have included a two- unit buyback programme and their ‘Confidential Site 1’ has increased by one unit. 1.9 The Council and its registered social landlord partners will provide a total of 1,302 new affordable homes across the six localities over the next five years. The house types to be delivered in each locality are noted in table 1 below. The units noted as ‘TBA’ include 88 buybacks across four developing organisations, 107 unallocated units for Cunninghame Housing Association (92 units) and the Council (15 units), and the 30-unit regeneration programme proposed by Riverside. Table 1: New supply housing (including buy backs & refurbs) by locality & type Locality Arran Garn Vally Irvine Kilw North Coast Three Towns TBA Sub Total Total All Family NAC 0 36 283 5 3 71 75 473 791 Family RSL 32 0 22 4 0 149 111 318 Amenity NAC 0 19 169 2 12 31 3 236 311 Amenity RSL 0 0 2 0 0 47 26 75 Sheltered NAC 0 0 28 0 0 0 0 28 28 Sheltered RSL 0 0 0 0 0 0 0 0 W/chair NAC 0 9 115 0 0 26 2 152 172 W/chair RSL 0 0 2 0 0 10 8 20 Total All 32 64 621 11 15 334 225 1,302 Total NAC 0 64 595 7 15 128 80 889 Total RSL 32 0 26 4 0 206 145 413 1.10 As noted above, the draft Strategic Housing Investment Plan 2024 - 2029 will secure
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investment in a total of 1,302 properties. The six active North Ayrshire social landlords will provide sustainable, affordable, accessible, and high-quality homes which will contribute to the wider regeneration aims for the area. This will in turn secure employment and training opportunities for North Ayrshire businesses and residents and support the Council’s Community Wealth Building Strategy. Members are invited to approve the SHIP at Appendix 1 for submission to the Scottish Government, as the Council’s investment plan for new affordable housing in the area over the next five years. 2. Background 2.1 The Strategic Housing Investment Plan (SHIP) 2024 - 2029 sets out the priorities and locations for affordable housing investment by the Council and registered social landlords in North Ayrshire over the next five years to support the outcomes in the Local Housing Strategy. It is prepared in accordance with Scottish Government guidance and includes details of individual development projects to be taken forward over its lifespan (see Appendix 1). 2.2 The Strategic Housing Investment Plan 2023 – 2028, approved by Cabinet in November 2022, noted that the Council and its partners would deliver 1,652 new affordable homes by March 2028. A total of 274 new build homes and five buybacks were completed during 2022/23 from the 1,652 five-year target. 2.3 Cabinet also reaffirmed the Council’s own commitment to construct 1,625 new build homes over the 15-year period from April 2013 to March 2028 and to buy back 30 homes through the Strategic Housing Investment Plan 2023 - 2028. To date the Council has delivered 885 new build homes, with 740 homes still to be completed. The Council acquired five homes through the 2023 - 2028 buyback scheme during 2022/23. 2.4 The Council and our partners have delivered 1,665 new build homes since April 2013; this is detailed by locality and house type in table 2 and chart 1 below. Please note that completed Council developments are included for sites which reached practical completion from April 2013 to March 2023. Table 2: Completed new build developments by type and locality from April 2013 Locality Arran Garnock Valley Irvine Kilwinn North Coast Three Towns Sub Total Total All Family NAC 17 0 123 71 77 6 294 934 Family RSL 50 0 177 137 66 210 640 Amenity NAC 8 16 37 5 52 2 120 283 Amenity RSL 0 0 70 13 45 35 163 Shelt NAC 0 38 40 24 57 64 223 223 Shelt RSL 0 0 0 0 0 0 0 W/chair NAC 9 0 46 14 15 6 90 130* W/chair RSL 0 0 8 8 4 20 40 Support NAC 0 15 0 10 22 15 62 78 NSSE RSL 6 0 10 0 0 0 16 Other NAC 0 4 0 1 1 1 7 17 Other ad RSL 0 0 10 0 0 0 10 Total All 90 73 521 283 339 359 1,665 Total NAC 34 73 246 125 224 94 796 Total RSL 56 0 275 158 115 265 869 *It should be noted that 50 of the amenity, sheltered and supported accommodation homes are suitable for wheelchair users.
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2.5 The Council and its registered social landlord partners have experienced significant affordability challenges and pressures in delivering our new build programmes. The rate of inflation and rising material costs have significantly impacted upon construction costs and project viability. 2.6 In the Housing Revenue Account budget approved at the Council meeting in February 2023, the Council increased the programme budget by £32.762m, with an assumption of an additional £13.944m of grant funding to be able to retain the existing committed development programme. This was required to offset rising rates of inflation and ensure that the costs associated with the introduction of new legislation relating to installation of zero direct emissions heating systems and electrical vehicle charging points could be met. The Council also included provision to enhance the building fabric for all new homes to reduce the need for heating and address fuel poverty. 2.7 The Scottish Government published revised grant funding benchmark rates in June 2023 and, whilst funding is available to offset some of the costs of installing zero direct emissions heating systems, fire suppression systems and electrical vehicle charge points, this is considerably less than anticipated installation costs. 2.8 The impact of the increased benchmark grant subsidy levels has been reviewed for the Council projects detailed within the Strategic Housing Investment Plan 2018 - 2023 against the £13.944m grant funding requirement estimate noted to Council in February 2023. The new benchmark grants are a total of £0.463m less than the Council’s 67 300 208 143 216 8 16 107 18 97 37 38 40 24 57 64 15 10 22 15 9 64 22 19 26 4 1 1 1 6 10 0 0 100 200 300 400 500 600 Arran Garnock Valley Irvine Kilwinning North Coast Three Towns Chart 1: New build development by house type and locality General Needs Amenity Sheltered Supported Wheelchair / adapted Other New Supply Shared Equity
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assumptions (a shortfall of around £624 per unit impacted). In accordance with Scottish Government guidance, the Council will seek grant funding above benchmark levels to offset any funding shortfall, on a site-by-site basis, as required. 2.9 Increasing standards and emerging legislation have further impacted upon project costs and timelines, as options appraisals and financial modelling have been required. For example, the cost to tenants, and future maintenance and replacement costs of zero direct emissions systems, have been reviewed with solutions considered on a site-by- site basis to ensure that they are both affordable to install, and for tenants to utilise. 2.10 Technical guidance published in June 2023, which sets out Building Standards requirements to provide electrical vehicle charging points, and revised roads design guidance for increased parking prevision for new build housing, have resulted in design revisions to existing plans and additional costs. 2.11 The Scottish Government is currently undertaking revisions to their Housing for Varying Needs standard, and further changes to building standards are planned to enhance the accessibility and adaptability of housing stock. These changes are likely to impact upon the Council’s standard house types and construction costs, resulting in programme delays and increased costs. Many of the design amendments have cost implications, future maintenance implications, require additional floor space, increase overall built areas, and reduce site capacity. Council officers from Property Management and Investment, Housing Services and Building Standards are currently reviewing the proposals and preparing a response to the consultation which closes on 21 December 2023. 2.12 The provision of new build housing has many benefits, including contributing to the regeneration of the area, developing sustainable housing solutions which help to address fuel poverty, and supporting educational attainment. It can also support the ageing population, people who require accessible housing, and people with particular needs, to live more independently. 2.13 The above benefits often come at a financial cost: • regeneration schemes often cost more as sites require demolition, refurbishment or have significant constraints/ abnormal costs. • sustainable heating systems and other technology are currently more expensive to install, replace and maintain. • accessible, amenity and particular needs housing is often more expensive as it requires a larger floor footprint, increasing construction costs and reduces economies of scale. 2.14 Cost-of-living rent controls introduced by Scottish Government in 2022 limit landlords’ capacity to increase income to finance borrowing for capital investment, further compounding affordability pressures. This issue is particularly acute for our local registered social landlord partners, who are facing extreme pressure as they do not have the borrowing options or economies of scale the Council benefits from. Their individual new build projects are generally supported by grant funding and borrowing, offset against projected rental income for that site. 2.15 As reported to Cabinet on 1 November 2022, due to past successes in accelerating projects and claiming additional funding year upon year alongside slippage in some
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projects, North Ayrshire was unable to claim the resource planning assumption for the 2022/23 financial year. The Council claimed an estimated total of £4.302m against the resource planning assumption of £15.692m for the year (this value will be confirmed when the Scottish Government out-turn report is published later this year). 2.16 The Council and its partners claimed an additional £19.165m towards affordable housing in the area from slippage in other local authority areas in the six years from April 2016 to March 2022. Table 3 below illustrates the resource planning assumption, spend per annum and total variance (over- or under-claim) from April 2016 to March 2023. This demonstrates a cumulative over-claim of £7.775m against the resource planning assumption for the period. The total number of new build units reaching practical completion within each financial year is also noted in table 3. Table 3: Spend versus resource planning assumption per annum (£m) 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Total Resource planning assumption £9.106 £10.160 £14.165 £16.112 £17.093 £18.205 £15.692 £100.533 Actual / estimated spend £13.464 £14.210 £15.630 £18.658 £21.403 £20.641 £4.302* £108.308 Variance £4.358 £4.050 £1.465 £2.546 £4.310 £2.436 -£11.390 £7.775 Completed units per annum 35 119 216 169 77 329 230 1,175 2.17 The variance for 2022/23 reflects Cunninghame Housing Association’s acceleration of their West Byrehill project, which meant the grant was able to be claimed in 2021/22. The Association also had grant allocated for Harbour Road, Irvine which was not progressed. Riverside Housing had an unclaimed allocation for Bank Street and ANCHO had an unclaimed allocation for confidential site 1. Programme slippage was also experienced at the Council’s James McFarlane, James Reid, Stanecastle, Garnock Academy, Montgomerie Park, and Ayrshire Central sites whilst the impact of zero direct emissions heating systems and other legislative changes were assessed. 2.18 It is currently estimated that North Ayrshire will be able to claim £9.793m of the £15.648m Resource Planning Assumptions for the 2023/24 financial year. Discussions are ongoing with the Scottish Government to ensure that grant funding is maximised wherever possible. Slippage is anticipated at a number of Council developments due to redesign works required as a result of regulatory changes and assessment of zero direct emissions heating systems options. 2.19 The Council’s Garnock Academy and King’s Arms sites have experienced procurement delays. Cunninghame Housing Association’s Sharphill Phase 5 was expected to commence in spring 2023 and had a £5.246m grant allocation for 2023/24. The project has been delayed due to financial challenges and a requirement for site redesign; it is now expected to commence during autumn 2027. 2.20 The Strategic Housing Investment Plan is based on total projected Scottish Government grant funding provision of £124.000m for the Council and its registered social landlord partners from April 2023 to March 2029, illustrated in table 4 below. In accordance with Scottish Government guidance, the Council has over-committed the funding within the
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Strategic Housing Investment Plan by approximately 25% to ensure that the full grant allocation is spent, and to provide the opportunity for North Ayrshire to absorb slippage from other local authority areas. For this reason, a significant portion of the funding is allocated during April 2024 and March 2027 - see table 4 below. 2.21 The Scottish Government has committed to providing North Ayrshire Council and its registered social landlord partners with grant funding of £47.313m from April 2023 to March 2026. The funding levels beyond March 2026 are not currently known and have therefore been estimated, for planning purposes, based on the level of grant required to deliver the programme. Table 4: Estimated spend versus resource planning assumption per annum (£m) 2023/24 2024/25 2056/26 2026/27 2027/28 2028/29 Total (£m) Resource planning assumption £15.648 £15.702 £15.963 £23.500 £25.500 £27.687 £124.000 Estimated spend £9.793 £23.152 £30.972 £31.625 £19.946 £8.512 £124.000 Variance -£5.855 £7.450 £15.009 £8.125 -£5.554 -£19.175 £0.000 2.22 The Scottish Government benchmark grant rates are subject to annual inflation in line with the Scottish Social Housing Tender Price Index. For new build Council developments, funding levels have been estimated for projects not yet at tender stage at benchmark rates plus annual inflation, which has been assumed at 3.7% for 2024/25. The Council will seek grant funding above these levels in accordance with Scottish Government guidance on a site-by-site basis, as required. The registered social landlord funding rates have been included as requested by each developing organisation and will be subject to Scottish Government authorisation. 2.23 It should be noted that, as and when the government uplifts the grant benchmark rates, the capacity of the total Resource Planning Assumption (which has been treated as fixed) will be reduced, as less units can be delivered within the overall funding available. 2.24 For any projects noted within the Strategic Housing Investment Plan, Cabinet is asked to delegate authority to the Executive Director (Place), in consultation with the Cabinet Member for Green Environment and Economy, to liaise with the Scottish Government and agree the rescheduling of projects as required. This is of particular importance where deliverability is delayed due to emerging constraints and challenges that require to be addressed. Spending on any additional projects that are not contained within the Strategic Housing Investment Plan will require Cabinet approval. Key Achievements from 2022/23 2.25 The Council’s first Arran development in a generation concluded in June 2022, providing 34 new homes which were allocated utilising the new Arran Local Lettings Initiative. The 79-unit St. Michael’s Wynd, Kilwinning site completed in September 2022. The site delivered a new sheltered housing complex, supported accommodation, amenity bungalows, general needs properties and homes suitable for wheelchair users. The 29 new sheltered homes at St. Colm’s Place also reached completion during September 2022. At Caley Court, Stevenston, 16 new supported accommodation bungalows reached completion during January 2023.
