Glasgow's Strategic Housing Investment Plan 2021-26
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Strategic Housing Investment Plan (2021-26)
Glasgow’s Strategic Housing Investment Plan 2021-26
Background
The Scottish Government has a ‘Strategic Housing Investment Framework’ for the
allocation of Development Funding to local authorities. As part of this Framework, all local
authorities are required to submit a Strategic Housing Investment Plan (SHIP) annually to
the Scottish Government. This SHIP is the 11th to be submitted for Committee approval.
Glasgow’s SHIP 2020-25 was approved by the Council’s City Administration Committee in
October 2019. Since then, there has been an ongoing engagement with key partners and
stakeholders to refine our knowledge and understanding as well as identify future
investment priorities. This includes frequent programme meetings with every developing
RSL and ‘Development Forum’ meetings.
In June 2017, Scottish Government provided the Council with Resource Planning
Assumptions (RPA) covering the three years 2018/19 to 2020/21. In April 2019, the
Scottish Government notified the Council of revisions to RPA for 2019/20 and 2020/21,
which included an uplift of around £14million on previous reported figures due to
Glasgow’s ambition and capacity for delivery.
On 9th July 2020, the Scottish Government’s More Homes Division wrote to all local
authority senior housing officials to advise that in recognition of COVID-19 pandemic
impacts on preparation of Strategic Housing Investment Plans (Strategic Housing
Investment Plan), local authorities are asked to prepare “a light SHIP only” this year,
covering the period 2021-26.
There are three core requirements for this “light SHIP”:
• to summarise any revisions/changes to existing priorities due to the impact of
COVID-19 and note what consultation was undertaken with stakeholders;
• to explain how any new activities/approaches support the Local Housing Strategy
priorities and objectives; and
• to update the SHIP tables for the period 2021-26 to reflect any newly identified
priorities and take account of any delivery delays due to, for example, the
introduction of safe operating procedures on constructions sites.
The Strategic Housing Investment Plan 2021-26 is therefore an abbreviated document
structured around the following key components:
I. A summary of the previous SHIP (2020-25), including policy priorities;
II. A summary of COVID-19 impacts and Glasgow’s housing investment response,
including stakeholder views and how these support Glasgow's Housing Strategy (GHS)
priorities;
III. Updated summary of the SHIP Tables 2021-26.
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Strategic Housing Investment Plan (2021-26)
I. Strategic Housing Investment Plan (2020-25) Summary
The Strategic Housing Investment Plan 2020-25 was prepared using the current RPA and
developed in accordance with Scottish Government’s ‘Guidance on preparing Strategic
Housing Investment Plans (MHDGN 2019/04)’, published August 2019. The guidance
identifies a number of requirements as follows:
• how the priorities fit with the Local Housing Strategy;
• the method for prioritising SHIP projects;
• how development constraints are managed and mitigated;
• resources (funding) and performance (delivery);
• how particular needs will be met, including Gypsy/Travellers and wheelchair
accessible homes; and
• how additional resources may assist delivery, such as council tax powers in relation
to second and empty homes and bids to the housing infrastructure fund.
The SHIP 2020-25 aims to deliver the strategic priorities set out in ‘Sustainable
Communities, Affordable Homes’, Glasgow’s Housing Strategy 2017-2022, which was
approved by Council in January 2017.
Themes • increasing supply and improving quality of housing available to
Glasgow’s people
• Improving access to appropriate housing for Glasgow’s people
Strategic 1. New build housing and area regeneration
Priorities 2. manage, maintain and improve existing housing
3. raise private rented sector standards
4. tackle fuel poverty, energy inefficiency and climate change
5. improve access to housing
6. promote health and wellbeing
The housing strategy reflects what the Council and its partners want to achieve for the city
during the period 2017-2022 and has been developed based on Glasgow City Council’s
commitment to the principles of equality, sustainability, health, wellbeing, and partnership.
As well as delivering against these strategic priorities, the Strategic Housing Investment
Plan and Glasgow's Housing Strategy (GHS) contributes towards key policy priorities and
targets, which are summarised below:
Tackling Child Poverty
The Strategic Housing Investment Plan and Glasgow's Housing Strategy (GHS) align with
Glasgow City Council’s Child Poverty Action Plan. Housing is a key component that
contributes directly towards addressing the ‘cost of living’ driver. The SHIP sets out how
Glasgow will deliver new homes that increase the supply of affordable housing options,
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Strategic Housing Investment Plan (2021-26)
which can benefit all households, including families with children. The SHIP has set out a
target to deliver additional affordable homes that are larger family-sized (4+ bedrooms).
