Affordable Housing

Contents

Waiting Lists for Affordable Homes

Affordable Housing Policy News May 2007

What is the Affordable Housing Policy

Who are Priority Clients for Affordable Housing

Types of Affordable Housing

Key Worker Housing

Affordable Housing Policy Development Sites

Non-Affordable Housing Policy RSL Development

Waiting Lists for Affordable Homes

The Council is not keeping a waiting list for affordable home ownership. The nature of the policy is that the Council applies it on a site by site basis as planning applications come in. The Council will ensure that such proposals are advertised, most likely in the Edinburgh Evening News, as they come forward. Details will also be posted on this website as they become available.

Affordable Housing Policy News - May 2007

The following affordable housing developments are on-site now:

Gorgie Road, 16 units for social rent.

Granton Waterfront (area known as Plot 20), 90 units for social rent and 60 units for shared equity/homestake.

Granton Waterfront (area known as the Madelvic), 14 units for social rent for the elderly.

McDonald Road/Hopetoun Street, 26 units for social rent.

Slateford Road, 40 units for social rent.

What is the Affordable Housing Policy

Affordable housing is broadly defined in the policy as housing that is available for rent or sale to meet locally the identified needs of people who cannot afford to buy or rent housing generally available on the open market.

In the interest of integrated communities, and in response to the Council's Housing Needs Assessment, there is a need to develop a range of housing at sub-market prices. However, the primary requirement is housing for social rent. To reflect Edinburgh's identified needs, the policy's aspiration across the city and over time is for the proportion of housing for social rent to other forms of affordable tenure to be in the ratio 70:30. The affordable component of large sites should reflect this mix.

The affordable housing policy was reviewed in early 2006 and an amended version approved in June 2006.  The practice note was amended in Autumn 2006. The amended policy can be viewed here and the revised practice note can be viewed here.

Who are Priority Clients for Affordable Housing?

 Where the type of affordable housing being developed is in one of the categories set out below, the Council or RSL will give priority to tenants or purchasers who fulfill the following criteria.

A         People with a local connection either through work, family or cultural networks;

B, C and D should apply in all cases

B         The dwelling size is appropriate to the household size;

C         Income levels low enough to show that they could not compete on the open market.  Appropriate income levels may vary slightly depending on the size of home but as an indication we would expect that a priority purchaser would have a maximum total gross household income from all household members of £32,541 (maximum for single person household: £22,000).  These income levels are informed by the median household income levels for working households in Edinburgh in 2006 and will change over time. Current levels are available from the Services for Communities Department. In line with the above incomes, a flexible approach will be taken with regard to single parents (who may require extra space) and purpose-built schemes for key workers where individuals may wish to share flats. In these circumstances the upper limit for an individual to qualify as a priority client is £32,541. Where the scheme is a form of low cost ownership, the maximum residual savings after purchase should not exceed £3,000 (though this can be reviewed in the event of the applicant being an older retired person);

D         The priority purchase household resides in the house as their permanent home.

Types of Affordable Housing

Housing for Social Rent: defined as housing provided at an affordable rent and locally managed by a Registered Social Landlord (RSL). A RSL is a Housing Association, Housing Co-Operative or other housing body which is registered, monitored and regulated by Communities Scotland as a social housing provider.  Rents should follow RSL rent policies which are subject to inspection by Communities Scotland.  The average rent for a two bedroom social rented property in Edinburgh at October 2006 is approximately £55.00 per week. To qualify for subsidy, the Council will also require that design specifications meet Communities Scotland’s quality standards.  Social rented accommodation should be available to households in housing need and will be allocated according to needs-based allocation systems administered by RSLs and/or the Council.

Housing for Mid-Rent: defined as housing with rents set at a level higher than a purely social rent, but lower than market rent levels, and affordable by households in the priority client group (see section 4). Guidelines for mid-rent properties in Edinburgh in 2006 are as follows:

• 1 bedroom: £70 – 85 per week
• 2 bedroom: £90 – 110 per week
• 3 bedroom: £120-140 per week
• 4 bedroom: £150 – 170 per week

Mid-rent housing is normally provided by a RSL, or other affordable housing provider agreed by the Council, with a local management presence.  First preference will be given to households who are approved as a priority client group.