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2.26 Cunninghame Housing Association’s 72 new homes at West Byrehill, Kilwinning reached completion in March 2023. 2.27 During the current financial year, the Council’s 71 new units at Irvine Harbourside completed during April 2023; the site includes a sheltered housing complex, amenity bungalows, general needs properties and homes suitable for wheelchair users. Work concluded to provide six new amenity bungalows at Afton Court, Stevenston during July 2023. Work also completed during September 2023 at the former Largs Police Station, providing 12 new town centre amenity flats. 2.28 Riverside Scotland’s 77 new homes at Tarryholme Phase 2, Irvine reached practical completion during May 2023. Cunninghame Housing Association’s 24 amenity homes at Green Street, Saltcoats completed in August 2023. Preparing the Strategic Housing Investment Plan 2024 - 2029 2.29 The Council invited site nominations from its partners for the SHIP 2024 - 2029. For the second consecutive year and reflecting the current issues with new build affordability, no new build sites were nominated for the SHIP. 2.30 Each North Ayrshire developing landlord partner now has a buyback programme, demonstrating the challenges facing all organisations to develop new build homes compared to the more affordable option of buying existing homes on the open market and bringing them up to the appropriate housing standard. Some sites have been anonymised for reasons of commercial sensitivity, or as they require further work to ensure that they comply with the Council’s Planning or Roads policies. New Council projects 2024 - 2029 2.31 The Council does not currently have the financial capacity to add any further new build development into the Strategic Housing Investment Plan beyond the commitments already made, due to increasing capital and maintenance costs, and the resultant impact on the Housing Revenue Account 30-year business plan, and in turn upon tenant rent levels. 2.32 In order to increase affordable housing supply, the draft Strategic Housing Investment Plan 2024 - 2029 therefore proposes to revise the cumulative target of 1,625 new build Council homes to 1,615 units and utilise the funding allocated for 10 properties currently assigned to the unallocated regeneration block to deliver an additional 40 buybacks by March 2028 (increasing the total to 65 buyback units). This proposal would result in an additional 30 houses available for social rent, compared to the previously approved SHIP target. 2.33 The increasing disparity between increasing new build costs and grant benchmark levels is significantly impacting upon project affordability. Should benchmark grant funding levels be increased or additional funding be made available during 2023/24 to address the current affordability gap, the Council will review its commitments within the Strategic Housing Investment Plan 2024 – 2029 and consider any opportunity to extend the new build and buyback plans. New registered social landlord projects 2024 – 2029
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2.34 Cairn/ ANCHO have included a 2-unit buyback programme within the new plan. Removal of Projects from the SHIP 2024 - 2029 2.35 Cunninghame Housing Association’s 27 new homes proposed at Harbour Road, Irvine have been removed from the plan as a viable scheme could not be developed. Amendments to the SHIP 2.36 The following amendments have been made in this update of the Strategic Housing Investment Plan: • Cairn’s confidential site 1 has increased to 10 units, from nine units previously noted, following initial site design works • Confidential Site 4 will be named as Springbank, Arran in the new plan • Cunninghame Housing Association’s phase five site at Sharphill, Saltcoats will now commence during autumn/ winter 2027, delayed from March 2023 • The Council’s unallocated regeneration block has reduced from 30 units to 15 units, with 10 units removed to fund 40 new buybacks, and five units allocated to the Grange Court, Stevenston estate-based regeneration project which has now been named within the plan. • Regeneration project 1e has been named as Nursery Place, Ardrossan, estate-based regeneration scheme, which has reduced from seven units to six units; the balance of one unit has been allocated to Grange Court, Stevenston. 2.37 It should also be noted that financial viability assessments are still ongoing for Link’s Parkend Gardens, Saltcoats site and the Council’s Refurbishment Project 8 in Irvine. 2.38 If any project becomes delayed or non-viable, the Council will work with registered social landlord partners and the Scottish Government to ensure that new homes are delivered, and the available grant funding spent, by accelerating other projects. 2.39 In terms of ongoing governance, senior officers monitor the progress of the new build programme monthly through the Strategic Housing Investment Plan project board. 2.40 The Council and its registered social landlord partners will provide a total of 1,302 new affordable homes across the six localities in the draft plan. The house types to be delivered by locality is noted in table 5 below. The 225 units noted as ‘TBA’ include 88 buybacks across five developing organisations; the 107 unallocated units for Cunninghame Housing Association (92 units) and the Council (15 units); and the 30-unit regeneration programme proposed by Riverside. Table 5: New supply housing (including buy backs & refurbs) by locality & type Locality Arran Garnock Valley Irvine Kilwinning North Coast Three Towns TBA Sub Total Total All Family NAC 0 36 283 5 3 71 75 473 791 Family RSL 32 0 22 4 0 149 111 318 Amenity NAC 0 19 169 2 12 31 3 236 311 Amenity RSL 0 0 2 0 0 47 26 75
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Sheltered NAC 0 0 28 0 0 0 0 28 28 Sheltered RSL 0 0 0 0 0 0 0 0 W/chair NAC 0 9 115 0 0 26 2 152 172 W/chair RSL 0 0 2 0 0 10 8 20 Total All 32 64 621 11 15 334 225 1,302 Total NAC 0 64 595 7 15 128 80 889 Total RSL 32 0 26 4 0 206 145 413 2.41 The Council and its registered social landlord partners completed and planned developments are noted by locality in table 6 below. Table 6: Completed and planned development Units Arran Garnock Valley Irvine Kilwinning North coast Three Towns TBA Total Complete 90 73 521 283 339 359 0 1,665 Planned 32* 64 621 11 15 334 225 1,302 Total 122* 137 1,142 294 354 693 224 2,967 *It should be noted that, in addition to the above RSL and NAC plans, Arran Development Trust are currently developing 18 new homes in Lamlash, Arran. Strategic Priorities 2.42 The Strategic Housing Investment Plan is based on a series of guiding principles for housing provision, taken from the new Local Housing Strategy 2023 - 2028. The strategy mirrors the format of the Scottish Government’s Housing to 2040 strategy and sets out four overarching outcomes: • More homes at the heart of great places • Affordability and choice • Affordable warmth and zero emission homes • Improving the quality of all homes Children’s rights and wellbeing 2.43 The North Ayrshire Child Poverty Action Plan 2022-2023 notes that North Ayrshire has the second highest level of child poverty after housing costs of any area in Scotland. Access to good quality and affordable housing is a key asset in addressing child poverty, and poverty overall. All new build Council family homes have study space and private gardens. 2.44 The Council is also considering ways in which young people can access construction related learning and training opportunities. The North Ayrshire Local Employability Partnership Delivery Plan 2022 – 2026 sets out the intentions to help people of all ages to gain skills for employment. It seeks to prepare people for employment, training, education and / or volunteering, with the aim of increasing qualification levels and job
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prospects as well as reducing unemployment. Officers from Housing and Property Management and Investment will work with Education colleagues to determine how the housebuilding programme can support the Council’s ambitions to encourage more young people into training and employment. More homes at the heart of great places 20-minute neighbourhoods 2.45 The provision of housing within 20-minute neighbourhoods allows people to meet their needs locally and encourages active travel. Social housing projects which support the principles of 20-minute neighbourhoods, where feasible, will be prioritised. Regeneration 2.46 The Council, along with its strategic partners, continues to explore the site and area specific opportunities to secure maximum regeneration benefits, supporting the ambitions of the Council’s Regeneration Delivery Plan to drive forward development on strategic regeneration sites, including town centres. 2.47 Town centres continue to be of strategic importance as the economic and social focus points of North Ayrshire. The Council acquired the former King’s Arms public house in Irvine Town Centre in April 2020 and will redevelop the site into six amenity flats to address local housing need and encourage town centre living. The redevelopment of the site of the former Irvine high flats will also support town centre regeneration. 2.48 The Council has already completed other town centre projects including: the redevelopment of the former Largs Police Station and adjacent former St Colm’s Place sheltered housing complex; the development of the former Springvale depot in Saltcoats; and the redevelopment of former sheltered housing complexes at Afton Court and Caley Court in Stevenston. 2.49 Grange Court, Stevenston and Nursery Place, Ardrossan (formerly Regeneration Project 1e) have been named as estate-based regeneration projects within the new plan. 2.50 The Strategic Housing Investment Plan includes the provision of funding for 250 units to assist the delivery of Housing’s estate-based regeneration programme (it is proposed that this is now reduced to 240 units to provide the 40 new buybacks detailed at 1.7 and 2.30 above). Most of this investment has now been allocated to support replacement units following selective demolition of stock. The remaining 15 regeneration units included within the plan will allow Housing Services to continue the implementation of the estate-based regeneration programme, as well as support a review of assets in relation to EESSH2 and zero emissions targets to consider further redevelopment opportunities. Green Space 2.51 Research shows that where people have access to good quality, outdoor green space, there is a corresponding positive and lasting impact on public health. The Strategic Housing Investment Plan will prioritise new social housing developments which include the provision of outdoor green space for residents.
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Island communities 2.52 On Arran, the Council’s development of 34 units at Brathwic Terrace, Brodick completed during June 2022 and a Local Lettings Initiative was introduced to give additional priority to island residents and key workers. Trust Housing Association is currently in discussion with a local landowner to develop 26 new homes in Brodick. Arran Development Trust secured funding from the Rural and Island Housing Fund to deliver 18 new affordable homes in Lamlash, with works currently underway. These developments, alongside work with communities on the island, are anticipated to stimulate investment in other infrastructure (transport, marine, digital) to encourage economic growth. 2.53 The Council has established the Arran Housing Task Force to quantify the demand for affordable housing on Arran and identify issues that may be limiting economic growth. A quantitative study is currently being undertaken by North Star Consulting and Research to determine affordable housing demand on the island, recognising the assessed housing demand information from the North Ayrshire Housing Register and community feedback. The Task Force membership includes elected members, the Scottish Government, local community groups and Arran registered social landlords. The group is currently developing an action plan to address any identified housing issues on the island. 2.54 18 new homes have recently been completed on Cumbrae through the Strategic Housing Investment Plan as part of a second phase of the successful St Beya Gardens site. 2.55 It is hoped that the developments will help to address local housing need, support key employment, and enable people to remain on the islands and protect their future. Affordability and choice Housing demand 2.56 Demand figures have been obtained from the North Ayrshire Housing Register. House size and type priorities have also been informed by the housing register. The Local Housing Strategy has set a target of 1,625 new social housing units to be delivered by all landlords by March 2028. 2.57 Figure 1 plots Strategic Housing Investment Plan completions against the net stock gain. The 'net gain' column indicates the additional homes available per locality following completion of the developments, minus the strategic demolitions set out in the plan. It also illustrates proportionate demand from the housing register as at 31 March 2023 and historic new build completions from April 2013 to March 2023. Please note that proportionate demand is indicative to illustrate trends; the actual demand figures will be less as transfer applicants who are included in these figures will leave an existing tenancy behind when they are allocated a new home.
