Firm Foundations: The Future of Housing in Scotland Briefing No.168

This briefing provides an overview of the Scottish Government's proposals on housing based around their consultation paper, "Firm Foundations: The Future of Housing in Scotland". This briefing highlights the main issues in the consultation and UNISON Scotland's initial response.

Background

This consultation paper outlines the Scottish Government's proposals for housing in Scotland. The main aims stated include:

• increasing the housing supply across all tenures;
• creating more housing choice for those on lower incomes;
• housing developments that contribute to sustainable, mixed communities; and
• social housing that provides better value for public expenditure.

Other issues raised within the consultation include a removal of the Right to Buy for new social housing, encouraging local authorities to build new council houses, abolish Communities Scotland and offering grants to first time buyers.

Key Issues

Council Housing

UNISON Scotland welcomes a number of the proposals contained within the consultation paper, especially those that recognise the key role of local authorities in the development of sustainable communities and the decision to encourage them to build new council houses.

However, UNISON Scotland would like more details on the support available for local authorities who wish to retain their housing stock.

UNISON Scotland has campaigned against stock transfers and has serious concerns over the proposal to transfer council housing to Arms Length Management Companies (ALMO's).

However, UNISON Scotland supports the Scottish Government's attempt to seek clarification from the Treasury regarding options, other than stock transfer, which could see them write-off local authority housing debt.

Right to Buy

UNISON Scotland welcomes the proposal to end the right to buy for new social housing and the review on the future of the whole right to buy scheme. We believe that the right to buy has damaged the supply of social housing, with over 480,000 council houses sold between 1980 and 2006.

The threat of the right to buy on new housing saw a sharp decrease in new council houses being built with the last available figures (2005) indicating only six council houses were built in Scotland that year. UNISON Scotland support the complete abolition of the right to buy from all future and current social housing and would hope that the Scottish Government's review of this legislation reaches the same conclusion.

Communities Scotland

UNISON Scotland would like more detail on the abolition of Communities Scotland as we are concerned that the proposals seem to indicate the replacement of one quango with another along with increased central control. UNISON Scotland would like to see the devolution of some of the current powers of Communities Scotland to local authorities.

Environmental & Design Standards

UNISON Scotland supports the call within the consultation paper for higher environmental and design standards for all new housing. We believe that such an approach will not only produce more sustainable housing but will also lead to a reduction in heating costs and thus lessen, over time, the problem of fuel poverty. UNISON Scotland has campaigned for many years on the need to tackle fuel poverty within Scotland and the setting of new environmental and design standards could make a major contribution to tackling this issue.

Low Cost Home Ownership

The paper also highlights a number of low cost home ownership options, including government grants, shared equity schemes and working with mortgage lenders and investors to lower mortgage costs particularly for first time buyers.

UNISON Scotland is concerned that there does not seem to be any scheme mentioned to assist key public sector workers in meeting their housing needs.

First Time Buyers

UNISON Scotland has some concerns over the proposal for a first time buyers grant of £2,000. We believe that this will do little to alleviate the current housing problems and may in fact make the problem worse by contributing to house price inflation.

Summary

In general there are a number of proposals within the consultation paper which UNISON Scotland would support. This includes the role of local authorities in the development of sustainable communities, the move to increase council housing, the removal of the right to buy and attempts to improve environmental and design standards which should help lessen fuel poverty.

However, the consultation is lacking in detail on some of the financial aspects of the support to local authorities, especially those whose tenants have rejected stock transfer and who may now have difficulties attaining the Scottish Housing Quality Standard. There also seems to be an over-emphasis on the private sector, either through private landlords or increased house building for sale. The basis for this approach is Scottish Government research highlighting that owner occupation is the prefered choice for 86% of those surveyed.

However, the shift to this tenure has been largely due to the right to buy legislation which has resulted in councils often retaining the poorer parts of their housing stock while still being liable for the housing debt of those homes sold off. This in itself has made it difficult for councils to build significant new housing in the past and has led to council housing becoming stigmatised as a housing tenure for those on low incomes or benefits. An expansion of council housing with new, more environmentally friendly and better designed housing could lead to an expansion in the social base of its tenants and would give many more people a wider choice for meeting their housing needs than has been the case over the past few years.

Action for Branches

This briefing paper is intended to update members on the Scottish Government's housing proposals and to encourage debate within branches.

UNISON Scotland will be submitting a response to the consultation paper, and would encourage members to forward any relevant information they may have to the P&I Team as part of this response.

Further Information

UNISON Scotland
http://www.unison-scotland.org.uk

Firm Foundations: Scottish Government Housing consulation
http://www.scotland.gov.uk/Publications/2007/10/30153156/0

Contacts list:

Kenny MacLaren
k.maclaren@unison.co.uk

Dave Watson
d.watson@unison.co.uk

@ the P&I Team
14 West Campbell St
Glasgow G26RX
Tel 0141-332 0006
Fax 0141-307 2572