Chamber
Meeting of the Parliament 17 November 2011
17 Nov 2011 · S4 · Meeting of the Parliament
Item of business
Housing
Although we are all concerned about the dire state of house building, I think that we begin to part company over what should be done about the situation. I believe that there is significant and unaddressed demand for social rented housing and shared equity schemes, but both are dependent on Government support that is rapidly shrinking. The housing and regeneration budget will be reduced from nearly £400 million to little over £250 million in 2014, which is a cut of more than 35 per cent. Next year, the affordable housing supply budget is to suffer an even more drastic cut of 53 per cent, falling from just over £268 million to as little as £125 million.
Of course, some of the affordable housing budget is included in the local government settlement but it, too, will be under severe pressure. Manifesto promises and the requirement in the Housing (Scotland) Act 2001 to eradicate fuel poverty by 2016 are unlikely to be met. The pledge to build 6,000 social rented homes each year has become a pledge to build 6,000 affordable homes, just over 4,000 of which will be social rented homes. That is nowhere near enough to meet demand; Scotland needs 10,000 new affordable homes a year.
The 60 per cent decrease in the money for building affordable homes will be achieved by limiting the subsidy to a maximum of £40,000 per unit, but it remains to be seen whether that subsidy will be raised for areas of greater need. Unless it is relaxed, the limit will make it difficult to fund social rented accommodation in areas of high deprivation; if it is relaxed, there will not be enough money to fund the building of as many houses.
The 1,000 intermediate rented homes, available through the national housing trust, are by definition affordable only for some. They are out of reach of the poorest tenants. Another 1,000 are to come from subsidised home ownership. I support the continuation of the open market and the new supply schemes, but I note that the Scottish Government is still not providing funding for the open market scheme. That scheme was assessed as being the best to meet particular needs—for example, the needs of people with a disability—and also as being a particularly cost-effective option. However, it is now available only for a very limited number of homes that are already in the process of being built.
I am also concerned about the future of social housing under the new regime of the housing regulator, which has brought forward proposals that will undermine the role of local residents on the boards and committees of registered social landlords. I am sure that there is no great demand for those proposals from housing associations and residents. In accordance with the tenant consultation and satisfaction principles of the Scottish housing charter, their views should be paramount. Any attempt to impose those new rules will be an attack on local democracy. It will not be acceptable for the Scottish Government to wash its hands and say, “It wisnae me. It was that quango what done it.”
The Government must take responsibility, and not give it away to organisations that it then blames when things go wrong. Instead of trying to fix things that are not broken, the Government should address real problems—such as factors who are withdrawing their services because absentee landlords make their task so difficult. Instead of attacking social landlords, how about the Government giving local government more powers to deal with antisocial landlords?
09:47
Of course, some of the affordable housing budget is included in the local government settlement but it, too, will be under severe pressure. Manifesto promises and the requirement in the Housing (Scotland) Act 2001 to eradicate fuel poverty by 2016 are unlikely to be met. The pledge to build 6,000 social rented homes each year has become a pledge to build 6,000 affordable homes, just over 4,000 of which will be social rented homes. That is nowhere near enough to meet demand; Scotland needs 10,000 new affordable homes a year.
The 60 per cent decrease in the money for building affordable homes will be achieved by limiting the subsidy to a maximum of £40,000 per unit, but it remains to be seen whether that subsidy will be raised for areas of greater need. Unless it is relaxed, the limit will make it difficult to fund social rented accommodation in areas of high deprivation; if it is relaxed, there will not be enough money to fund the building of as many houses.
The 1,000 intermediate rented homes, available through the national housing trust, are by definition affordable only for some. They are out of reach of the poorest tenants. Another 1,000 are to come from subsidised home ownership. I support the continuation of the open market and the new supply schemes, but I note that the Scottish Government is still not providing funding for the open market scheme. That scheme was assessed as being the best to meet particular needs—for example, the needs of people with a disability—and also as being a particularly cost-effective option. However, it is now available only for a very limited number of homes that are already in the process of being built.
I am also concerned about the future of social housing under the new regime of the housing regulator, which has brought forward proposals that will undermine the role of local residents on the boards and committees of registered social landlords. I am sure that there is no great demand for those proposals from housing associations and residents. In accordance with the tenant consultation and satisfaction principles of the Scottish housing charter, their views should be paramount. Any attempt to impose those new rules will be an attack on local democracy. It will not be acceptable for the Scottish Government to wash its hands and say, “It wisnae me. It was that quango what done it.”