Shared Ownership: a form of tenure where the resident owns part of the dwelling and rents the remainder, usually from a RSL. With shared ownership the resident usually buys tranches of either 25%, 50% or 75% of the property. The owner has the opportunity to increase the proportion they own over time. First preference will be given to households who are approved as a priority client group.

Shared Equity or "Homestake": Homestake shared equity is designed to allow people who don't earn enough to buy a property outright on the open market to get on the home-ownership ladder. A buyer can take between a 60% and 80% share initially, with a housing association holding the remaining 20% or 40%, and may increase that stake over time (although housing associations, in certain cases, may hold onto a 20% ‘golden share’ in order to retain affordable housing in perpetuity).

So, for example, if a property cost £100,000 you could purchase a 60% share for £60,000. The remaining 40% of the cost of the property would be held by the housing association. Unlike shared ownership, you would not have to pay any additional rent to the housing association and when you decided to sell the property you would be entitled to 60% of the final sale price of the house.

The scheme is funded through Communities Scotland and is subject to means testing. It is mainly aimed at first time buyers to purchase a property as their sole residence. The scheme is also available for potential purchasers whose personal circumstances have altered and who find that their existing properties are no longer suitable for them, and for current owner-occupiers whose homes are subject to demolition as a result of undergoing local authority regeneration plans.

The purchaser is wholly responsible for the repair and maintenance of the property and all other associated costs such as full council tax and insurance.

There are currently two versions of Homestake.

The first relates to new build projects with 60 units on the former gas works site at Granton being the prime example. Planning consent has been agreed and the first units are expected to complete in 2009. The exact prices have not been fully finalised but may be expected to start at around £93,000 for a one-bedroom property reaching around £138,500 for a three-bedroom property. Currently, to be eligible for one of these units, you would have to be earning a maximum of £22,000 if you are a single person and £32,541 if you are a couple. You would then have to demonstrate your ability to raise the appropriate mortgage amount with 3 separate lending institutions. We are not keeping a waiting list for this scheme. Please watch the website for updates.

The second version is described as Open Market Homestake as it allows a home seeker on a low income to buy a property that is on the open market in Edinburgh and the Lothians. It is a pilot project currently operating in Edinburgh and the Lothians that is administered through Link HA. Link can be contacted on 0131 557 0350 or via Home Advantage.

If you are seeking information on other options for shared equity low cost home ownership (LCHO) then check the Communities Scotland (CS) website and click on the link to Homestake on the right hand side of the page.

Discounted Sale: a dwelling is sold below its open market value in perpetuity to households in the priority client group, and at a price affordable to them. The selling price must consider the maximum income level of the target priority purchase group. A section 75 agreementwill be necessary to ensure that future sales continue to be affordable to the priority client group, and that first preference will be given to purchasers within the priority client group. The Council may also opt to require standard securities over the properties. This will be assessed on a case by case basis. It will be the obligation of whoever allocates and approves the priority client group, most likely to be the Council or a RSL, to monitor this over time.

Where "owned" forms of affordable housing are being provided, the expectation is that developers will be required to advertise them in advance setting a date, time and place when reservations from potential buyers could be taken. This is most likely to be at a sales office or at a Council office. Applications will be taken on a first-come, first serve basis and will be assessed by the Council to ensure that applicants comply with the priority client criteria. If they do, the applicant will be offered the opportunity to purchase (or part purchase if shared ownership/shared equity). Note that legal agreements will be applied to the properties to ensure that discounts are applied in perpetuity i.e. this would affect the re-sale selling prices on such properties to ensure that the discounts could not be exploited in future sales.

The Council is not keeping a waiting list at present. Once it is clear where and when low cost sale units are coming forward one may be set up.

The Council will ensure that any low cost home ownership proposals are advertised, most likely in the Edinburgh Evening News, as they come forward. Details will also be posted on this website as they become available.

