Funding details of new house building project unveiled
Last updated | 27/01/2012
Details of funding arrangements for the building of 39 new affordable houses by Perth & Kinross Council will be outlined to the Housing and Health Committee on Wednesday 1st February.
Last year a successful bid was made to the Scottish Government’s Innovation and Investment Fund for £1,170,000 to build the houses. The grant will be used to build new accommodation on four sites in areas where there is acute affordable housing need:
• 10 flats at Perth Road, Scone
• Six flats at Lower Oakfield, Pitlochry
• Six flats at Dalchampaig, Pitlochry
• 17 flats at Quinns Cinema, Blairgowrie
The Committee will be told that the grant will subsidise each unit by £30,000. The Council will make up the total using its innovative Council Tax Fund on Second Homes and from prudential borrowing - the costs of which will be met from the net rents generated by the new properties.
The total cost of the project will be £4,718,612 - slightly lower than initial estimates. This equates to an average cost of £120,990 per unit.
The Housing and Health Committee will be asked to approve the expenditure to support the development of the new accommodation.
Committee Vice Convener, Councillor Alasdair Wylie, said: “The fact that we were successful in this bid for Scottish Government money is fantastic news for Perth and Kinross.
“These 39 new units will provide much-needed affordable accommodation for local people. The cost per unit is very competitive, and the overall cost of the project has come in slightly lower than we first estimated.
“The Council has already made three successful bids to the Innovation and Investment Fund, securing a total of £2m which has been put towards the construction of another 81-affordable housing units around Perth and Kinross.
“Delivering high quality housing in safe and secure neighbourhoods is a key priority of this Council. Perth & Kinross has a limited housing stock and the pressure to meet the demand for social housing is immense. The Council has been working hard on a range of initiatives, including these new-build proposals, to make more affordable homes available.
"As well as providing accommodation our house-building project has given the local construction industry a major boost. It is helping to sustain jobs during these difficult economic times, which is to be welcomed.”
The Committee will also be asked to approve the disposal of land to two housing associations to allow the development of 26 affordable homes.
It is proposed that land at Maxton Road, Crieff, and at Muirmont Crescent, Bridge of Earn, is released without charge because of the benefits the building projects will bring.
Hillcrest HA wants to build eight semi-detached houses at Maxton Road, and Caledonia HA wants to develop 18 semi-detached and terraced cottages at Muirmont Crescent.
Councillor Wylie explained: "Releasing this land will allow more affordable housing to be built. The amount that the land is worth on the open commercial market would only be enough to fund the building of a few houses by the Council. However, by taking this proposed course of action we will bring 26 new quality affordable properties on stream.
"The land has been valued as being worth £0 by the District Valuer Services - this represents the restricted market value using the assumption that the sites are to be used for affordable housing. On that basis it is proposed that the Council releases the land free of charge."
