Performance - housing supply and quality
Last updated | 01/10/2008
Why is it important?
An adequate supply of affordable housing is crucial to individual households achieving their aspirations and the well-being of communities as a whole.
It is important that the council maximises rental income to provide quality services and maintain and improve the stock to the Scottish Housing Quality Standard.
Affordable housing - how is Perth and Kinross doing?
There have been many problems in securing an adequate supply of new affordable houses in Perth and Kinross in recent years.
Rental loss as a percentage of the gross debit has also been improved since the removal of properties from the Housing Revenue Account following Committee decision. At the year end the void rent loss figure was 1.36% of the gross debit.
Despite the increase of arrears during the past year, it is anticipated that Perth and Kinross Council will be in the top quartile of Scottish local authorities for this indicator.
Increase in affordable houses built
| |
2005/06 |
2006/07 |
2007/08 |
Target 2010 |
No. affordable houses built against annual target:
2005/06 – 141
2006/07 – 172
2007/08 - 150
|
130 |
136 |
155 |
175 |
Source: Housing and Community Care MIS
Increase in % of housing response repairs completed within relevant timescale (for top three priority categories)
| |
2005/06 |
2006/07 |
2007/08 |
Target 2010 |
| % of Housing response repairs completed within the relevant timescale: |
|
|
|
|
| First Priority |
91.6% |
90.1% |
95% |
94% |
| Second Priority |
85.6% |
95.8% |
97% |
97% |
| Third Priority |
83.0% |
87.8% |
83% |
94% |
Source: Audit Scotland
Steady in the % of rent loss due to void properties
| |
2005/06 |
2006/07 |
2007/08 |
Target 2010 |
| % rent loss due to void properties |
1.1% |
1.3% |
1.1% |
1.0% |
Source: Housing and Community Care MIS
Steady in tenant arrears at the end of the year, as a % of the net rent due in the year
| |
2005/06 |
2006/07 |
2007/08 |
Target 2010 |
| Tenant arrears at year end as % of net rent due in the year |
5.0% |
5.4% |
5.1% |
5.0% |
Source: Housing and Community Care MIS
What influences performance?
There is continuing difficulty in the supply of serviced land and slow progress with large mixed tenure developments. This means that it is not possible for Registered Social Lanlords (RSLs) to control when a development can start on site. In addition to such problems, due to a lack of development opportunities, RSLs are forced to develop sites which have many difficulties which frequently delay the progress of development. Rapid increases in the cost of land and construction has also made it difficult for projects to meet ‘value for money’ grant benchmarks set by Communities Scotland annually and very often changes must be made to developments at a late stage or additional funding must be found in order to progress with the development.
Housing properties become void (empty) for a number of reasons such as tenants moving to alternative accommodation, through death, or abandonment. When a property is empty it is not possible for the council to collect a rental income. Properties due for demolition also incur rent loss until there is a committee decision to remove them from the revenue account.
Although there was an increase in rent arrears during 2006/07, factors such as rent increases must be taken account when comparing to previous performance. Higher rents can be attributed to the investment going back into the housing stock through the replacement kitchen and bathrooms project. The rent levels are agreed annually with the Tenants Federation.
What is Perth & Kinross Council's role?
A cross service working group has been established within the Council to co-ordinate the work of different services effectively to assist in improving the supply of land for affordable housing. A policy to sell property and land at less than market value to assist with delivery of affordable housing has been approved by Council. A review of all land and properties in Council ownership which may have potential for development as affordable housing is being carried out. The working group are exploring a range of ideas such as the use of exception policies or Compulsory Purchase Powers to tackle the supply of land for affordable housing in the longer term.
The Council has also adopted an Affordable Housing Policy which requires 25% of all houses built to be affordable. The implementation of the policy not only increases the number of affordable houses built but in some cases, where it is felt that the development is not well located to provide affordable housing, a commuted sum in lieu of on site provision of affordable is received from developers. These funds can then be made available to RSLs to allow them to compete in the private market for sites to be brought forward for affordable housing.
Perth and Kinross Council role is to collect the maximum amount of rent due possible. It is inevitable that some people are unable to pay rent due to individual circumstances and we have a centralised department to manage arrears levels. The role of staff in area teams is to provide early advice and assistance to tenants with arrears balances. Tenants with arrears balances can also contact the Citizens Advice Bureau for specialised monetary advice.
Our role in reducing void rent loss is ensuring that empty properties are re-let to suitable applicants in the fastest possible time. We ensure that our empty properties are re-let to the minimum standard agreed by the Tenants Federation.
What is Perth & Kinross Council's influence?
Significant
