Housing Associations Show Their Mettle in Recession

The announcement of the Scottish Government's latest housing statistics for 2008-9 was a tale of two halves really.

While private sector developments suffered a stark slump, the total number of houses built was buoyed by a 71 per cent increase in the number of new homes built by housing associations.

This was an excellent performance by the sector - getting shovel-ready, quality developments - badly needed across the country - online so quickly is a great achievement. It showed that, with extra investment, associations can deliver the homes that we need.

But for most of the media , there was only one story - private sector in freefall. The stats showed 62 percent fewer private sector starts in the latest quarter (2009 Q2) than in the same quarter last year. The latest four quarters together show a 51 percent reduction in private sector starts compared with the same quarters the previous year.

The SFHA though, flew the flag for the work done by housing associations in massively increasing their output in a short space of time.

SFHA Chief Executive Jacqui Watt (pictured) said:

“While the number of private homes built has slumped, housing associations have shown their mettle during this recession by getting a record number of affordable homes built in an incredibly short space of time.

“Our members have proved that, given the right funding, they are unbeatable at building quality affordable homes which strengthen communities across Scotland. They should be proud of the massive increase in new homes which their efforts have achieved, with every pound of public subsidy is supplemented by private investment.

“What’s more, these figures show that investing in housing is one of the most effective ways of generating economic activity quickly in the Scottish economy, providing jobs, apprenticeships and badly-needed quality housing in some of our hardest-hit communities.

“We commend the Scottish Government for increasing investment in affordable housing this year. But there is still a chronic housing shortage and Scotland is not out of recession yet. The SFHA would like to see significant investment in affordable housing maintained in the 2010-11 Budget in order that approvals do not drop next year. If the draft budget remains unchanged, investment will drop from £675 million in the current financial year to £471 million in 2010-11.

“We call on the Scottish and UK Governments to work together to target funding at this socially and economically beneficial area.”

Housing Finance Tops Agenda at Four Feds Summit

They came from the four corners of the UK to Scotland's second city, to compare notes on the issues faced by housing associations across the UK - and housing finance was the number one concern for all.

The Four Federations meeting of the UK’s housing association trade bodies was held in Glasgow on 19th and 20th November.

The summit takes place twice a year between the SFHA, the National Housing Federation (NHF), Community Housing Cymru (CHCYMRU) and the Northern Ireland Federation of Housing Associations (NIfHA).

At this critical meeting, CEOs from each federation hammered out issues including accessing funds from the European Investment Bank, and honed joint strategy for the 2010 General Election.

Here's a selection of comments from those attending the meeting:

Jacqui Watt, SFHA Chief Executive said:

"We are pleased to have hosted one of this years bi-annual 4 Feds meeting. There was a lively discussion around finance for housing associations in the current global economic situation. The SFHA and the other Feds are keen to see the role of the European Investment Bank extended for the benefit of our members. We also discussed working together in the lead up to the UK General Election. It was time well spent with our peers across Britain."

David Orr, Chief Executive of the NHF, said:

“We have huge shared agendas which are still influenced by the Westminster Parliament and we are more likely to be heard if we are making the case together. We have talked about things that are very important for tenants like how we create mechanisms to make sure they have access to affordable credit. It’s always useful to have an idea what’s happening in other places, it’s part of staying open to different ways of working.”

Chris Williamson, Chief Executive of NIfHA said:

“These meetings are always extremely valuable to us as we are the smallest of the Four Federations by far. The sharing of information and current issues, policies, problems and solutions is beneficial for us and today has been no exception.

“There are clear benefits to be had from working together at UK and European levels and today’s agenda was a prime example of that. European procurement rules have impacted significantly on how social housing is to develop in Northern Ireland and no doubt it will have an impact on the rest of the UK.”

Ray Cashell, Chair of NIfHA, was at his first Four Feds meeting following his appointment. He said:

“I found it very informative and it helps identify common ground. Information on the new Scottish legislation will be quite useful to us as our Assembly tends to be very focused on English models.”

Nick Bennett, Chief Exec of CHCYMRU, said:

“Today’s meeting has been invaluable. It is very interesting to see how the different Federations are dealing with challenges around investment. It is good to come together and discuss how we can raise the profile of affordable housing during the forthcoming General Election and how we get the most out of the EU structural funds and the European Investment Bank.”

Ian Williams, Chair of CHCYMRU, said:

“These meetings are about sharing knowledge and experiences. The main things we have spoken about today are the supply of new housing, energy efficiency and financial inclusion. Through joint efforts we will get more out of cohesive campaigning ahead of next year’s General Election.”

By-Election Candidates Back 10,000 Homes

The five main candidates in the Glasgow North East by-election all backed the need for 10,000 new affordable rented homes, at a packed and unusually polite hustings event organised by the SFHA in Springburn last night (Wednesday, 4th November).

Over 50 people, comprising ordinary members of the public, housing association staff, councillors and the odd-MSP, packed into the Glasgow North Regeneration Agency to hear the five give their views on housing and answer questions.