Key Worker Housing

The policy does not recognise any need to target affordable housing towards any particular occupations. The policy aims to assist in meeting the needs of households who cannot afford to access the general housing market, regardless of occupation.  However, proposals that include additional clauses to restrict occupation to particular professions may be acceptable, provided the housing remains restricted to households within the priority client group.

The Council is working to develop a scheme for key workers with Edinburgh University on a city centre site at Viewcraigs. The proposal would involve building housing for rent to university employees. The housing would be owned and managed by a housing association. More details will be posted here as and when the proposal is finalised.  We also worked with NHS Lothian, Barratt and Paramount Homes to 36 units for mid-rent at Brunswick Road. 1 and 2 bedroom properties were developed for NHS Lothian employees. Property information and contact details can be viewed here.

Affordable Housing Policy Development Sites

Central Edinburgh

The former Royal Infirmary hospital site at Lauriston Place will be redeveloped for a range of uses including a hotel, offices and over a thousand flats. An amended planning application for the site has been submitted and the number of affordable units has increased to 171. The majority will be social rented housing by Hillcrest Housing Association however some mid-rent and shared equity/homestake units will also be provided. No further detailed information is available at present but the affordable housing is unlikely to be available until 2008 at the earliest.

On a site that formed part of the brewery at Fountainbridge, as part of a mixed development comprising residential, offices and a retail, circa 140 affordable units are to be constructed. A planning application has been received for the first of the affordable housing. It is hoped work will start on site in 2007 however no further detailed information is available at present.

At McDonald Road/Hopetoun Street, 26 units are being developed for social rent. These are scheduled to complete in summer 2007. Please contact Places for People on 0131 525 6550 for further information.

In Broughton, on McDonald Road, 10 units are being developed for social rent by Places for People. These are scheduled to complete in late summer 2007. Please contact Places for People on 0131 525 6550.

In Leith, on a site that forms part of the Western Harbour, 102 affordable units are proposed by the Port of Leith Housing Association. No further detailed information is available at present.

At Lochend, adjacent to the Hibs football ground, 100 units are proposed for rent. No further detailed information is available at present.

North Edinburgh

At the former BAE Systems factory at Muirhouse Bank, 24 units are expected to be provided for rent. The remainder are for sale on the open market. No further detailed information is available at present.

In Granton, at the Upper Strand in Granton Waterfront, a planning application for phase 2 of the development has been received. It is hoped 36 units for social rent will be provided in summer 2008. Please contact Places for People on 0131 525 6550 for further information.

In Granton, at a site known as Plot B in Granton Waterfront, 15 units will be developed for social rent. These are scheduled to complete in late 2007. Please contact Places for People on 0131 525 6550 for further information.

In Granton, at an area known as Plot 20, 90 units are being developed for social rent and 60 are being developed for shared equity/homestake. Please contactplease contact Dunedin Canmore on 0131 478 8888 and/or West Granton Housing Co-operative on 0131 551 5035regarding the social rent units and Places for People on 0131 525 6550 for further information on the shared equity units. These units are expected to complete in 2009.

In Granton Waterfront, at the Madelvic area, 14 units are being developed for social rent by Cairn Housing Association. These are scheduled to complete in summer 2007. Please contact Cairn on 0131 556 4415 for further information.

Elsewhere in Edinburgh

At Slateford, on Slateford Road, 40 units are being developed for social rent. These are scheduled to complete summer 2007. Please contact Home in Scotland on 0131 336 5876 for further information.

At Corstorphine, at Pinkhill, 19 units are being developed for social rent. These are scheduled to complete in autumn 2007. Please contact Places for People on 0131 525 6550 for further information.

Non-Affordable Housing Policy RSL Development

Not all affordable housing provided by RSLs in Edinburgh is supplied through the Affordable Housing Policy. RSLs often have development proposals for affordable housing on sites that are not a result of the Affordable Housing Policy. This can involve the RSL purchasing land on the open market, or having land transferred from institutions such as the Council nil-value or a value set by the District Valuer for example. Sites being developed in non-Affordable Housing Policy circumstances that are due to complete in Edinburgh in 2007 are listed below:

In Corstorphine, on Kaimes Road, 30 units are being developed for social rent by Cairn Housing Association. These are scheduled to complete in summer 2007. Please contact Cairn on 0131 556 4415 for further information.

