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RICS Scotland Housing CommissionEmerging Issues
Housing Policy Advisory Group Meeting
28th January 2014
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Context to Commission
• RICS UK Commission: ‘More Good Homes and Better United Kingdom’ published in June 2013
• Thorough & comprehensive analysis lacked Scottish detail given:– Differences in housing system operation– Level of devolved powers that affect housing
• RICS Scotland Chair: short term, independent, solutions focused Commission for Scotland
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Purpose of the Commission:
1.Provide a sector-wide view of current condition of the Scottish housing system
2.Pinpoint the most significant barriers to effective housing system operation
3.Develop new, consensual ideas to alleviate them
Aims of Commission:
1.Deliver an objective & credible housing system assessment
2.Define policy options for practitioners and enablers
3.Shift housing to a higher position on political & media agenda
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Scope of Commission
1. Panel of 10 Commissioners with remit to:– Assess & evaluate the evidence provided – Ask further questions for clarification– Discuss evidence & develop recommendations
2. Process for submitting evidence: 3 Methods1. Respond to set Commission questions
2. Submit proposals on any element of housing system operation which could be improved
3. Provide examples of innovation & good practice
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Scope of Commission
3. Scope of evidence – Oral evidence: 22 evidence providers– Written evidence: 38 written submissions
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Planning Housing: Emerging Issues
1. The strategic assembly of a generous & more effective land supply is essential– Land premiums are a signal of housing system dysfunction
that needs action
2. Strategic planning should be elevated on corporate & political agendas to address short-termism 1. Drive innovation/collaboration to enable housing
development
3. Planning authorities must improve certainty by taking strategic action on infrastructure & enabling delivery– Do we expect the private sector to do too much?
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Planning Housing: Emerging Issues (cont.)
4. Master-planning must focus on building communities through good design/density & connectivity to economic & social infrastructure
5. HNDA analysis should be demystified & improved• We need better intelligence of household circumstances
& consumer intentions across all tenures• The impact of intermediate housing in meeting housing
need must be recognised• Leadership is needed on using HNDA intelligence to set
housing supply targets & define 5-year land supply
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Paying for Housing: Emerging Issues
1. House price to earnings ratios are too high despite (some) price readjustment during recession– Rising interest rates could exacerbate problems & create
repossession risks for those highly indebted
2. SME builders are struggling to access bank finance & development funding
3. Risk profile of social housing sector is changing: finance over shorter period & less favourable terms– Innovative funding/joint venture models need to emerge
4. Potential impact of Land & Building Transaction Tax
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Building Housing: Emerging Issues
1. Lack of viable/reliable land supply & low levels of prime land in locations where people want to live
2. A de-skilling of the construction industry is a genuine risk– Evidence of reduction in industry capacity, a loss of skills &
apprenticeships & deficit in the material supply chain
3. Clyde Gateway, Ravenscraig & Dundee Waterfront are exemplary housing regeneration projects: we need more!– Collaboration, strategic land assembly, infrastructure
investment on a major scale
4. Energy & carbon reduction agenda increases build costs– Puts further pressure on a weakened construction sector
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Managing Housing: Emerging Issues
1. Improving the condition of Scotland’s private housing stock is an urgent priority– Homeowners need support to invest in conservation & repair– Low cost finance, reductions in VAT for refurbishment
2. Investing in empty homes delivers real benefits: – From a cost efficiency, sustainability, environmental &
regeneration perspective
3. Given its increasing influence, the growth & improvement of the PRS needs strategic focus, leadership & investment
4. We need to make the case for housing in Scotland– Impact on economic growth, health, well-being & attainment
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Timetable & Next Steps
• End of January: Emerging issues presented at RICS Scotland Residential Conference: further sound-boarding
• Mid February: Approval of draft report by Commissioners
• End of February/Early March: Commission reconvenes to consider recommendations
• Mid March: Report finalised
• Mid April: Report launched