Affordable Housing Supply Programme: out-turn report 2021-2022

Introduction

This document – excluding pictures of projects – can be accessed via the Affordable Housing Supply Programme webpage within the annual out-turn reports and related data section.  All of the tables can be accessed via the supporting accessible Excel document on the AHSP Out-turn Report 2021-2022 webpage.

Making sure everyone in Scotland has access to good quality housing is a vital part of the Scottish Government’s drive to secure economic growth, promote social justice, strengthen communities and tackle inequality.

Recognising the importance of everyone having a safe and affordable home that meets their needs, Housing to 2040 – Scotland’s first long-term national housing strategy – outlines what the Scottish Government wants housing and communities to look and feel like for the people of Scotland, with actions on how to get there. The strategy is a culmination of extensive stakeholder engagement and consultation.

This work contributes to the vision for national wellbeing in Scotland laid out in the National Performance Framework. A range of indicators are used to assess the Scottish Government’s progress towards our purpose and national outcomes. These provide a broad measure of national wellbeing, incorporating a range of economic, social and environmental factors.

The Affordable Housing Supply Programme (AHSP) contributes to the following National Outcomes: Health, Communities, Human Rights, Education, Children, Poverty, Economy and Environment 

Warm and affordable homes are much more than just bricks and mortar, they provide the foundation for family life and the much needed security families require to work, learn and thrive. Ensuring families have suitable accommodation, free from overcrowding, gives children a safe space to do their homework and have friends home from school.  Affordable and secure housing removes a significant barrier for parents who can then focus on accessing employment or training opportunities.

An estimated 3,200 households with children have been helped into affordable housing in the year to March 2022. And keeping social rents lower than market rents benefits approximately 110,000 children in poverty each year.

In 2021-22 the affordable homes provided through the AHSP comprised homes for social rent, for mid-market rent and for low cost home ownership. These homes took various forms including; new build homes, rehabilitation projects, conversions and off-the-shelf purchases of both new and second hand homes.

Funding was provided to Registered Social Landlords (RSLs), councils, community partnerships and trusts, individuals and private developers.  This report outlines the AHSP out-turn information for financial year 2021-22.   

2021-2022 - additional reporting

Of particular note in 2021-22, on 23 March 2022 the previous 50,000 affordable homes target was met, a year later than planned, after delays caused by the COVID-19 pandemic and global issues around supply and workforce affected the pace at which homes could be delivered. We have included details of the breakdown of this target in Table 8 (a) of the Annex as well as the balance of homes delivered during March which signal the start of progress towards delivering the current 110,000 affordable homes target.  Further information on this can also be found in our published statistics and on our webpage.

Also of note was the review of Affordable Housing Investment Benchmarks which was undertaken between March and June 2021.  The review was carried out by a cross-sector working group of officials and was jointly chaired by the Scottish Government and COSLA.  As part of that review we agreed to:

a) monitor the number of tender approvals which are approved at, above and below benchmark on an annual basis (with the exception of projects in Glasgow given that the City Council (a) has a separate standard that it requires RSLs to deliver to and (b) undertakes detailed appraisals of all projects) – and publish this information in our annual Affordable Housing Supply Programme out-turn report

b) analyse, for those projects that are approved above benchmark, the average person size of projects, as well as their geography and tenure (again with the above exception) – and publish this information in the annual Affordable Housing Supply Programme out-turn report, and

c) monitor the cost of installing the following two quality features that are being phased into the Programme, particularly given concerns expressed by some group members that the proposed benchmark assumptions for these measures may be too low – automatic fire suppression systems and heating systems which produce zero direct emissions at the point of use.

Information relating to (a) and (b) are available within the Monitoring of Affordable Housing Investment Benchmark section.  Information on (c) is not available for 2021-22 but will be included within the AHSP 2022-23 report.

Planning, delivery and reporting of the AHSP

All local authorities have a statutory requirement to prepare a Local Housing Strategy (LHS) which sets out their strategic vision for the delivery of housing and housing related services and the outcomes that it will seek to achieve.

Priorities and outcomes identified in the LHS help inform Strategic Housing Investment Plans (SHIPs) which are prepared annually by local authorities and which include affordable housing investment priorities over a five year period. SHIPs are submitted to the Scottish Government annually and identify the projects to be included in the Affordable Housing Supply Programme annual Strategic Local Programme Agreements.

A resource planning approach operates. This enables each local authority to put forward local proposals for social and affordable housing developments, based on the strategic priorities in their LHS. Local authorities were advised of Resource Planning Assumptions (RPA) for the period 2021-22 – 2025-26 in July 2021.

A Strategic Housing Investment Framework (SHIF) was agreed with the Convention of Scottish Local Authorities (COSLA) to determine the allocation of funding to 30 of the 32 local authority areas, (funding for Glasgow City Council and City of Edinburgh Council is agreed separately and includes funding from the Local Government Settlement).  The SHIF formula takes into account four indicators; affordability, deprivation, rurality and homelessness.

Each local authority has flexibility to apply the available Scottish Government funding to strategic priorities it identifies within its geographic area. If any funding is not spent within the financial year it has been allocated, those funds may be reallocated to other local authority areas across Scotland.  Where monies are reallocated, the Scottish Government cannot guarantee that local authority allocations will be readjusted in future years to compensate for any previous reallocations.

A central budget is retained by the Scottish Government for other parts of the AHSP, including funding for the Low-cost Initiative for First Time buyers, the Home Owners’ Support Fund and the Rural and Islands Housing Fund.

The AHSP is managed through a network of Scottish Government More Homes Division Area Teams. Glasgow City Council and City of Edinburgh Council manage the AHSP for their own local authority areas as a result of the Transfer of Management of Development Funding (TMDF), which is governed by an annual grant offer.

Official statistics and information within the report

The data provided in this report is based on management information. It should be noted that the Scottish Government also publishes Official Statistics on this information on a quarterly basis.  Whilst the Official Statistics are based on the management information, they may differ slightly due to statistical adjustments which are carried out to ensure consistency across different measures and across time. 

The Official Statistics on the Affordable Housing Supply Programme (AHSP) for 2021-22 and other housing statistics can be found at the Housing statistics for Scotland web pages.

Information on any adjustments to the management information for statistical purposes will be included in the explanatory notes and the footnotes to these statistical publications.

Since May 2013 quarterly statistics on approvals, site starts and completions by tenure have been published, clearly identifying the numbers for social rent, mid-market rent and affordable home ownership. This is in addition to the previous format of these statistics which focused primarily on the split between new build, refurbishment and off-the-shelf purchases.

The information contained within this report is based on the most accurate information available at the time of collation.  Given the scope of the programme there may be instances where information is subsequently updated.  Where previous years are referenced, there may be differences with previously reported information due to updates or revisions. 

It should also be noted that within the report there may be tables relating to expenditure, where individual lines do not add up to the totals within the tables due to rounding to £0.000 million.