In Saughton, on Saughton Mains Bank, 32 units are being developed for social rent by Places for People. These are scheduled to complete in late summer 2007. Please contact Places for People on 0131 525 6550 for further information.

In Leith, on North Fort Street, 20 units are being developed for social rent by Places for People. These are scheduled to complete in early 2007. Please contact Places for People on 0131 525 6550 for further information.

In Leith, on Mitchell Street, 49 units are being developed for social rent by Places for People. These are scheduled to complete in late summer 2007. Please contact Places for People on 0131 525 6550 for further information.

In Stenhouse, on Stenhouse Avenue West, 14 units are being developed for social rent by Places for People. These are scheduled to complete in early 2007. Please contact Places for People on 0131 525 6550 for further information.

In Moredun, on Moredunvale View, 12 units are being developed for social rent by Places for People. These are scheduled to complete in early 2008. Please contact Places for People on 0131 525 6550 for further information.

In Oxgangs, as part of the regeneration of that area, 91 units are being developed for social rent by Dunedin Canmore. Previous residents of properties demolished as part of the regeneration have priority for these properties. These are scheduled to complete in late 2007. Please contact Dunedin Canmore on 0131 478 8888 for further information.

In Hyvots, as part of the regeneration of that area, 101 units are being developed for social rent by Dunedin Canmore. Previous residents of properties demolished as part of the regeneration have priority for these properties. These are scheduled to complete in summer 2007. Please contact Dunedin Canmore on 0131 478 8888 for further information.

In Gorgie, on Gorgie Road, 14 units are being developed for social rent by Dunedin Canmore. These are scheduled to complete in early summer 2007. Please contact Dunedin Canmore on 0131 478 8888 for further information.

In Gracemount, on Lasswade Road, 31 units are being developed for social rent by Dunedin Canmore. These are scheduled to complete in late 2007. Please contact Dunedin Canmore on 0131 478 8888 for further information.

In Peffermill, on a former education site, 66 units are being developed for social rent by Link. These are scheduled to complete in late summer 2007. Please contact Link on 0131 557 0350 for further information.

In Leith, on Duke Street, 22 units are being developed for social rent by Port of Leith. These are scheduled to complete in spring 2007. Please contact Port of Leith on 0131 554 0403 for further information.

In Leith, on Henderson Street, 15 units are being developed for social rent by Port of Leith. These are scheduled to complete in autumn 2007. Please contact Port of Leith on 0131 554 0403 for further information.

In Muirhouse, on Muirhouse Bank, 12 units are being developed for social rent by the Margaret Blackwood Housing Association. These are scheduled to complete in spring 2007. Please contact Margaret Blackwood Housing Association on 0131 652 1589 for further information.

In Sighthill, on Calder Place, 18 units are being developed for social rent by the Margaret Blackwood Housing Association. These are scheduled to complete in spring 2008. Please contact Margaret Blackwood Housing Association on 0131 652 1589 for further information.

In Broughton, at The Artworks, 4 units are being developed for shared equity. These units are scheduled to complete in spring 2007. Please contact Hillcrest Housing Association on 0131 558 8555 for further information.

In Southside, at St Leonard’s, 11 units are being developed for social rent. These units are scheduled to complete in late 2007. Please contact Hillcrest Housing Association on 0131 558 8555 for further information.

In Inverleith, at Arboretum Road, 7 units are being developed for social rent. These units are scheduled to complete in late 2007. Please contact Viewpoint Housing Association on 0131 668 4247 for further information. Please note, Viewpoint specialise in housing for the elderly and disabled.

In Dean, at Lyndoch Place, 7 units are being developed for social rent. These units are scheduled to complete in spring 2007. Please contact Viewpoint Housing Association on 0131 668 4247 for further information. Please note, Viewpoint specialise in housing for the elderly and disabled.

Date published: August 2007
Date of next review: September 2007