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Figure 1: Completions, net gain, proportionate demand and historic completions 2.58 The Council allocates funding to each developing organisation from the available Scottish Government Resource Planning Assumption (RPA). Figures 2 and 3 show the proportion of stock held by each developing organisation, and the share of units per developing organisation. Figure 2: Proportion of North Ayrshire stock held per developing organisation (%) NAC, 72% CHA, 13% Riverside (IHA), 10% Cairn (ANCHO), 4% Trust, 1% Link, 0% NAC CHA Riverside (IHA) Cairn (ANCHO) Trust Link
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Figure 3: Proportion of units per developing organisation (%) Gypsy / travellers 2.59 No demand issues have been identified in relation to accommodation for gypsy/ travellers. Following consultation with current tenants at Redburn Grove, Irvine in April 2023, future improvement proposals for the site are being developed and costed, reflecting feedback gathered in relation to their preferences for future housing. A business case is being developed which will include all available funding streams and a full options appraisal for the site, including the potential to transfer the site from the General Fund to the Housing Revenue Account. Ensuring best value 2.60 The Council has developed standard house types and material specifications, alongside a range of procurement methods to ensure best value from the development programme. Increasing material costs, and costs to maintain new technologies included as a result of emerging legislation, have been modelled to ensure that schemes are affordable to both develop and maintain in the longer term. Innovation 2.61 The Council has utilised off site construction on suitable schemes, which has reduced time on site, minimised disruption for communities, and provided sustainability benefits. 2.62 The recently completed Afton Court, Stevenston development utilised this construction method, which reduced the time on site and reduced disruption to local residents and businesses. For similar reasons, the Council is currently procuring an off-site construction design and build contractor for the Newhouse Drive, Kilbirnie and Laburnum Avenue, Beith sites, which are located within existing housing estates. 2.63 The Council has a track record of testing and implementing zero direct emissions heating systems, sprinkler systems and electrical vehicle infrastructure in advance of legislative changes. This proactive approach helps us to identify affordability and maintenance challenges at an early stage. 2.64 The Council will continue to explore opportunities for innovation throughout the lifespan of the SHIP 2024 - 2029. Rent levels and affordability NAC, 68% CHA, 24% Riverside (IHA), 3% Cairn (ANCHO), 1% Trust, 3% Link, 1%
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2.65 Many tenants in social housing are partly or fully dependent on benefits and are under increasing pressure from the impacts of Welfare Reform and rising living costs. The Scottish Housing Regulator expects social landlords to recognise tenants’ affordability challenges and keep rent increases to a minimum. North Ayrshire Council has an approved rent structure based on house size and type (house vs flat), with no additional charge for new build properties. 2.66 The Council is committed to ensuring rent levels are affordable, however the cost of implementing regulatory changes and inflation is putting pressure on rent levels. The Council has a fairly flat rent structure, with 12 rates applicable across the entire stock. Local registered social landlords’ rents, in contrast, are higher and are generally established on a site-by-site basis, with a business case prepared for each scheme and impacts of the construction industry, inflation and regulation placing further pressure on maintaining affordable rent levels. Empty homes and second-hand buybacks 2.67 The Council and its partners recognise that bringing primarily former social housing stock back into ownership can assist with housing management and maintenance issues and increase housing supply available through the North Ayrshire Housing Register. It also supports the Council’s Regeneration Delivery Plan and contributes to bringing long-term empty homes back into use. All developing registered social landlord partners with stock in North Ayrshire now have provision for buyback programmes within the Strategic Housing Investment Plan. 2.68 As set out at points 1.7, 2.30 and 2.50 above, the number of planned Council buybacks has been increased from 25 to 65 in the SHIP 2024 - 2029. Should extra grant funding from the Scottish Government become available throughout the year, the Council and partner RSLs will revisit the commitment for the wider programme. Refugee resettlement programme 2.69 The Council has responded positively to the humanitarian crisis created as a result of the conflict in Ukraine. Since March 2022, the Council and partners have supported more than 185 Ukrainian displaced households (395 people) to settle in North Ayrshire. We have utilised 110 social rented properties for people fleeing the conflict. 2.70 On 1 November 2022, Cabinet approved the refurbishment of 30 homes at Glebe Place, Saltcoats which were previously scheduled for demolition. The project was fully funded by the Scottish Government and the homes are currently being used to accommodate Ukrainian individuals/ couples for a period of up to three years. The demolition/ redevelopment project has been reprofiled within the SHIP to 2027/28, therefore maintaining the overall SHIP commitment. Affordable warmth and zero emissions Sustainability 2.71 Council officers are seeking to maximise the incorporation of energy efficiency measures and renewable technologies within the new build programme. The developments within the Strategic Housing Investment Plan will benefit from a range of sustainable measures: for example, solar photovoltaic panels; air source heat pumps; and passive design measures to minimise space heating demand. The exact package of measures will be
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determined through assessment of opportunities on a site-by-site basis. Improving the quality of our homes Specialist Accommodation 2.72 To ensure need is met now and in the future, the new Local Housing Strategy 2023 – 2028 increased the target to ensure that at least 10% of all tenure new build stock is suitable for wheelchair users (increased from 7% in the previous Strategy). The Council and its registered social landlord partners have developed 180 new build homes (11% of new supply) suitable for wheelchair users since April 2013. 2.73 The Strategic Housing Investment Plan has supported the Health and Social Care Partnership to meet specialist housing need, through dedicated projects using the jointly developed supported accommodation model and as part of wider site mixes on other developments. Four new-build supported accommodation units have been developed across North Ayrshire, providing 62 homes for residents. The Council also created an additional 33 supported accommodation homes and six new supported living bed spaces through property refurbishment of three sites. 2.74 The Council also prioritises the development of homes suitable for older people through the Strategic Housing Investment Plan, with 318 new amenity homes and 28 sheltered homes planned. The Council and its partners have delivered 283 amenity homes (17% of new supply) and 223 units (13% of new supply) of sheltered housing since April 2013. SHIP Impact on North Ayrshire school capacity 2.75 The site acquired by the Housing Revenue Account in March 2021 at Ayrshire Central, Irvine was identified as having the potential to adversely affect the capacity of Castlepark Primary School. The housing mix for the site was therefore reprofiled to include a greater weighting of amenity properties (85 of the 202 homes on the site). As at 31 March 2023, 911 applicants on the North Ayrshire Housing Register requested amenity housing. The allocation of new amenity homes at Ayrshire Central will free up existing family homes. 2.76 Experience at other sites demonstrates that new affordable housing developments generally comprise of families who already reside within the school catchment area. Officers from Housing, Planning and Education will continue to monitor emerging developments to ensure any impact upon school capacity can be addressed or mitigated. SHIP Investment 2.77 The draft Strategic Housing Investment Plan (SHIP) 2024 - 2029 is based on projected Scottish Government grant funding provision of £124.000m for the Council and its partner landlords from April 2023 to March 2029. 2.78 The Council’s projects detailed within the plan represent Council investment of £194.464m, supported by £78.070m of Scottish Government Grant. 2.79 An estimated additional £3.869m is anticipated to be required beyond the funding allocated in the latest HRA 30-year Business Plan, supported by an estimated additional £0.461m in grant funding to support the Council projects within the plan. This will be considered within the current review of the HRA Business Plan, prior to it being
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presented to Council in February 2024 as part of the 2024-25 HRA budget and rent setting. 2.80 The £3.869m funding requirement comprises, increased budget estimates due to delays associated with legislation and regulatory changes and budget adjustments required to align with revised project timelines As noted at 2.8 above, in accordance with Scottish Government guidance, the Council will seek grant funding above benchmark levels to offset any funding shortfall, on a site-by-site basis, as required. 3. Proposals 3.1 It is proposed that Cabinet (i) approves the North Ayrshire Strategic Housing Investment Plan 2024 - 2029 for submission to the Scottish Government; and (ii) gives delegated authority to the Executive Director (Place) and the Cabinet Member for Green Environment and Economy to liaise directly with the Scottish Government in agreeing the North Ayrshire development programme and the rescheduling of projects as required. 4. Implications/Socio-economic Duty Financial 4.1 The financial implications arising from the projects included within the Strategic Housing Investment Plan 2024 - 2029 have been assessed by each of the developing organisations, ensuring that the programme is fully deliverable within the timescales set out. The current HRA Business Plan includes a budget of £190.595m to deliver the North Ayrshire Council development projects set out within the SHIP, inclusive of Scottish Government funding. It is estimated that an additional £3.869m is required to support the Council’s developments set out within the SHIP 2024-2029. This additional expenditure, alongside estimated additional grant of £0.461m, will be considered within the current review of the HRA Business Plan prior to it being presented to Council in February 2024 as part of the 2024-25 HRA Budget and rent setting. Human Resources 4.2 Council projects within the Strategic Housing Investment Plan will be delivered by North Ayrshire Council staffing and complemented by external expertise, where required. Legal 4.3 The Town & Country Planning (General Permitted Development) (Scotland) Order 1992, Schedule 1, Part 12, Class 33, as amended, enables local authorities to undertake works, within their district, for the erection of dwellings so long as the development conforms with the Local Development Plan. The Council’s House Building Protocol governs the design and consultation processes for such development to ensure that appropriate levels of design scrutiny and consultation are maintained. In 2019, it was agreed that all future Council housing developments progressed as permitted development will be required to obtain a ‘Certificate of Lawfulness’ from the Council’s Planning Service. This will certify that each site within the SHIP has been considered against the full terms of the adopted Local Development Plan. Housing development proposals by the Council which do not fall
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within the scope of permitted development, including schemes which require an Environmental Impact Assessment (EIA) will require planning permission. Proposals over 0.5 hectares in area will require to be screened for the purposes of EIA. Equality/Socio-economic 4.4 The provision of new social housing will have a positive impact on those who require specialist accommodation, older people, those who are homeless, or at risk of homelessness, and those for whom purchasing a home is not an affordable option. The benefits of new build housing in relation to health, wellbeing and educational attainment, are well documented. New housing will also support our island communities and their economies. Climate Change and Carbon 4.5 New homes should have a low environmental impact, with the aim of reducing fuel use and associated fuel costs. All projects within the SHIP will be delivered in accordance with Building Standards regulations for energy efficiency. In addition, the majority of the new projects incorporated into the plan will meet the Scottish Government’s ‘Greener Standard’. Innovative approaches to fuel efficient development will be considered on a site-by-site basis (e.g., zero direct emissions heating systems, solar photovoltaic panels, smart technologies etc). New Council homes contribute significantly to the Council’s Sustainability agenda. New housing is more energy efficient, better ventilated, and has higher levels of thermal comfort, which supports improved health and well-being. Key Priorities 4.6 The provision of new affordable housing supports the Council Plan strategic priorities: ‘Wellbeing’; ‘Climate Change’; ‘A Sustainable Council’: and ‘Communities and Local Democracy’. It supports the ambitions of the Council’s Regeneration Delivery Plan to drive forward development on strategic regeneration sites, including town centres. There is also evidence that children and young people can benefit from improved cognitive development and a reduction in behavioural issues through living in a more attractive, warmer, and better ventilated environment and the provision of new affordable housing also supports the Council Plan priority that children and young people experience the best start in life. New housing will also support our island communities and their economies. Community Wealth Building 4.6 The delivery of the Strategic Housing Investment Plan, alongside investment in land and asset maintenance, plays a key role in community wealth building. Effective use of community benefit clauses in development contracts, and partnership work with colleagues in Economic Development to support local construction and supply chain companies to bid for this work, can secure many of these jobs for local people and support the Council’s Community Wealth Building Strategy. For example, the contractor for the Council’s Irvine Harbourside development employed 20 new employees, created seven apprenticeships, and provided nine work placements. They also delivered 60 hours of career development initiatives in North Ayrshire schools, promoting the construction industry as a positive destination for all.
