Housing Strategy and Provision

Question 1

What factors influence future housing need and demand?

Answer 1

Principallye demographic trends and housing affordability are the two key factors which influence
housing need/ demand. Estimates of existing need and future additional households can be combined to produce total additional housing estimate.

Question 2

What are the key demographic factors that impact house need and demand?

Answer 2

Population growth and household change determine changes in the number of households seeking
housing in an area. Anticipated trends in household growth (or decline) are central to the local land
planning process in identifying the overall requirement for land for new housing. Thus household
projections and forecasts are taken as a key input for estimating the level of new housing
construction required.

Question 3

What are the key economic factors that impact house need and demand?

Answer 3

Economic structures have causal impacts on the housing market. Incomes are probably the most important of these factors. Economists believe that income growth and the distribution of incomes are central to housing demand. Performance of the local labour market – whether new jobs are being created, existing ones sustained and whether wages are rising or static.
Interest rates, inflation, public budget positions, national economic growth (recession) all impact on house building and housing investment on the supply-side and on household finances on the demand-side

Question 4

Tell me about demand for housing and an area you’re familiar with

Answer 4

House prices have grown steadily in Tayside over the last 10 years and on average by 13%. Housing price inflation has been relatively stable since 2015 with modest, steady growth in the last 4 years.

Dundee 2000 units MALTR - 2022 to 2032

Question 5

How are new housing developments planned?

Answer 5

The HNDA tool works by projecting the number of new households who will require housing, the house stock profile and specialist housing. This will inform that LHS.
LHS - will set out a vision for housing in the district and establish future local housing policies and Housing Supply Targets (taken from the NPF). This informs the LDP.
LDP - Housing Land Audit and LHS inform LDP housing land requirement. Calls for site and monitoring exercises influence site allocations

Question 6

What is the housing needs and demand assessment?

Answer 6

An analysis at a housing market area level and provide a clear understanding of the operation of the housing system as a whole across all tenures. The HNDA
will provide evidence to inform policies about the level of affordable housing required, including the need for different types and sizes of affordable housing.

Question 7

What is a housing land audit

Answer 7

The annual audit of housing land provides a factual statement of land supply within the administrative boundary of a council. It monitors housing completions
and the progress of sites through the planning process to help ensure thata five-year ongoing effective land
supply is available to meet the identified housing land requirements.

Question 8

What is the minimum land requirement in the Teeside area? And an Edinburgh area?

Answer 8

Currently in draft form but if approved by the Scottish Government:

MATHLR for Tayside

Question 9

How will new minimum All tenure housing land requirements be set ?

Answer 9

2019 Act requires NPF4 to include ‘targets for the use of land in different areas of Scotland for housing’
Need basis to establish Scotland wide picture of the amount of housing land that will be needed in future to guide allocations in LDPs. Duty to calculate MATHLR will be for Scottish Government. What is in NPF4 will be what is in the LDP.

Question 10

How is the minimum or tenure housing land requirement calculated

Answer 10

Newly- forming households + Existing housing

need + Flexibility allowance (25-30%) = Minimum 10 year all-tenure housing land requirement

Question 11

What sources of housing need and demand information would you use normally?

Answer 11

Depend on tenure:
Private sale: Hometrack, Registers of Scotland updates, market agent commentaries, data on weeks to sell and £% over home report.

Affordable: Waiting list data, completions information, LHS policies, SHIP data.

Question 12

What planning policies or other relevant policies which you have regard to when considering housing schemes?

Answer 12

Any site specific briefs, planning policies relevant to residential development, local housing strategy and SHIP scoring matrix/guidance.

Question 13

Dundee - L2 Talk me through how you would conduct a site identification exercise?

Answer 13

I would establish my clients requirements including site size, programme timing, tenure and district etc.

I would then review the LDP proposals map, HLA and conduct site searches both desktop and in-person. I would seek to establish the owner through contacting agents or ScotLis searches.

Once I would then record the site’s details and whether it may be suitable.

Question 14

Dundee sites - L2, What were Sanctuary’s requirements? How did you assess these three sites with reference to the city and the client’s housing needs?