Built to the Glasgow Standard, not only do the higher levels of energy efficiency and
sustainability help to minimise fuel costs, the generous internal and external liveable
spaces contribute towards improved health and wellbeing of families. In 2019/20, 42 larger
homes were completed and projects were approved to deliver a further 105 homes.
Through Transfer of Management of Development Funding arrangements and the SHIP
process, Glasgow City Council seeks to maximise opportunities for training and
employment by requiring community benefit clauses for development projects.
A sample of 11 projects from our AHSP that completed in 19/20 delivered the following
community benefits as detailed below:-
Employment Skills and Community
Projects Units
Benefits Training Engagement
11 >600 152 105 24
Specialist housing provision
The Glasgow City Region Housing Needs and Demand Assessment (HNDA) 2015 did not
identify a requirement for additional pitches or sites for Gypsy Travellers within Glasgow.
In 2016, further detailed study was undertaken by regional partners into assessing the
housing needs of Gypsy Travellers, which informed Glasgow's Housing Strategy (GHS)
2017-22. It found there was no requirement for additional accommodation or permanent
affordable housing specifically to meet the needs of Gypsy Travellers within Glasgow City
Council local authority area. Work is underway to develop the next regional HNDA (due
2020/21) and this will inform future Strategic Housing Investment Plans and the next
Glasgow Housing Strategy (GHS).
The multi-agency, Housing Health and Social Care Group, advises on requirements to
meet particular housing needs, including wheelchair accessible and wheelchair readily
adaptable homes. In 2019/20, 100% of new homes were delivered to wheelchair
accessible standard and 10% were delivered to readily adaptable or full wheelchair
standard. A further 207 approvals were made for wheelchair readily adaptable homes
during 2019/20.
Preventing and reducing homelessness
The immediate, short-term impacts of COVID-19 and Lockdown included a significant
reduction in tenancy turnover in the first quarter of 2020 (April - June) across most RSL
housing providers. At this stage, it is unclear what the medium-term impacts will be for
turnover and housing options. Increasing supply of affordable homes is a vital component
for meeting Glasgow’s housing needs and demand. Not only does it enable movement
within local housing systems but it is also essential for preventing and reducing
homelessness and is identified as a critical priority within Glasgow Health and Social Care
Partnership (HSCP) Rapid Rehousing Transition Plan, alongside targets for prioritising
homeless allocations.
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Investing to make best use of existing homes
Glasgow’s new Empty Homes Strategy was approved in November 2019. It focuses on
making better use of all existing housing and property assets, with a key priority to tackle
the problem of empty flats and empty commercial units on the ground floor of tenement
properties which are preventing common repairs from being carried out. This strategy
aligns with work to develop investment improvement proposals for older, pre-1919 private
housing, as well as the strategic acquisition plan for targeted purchasing of properties on
the open market to increase supply of affordable homes. Glasgow also makes use of
powers to increase council tax on long-term empty homes in Glasgow as a mechanism for
bringing these homes back into effective use.
The Scottish Government’s draft Infrastructure Investment Plan, published September
2020, sets out proposals for a common investment hierarchy which prioritises making best
use of existing assets. Alongside bringing housing back into effective use to increase the
supply of affordable homes, key priorities include improvements to energy efficiency and
sustainability. Glasgow's Housing Strategy states the Affordable Warmth strategic priority
is to tackle fuel poverty, energy inefficiency and address climate change. For 2020/21, the
Scottish Government awarded Glasgow City Council £4,747,427 from the Energy Efficient
Scotland Programme. This is the 8th year for the Area Based Schemes, which have
secured match-funded investment of over £110million and delivered improvements to over
11,000 homes. From 2021/22, the Scottish Government intends to introduce multi-year
budgets, which will be an essential resource for delivering on our Glasgow's Housing
Strategy (GHS) priorities.
II. COVID-19 impacts and Glasgow’s housing investment response
Glasgow’s Housing Strategy sets a Housing Supply Target to deliver 15,000 new homes
over 2017-22, including 7,500 new affordable homes. Over 3,000 additional affordable
homes have been completed in Glasgow (40% of the target) 2017-20.