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5. Consultation 5.1 The Council has taken a collaborative approach to the preparation of the SHIP, and the following stakeholders have been involved in the process: • ANCHO in partnership with Cairn • Cunninghame Housing Association • Riverside (formerly Irvine Housing Association) • Link Group Ltd • Trust Housing Association • The Scottish Government • North Ayrshire Council Officers (Economic Growth, Education, Finance, Housing, Planning, Property Management and Investment, Active Travel & Transport, Roads, and the Health and Social Care Partnership). 5.2 Regular meetings are held with developing organisations, the Council and the Scottish Government as part of the SHIP governance process. The meetings will continue to be convened on a quarterly basis each year, to ensure that partners’ requirements are identified, and the development programme delivered. RUSSELL McCUTCHEON Executive Director (Place) For further information please contact Fiona Ellis, Senior Manager, Housing Strategy and Development, on 01294 324031. Background Papers Local Housing Strategy 2023 – 2028
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North Ayrshire Council Strategic Housing Investment Plan 2024 – 2029
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Page 2 Contents Contents Strategic Housing Investment Plan 2024 – 2029 ............................................................................................................. 1 Contents ....................................................................................................................................................................... 2 Introduction ................................................................................................................................................................... 4 Strategic policy context .............................................................................................................................................. 5 Equalities ................................................................................................................................................................... 5 Childrens rights and wellbeing ................................................................................................................................... 6 Environment ............................................................................................................................................................... 6 Collaboration .............................................................................................................................................................. 6 Investment priorities ...................................................................................................................................................... 8 More homes at the heart of great places .................................................................................................................... 8 Affordability and choice ............................................................................................................................................ 11 Affordable warmth and zero emissions .................................................................................................................... 19 Improving the quality of our homes .......................................................................................................................... 20 Prioritising projects ................................................................................................................................................... 24 SHIP funding streams ................................................................................................................................................. 25 Affordable housing supply programme ..................................................................................................................... 25 Reserves and balances ............................................................................................................................................ 25 Borrowing ................................................................................................................................................................. 25
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Page 3 Affordable housing policy developer contributions .................................................................................................... 25 Other funding sources .............................................................................................................................................. 26 Council tax on empty and second homes ................................................................................................................. 26 Planning and other regulatory matters ........................................................................................................................ 27 Delivery risks .............................................................................................................................................................. 28 Amendments or additions to the plan .......................................................................................................................... 28 Development projects ................................................................................................................................................. 29 Irvine & Kilwinning .................................................................................................................................................... 29 Three Towns ............................................................................................................................................................ 30 North Coast .............................................................................................................................................................. 31 Garnock Valley ......................................................................................................................................................... 32 Arran ........................................................................................................................................................................ 32 Locality to be confirmed ........................................................................................................................................... 32 Progress update ......................................................................................................................................................... 33
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Page 4 Introduction The Strategic Housing Investment Plan 2024-2029 sets out the priorities for affordable housing investment in North Ayrshire over the next five years and outlines how the Council and its partners will deliver these priorities. The focus of the plan is to support the Scottish Government’s Affordable Housing Supply Programme (AHSP) to deliver affordable housing in North Ayrshire. The provision of new build housing has many benefits, including, helping to regenerate the area, providing sustainable housing solutions which help to address fuel poverty and support educational attainment, and supporting the ageing population and people with accessible housing and particular needs to live more independently. For the second consecutive year, the Council and its partners have not included any additional new build housing in the Strategic Housing Investment Plan however the Council has increased its buyback programme and all North Ayrshire developing registered social landlords now have buyback programmes included within the plan. The Council and its registered social landlord partners have experienced significant affordability challenges and pressures. The rate of inflation and rising material costs have significantly impacted upon construction costs and project viability. Increasing standards and emerging legislation also impact upon project costs and timelines as options appraisals and financial modelling are required prior to implementation. For example, the cost to tenants and future maintenance and replacement costs of zero direct emissions systems had to be reviewed with solutions considered on a site-by-site basis to ensure that they were affordable to install and for tenants to utilise. The Council’s standard house types had to be revised to accommodate new equipment to support the heating systems. Further delays and increased costs are likely to be experienced as Housing for Varying Needs and Building Standards are revised to enhance accessibility and adaptability of housing stock. These changes are likely to impact upon the Council’s standard house types and construction costs. Development is not the only policy intervention being explored by the Council. It would be very difficult for the Council and its partners to meet housing need only through investment in new homes. Work to maintain and improve the condition of existing social housing stock, provide aids and adaptations and improve the private rented sector are all intended to address the housing needs of the local population. The Council and developing registered social landlord partners with stock in North Ayrshire all have buyback programmes within the plan to increase affordable housing in the area and contribute to wider regeneration and estate management.
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Page 5 Strategic policy context Housing to 2040, Scotland’s first 20-year housing strategy, was announced in March 2021. The strategy commits to providing around £16bn of investment to support the delivery of 100,000 new homes by 2032, with at least 70% for social rent. The Scottish Government’s Affordable Housing Supply Programme comprises a range of funding mechanisms to enable affordable housing providers to deliver homes in communities across Scotland to support local authorities’ Local Housing Strategies. The Scottish Government allocated Resource Planning Assumptions for the full five-year period of the current parliament to deliver the ambitious affordable homes target set out in Housing to 2040. The Council’s Cabinet approved the latest Local Housing Strategy 2023-28 on 13 June 2023. The Local Housing Strategy sets out the Council’s ambition: ‘We want all our people to live in the right homes, in great places, with access to any support services they need.” The strategy mirrors the format of Housing to 2040 and sets out four overarching outcomes which align to the four key strategies in Housing to 2040 as detailed below. The Strategic Housing Investment Plan is an extension of, and aligns to, the Local Housing Strategy. In preparing the plan, the Council has referred to the outcomes identified in the Local Housing Strategy, which support the objectives of the Council Plan. The Strategic Housing Investment Plan also aligns with the Council’s Community Wealth Building Strategy, which sets out how the Council, in conjunction with residents, will recover and renew services by building upon the outcomes of the Council Plan; committing to Community Wealth Building; and committing to a Green New Deal. Equalities In line with the Council Plan, fairness and equity is core to the Strategic Housing Investment Plan. It strives for a North Ayrshire where everyone has the same life chances to grow, prosper and have fulfilling and healthy lives. An Equality Impact Assessment has been undertaken for the Strategic Housing Investment Plan. It found that there are no negative or discriminatory effects on any equality groups. Housing to 2040 strategy More homes at the heart of great places Affordability and choice Affordable warmth and zero emission homes Improving the quality of all homes Local Housing Strategy outcome Our places support thriving and inclusive communities Our people have affordable homes in the place they choose to live Our homes are energy efficient and release less emissions Our homes are in good condition and people can access any support services they need
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Page 6 The provision of new social housing will have a positive impact on those who require specialist accommodation, older people, those who are homeless, or at risk of homelessness, and those for whom purchasing a home is not an affordable option. The benefits of new build housing in relation to health, wellbeing and educational attainment, are well documented. Public Health Scotland’s Healthy housing for Scotland report recognises that adequate housing which is safe, accessible, available, appropriate and high quality is key to us achieving the highest attainable standard of health. Childrens rights and wellbeing The North Ayrshire Child Poverty Action Plan 2022-2023 notes that North Ayrshire has the second highest level of child poverty after housing costs of any area in Scotland. Access to good quality and affordable housing is a key asset in addressing child poverty, and poverty overall. Research undertaken by Shelter suggests children can benefit from improved cognitive development and a reduction in behavioural issues through living in a more attractive, warmer, and better ventilated environment. All new build Council family homes have study space and private gardens. Environment A Strategic Environmental Assessment pre-screening questionnaire undertaken confirmed that there would be no likely significant adverse environmental effects from the activities set out within the Local Housing Strategy (which are not already subject to Strategic Environmental Assessment elsewhere), and for this reason a full strategic environmental assessment was not required. The likely environmental impact of development proposals (both positive and adverse) are scoped within the Strategic Environmental Assessment for the North Ayrshire Local Development Plan. Collaboration As the strategic housing authority, the Council is committed to supporting partners to deliver affordable housing development within North Ayrshire. The Council adopts a collaborative approach in the preparation of the Strategic Housing Investment Plan. The key stakeholders listed on the next page have influenced the final programme.
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Page 7 Key stakeholders Local registered social landlord partners, including ANCHO, Cairn, Cunninghame Housing Association, Link Group Ltd, Riverside Scotland and Trust Housing Association North Ayrshire Council departments, including Economic Growth, Education, Finance, Housing, Planning, Property Management and Investment, Active Travel and Transport, Roads, and the Health and Social Care Partnership The Scottish Government The Council and its partners engage with communities when developing new build sites in the Strategic Housing Investment Plan. For Council projects local residents are invited to review and comment upon the draft plans for the site. Thereafter the final plans are presented to the community and local residents are also invited to ‘Meet the Builder’ when a contractor has been appointed. Following the completion of each new site, design teams assess each project’s success in delivering places people can be proud of, as part of the ‘lessons learned’ review. Developing the Strategic Housing Investment Plan The priorities set out within the Strategic Housing Investment Plan were developed with partners and the local community through the preparation of the new Local Housing Strategy. The Council invited site nominations for the plan from its registered social landlord partners. No new site nominations were received. All existing developments were considered on their individual merits, with reference to the development priorities set out within the Local Housing Strategy and any known constraints. Thereafter, the Council issued the draft plan to partners to review. The Council will continue to monitor the development programme and new opportunities at quarterly meetings with developing landlords and the Scottish Government. Council Officers monitor the impact of the new build programme on education facilities and other services through the Strategic Housing Investment Plan project board. If any project becomes delayed or non-viable, the Council will work with registered social landlord partners and the Scottish Government to ensure that new homes are delivered by accelerating other projects within the plan. Continual improvement The Council regularly meets the Scottish Government and partner landlords to review the progress of the Strategic Housing Investment Plan and share good practice. The Council holds ‘lessons learned’ meetings and undertakes tenant satisfaction surveys for each site.
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Page 8 Investment priorities The Local Housing Strategy notes that the Strategic Housing Investment Plan will be reviewed annually to establish affordable housing investment priorities for the Council and its partners which seek to address the key priorities established within the Local Housing Strategy, set out below. More homes at the heart of great places The places we live have a significant impact on wellbeing. High quality places are safe, provide access to services and can help to reduce isolation and enhance communities. Place making principles form the foundation of project development, informing site selection (where appropriate) and the design process. North Ayrshire has a diverse housing market comprising rural, urban and island communities. The Council has established six localities: 20-minute neighbourhoods The provision of housing within 20-minute neighbourhoods allows people to meet their needs locally and encourages active transport. The goal is to support a better quality of life in places, whilst making towns and villages more resilient. The Strategic Housing Investment Plan will prioritise new social housing developments which support the principles of 20-minute neighbourhoods, where feasible. Regeneration and town centres Public sector investment can have a transformational impact for communities, and there are cumulative benefits through considering how this can be coordinated with developing partners and the private sector. The Council explores site and area specific opportunities with partners to secure maximum regeneration benefits. This supports the ambitions of the Council’s Regeneration Delivery Plan to drive forward place-based development on strategic regeneration sites, including town centres. Arran Garnock Valley Irvine Kilwinning North Coast Three Towns
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Page 9 Town centre regeneration is a primary focus of the Strategic Housing Investment Plan, with several projects completed to date within, or near, town centres. The plan supports major housing led regeneration in North Ayrshire, an example being provision for the replacement of the 275 homes in the Fullarton tower blocks being demolished in Irvine. Regeneration often results in higher development costs as sites require demolition, refurbishment or have significant constraints/ abnormal costs. The Strategic Housing Investment Plan also includes the provision of funding for 250 units to assist the delivery of Housing’s Estate Based Regeneration Programme. This investment aims to provide new homes to replace any stock which requires to be demolished or reconfigured as part of the Estate Based Regeneration Programme. Green space Research shows that where people have access to good quality outdoor green space, there is a corresponding positive and lasting impact on public health. The Strategic Housing Investment Plan will prioritise new social housing developments which include the provision of outdoor green space for residents. Island communities The Council is committed to supporting island communities. General needs houses, amenity bungalows and homes for wheelchair users were provided on the Isle of Cumbrae during summer 2021 (18 homes) and at Brathwic Terrace on the Isle of Arran during summer 2022 (34 homes). A ‘Local Lettings Initiative’ was introduced for Arran prior to the allocation of the new Council homes. The Local Lettings Initiative gives additional priority to island residents and key workers. Arran Development Trust has secured funding from the Rural and Island Housing Fund to deliver 18 new affordable homes in Lamlash and Trust Housing Association is currently in discussion with a local landowner to develop a further 26 new homes in Brodick. The Council has established the Arran Housing Task Force to quantify demand for affordable housing on Arran and identify issues that may be limiting economic growth. A quantitative study is being undertaken to determine affordable housing demand on the island, recognising the assessed housing demand information from the North Ayrshire Housing Register and community feedback. The task force membership includes the Scottish Government, local community groups and Arran registered social landlords. The group will develop an action plan to address any identified housing issues on the island.