Answer 14

Sanctuary required a site in Dundee council area that could provide upwards of 50 units that could help balance the business plan geographically with completions after 2025 and beyond

I used Sanctuary site appraisal checklist

Tannadice Works
Large site but too much demolition and too many sitting tenants.

Wallace Craigie
Large site, prominent location - potential issues re demolition of B listed Halley’s mill. Constrained site previously Council hoping for private but this has failed.

Maryfield House
Smaller site, ideal location already in HLA. Owned by NHS who aren’t ready to sell.

Question 15

Dundee sites - L2, Can you talk me through Sanctuary’s requirements in terms of tenure and product?

Answer 15

Yes, generally sites of 50 units plus are preferred across Scotland. In terms of tenure and product this is more geographically determined.

Aberdeen/shire - Social Rent only at present (MMR unattractive and difficult to let and sales too risky).

Dundee - Social Rent and some Mid Market

Edinburgh - To enter Edinburgh market willingness to compete for market led sites.

Question 16

What is the purpose of a Vacant and Derelict Land Register?

Answer 16

Vacant land is defined by the Scottish Government as ‘land viewed as an appropriate site for development, having either had previous development on it or preparatory work in anticipation of future development’. Derelict land is that ‘damaged by development, so that it is incapable of development for beneficial use without some remedial works’. Both relate to land that is capable of being reused but due to particular issues with the condition of a site, new development has not occurred. They are sometimes referred to as ‘brownfield’ sites.

Question 17

Marketgait, Dundee - L2, How does a SHIP work?

Answer 17

A Strategic Housing Investment Plan (SHIP) sets out a local authority’s strategic investment priorities for housing over a 5 year period. It identified strategic housing projects which require Scottish Government
AHSP funding support. It will set out a criteria or methodology used to prioritise projects including geography, tenure type, size, client type and deliverability.

In terms of how it hows, RSLs will review the SHIP investment priorities and submit site proposals which align with these which will be discussed openly at regular affordable housing meetings between RSLs/Council. This is to ensure transparency over funding and treatment. By convention, RSLs in area do not bid against other RSLs or enter into discussions with landowners/agents where they are aware another RSL is interested.

Question 18

Marketgait, Dundee - L2, What did the waiting list tell you about housing demand?

Answer 18

Strong pressure in the city for 1 bed flats and 2 bed stock. Development of 1 bed units not a priority (less grant and rent, less flexible).

Question 19

What forms of tenure and unit mix were in demand in Dundee? How did this compare against the broader national picture?

Answer 19

Dundee’s population have average incomes lower than the Scottish average a £518.20 compared to £563.20 and affordability challenges are more pronounced.

Owner occupation is lower at 50% compared to Scotland as a whole 61.5% while social rent is 5% higher and private rent almost 6% higher.
City Council keen to encourage more home ownership in the city to create mixed communities. Need for all forms of affordable tenure particularly social rent. Except for the city centre area, Dundee council planning and housing expect low density housing with 70% of homes to be 3 bed or more. Over provision of flats in some areas of the city hard to let.

Question 20

On Marketgait, L2 - What are the common challenges involved in building social rent housing?

Answer 20

From an RSL perspective, social rent is the easiest tenure to develop due to the generous grant rates

• Obtaining grant from the SHIP. General Needs Social Rent is most common proposal which forces Councils to look at other criteria to prioritise projects.
• however in some areas like Edinburgh and Aberdeen the Council tends to prefer mid market as its regarded as more resource efficient with lower grant rates. Getting enough grant.
• Scottish Government grant conditions are more onerous.

Question 21

Marketgait, L2 - How did you assess the site’s level of priority for grant funding?

Answer 21

With reference to the SHIP’s priorities

• Sites within regeneration areas.
  • Sites identified within the previous SHIP.
  • Site prioritisation in the Local Development Plan.
  • Improving housing and tenure balance in the area.
  • Provide an appropriate mix of property types and sizes.
  • Meeting affordable housing need in the area.
  • Sustaining existing stable neighbourhoods; mitigating further deterioration and deprivation in these
  communities.
  • Innovation and Sustainability.
  • Provide Housing for particular needs housing groups.
  • Land Ownership.
  • Deliverability

Question 22

Marketgait, L2 - When was Dundee’s LHS last updated?

