Overview of Affordable Housing

Definition of Affordable Housing

 Housing for sale or rent at rates lower than market

rates that is allocated on the basis of need rather
than ability to pay. This includes:
• Social rental housing via housing associations
• Reduced price houses / building plots for sale
• Property for let at less than open market rents either
through housing trusts or the private sector
 Why is affordable housing an issue?

• Low level of local incomes compared to house prices

and rents.
• High levels of in-migration from more affluent areas
• Severe shortage of suitable affordable housing in
rural areas to rent or buy especially for young people
and the elderly.
 Consequences for Community

 A lack of affordable housing can be damaging to the

viability of the community:

• Distorted demographics – too many older people and not

enough economically active younger people.
• Threats to services- Schools, bus routes, shops, post office.
• Limited labour force – stifles community life and
economic prospects. Key posts can be hard to fill.
• Overall threat to community resilience and social
/economic sustainability.
 Existing Housing Provision 

 • Much existing social housing sold off and is now on open

market
• Many former tied properties have been sold off or used
for holiday lets
• Shortage of available rental property
• Majority of rental properties are in private sector (80% in
some areas). Can be expensive and often hard to heat
leading to fuel poverty.
• Private rentals are usually on a 6 month short assured
tenancy and, while flexible, offer little long term security.
 Some of the factors that affect the supply and demand of
housing stock

• Demographic and behavioural factors

• Migration (to cities and potential employment)
• Increased life expectancy
• Building codes
• A greater propensity for people to live alone
• Young adults delaying forming their own household
(in advanced economies).
• Exclusionary zoning
 What is needed?

• More low cost rental property – either social housing

(less popular with communities), private or
community owned rental housing.
• Low cost homes to buy.
• Low cost self build plots.
 How can DGSCHT help? 

• Raising the profile of the problem at local and national

level
• Working with policy makers to try to rural proof
planning and housing policies
• Working on directly with communities to explore all
options
• Quantifying level and type of need (important to attract
funding and to justify development)
• Developing innovative solutions to difficult problems
with partners – housing associations, private landlords,
developers and community owned trusts
 Rural Housing Body Status 

  DGSCHT is a designated Rural Housing Body under

the Title Conditions (Scotland) Act 2003.This
means:

1. All property we sell must be offered back to us at

the discounted rate at every subsequent sale (Rural
Housing Burden).
2. We can enter long term leases of land for housing (ie
100 yrs) in a way similar to lease hold in England.
 AFFORDABLE HOUSING IN INDIA

  Jones Lang LaSalle’s Definition of Affordable

Housing.
 Minimum volume of habitation.
 Provision of basic amenities.
 Cost of the house.
 Location of the House.
 What do we do about it

• Encouraging and assisting housing associations to

invest in rental housing or shared equity housing for
sale.
• Providing low cost self build plots
• Example – Monreith:
• Consent and funding gained for 13 houses in coastal
village.
• 6 social rent
• 4 mid market rent
• 3 low cost self build plots
 What do we do about it

 • Working with private developers using rural housing

burden. Before the Trust intervened the council had
no way to require small scale developments to meet
their affordable housing planning policy
requirements (20% contribution)
• £1.4 million worth of discounted value negotiated on
60+ houses.
• 8 sold to date.
• 4 more available now
• 8 more in next 3 months
 What do we do about it

 • Working with private landlords, eg. Dormont Passive

Houses- 8 low cost rental houses built by local estate
via Rural Homes for Rent Scheme
• The Trust provided the housing needs data and
supported the applicant through the planning
process.
POLICY FRAMEWORK AND REGULATIONS
FOR AFFORDABLE HOUSING

 POLICY FRAMEWORK AND REGULATIONS FOR

AFFORDABLE HOUSING Central Level Schemes
 National Urban Housing and Habitat Policy (NUHHP),
2007
 Jawaharlal Nehru National Urban Renewal Mission
(JNNURM)
 Basic Services for the Urban Poor (BSUP)
 Integrated Housing and Slum Development Programme.
 Interest Subsidy Scheme for Housing the Urban Poor
(ISHUP).
 Rajiv Awas Yojana.
Dormont Passive Houses
 What do we do about it

•  Working with 6 communities to establish Community Land

Trusts (CLTs) to develop community led housing projects.
This may provide:
• rental housing (could be owned by RSLs, private landlords
or by the CLT)
• Self build plots
• Reduced price houses for sale. Subsidised by:
• Developer contributions
• Windfarm benefits
• Local estates/ landowners
• Minimal recourse to public funds
 Principal Challenges:

 • Need for more low cost housing to rent or buy in the right places.
• Conventional methods (Housing Associations and Govt Shared
Equity Schemes) not rural proofed. Allocation policy issues create
nimbyism and threshold levels for OMSEP set too low for rural
house prices. In many places self build is the only option.
• Housing for young people- especially in the light of Housing
Benefit changes.
• Deposits are high for low cost purchase and self build.
• Access to land. Planning is the main restriction. Most landowners
can be very cooperative but some (especially institutions, trusts
and modern agribusinesses) can be difficult to work with.
 Land Issues

• Often not much land around rural communities can be

developed (flood risk etc)
• Land owners feel short changed when others profit from
their generosity – i.e. Council housing sell off.
• Land owners don’t want to loose good agricultural land.
They are not always large landowners.
• They may be required to sell for the highest price (esp
the Church of Scotland and land held by charitable trusts
• What is in it for them? Once they have sold a piece of land
they cant sell it again
 Possible Solutions

• Work with landowners when possible – see Dormont example.

• Look at mixed/joint development – ie include open market
and low cost housing to sweeten the deal for landowners –
inclusion of a high number of affordable houses can help with
planning.
• Look a ways of leasing land for housing on long term basis – ie
100 yrs ( may work for Church and Trusts).
• Community buyouts – cant do a hostile bid currently.
• Compulsory Purchase Orders – councils are loath to do this.
Generally – for community cohesion – it is better to work
with willing partners.