Following Royal Assent, the UK Coronavirus Bill Scottish Regulations came into force on
26 March 2020 and were laid in Scottish Parliament on 27 March 2020. The Coronavirus
(Scotland) Act 2020 came into force on 7 April 2020 (except for one provision) and the
Coronavirus (Scotland) (No.2) Act 2020 came into force on 27 May 2020. The Acts have
provided powers and measures to help to protect the public, maintain essential public
services and support the economy in the face of the unprecedented and ongoing public
health and economic challenges created by the pandemic.
The COVID-19 pandemic and lockdown caused delays to planned projects. The main
impacts and delivery constraints are summarised below:
Lockdown impacts
The 2019/20 programme budget was £104.044million, an 11% increase on previous year.
The actual out-turn figure was £100.340m. The shortfall of £3.704m related to several
acquisitions that did not settle as a direct result of lockdown.
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For the 2020/21 programme, temporary closure due to Lockdown affected 36 projects that
were on site. Another 10 projects which had approval and were due to start on site have
been delayed significantly, some of which requiring to be re-tendered.
Longer-term impacts are difficult to ascertain at this stage in the response to the COVID-
19 pandemic. The early indications are that for projects underway on site there has been
an average delay of 3 months to get restarted, depending on the project, which is
consistent with the initial Lockdown phase. However, for approved projects that had yet to
start on site, the potential delays have been up to 6 months.
Longer-term impacts: funding and delivery priorities post 2021
The Strategic Housing Investment Plan 2021-26 sets out potential outputs based on
2020/21 Resource Planning Assumptions. It is anticipated there will be changes to the
budget post 2021. A key focus is to ensure the delivery of sites identified as having
strategic importance. This include sites which fulfil one or more of the following:
• Development projects which have been granted tender approval;
• Key development sites programmed within Glasgow’s Transformational
Regeneration Areas and those which are part of Glasgow City Development Plan’s
Strategic Development Frameworks and subject to masterplans;
• Mixed-development sites for housing alongside regeneration of the built
environment and local amenities and which involve match-funding.
During 2019/20, approved projects started on sites to deliver 1,270 additional affordable
homes via new build or refurbishment. A further 47 projects were approved to deliver
2,142 new and improved homes, including 207 wheelchair accessible homes and 105
larger family homes (4+ bedrooms).
Mitigation - Acquisitions and Delivery
The SHIP has allocated £2.5m for the Strategic Acquisition Plan (SAP), in addition to the
£2.5m allocated to the Govanhill Strategy, for open market purchases. Glasgow’s
approach has focused on increasing supply of larger family homes and addressing
homelessness needs. This has been further enhanced in the response to COVID-19. This
approach also supports other priorities through targeting flats in multi-tenure blocks where
acquisition can unlock options for common repairs and maintenance as well as address
long-term empty homes.
The SAP can deliver additional affordable homes in priority areas within short timescales.
It aligns with Glasgow's Housing Strategy (GHS) priorities for improving private sector
housing, including the new Empty Homes Strategy (2019) which seeks to make optimal
use of existing assets. It also fits with the new four-part common investment hierarchy
which is proposed in the Scottish Government’s draft Infrastructure Investment Plan:
I. determine future need
II. maximise use of existing assets
III. re-purpose and co-locate
IV. replace or new build
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Glasgow’s approach continues to be underpinned by the following cross-cutting principles:
Ensuring Best The Affordable Housing Supply Programme is designed to enable
Value for Money additional private investment funding to be leveraged to achieve best
value for money.
Ensuring design The Glasgow Standard design schedule specifies requirements for
quality all new homes built with AHSP subsidy to include inclusive and
sustainable features, including meeting a higher energy efficiency
standard.
Procuring wider Across all procurement approaches and frameworks, the Council
community seeks to secure community benefits that include employment and
benefits training opportunities for local residents as well as supporting a
robust and resilient construction sector supply chain inclusive of
Small and Medium Sized Enterprise (SME) businesses.
Meeting diverse 10% of all AHSP new build funded homes are required to be
needs wheelchair readily adaptable or full wheelchair units. 100% of new
build homes funded through the AHSP are required to be wheelchair
accessible. The Council works closely with the Health and Social
Care Partnership to identify particular Social Care Housing
Investment Priorities. This includes ensuring that new housing supply
contributes effectively towards enabling people to live independently,
as well as addressing homelessness and supporting the transition
towards rapid rehousing.