Answer 22

Dundee Local Housing Strategy 2019 - 24

Question 23

What is the purpose of the LHS?

Answer 23

The Housing (Scotland) Act 2001 places a statutory duty on local authorities to prepare a Local Housing Strategy (LHS) supported by an assessment of housing need, demand and affordability. The Local Housing Strategy is the primary strategy for the provision of housing and associated services to address homelessness, meeting housing needs and tackling fuel poverty.

Question 24

What is the role of the LHS?

Answer 24

The Local Housing Strategy aims to deliver a positive housing future for all people in Dundee by ensuring provision on high quality housing and neighbourhoods where people want to live. This strategy sets out our aims and objectives responding to housing issues that have been identified. The Scottish Government requires every local authority to draw up a Local Housing Strategy as the main strategic document on: Housing, Homelessness, Housing Support Services and Fuel Poverty.

Question 25

On Edmonstone, Edinburgh - L3,

Why did your client’s requirements differ so much from the consented scheme?

Answer 25

I think my client’s requirements where in line with those other housebuilders operating in the market and seeking to bid for this site.

I think the consent mix that the seller/applicant had sought had increased the number of flats to increase density and thereby boost the value of the site but this has proven problematic to their disposal of the site. While in an ordinary market that mix would have inappropriate anyway, I think it was particularly pronounced due to the race for space immediately after the first wave of lockdown restrictions.

There have been two subsequent planning application as recent as November, 2021 to change the layout and flat types across phases.

Question 26

On Edmonstone, Edinburgh - L3 - What is a colony flat and what form of housing demand does this typically satisfy?

Answer 26

A colony flat is a flatted dwelling arranged as two dwellings one on top of another in a terrace style row which has been popular form of development and lend themselves to a strong sense of identity and community that is quite unique in Edinburgh.

Question 27

On Edmonstone, Edinburgh - L3 - How did you use Hometrack to source data on local housing market
trends?

Answer 27

I conducted a site analysis exercise to identify competitor schemes in the area and understand more about upcoming supply in terms of both volume and the housing that was being provided as well as indicative sales values and sales rates.
Thereafter, I conducted research on the sale prices of resale and new build houses in the surrounding area over time and acknowledging limitations. I also conducted research on recent new build sales.

Question 28

Which tenures were included in this scheme?

Answer 28

Private sale and social rent. Anomaly with the postcode meant that mid market rent may have been difficult. Council hadn’t indicated a desire to explore other affordable tenures on this scheme.

Question 29

Edmonstone, Edinburgh - L3, You reference an alternative scheme what was this and how did you go about it?

Answer 29

I consulted a local agent who advised on what demand was like for different house types in the area and I asked a local architect to devise a mix that would retain overall numbers but lower height, reduce landscaping buffer between phases, to make this more marketable mix which my sales colleagues approved off.

Replace 1 block of 24 flats with row of 16 colony flats and 8 terraces. Would avoid mixed tenure block and more affordable units to be delivered as colony flats. More attractive to council.

Question 30

Ashley Place, Edinburgh - L3

Which tenures were included in this scheme?

Answer 30

Private sale (49) and Affordable social rent 16

Question 31

Ashley Place, Edinburgh - L3

Can you explain in more detail how funding at benchmark grant is obtained?

Answer 31

Edinburgh is one of two TMDF authorities in Scotland
benchmark simply means that the rate applied for is where the Scottish Government expect average grant levels to be.
A proposal form is submitted to the Council who assess it and it is discussed at regular affordable housing delivery group events. Given the scheme was for a small number of units, included some wheelchair provision and was for social rent, in a central location and that Sanctuary where seeking to purchase the whole site and therefore could commit to a specific delivery programme the project was regarded as a priority.

Question 32

Ashley Place, Edinburgh - L3

How did you check to advise that the scheme was optimal

Answer 32

I reviewed the accomodation schedule which highlighted that the number of two beds represented a majority of the provision and these were selling relatively well in Edinburgh at the time. 1 beds were less desirable for working from home and impacted by investor flight due to short term let controls and landlords leaving sector. 3 beds a small number provided which was appropriate as families tend to leave the city whilst children are younger and £290-300K tends to buy much more in the areas surrounding Edinburgh.