Labour’s Willie Bain, himself a tenant of North Glasgow Housing Association told the audience:

“Housing associations have made a vast improvement in the quality of socil housing, but we can’t rest on our laurels…I’m happy to sign up to the pledge to build 10,000 homes a year, and will campaign for the funds to do this. We have to campaign for the extra funds from Holyrood and Westminster to meet these ambitious but achievable targets.”

David Kerr of the SNP, was also impressed with housing associations on the community model and supported extra funding for new homes, adding:

“I’m glad that the Labour Party have now joined the Scottish Government campaign for capital acceleration (from Westminster)…around £350m worth.”

A specific question from the audience on whether each candidate supported the target, saw the Liberal Democrats Eileen Baxendale, Conservative Ruth Davidson and Scottish Greens’ David Doherty all back it.

Mr Bain asked Mr Kerr: “You didn’t commite to 10,000 homes a year. I’m giving you the opportunity to say yes.” Mr Kerr replied: “Yes.”

Other topics for discussion included housing benefit, stock transfer, private build affordable housing, and the Right to Buy.

SFHA Deputy Chief Executive Andrew Field said:

“This was an extremely interesting and well-attended event, just a week ahead of this key by-election. The SFHA is always working to raise the profile of housing and the cause of housing associations and I was delighted to see these candidates here tonight debating the issues.”

The event was chaired by Lorna Paterson, SFHA Vice-Chair and Chair of Fife HA, and held at Glasgow North Regeneration Agency Conference Centre, Springburn. Voters in Glasgow North East go to the polls on 12th November.

For a more detailed report on the events of last night, pick up the December edition of Housing Scotland magazine.

Finance Main Topic At SFHA Fringe Event

Raising finance to build affordable homes for rent through the bond market was just one idea floated by the Housing Minister at an SFHA event in Inverness. More than 30 people attended a breakfast fringe event at the SNP conference on Saturday which was also addressed by Andrew Field, Deputy Chief Executive of the SFHA and Donald Lockhart, Development Director of Albyn Housing Society.

Housing Minister, Alex Neil, told the audience there was a window of opportunity to address Scotland's need for more affordable homes for rent and the Scottish Government was working with the SFHA and housing associations to identify alternative funding streams as pressures on public spending grew.He said £50m in loans had recently been secured from the European Investment Bank to help housing associations in Scotland to build properties. And there would be millions more in loans available from the EIB not just for housing but, in certain circumstances, for communal facilities too.

Private sector investment should also be explored for affordable rentedhousing and developers should be offered incentives such as tax breaks to build housing to rent. VAT should also be reduced on reprovisioning to create a mini boom in renovations, the Minister said.

However, he added that he did not have autonomy in the decision making process as until Scotland had independence his hands were tied on reserved matters.

Join Our Housing Hustings

Grab your chance to quiz the main candidates in the Glasgow North East by-election.

The SFHA has organised a Housing Hustings event in Springburn and the main candidates have confirmed their attendance.

Facing your questions on affordable rented housing will be Willie Bain (Labour); David Kerr (SNP); Eileen Baxendale (Lib Dem); Ruth Davidson (Cons) and David Doherty (Greens.

Head to Glasgow North Regeneration Agency’s conference centre, 179 Ayr Road, Springburn, on Wednesday November 4 from 6.30pm to 9pm. (It’s the former Springburn Library!)

Refreshments will be on offer and our Homecoming campaign will be high on the agenda. If you'd like further information call 0141 332 8113 or email homecoming@sfha.co.uk

And We're Off!

After several weeks of anticipation, and five months after the Speaker of the House of Commons Michael Martin stood down as it's MP, the date for the Glasgow North-East by-election has now been set.

Polling day will be Thursday 12th November. Pundits are widely predicting a two-horse race between Labour's Willie Bain and the SNP's David Kerr, but there is a wide range of candidates for voters to choose from. These include Eileen Baxendale for the Lib Dems, Ruth Davidson for the Conservatives, David Doherty for the Greens and wait for it, Glasgow airport attack hero John Smeaton standing as an independent.

As in previous by-elections, the SFHA will be campaigning to highlight the importance of affordable housing in the constituency. We are hosting a public hustings event on housing, with the main candidates taking your questions on Wednesday 4th November from 7pm. It take splace at Galasgow North regeneraiton Agency, 179 Ayr Road, Springburn. Watch this space for more on the campaign!

All Aboard for Paisley Bus Tour

The next Year of the Home Coming event will take place in Paisley on Monday 5th October, as we sponsor Linstone HA's bus tour round local community regeneration projects.

Accompanying local housing officials and community workers from Paisley and Renfrewshire will be Scotland's Housing Minister Alex Neil and SFHA Deputy CEO Andrew Field.

The Paisley theme continues next week, when SFHA staff will also be at the Renfrewshire CVS Masterclass in Social Enterprise event in Paisley Abbey, to promote the Year of the Home Coming campaign.