In September 2020, the Scottish Government published its Programme for Government
(PfG) 2020/21, which included a strong focus on housing and learning from experiences of
the pandemic. The PfG includes a specific commitment to enhance the funding
requirements for public investment in housing, highlighting three factors:
• carbon reduction and sustainability - including greater use of offsite construction
methods
• space standards - including internal spaces for home working and study, as well as
private and communal outdoor spaces
• digital connectivity - providing ducting and connections to enable digital inclusion
The Glasgow Standard requires all new affordable homes receiving grant subsidy to
deliver these requirements. The commitment to further enhance quality standards will
ensure that the national Affordable Housing Supply Programme delivers suitable,
sustainable and affordable lifetime homes and we welcome the opportunity for
engagement with Scottish Government to consider options and benchmarks for future
delivery.
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Consultation and Feedback
In October 2020, Glasgow City Council undertook targeted consultation on a draft
Strategic Housing Investment Plan 2021-26. Feedback was invited from key partners and
stakeholders, including developing RSLs, Glasgow’s Health and Social Care Partnership,
planning and housing strategy colleagues across the Glasgow City Region.
Respondents were asked for their views on the SHIP priorities, impacts of COVID-19 and
future housing and development priorities and issues for consideration. The following key
points were noted from partners and stakeholders’ feedback and are incorporated into this
SHIP:
respondents agreed with the SHIP priorities and support the focus on increasing supply
of affordable homes, including specialist provision to meet particular housing needs
respondents agreed with the dual focus of investing in existing homes as well as new
supply and in particular increasing and diversifying housing options
respondents highlighted the immediate, short-term impacts of COVID-19 and lockdown
included delays to projects and in some cases additional costs which affected
contracts. Longer-term, respondents remained confident and committed to delivering
affordable homes but highlighted concerns about trends in the supply and costs of
materials and labour.
Respondents noted an important factor is the availability and capacity of contractors.
They noted there are challenges associated economic recovery post-COVID and this
will impact on sites and development. In this context, it is important that the Council
maintains a good balance across the development programme, which ensures that a
range of projects can be delivered at different scales, based on the SHIP priorities.
Respondents highlighted one of the most significant factors influencing future
development priorities is funding certainty. This enables forward-planning and
opportunities for engagement with development partners.
Respondents noted the Glasgow Standard sets higher specification requirements for
new developments. This has an influence on tender prices and an important factor is
future grant benchmarks.
In relation to housing standards, respondents suggested it would be helpful to explore
alternative design options and the particular environmental and health benefits they can
offer, such as passive ventilation.
Respondents agreed with the priority of addressing housing quality and conditions in
existing homes, especially older tenements built pre-1919 and suggested further area-
based approaches are developed which link to investment approaches such as the
strategic acquisition plan.
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III. Strategic Housing Investment Plan 2021-26: Tables
Resource Planning Assumptions (RPA)
In February 2020 Budget, the Scottish Government set out a commitment for £300million
towards continuation of the Affordable Housing Supply Programme (AHSP) in 2021-22.
The Scottish Government’s draft Infrastructure Investment Plan, published September
2020, identifies overall investment of £2.8billion direct capital grant (2021-26) for
affordable housing, which is equivalent to approximately 80% of the £3.5billion invested
2016-21. As of December 2020, there were no other updates to local authorities RPA.
The SHIP Guidance (MHDGN 2019/04) advises that “in the absence of RPAs post 31
March 2021, local authorities should plan on the basis of existing RPA levels. Further
information on RPA levels post 2021 will be provided as soon as known and will inform the
pace at which these future programme plans can be delivered.”
Glasgow’s RPA for 2020/21 is £110.960million. In accordance with the guidance, this is
used as the overall planning figure for this SHIP 2021-26. The phasing of projects will
depend on confirmation of future funding. A key focus is to ensure prioritisation and
delivery projects which are identified as of strategic importance within the existing
programme. As the guidance acknowledges, the pace of future programme plans will
depend on confirmation of RPA levels post 2021 and this will inform future SHIPs.
The Council requires developing Registered Social Landlords (RSL) to submit a Strategic
Development and Funding Plan (SDFP) annually to inform the Strategic Housing
Investment Plan. The table below summarises the potential Strategic Housing Investment
Plan outputs for 2021-26:
2021/22 2022/23 2023/24 2024/25 2025/26 Total
site starts (units) 1,627 948 1,114 535 230 4,454
completions (units) 1,508 1,571 1,649 1,145 1,002 6,865
investment (£million) 121.430 108.641 107.087 72.430 60.122 469.710
Current projects were delayed in completing due to COVID-19 and as such the
completions in the first two years (2021/22 and 2022/23) includes the completion of a
number of projects which were committed and started prior to 2021.
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