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Page 10 The Local Housing Strategy recognises that it is more expensive to build new homes on islands, compared to the mainland. Higher living, transport, infrastructure, and fuel costs alongside limited on-island construction companies are identified as contributing factors to this issue. These issues are being explored as part of the Community Wealth Building ambitions and Local Island Plans. Wider action The Council’s Community Wealth Building Strategy introduced a new model to develop resilient, inclusive local economies, with more local employment and a larger and more diverse business base, ensuring that wealth is locally owned and benefits local people. Through the Strategic Housing Investment Plan, contractors are expected to participate in the Council (or partners’) Community Benefits scheme, providing apprenticeships to young people, skilling up the local workforce and supporting economic growth. Homes for Scotland suggests there are 4.1 jobs created for every new home constructed. Effective use of community benefit clauses in development contracts, and partnership work with colleagues in Economic Development to support local construction and supply chain companies to bid for this work, can secure many of these jobs for local people. The Council’s housebuilding programme can support the Council’s ambitions to encourage more young people into training and employment. The North Ayrshire Local Employability Partnership Delivery Plan 2022 – 2026 sets out the intentions to help people of all ages to gain skills for employment. It will prepare people for employment, training, education and/ or volunteering, with the aim of increasing qualification levels and job prospects as well as reducing unemployment. Developing the Young Workforce have launched an online Skills Academy to support school leavers and job seekers.
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Page 11 Affordability and choice Housing demand The Local Housing Strategy has set a target of 1,625 new social housing units and a private rented sector target of 1,300 new units. There were 6,467 applicants on the North Ayrshire Housing Register on 31 March 2023, of these, 3,327 applicants had an assessed housing need. When transfer applicants are deducted 2,655 applicants remain (transfer applicants leave an existing social tenancy behind for reallocation when they are rehoused). Figure 1 opposite details housing register applicant needs. Please note that the numbers are not mutually exclusive, for example, applicants can request both amenity and sheltered homes. Location There is no limit to the number of letting areas applicants can select when making a housing application and demand has therefore been assessed proportionately below to reduce double counting. It is important to note that individual housing allocations can impact upon demand within areas. For example, if an applicant housed in the Three Towns also had Arran as an area of preference this would reduce demand for housing in Arran. North coast, Irvine and Kilwinning are the most pressured localities. Further analysis is required to determine housing pressures within the Arran and Cumbrae localities as the proportionate analysis is not effective in determining pressure within smaller localities. This work is underway for Arran through the Arran Housing Task Force, previously referenced in the ‘Island communities’ section of this document. The Council will assess the demand for further new build housing on Cumbrae during the lifetime of the plan. 3,327 applicants with an assessed housing need 111 require larger homes (6 people or more) 227 homeless applicants 81 require OT assessed adapted homes 178 requests for wheelchair accessible homes 353 requests for sheltered housing 910 requests for amenity housing Figure 1: Applicant needs (Source: Housing Register, March 2023) Figure 2: Proportionate demand for social housing by locality (Source: North Ayrshire Housing Register, March 2023) Arran, 113, 3% Garnock Valley, 305, 9% Irvine, 1316, 40%Kilwinning, 461, 14% North Coast including Cumbrae, 363, 11% Three Towns, 769, 23%
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Page 12 The total number of homes which will be developed over the lifetime of the Strategic Housing Investment Plan have been plotted by locality in figure 3 below. These new supply figures illustrate the aspiration to plan for a growing population, and to seek continued investment in housing stock to improve overall stock condition. They have been plotted alongside the net gain for the same period, proportionate demand from the housing register as at 31 March 2023 and historic new build completions from April 2013 to March 2023. Figure 3: Completions, net gain, proportionate demand, and historic completions The 'net gain' column indicates the additional homes available per locality following completion of the developments, minus the strategic demolitions set out in the Strategic Housing Investment Plan. 0 200 400 600 800 1000 1200 1400 Irvine Kilwinning 3 Towns North Coast Garnock Valley Arran TBA SHIP Completions 2013 - 2023 SHIP Completions 2024-2029 Net Gain 2024-2029 Proportionate Demand from NAHR
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Page 13 Size Applicant house size requirements are determined by the strategic bedroom need which is the minimum number of bedrooms required based on household composition. The proportion of homes by bedroom size is noted by locality in the table below based on proportionate demand. Table 1: Proportionate housing demand by strategic bedroom need and locality (Source: North Ayrshire Housing Register, March 2023) Analysis of the North Ayrshire Housing Register identifies demand trends for properties. House size has been identified by considering the minimum accommodation size suitable for the household; this is referred to as the 'strategic bedroom requirement’. The strategic bedroom need is used for planning purposes only. Generally, one-bedroom homes are found to be of lower demand. Two- bedroom homes are a more popular option for smaller households and are more flexible in meeting households’ future needs. An additional bedroom can also provide study space, or space for home working. An indicative size mix (Table 2) for developments across North Ayrshire has been prepared by uplifting the two-bedroom provision and reducing the one-bedroom, thus meeting tenant aspirations and providing flexibility in terms of property sizes as households change composition over time. Table 2: Altered demand by bedroom size (reflecting aspiration) and locality This mix is intended as a guide only; each project will be considered on a site-by-site basis by the developing organisation, before being approved by the Council. Number of Beds Arran Garnock Valley Irvine Kilwinning North Coast Three Towns North Ayrshire 1 51% 55% 56% 55% 59% 59% 57% 2 16% 13% 15% 13% 16% 14% 14% 3 22% 19% 15% 18% 16% 15% 16% 4+ 11% 13% 14% 14% 9% 12% 13% Number of Beds Arran Garnock Valley Irvine Kilwinning North Coast Three Towns North Ayrshire 1 16% 13% 15% 13% 16% 14% 14% 2 51% 55% 56% 55% 59% 59% 57% 3 22% 19% 15% 18% 16% 15% 16% 4+ 11% 13% 14% 14% 9% 12% 13%
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Page 14 The Council will consider the need for housing for larger families in advance of the preparation of the Strategic Housing Investment Plan 2025 – 2030. The Council currently has plans to build four, five and six-bedroom homes within its development programme. Homelessness North Ayrshire Council’s Rapid Rehousing Transition Plan was approved in 2019 and sets out how the Council and its partners will work together to implement a housing led approach to meeting the needs of homeless households. Where it is not possible to prevent homelessness, the priority is to secure a settled housing option for every homeless household as quickly as possible. The plan aligns with the housing supply priorities set out within the Strategic Housing Investment Plan. The Rapid Rehousing Transition Plan priorities are to: The provision of new affordable housing which meets housing applicants needs and aspirations through the Strategic Housing Investment Plan will continue to support the delivery of the Rapid Rehousing Transition Plan. Gypsy/ travellers The Council has not identified any additional demand issues in relation to accommodation for gypsy/ travellers. The Council has reviewed the condition of the permanent site at Redburn Grove, Irvine in consultation with residents to identify any future maintenance and investment works. An options appraisal is underway to develop plans and a business case for site improvements. The Council will make an application to the Scottish Government’s Gypsy/ Traveller Accommodation Fund to seek funding for any necessary renovation or improvements when this is complete. Housing for key workers The Council will assess the need to bid for funding for housing for Key Workers through the Scottish Governments five year £25million fund during the lifetime of the Strategic Housing Investment Plan. proactively prevent homelessness wherever it is possible to do so reduce the time spent by homeless households in temporary accommodation reduce the number of hostel places and prioritise the use of dispersed accommodation reduce the overall number of temporary accommodation units implement Housing First for our most complex and disadvantaged service users shift funding towards flexible, floating housing support services
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Page 15 Ensuring best value As part of the tendering process, the Council prepares minimum specifications for materials utilised in the new build developments to ensure that they align to current lifecycle replacement and maintenance programmes. A suite of standard house types has also been developed to further assist with maintenance programmes and reduce project design costs. The Council is committed to making efficiency savings through strategic procurement arrangements in the delivery of the new build affordable housing programme, to ensure value for money for tenants. Several Strategic Housing Investment Plan projects have been procured through Hub South-West, as part of a procurement strategy to achieve cost and time savings through economies of scale. The Council has also, with ten local authority partners, worked with Scotland Excel to develop a New Build Residential Construction Framework Agreement available for use by all Scottish local authorities and registered social landlords. The Council has been utilising off site construction following a successful pilot scheme at Ardrossan Road, Seamill. During summer 2023, six new amenity bungalows were developed in Stevenston town centre. The construction method results in less waste and has sustainability benefits. It also reduced the construction time on site, and in turn, reduced disruption for local residents and businesses from site traffic and works.
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Page 16 Rent levels and affordability The Scottish Housing Regulator expects social landlords to be able to demonstrate affordability and engage meaningfully with tenants on rent increases. Increasing costs and inflation mean that retaining affordable rent levels is a significant challenge for the Council and its partners. Empty homes and second hand buy backs Empty homes are detrimental to the local environment, often the target of antisocial behaviour, and are more likely to fall into disrepair. The Council and its partners recognise that bringing former social housing stock into ownership can assist with housing management and maintenance issues and increase housing available through the North Ayrshire Housing Register. All developing registered social landlord partners with stock in North Ayrshire now have provision for buyback programmes within the Strategic Housing Investment Plan. Duration empty 2020/21 2021/22 2022/23 Less than 6 months 35 18 23 6 to 12 months 61 71 3 1-2 years 15 136 31 2 to 5 years 10 109 64 5 to 10 years 0 0 2 More than 10 years 0 0 0 Total 121 334 123 Figure 4: Afton Court development of six amenity bungalows utilising off site construction in Stevenston town centre Table 3: Empty homes brought into use per annum 2020/21 to 2022/23
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Page 17 The Council has acquired three empty homes over the past three financial years which have been brought back into use as Council stock. Table 3, on the previous page, details the number of empty homes brought back into use in North Ayrshire from April 2020 until March 2023, all of these homes were subject to the Council Tax levy (this is where the Council currently focuses empty homes resources). A post has been funded for the Council’s Private Sector Advice Team from the reduction in discount for empty and second homes Council Tax in North Ayrshire since April 2022 to focus on bringing empty homes back into use. Private sector support The Council’s Private Sector Advice Team provide advice on private sector housing issues in North Ayrshire. The service is part of the revised Scheme of Assistance 2019 which introduced a range of new measures to improve private sector housing condition, including: A ‘pre-tenancy support service’ for landlords to aid the prevention of future property condition issues. A ‘missing shares scheme’ to remove barriers where a property owner refuses to meet their common repair obligations. Use of the Council’s powers for Compulsory Purchase Orders (CPOs) where appropriate to acquire empty properties in poor condition, bringing them back into mainstream housing stock. An Empty Homes Loan Fund to assist property owners to bring properties back into effective use. Before and after photos of an empty home brought back into use
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Page 18 Second homes The Council’s Local Housing Strategy notes that there are 1,500 second homes in the area, almost all of which are located on the islands. On Arran, one in four privately owned houses are second homes; on Cumbrae this rises to 43%. This reduces the number of homes available for local people, and in turn pushes up house prices and private rent charges. The Scottish Government has committed to introducing new powers for local authorities to cap the number of second homes in an area. The intention is to provide a tool to create a viable balance between the number of second homes and permanently occupied homes. Alternative models of affordable housing delivery Recognising that a suite of affordable housing solutions is required to meet the needs and aspirations of local people, the Council has embarked on a pilot project aimed at the private housing sector Home Ownership Made Easy ‘HOME’. Home ownership made easy (HOME) The Council is reviewing the viability of the ‘HOME (Home Ownership Made Easy)’ project based on a model devised by Scottish Futures Trust. This shared ownership housing option aims to provide households the opportunity to purchase a stake in a home. The Council and our partner registered social landlords will continue to review alternative housing models which could be utilised to increase affordable housing supply during the lifetime of the Strategic Housing Investment Plan.
