ROOM TO GROW

Solving the (affordable) housing problem in the Inner Moray Firth.

Creative Solutions/Options for Action

Di Alexander

23/02/05

4 Main Problems

• Market-led, affordable supply failure

• Effective land supply shortages

and

Planning system restrictions

• Infrastructure provision constraints

• Strategic public investment weaknesses

Causes of Supply Failure

• Supply too small + demand too great = rocketing prices (37% up in 2004)

• Because property is best investment

- big windfall gains

- reliable pension fund

- good little earner/better than stock market

• Area very attractive to outsiders

Solutions to Supply Failure

• Build more houses – mostly affordable ones

• Fiscal reforms “to put boundaries on people’s financial expectations”

• Encourage in-migration with new housing policies

Causes of Land Supply Shortages

• “Land supply is key constraint to increasing housing supply”

• “Planning system restrictions are main constraints on land use for housing”

- zoning system favours up-market housing

- “effective” land supply too restricted- Housing in Countryside policy ditto- Affordable Housing Quota system could be better- Planning Permission process too onerous

Solutions to Land Supply Shortages

• We are not short of land in the Highlands• Planning system land use emphasis should prioritise

affordable housing position• Meantime use SPP3 to the full

- designate more sites as “affordable”- zone more “effective” land in Local Plans- use Exceptions Sites policy more readily- locally responsive quota system/beware PAN74- make PP process simple and very user friendly

Causes of Infrastructure Constraints

• Scottish Water unable to deliver

- basic programming information

- level of investment required

- joined up plans with key partners

• SEPA’s requirements can be OTT

• As can Roads Depts (e.g. 4 house rule)

• And other agencies

Infrastructure Constraints Solutions

• Greater local influence over SW progs

• Much bigger local budget required

• Economic, stand-alone WWT systems

• Relax 4 house rule

• Better partnership working and planning

Causes of Strategic Public Investment Weaknesses

• £25m still isn’t enough!• Too few LCHO opportunties

- to satisfy demand

- to make overall market work better

- to get bigger bang for the public buck• Subsidy-leaking LCHO methods• Lack of Joined-up investment• Too little investment in sustainability e.g. timber

Solutions to Strategic Public Investment Weaknesses

• How much investment is enough? £50m?• 50/50 split on rented HA and LCHO will increase

affordable housing supply• All LCHO methods should lock in subsidy

- e.g. Rural Housing Burdens

- new shared equity model• Scottish Ministers must sort out SW issues• Prioritise investment in sustainable development