The Government must take responsibility, and not give it away to organisations that it then blames when things go wrong. Instead of trying to fix things that are not broken, the Government should address real problems—such as factors who are withdrawing their services because absentee landlords make their task so difficult. Instead of attacking social landlords, how about the Government giving local government more powers to deal with antisocial landlords?
09:47
In the same item of business
The Presiding Officer (Tricia Marwick)
NPA
Good morning. The first item of business is a debate on motion S4M-01346, in the name of Alex Johnstone, on housing. I remind ministers and members that time...
Alex Johnstone (North East Scotland) (Con)
Con
It is nice to be here to raise the subject of housing once again. The Conservative party has a proud record on housing, but it is a feature of this Parliamen...
Nigel Don (Angus North and Mearns) (SNP)
SNP
Will the member take an intervention?
Alex Johnstone
Con
No. I will not take an intervention at this stage.East Lothian Council’s decision to buy back former council houses is simply a rehash of that old prejudice....
Lewis Macdonald (North East Scotland) (Lab)
Lab
Will the member take an intervention?
Alex Johnstone
Con
No. I will not take an intervention at this point. Surely East Lothian’s action goes against everything that the Scottish National Party has said about suppo...
The Cabinet Secretary for Infrastructure and Capital Investment (Alex Neil)
SNP
Will the member take an intervention?
Alex Johnstone
Con
No, not at this point. Sadly, it is our neighbourhoods that are left to pay the price. The whole thing is a sham, and all the while the Government has done l...
The Presiding Officer
NPA
Perfect timing, Mr Johnstone. I call Keith Brown, Minister for Housing and Transport, to speak to and move amendment S4M-01346.2—you have precisely seven min...
The Minister for Housing and Transport (Keith Brown)
SNP
Thank you very much, Presiding Officer.First, I congratulate Alex Johnstone on his elevation to his new post, which I think gives him the title of the offici...
Malcolm Chisholm (Edinburgh Northern and Leith) (Lab)
Lab
I recognise the great difficulties that the minister faces because of the cuts in the capital budget from Westminster, but given that £200 million of capital...
Keith Brown
SNP
The member can rest assured that I will always argue for more funding for housing, but both housing and transport are central to the Government’s policy of e...
Gavin Brown (Lothian) (Con)
Con
Will the minister give way?
Keith Brown
SNP
I do not have time for more interventions; I apologise to Mr Brown.I look forward to working with Alex Johnstone and others on devising legislation that work...
Alex Johnstone
Con
Will the minister take an intervention?
The Presiding Officer
NPA
You have one minute, minister.
Keith Brown
SNP
I will take an intervention, although Alex Johnstone refused to take any.
Alex Johnstone
Con
I want to ask the minister whether the money used to buy back those houses would have been more effectively used to promote the building of additional houses...
Keith Brown
SNP
That would be true if it was an either/or situation. If the member went to speak to East Lothian Council, he would find that it is doing a great deal, despit...
Lewis Macdonald (North East Scotland) (Lab)
Lab
The Scottish Conservatives might have changed their leader and reshuffled their front-bench team, but there is no evidence this morning of any profound chang...
Keith Brown
SNP
The member mentioned election commitments. Is the Labour Party’s position that which has been put forward by a contender for its leadership, Tom Harris: that...
Lewis Macdonald
Lab
It is a shame that the minister rose to his feet to respond to my challenge to tell us what he is doing about his manifesto commitment and did not mention it...
Aileen McLeod (South Scotland) (SNP)
SNP
I welcome the opportunity to put on record once again my views on the housing situation in Scotland.In debating the motion, we need to consider the effects o...
Jim Hume (South Scotland) (LD)
LD
Will the member give way?
Aileen McLeod
SNP
No—I want to keep going.This Scottish Government has a proven track record not only of investment in housing despite the severe funding constraints—indeed, i...
Jim Hume
LD
Will the member give way?
The Presiding Officer
NPA
The member has no time, Mr Hume.
Aileen McLeod
SNP
The Scottish Government is doing everything that it can in very difficult financial circumstances to provide affordable, sustainable and original housing sol...
John Pentland (Motherwell and Wishaw) (Lab)
Lab
Although we are all concerned about the dire state of house building, I think that we begin to part company over what should be done about the situation. I b...
Jamie Hepburn (Cumbernauld and Kilsyth) (SNP)
SNP
If awards were given out for persistence and obstinacy, the Tory benches would be weighed down by bunting and medals. In every debate on housing, they return...