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Page 19 Affordable warmth and zero emissions Sustainability The Council’s Environmental Sustainability and Climate Change Strategy includes actions to achieve net-zero carbon emissions by 2030. New housing has a key role to play in carbon reduction, climate change mitigation, and alleviation of fuel poverty. The Council and its partners will continue to consider innovative and sustainable approaches to heat and power, such as low carbon heat, solar photovoltaic panels and smart technologies. The Council will ensure that all new build housing utilises Net Zero Direct Emissions heating systems in accordance with building standards. In advance of the new regulations the Council installed three biomass district heating schemes in Stevenston, Dalry and Largs. A bespoke energy strategy has been created for each emerging new housing development to ensure that the heating options for the sites are both energy efficient and affordable for tenants. The Council recognises that a ‘fabric first’ approach to sustainability can provide benefits to tenants, in terms of reducing heating costs. It also benefits the environment as all homes are designed to minimise heat loss. The Council completed two ‘sustainable demonstrator homes’ within Dickson Drive, Irvine in 2020 to highlight best practice in design and innovation, ensuring benefits from sustainable technologies are maximised. The benefits are currently being assessed, and the findings will be shared with partners to inform future developments. Also, in recognition of the safety benefits of sprinkler systems, the Council installed sprinklers in all new build housing proposals which reached technical design stage after October 2019, prior to the introduction of Building Standards legislation in March 2021.
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Page 20 Secure by design Successful design can contribute to community stability and promote feelings of safety and inclusion. All Council developments are planned utilising ‘secure by design’ principles. Active travel Access to safe walking networks, cycle pathways and public transport connects communities to local amenities and services. In turn, these can result in direct health benefits, through increased physical activity and reduced air pollution. They can also lead to indirect health benefits by providing improved access to opportunities for employment, leisure, and healthcare services. The sustainable travel hierarchy, illustrated in figure 5 opposite, sets out the transport priorities for sustainable transport in development. Improving the quality of our homes Over 40% of the stock developed by the Council and its partners since April 2013 has addressed particular housing needs, demonstrating the commitment to supporting tenants to live independently. The cost of particular needs housing is often more expensive than general needs housing, for example, housing for wheelchair users has a larger ground floor footprint, increasing construction costs and reducing economies of scale as site densities are reduced. Similarly, supported accommodation and sheltered housing require communal space which also increases costs. Wheelchair accessible accommodation All amenity and sheltered housing in North Ayrshire should be built to an ambulant housing standard as a minimum. To ensure need is met now and in the future, the new Local Housing Strategy increased the target to ensure at least 10% of all tenure new build stock is suitable for wheelchair users (increased from 7% in the previous strategy). In recognition of the benefits of providing adaptable housing, and to address demand from the North Ayrshire Housing Register, the Council and registered social landlord partners developed 180 (11% of new supply) new build homes suitable for wheelchair users since April 2013. The Strategic Housing Investment Plan 2024 – 2029 estimates the delivery of a further 172 (13% of new supply) homes suitable for wheelchair users. Figure 5: Sustainable travel hierarchy
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Page 21 In addition, a set of standard house types for Council developments were designed in partnership with Housing Services Occupational Therapists which are of an accessible design to make best use of assets and adapt to tenants’ changing mobility needs. In preparing North Ayrshire’s third Local Development Plan, the Council will further consider the housing needs of older people and disabled people in the area and the establishment of an appropriate target for the delivery of accessible or adaptable homes, including wheelchair housing and intergenerational homes within the private sector, to support independent living particularly although not exclusively among older or disabled people. Occasionally it may be necessary to build larger specialist housing to meet the specific needs of individual households. Where this is provided by a registered social landlord, the Council will approve the proposals before a planning application is submitted. Supported accommodation Officers within the Place Directorate and the Health and Social Care Partnership developed a new supported accommodation housing model which has been implemented at sites across North Ayrshire. The focus is on maximising independence for adults within a homely setting, who require a higher level of support, and who are living with learning disabilities, or mental illnesses (all ages), or who are under 65 years and have physical disabilities. The new supported accommodation model can: prevent demand for additional services support a more independent lifestyle for service users integrate residents into community life use technological advances to support care provision provide care and support in a homely setting provide a base for effective care provision
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Page 22 The Strategic Housing Investment Plan has supported the Health and Social Care Partnership to meet specialist housing need through four dedicated supported accommodation projects which have provided 62 (4% of new supply) new homes across North Ayrshire. Housing for older people The Local Housing Strategy recognises that the proportion of older people in North Ayrshire is higher than that of Scotland as a whole (23% compared to 19%). It further predicts that by 2043 the over 75 age group will account for 28% of local people. Recognising the need to develop housing solutions appropriate for the older population, the Council and its partners have delivered 283 (17% of new supply) amenity homes and 223 (13% of new supply) units of sheltered housing since April 2013. The Council ensures that its sheltered housing is developed utilising dementia friendly design principles. The Strategic Housing Investment Plan 2024 – 2029 estimates the delivery of a further 311 (24% of new supply) amenity homes and 28 (2% of new supply) sheltered housing units.
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Page 23 Alongside the new build programme, the Council will continue to deliver its sheltered housing re-provisioning programme, which includes £25m investment in the refurbishment of sheltered housing units out with the Strategic Housing Investment Plan. Extra care housing Housing Services and the Health and Social Care Partnership worked together over the last few years to develop a model for Extra Care Sheltered Housing. The vision was to create safe, affordable homes for tenants who require additional support, with extra services to promote independent living, such as assistance with meals or welfare checks, to be available to tenants for an additional fee. Following development of the outline model, demand analysis was undertaken by the Health and Social Care Partnership in 2021 alongside engagement with other areas in Scotland where similar housing models operate. At that time, it was determined as an outcomes of the analysis that there was not sufficient demand to integrate the extra care model into a new sheltered housing complex. The Council has, however, incorporated flexibility into some new build sheltered complexes to allow this model to be reconsidered in the future should the Health and Social Care Partnership chose to develop this further.
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Page 24 Assistive technology The Flatt Road development in Largs provides an exemplar for assistive technology to promote independent living. Features that can be installed within the sheltered housing complex and supported accommodation, where required, to support tenants’ individual needs include: Prioritising projects All projects which meet the criteria outlined above will be ‘high priority’. In the case of developments by registered social landlords the housing mix and type for each individual development site and the proposed rent levels for the new homes should be formally agreed with the Council prior to the submission of a planning application. Projects from the Strategic Housing Investment Plan 2023-2028 which have not yet completed have been included in the new 2024-2029 plan. Thereafter, the Council will prioritise all projects which are considered deliverable and meet the strategic goals outlined above. super-fast broadband smart heating controls automatic lights and blinds an integrated home communications hub with: video door entry video calls electronic welfare checks enhanced assistive technology safety monitors and sensors electronic note board and calendar android apps
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Page 25 SHIP funding streams Affordable housing supply programme The Scottish Government has committed £47.313m funding for North Ayrshire from April 2023 to March 2026 (see table 4 below). The Strategic Housing Investment Plan is based on projected grant funding of £124.000m. Funding for Council projects not yet at tender stage has been assumed at benchmark plus annual Scottish Social Housing Tender Price Index inflation which has been assumed at 3.7% for 2024/25. The Council will seek grant funding above these levels on a site-by-site basis, as required. The registered social landlord funding rates have been included as requested by each developing organisation and will be subject to Scottish Government authorisation. To meet the requirement for ‘slippage’, in accordance with Scottish Government guidance, the Council has over committed the funding within the Strategic Housing Investment Plan. The slippage requirement is to ensure that the allocation is fully spent even if delays or constraints emerge on other development sites, and to provide the opportunity for North Ayrshire to absorb slippage from other local authority areas. Table 4: North Ayrshire resource planning assumption per annum 2023/24 to 2025/26 and assumptions for 2026/27 to 2028/29 Reserves and balances All developing organisations will utilise available reserves and balances to support the development programme. Borrowing A large portion of development funding is secured from borrowing. Private finance supports registered social landlords development programme, and prudential borrowing supports local authority new build projects. Affordable housing policy developer contributions The Council’s previous Affordable Housing Policy (RES4), which required contributions to affordable housing provision from specified private developments within North Ayrshire, was removed within the new Local Development Plan (LDP2) adopted on 28 November 2019. 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 RPA £15.648m £15.702m £15.963m £23.500m £25.500m £27.687m
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Page 26 Developer contributions, in the form of commuted sums, received through the application of the Affordable Housing Policy under the previous Local Development Plan, will be utilised to fund projects being delivered through the Strategic Housing Investment Plan, when required. The Council had an on-site contribution through the affordable housing policy at the 31-unit Ardrossan Road, Seamill development. The table below details the number of units supported per annum and the value of these contributions. All projects supported were delivered as part of the Affordable Housing Supply Programme. Table 5: Projects supported by developer contributions April 2020 to March 2024 2020/21 2021/22 2022/23 2023/24 Total Number of units supported 0 0 34 34 34* Funding value 0 0 £47,500 £18,750 £76,250 As at 31 March 2023 the Council had £0.019m of funding from developer contributions in hand. The Council will utilise any other incoming funds to support Council projects within the Strategic Housing Investment Plan and partner developments, where appropriate. *Please note that the project supported spanned two financial years so the total number of units was 34. Other funding sources The Council will consider utilising other funding sources to support the Strategic Housing Investment Plan, where appropriate. The Council successfully secured £0.6m from the Scottish Government’s Low Carbon Vacant and Derelict Land Investment Programme to support the King’s Arms, Irvine town centre regeneration project. The Council and its partners do not have any current plans to seek funding from the Housing Infrastructure Fund. Council tax on empty and second homes Income received from the reduction in discount for empty and second homes in North Ayrshire is held in the Council’s Affordable Housing Account. Table 6, on the next page, details the number of units supported per annum and the value of these contributions. All projects supported were delivered as part of the Affordable Housing Supply Programme.
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Page 27 Table 6: Projects supported by Council Tax on empty and second homes April 2020 to March 2024 2020/21 2021/22 2022/23 2023/24 Total Number of units supported 191 469 321 27 927* Funding from Council Tax levy on second homes and empty homes £1,252,078 £2,024,139 £541,320 £166,812 £3,984,349 As at 31 March 2023 the Council had £2.038m of funding from the Council Tax levy on second and empty homes and an estimated annual income of £0.978m. The Council will utilise the funds to support Council projects within the Strategic Housing Investment Plan and partner developments, where appropriate. *Please note that a number of the projects supported spanned two financial years so the total number of units was 927. Planning and other regulatory matters In 2014, the Council’s Cabinet approved the House Building Protocol, to be used in all Council housing development projects that meet the criteria for permitted development. Class 33 of the Town and Country Planning (General Permitted Development) (Scotland) Order 1992, as amended, enables local authorities to carry out works, within their district, for the erection of dwellings so long as the development conforms with the Local Development Plan. In 2019, it was agreed that all future Council housing developments progressed as permitted development will be required to obtain a ‘Certificate of Lawfulness’ from the Council’s Planning Service. This will certify that each site within the SHIP has been considered against the full terms of the adopted Local Development Plan. Housing development proposals by the Council which do not fall within the scope of permitted development, including schemes which require an Environmental Impact Assessment (EIA) will require planning permission. Proposals over 0.5 hectares in area will require to be screened for the purposes of EIA.
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Page 28 Delivery risks Through experience, and engagement with registered social landlords and other developers, development constraints or risks to delivery of the programme have been identified as: • Inflation of building costs and rising tender prices • Shortages of materials • Capacity within the building and development industry across the country • Costs of infrastructure and ground remediation • Delays obtaining statutory utility consents • Emerging costs relating to legislative and building standards regulations amendments The Council and its partners will continue to work closely to monitor and actively manage these risks through the period of the Strategic Housing Investment Plan. Amendments or additions to the plan The delegated authority to accelerate any project detailed within the North Ayrshire approved SHIP is held by the Executive Director (Place) and the Cabinet Member for Green Environment and Economy.
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Page 29 Development projects An overview of projects detailed in the Strategic Housing Investment Plan tables is provided below by locality. Irvine & Kilwinning Project Timeline Site Information Harbourside, Irvine (NAC) 71 units Site Start: October 2020 Completion: 12 April 2023 The intergenerational development with a particular focus on older people’s housing provision delivered amenity bungalows, sheltered housing, general needs houses and homes for wheelchair users. The high-demand area is a short walk from Irvine beach park, train station, shopping mall and town centre. Bourtreehill Village, Irvine (NAC) 32 units Site Start: Autumn/ winter 2024 Expected Completion: Autumn/ winter 2028 The site will see the regeneration of the Bourtreehill Village area of Irvine. The site is expected to deliver new retail provision and 32 new homes. Corsehillhead, Kilwinning (NAC) 7 units Site Start: Early 2024 Expected Completion: Early 2025 The site will deliver a mix of general needs and amenity accommodation in the Corsehill area of Kilwinning. Montgomerie Park, Irvine (NAC) 189 units Site Start: Summer 2024 Expected Completion: Winter 2027 This site will provide a mix of general needs, amenity, and wheelchair user accommodation. Ayrshire Central, Irvine (NAC) 202 units Site Start: Spring 2024 Expected Completion: Spring 2027 Located in a high demand area, this site will deliver a mix of general needs, amenity, and wheelchair properties at the Ayrshire Central, Irvine site. Stanecastle, Irvine (NAC) 31 units Site Start: Early 2024 Expected Completion: Summer 2025 This site will deliver a mix of general needs, amenity, and wheelchair user accommodation on the site of the former Stanecastle School. Fullarton Street, Irvine (NAC) 62 units Site Start: Early 2025 Expected Completion: Summer 2026 This project will deliver a mix of general needs, amenity, and wheelchair accommodation on the former Irvine High Flats site.
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Page 30 Project Timeline Site Information King’s Arms, Irvine (NAC) 6 units Site Start: Early 2024 Expected Completion: Spring/ summer 2025 This project involves the regeneration of a prominent town centre building to deliver six amenity flats. Confidential Site 1 (Cairn) 10 units Site Start: Spring 2024 Expected Completion: Early 2025 This development will provide general needs, amenity, and wheelchair accommodation. This site is currently confidential due to a requirement for planning consent and for acquisition of land. Confidential Site 3 (Cairn) 4 units Site Start: Spring 2025 Expected Completion: Spring 2026 This site has the capacity for 4 affordable, general needs homes. This site is currently confidential due to a requirement for planning consent and for acquisition of land. Bank Street, Irvine (CHA) 16 units Site Start: Spring 2025 Expected Completion: Spring 2026 This town centre regeneration project in Irvine was previously allocated for Riverside. CHA is currently determining the viability of delivering 16 new homes for affordable rent as Riverside are no longer able to progress the scheme. Three Towns Project Timeline Site Information Afton Court, Stevenston (NAC) 6 units Site Start: Winter 2022 Completion: 24 July 2023 This town centre regeneration project delivered 6 amenity bungalows, recognising the highly accessible nature of this location. Modular construction was utilised to reduce the time on site and the impact of works on surrounding residents and businesses. James McFarlane, Saltcoats (NAC) 19 units Site Start: Early 2024 Expected Completion: Summer 2025 The site of the former James McFarlane school will provide general needs, amenity, and homes suitable for wheelchair accommodation close to Ardrossan town centre. James Reid, Saltcoats (NAC) 47 units Site Start: Early 2024 Expected Completion: Summer 2025 The site of the former James Reid school and the former Focus Centre will provide general needs, amenity, and wheelchair accommodation. Glebe Place, Saltcoats (NAC) 8 units Site Start: Spring 2027 Expected Completion: Winter 2028 This regeneration project which includes the demolition of low demand flats can accommodate approximately 8 new affordable homes close to Saltcoats town centre. Regeneration Project 1d, Ardrossan (NAC) 36 units Site Start: Autumn 2025 Expected Completion: Spring 2027 This project provides a regeneration opportunity for 36 affordable homes, comprising general needs, amenity, and wheelchair accommodation.
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Page 31 Project Timeline Site Information Nursery Place (Regen 1e), Ardrossan (NAC) 6 units Site Start: Spring 2026 Expected Completion: Spring 2027 This regeneration opportunity can accommodate approximately 6 new affordable homes. Grange Court, Stevenston (NAC) 6 units Site Start: Spring 2026 Expected Completion: Spring 2027 This regeneration opportunity can accommodate approximately 6 new affordable homes. Sharphill Phase 5, Saltcoats (CHA) 100 units Site Start: Autumn 2027 Expected Completion: Spring 2029 The next phase of the Sharphill site will deliver an additional 100 new homes, providing a mix of general needs, amenity, and wheelchair user homes. Green Street, Saltcoats (CHA) 24 units Site Start: March 2022 Expected Completion: 28 August 2023 The 24 new amenity homes developed in Saltcoats town centre were completed during August 2023. Garven Road, Stevenston (CHA) 20 units Site Start: Autumn 2023 Expected Completion: Autumn 2024 This site was formerly known as Confidential Site 8 and has capacity to deliver 20 new homes. Confidential Site 10, Ardrossan (CHA) 50 units Site Start: Spring 2026 Expected Completion: Autumn 2027 This project has capacity for up to 50 homes and is confidential until site feasibility can be confirmed. Parkend Gardens, Saltcoats (Link) 12 units Site Start: Early 2024 Expected Completion: Early 2025 This development is in close proximity to Saltcoats town centre and adjacent to North Ayrshire Council’s new development at Kyleshill Court, Saltcoats. It will deliver a mix of general needs, amenity and wheelchair accommodation. North Coast Project Timeline Site Information Former Largs Police Station (NAC) 12 units Site Start: 29 August 2022 Completion: 18 September 2023 Work completed during September 2023 at the former Largs Police Station site delivering 12 amenity flats in the high demand, town centre, location.
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Page 32 Garnock Valley Project Timeline Site Information Former Garnock Academy, Kilbirnie (NAC) 50 units Site Start: Early 2024 Expected Completion: Winter 2025 The site of the former Garnock Academy will see the development of a mixture of general needs homes, amenity bungalows and homes suitable for wheelchair users. Laburnum Avenue, Beith (NAC) 7 units Site Start: Early 2024 Expected Completion: Early 2025 This development will regenerate low demand flatted accommodation to deliver 7 new affordable homes in Beith. Newhouse Drive, Kilbirnie (NAC) 7 units Site Start: Early 2024 Expected Completion: Early 2025 This development will regenerate low demand flatted accommodation to deliver 7 new affordable homes in Kilbirnie. Arran Project Timeline Site Information Springbank, Brodick (Trust HA) 26 units Site Start: Early 2025 Expected Completion: Winter 2027 Trust Housing Association are exploring the viability of developing 26 homes at this Brodick site. This site was formerly known as Confidential Site 4. Locality to be confirmed Project Timeline Site Information Unallocated Regeneration Block (NAC) 15 units Site Start: Autumn 2025 Expected Completion: Autumn 2027 This involves the regeneration of 15 properties to deliver a mix of general needs, amenity bungalows and homes suitable for wheelchair users. The locations for these projects have still to be finalised. Regeneration Project 3 (Riverside) 30 units Site Start: Spring 2026 Expected Completion: Spring 2029 This project involves the regeneration of 30 properties to deliver a mix of general needs houses, amenity properties and homes suitable for wheelchair users. The location has still to be finalised. Unallocated CHA Block (CHA) 92 units Site Start: Spring 2025 Expected Completion: Winter 2026 The 92 units have been allocated within the SHIP to replace Confidential Sites 9 and 11 which were not viable. This will provide CHA with capacity for future development as the association identifies suitable sites.
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Page 33 Progress update The Council has made a commitment to develop 1,625 new homes by 2028. Good progress has been made towards achieving this target, with 831 new Council homes built as at 31 March 2023. The tables below detail the Council and its partners progress to date (excluding sites which are noted for completion during 2023/24 within the Strategic Housing Investment Plan 2019 – 2024). Locality Pre 2018/19 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Total Arran 56 0 0 0 0 34 0 90 Garnock Valley 24 0 0 49 0 0 0 73 Irvine 250 0 111 0 83 0 77 521 Kilwinning 68 64 0 0 0 151 0 283 North Coast 85 26 58 0 141 29 0 339 Three Towns 84 126 0 28 105 16 0 359 Total Units 567 216 169 77 329 230 77 1,665 New supply by house type Units % General needs 934 56.1% Amenity housing 283 17.0% Sheltered housing 223 13.4% Supported accommodation 62 3.7% Wheelchair user 85 5.1% Ground floor living (wheelchair user) 45 2.7% Other adapted 10 0.6% Other 7 0.4% New Supply Shared Equity (NSSE) 16 1% Total 1,665 100% It should be noted that 50 of the amenity, sheltered and supported accommodation units detailed above are suitable for wheelchair users.
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Page 34 Completed North Ayrshire Council projects Locality General Needs Amenity Sheltered Supported W heelchair User Bungalow Ground Floor Living Other Total Units Completion year Copeland Crescent, Millport North Coast 11 1 12 2013/14 Redstone Avenue, Kilwinning Kilwinning 37 3 2 4 46 2014/15 John Galt PS, Irvine Irvine 64 10 6 80 2014/15 Stevenston Institute, Largs North Coast 11 11 2015/16 Dickson Drive, Irvine (Phase 1) Irvine 6 2 8 2015/16 Kiln Court, Irvine Irvine 16 16 2015/16 Montgomery Court, Kilbirnie Garnock Valley 8 16 24 2016/17 Fencedyke, Irvine Irvine 19 10 3 3 35 2017/18 Glencairn House, Stevenston Three Towns 28 28 2018/19 Canal Court, Saltcoats Three Towns 36 36 2018/19 Ardrossan Road, Seamill North Coast 25 5 1 31 2019/20 Dickson Drive, Irvine (Phase 2) Irvine 14 3 4 3 24 2019/20 Watt Court & Former Dalry P.S. Garnock Valley 8 22 15 4 49 2020/21 Dalrymple Place, Irvine Irvine 24 9 33 2021/22 St Beya, Cumbrae North Coast 3 9 3 3 18 2021/22 Springvale, Saltcoats Three Towns 6 2 2 4 14 2021/22 Flatt Road, Largs North Coast 49 16 28 22 5 2 1 123 2021/22 Former Towerlands P.S., Irvine Irvine 20 12 5 13 50 2021/22 Brathwic Terrace, Arran Arran 17 8 2 7 34 2022/23 St Michael's Wynd, Kilwinning Kilwinning 34 2 24 10 2 6 1 79 2022/23 St Colm's Place, Largs North Coast 29 29 2022/23 Caley Court, Stevenston Three Towns 15 1 16 2022/23 Total 294 120 223 62 45 45 7 796
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Page 35 Completed registered social landlord projects Locality General needs Amenity W heelchair Other adapted NSSE Total units Completion Year Flatt Farm, Largs (CHA) North Coast 16 10 26 2013/14 Vineburgh Phase 3, Irvine (CHA) Irvine 43 10 10 63 2013/14 Jetty Road, Fairlie (CHA) North Coast 10 3 13 2014/15 Benlister Road, Lamlash (Riverside) Arran 50 6 56 2014/15 Vineburgh Phase 4, Irvine (CHA) Irvine 41 6 1 48 2014/15 Pennyburn (Regeneration new build) (Riverside) Kilwinning 21 1 22 2015/16 Waterside Street, Largs (CHA) North Coast 12 12 2015/16 Seamore Street, Largs (CHA) North Coast 8 3 11 2016/17 Ardrossan Harbour Phase 1 (CHA) Three Towns 55 13 2 70 2017/18 New Street, Stevenston (CHA) Three Towns 7 7 14 2017/18 Nelson Street, Largs (CHA) North Coast 7 5 2 14 2018/19 Corsehillhead, Kilwinning (CHA) Kilwinning 57 5 2 64 2018/19 Ardrossan Harbour Phase 2 (CHA) Three Towns 2 4 4 10 2018/19 Sharphill Phase 3, Saltcoats (CHA) Three Towns 19 3 2 24 2018/19 Stanley P.S., Ardrossan (CHA) Three Towns 24 2 2 28 2018/19 Victoria Hotel, Largs (CHA) North Coast 12 12 2018/19 Balnagowan, Skelmorlie (CHA) North Coast 25 2 27 2019/20 Tarryholm Phase 1, Irvine (Riverside) Irvine 61 14 2 10 87 2019/20 Ardoch Court, Stevenston (CHA) Three Towns 26 2 28 2020/21 Corrie Crescent (Charitable Bond) (CHA) Three Towns 12 1 13 2021/22 Glebe, Saltcoats (CHA) Three Towns 2 2 2021/22 Sharphill Phase 4, Saltcoats (CHA) Three Towns 65 5 6 76 2021/22 West Byrehill, Kilwinning (CHA) Kilwinning 59 8 5 72 2022/23 Tarryholm Phase 2, Irvine (Riverside) Irvine 32 40 5 77 2023/24 Total 640 163 40 10 16 869
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Official‐Protect# Appendix 1 SHIP 2024‐2029 Pre 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 General Needs Am enity Supported W heelchair Ground Floor Living Sheltered Harbourside Irv NAC 71 New Build 26 Oct 20 12 Apr 23 2020/21 71 71 - 24 11 4 4 28 - - - - - - - - Largs Police Station (Redev 13) Lrgs NAC 12 New Build 29 Aug 22 30 Sep 23 2022/23 12 12 - 12 - - - - - - - - Afton Court (Redev 6a) Stev NAC 6 New Build 09 Jan 23 24 Jul 23 2022/23 6 6 - 6 - - - - - - - - 2nd Hand & Empty Home Buy Backs ! NAC 65 Buy Back 01 Apr 23 31 Mar 28 2023/24 5 15 15 15 15 5 15 15 15 15 £2,600,000 65 - - £200,000 £600,000 £600,000 £600,000 £600,000 £0 Garnock Academy (Redev 9) Kilb NAC 50 New Build 08 Jan 24 30 Oct 25 2023/24 50 50 £5,306,966 28 13 2 7 £473,397 £56,780 £1,110,750 £2,000,000 £1,666,039 £0 £0 £0 King's Arms (Regen 1c) Irv NAC 6 New Build 08 Jan 24 01 May 25 2023/24 6 6 £543,319 6 £0 £288,868 £82,000 £172,451 £0 £0 £0 £0 Corsehillhead Kilw NAC 7 New Build 01 Feb 24 01 Feb 25 2023/24 7 7 £711,516 5 2 £130,500 £72,154 £350,000 £158,862 £0 £0 £0 £0 James McFarlane (Redev 8a) Ardr NAC 19 New Build 01 Feb 24 01 Jun 25 2023/24 19 19 £1,993,029 10 4 1 4 £233,022 £58,347 £450,000 £1,251,659 £0 £0 £0 £0 Stanecastle (Redev 11a) Irv NAC 31 New Build 01 Feb 24 01 Aug 25 2023/24 31 31 £3,204,355 17 7 3 4 £493,411 £82,132 £450,000 £1,500,000 £678,812 £0 £0 £0 Laburnum Avenue (Regen Project 1a) Beith NAC 7 New Build 01 Feb 24 31 Jan 25 2023/24 7 7 £699,468 4 3 £0 £0 £125,000 £574,468 £0 £0 £0 £0 Newhouse Drive (Regen Project 1b) Kilb NAC 7 New Build 01 Feb 24 31 Jan 25 2023/24 7 7 £699,468 4 3 £0 £0 £125,000 £574,468 £0 £0 £0 £0 James Reid & FC (Redev 8b) Salt NAC 47 New Build 01 Feb 24 01 Aug 25 2023/24 47 47 £4,858,216 26 11 4 6 £602,999 £226,748 £1,200,000 £2,200,000 £628,468 £0 £0 £0 Ayrshire Central (Redev 12) Irv NAC 202 New Build 01 Apr 24 01 Apr 27 2023/24 202 202 £20,010,798 65 85 26 26 £2,252,936 £0 £600,000 £5,628,339 £6,529,523 £5,000,000 £0 £0 Nelson Street Lrgs NAC 3 Refurb 01 Jul 24 01 Apr 26 2024/25 3 3 £171,000 3 £0 £0 £0 £71,000 £100,000 £0 £0 £0 Montgomerie Park, Irvine Irv NAC 189 New Build 01 Aug 24 01 Dec 27 2024/25 189 189 £19,698,882 111 39 19 20 £4,579,235 £0 £780,000 £3,720,000 £6,620,200 £3,999,447 £0 £0 Bourtreehill Village (Redev 7) Irv NAC 32 New Build 01 Oct 24 30 Oct 28 2024/25 32 32 £3,409,353 24 6 1 1 £0 £0 £0 £0 £307,722 £500,000 £2,000,000 £601,631 Refurbishment Project 8 Irv NAC 2 Refurb 01 Nov 24 01 Nov 26 2024/25 2 2 £114,000 2 £0 £0 £0 £14,000 £100,000 £0 £0 £0 Fullarton Street (HF) Irv NAC 62 New Build 06 Jan 25 01 Jun 26 2024/25 62 62 £6,355,354 40 15 2 5 £0 £0 £0 £1,000,000 £2,855,354 £2,500,000 £0 £0 Regeneration Project 1d Ardr NAC 36 New Build 01 Sep 25 30 Apr 27 2025/26 36 36 £3,983,812 20 5 11 £0 £0 £0 £0 £983,812 £3,000,000 £0 £0 Unallocated Regeneration Block TBA NAC 15 New Build 01 Sep 25 30 Sep 27 2025/26 15 15 £1,594,478 10 3 1 1 £0 £0 £0 £0 £50,000 £1,000,000 £544,478 £0 Nursery Place (Regen 1e) Ardr NAC 6 New Build 01 Apr 26 30 Apr 27 2026/27 6 6 £635,113 4 2 £0 £0 £0 £0 £0 £325,348 £309,765 £0 Grange Court (Regen) Stev NAC 6 New Build 01 Apr 26 30 Apr 27 2026/27 6 6 £644,576 6 £0 £0 £0 £0 £0 £325,348 £319,228 £0 Glebe Place Salt NAC 8 New Build 01 Apr 27 30 Nov 28 2027/28 8 8 £836,109 5 3 £0 £0 £0 £0 £0 £0 £422,365 £413,744 Confidential Site 1 ₴ Irv Cairn 10 New Build 01 Mar 24 01 Jan 25 2023/24 10 10 £1,117,945 6 2 2 £0 £0 £100,000 £1,017,945 £0 £0 £0 £0 Cairn Buy Back Programme ! Cairn 2 Buy Back 01 Apr 24 31 Mar 26 2024/25 2 2 £85,000 2 £0 £0 £0 £85,000 £0 £0 £0 £0 Confidential Site 3 Kilw Cairn 4 New Build 01 Apr 25 01 Apr 26 2025/26 4 4 £407,000 4 £0 £0 £0 £0 £407,000 £0 £0 £0 Green Street (Confidential Site 7) Salt CHA 24 New Build 21 Mar 22 28 Aug 23 2021/22 24 24 £2,065,436 23 1 £418,366 £1,647,070 £0 £0 £0 £0 £0 £0 Garven Road (Confidential Site 8) Stev CHA 20 New Build 01 Sep 23 01 Sep 24 2023/24 20 20 £3,200,000 18 1 1 £0 £0 £3,200,000 £0 £0 £0 £0 £0 CHA Buy Back Programme ! CHA 6 Buy Back 01 Nov 23 31 Mar 29 2023/24 6 6 £240,000 6 £0 £0 £40,000 £40,000 £40,000 £40,000 £40,000 £40,000 Bank Street (111) Irv CHA 16 New Build 01 Apr 25 30 Apr 26 2025/26 16 16 £2,560,000 16 £0 £0 £0 £0 £1,152,000 £1,408,000 £0 £0 Unallocated CHA Block TBA CHA 92 New Build 01 Apr 25 01 Dec 26 2025/26 92 92 £14,720,000 64 23 5 £0 £0 £0 £0 £3,503,360 £6,506,240 £4,710,400 £0 Confidential Site 10 Ardr CHA 50 New Build 01 Apr 26 31 Oct 27 2026/27 50 50 £8,000,000 45 3 2 £0 £0 £0 £0 £0 £5,000,000 £3,000,000 £0 Sharphill (Ph 5) Salt CHA 100 New Build 01 Oct 27 01 Mar 29 2027/28 100 100 £14,800,000 78 17 5 £1,277,000 £0 £0 £0 £0 £0 £6,400,000 £7,123,000 Harbour Road Irv CHA - New Build - - - - - - - - - - - - Parkend Gardens Salt Link 12 New Build 10 Jan 24 10 Jan 25 2023/24 12 12 £1,909,931 8 3 1 £83,625 £0 £500,000 £1,326,306 £0 £0 £0 £0 Riverside Buy Back Programme ! Riverside 15 Buy Back 01 Apr 23 01 Mar 27 2023/24 15 15 £1,367,730 15 £0 £0 £280,000 £367,730 £400,000 £320,000 £0 £0 Regeneration Project 3 TBA Riverside 30 New Build 01 Apr 26 01 Mar 29 2026/27 30 30 £2,833,680 24 3 1 2 £0 £0 £0 £0 £0 £1,000,000 £1,500,000 £333,680 Trust Buy Back Programme Arran Trust 6 Buy Back 01 Nov 23 31 Mar 29 2023/24 6 6 £600,000 6 £0 £0 £200,000 £100,000 £100,000 £100,000 £100,000 £0 Springbank (Confidential site 4) ₳ Arran Trust 26 New Build 01 Jan 25 01 Dec 27 2024/25 26 26 £5,000,000 26 £0 £0 £0 £750,000 £4,250,000 £0 £0 £0 1302 361 533 178 107 123 0 118 78 170 209 545 182 £136,976,532 791 311 0 81 91 28 £10,544,492 £2,432,099 £9,792,750 £23,152,227 £30,972,290 £31,624,383 £19,946,236 £8,512,055 SHIP 2023 - 2028 New addition to SHIP Confidential Sites Sites removed from SHIP 2024 - 2029 Sites completing from SHIP 2023 - 2028 ₳ The access point for this development should be agreed with NAC Roads as the existing road network may not cope with the additional units ₴ This site is located on Open Ground and can only progress subject to a Planning Application for change of use SHIP Spend 2027/28 SHIP Spend 2028/29 Scottish Government Grant Units Type Estimated Site Start SHIP Approval Year Site Starts Site Completions Estimated Practical Completion SHIP Spend 2026/27 House Types Pre 2022/23 Spend SHIP Spend 2022/23 SHIP Spend 2023/24 SHIP Spend 2024/25 SHIP Spend 2025/26Site Town Developer #Official‐Protect