Home Owner Support Fund modelling: FOI release

Information requested

The models it uses and provides to money advice workers to calculate the HOSF entitlement that correspond with guidance https://www.gov.scot/policies/homelessness/support-for-homeowners-at-risk-of-homelessness/

Any modelling information it uses to determine the HOSF threshold, including that used to design the fund.

Statistical reports on the number of applications and granted application detailing levels of equity stakes taken, and levels of capital and equity applicants have.

Please also provide materials which brief or narrate the threshold modelling, the threshold pinning used since 2018, and papers that support the annual uprating of the thresholds used.

Response

Our aim is to provide information whenever possible, however, in this instance the Scottish Government is unable to provide some of the information you have requested. The role of money advice services is to provide holistic financial advice to homeowners on a wide range of support, protections and benefits for which they may be eligible. The Home Owners Support Fund (HOSF) is a voluntary participation programme which may offer support to homeowners at the lower end of the market (bottom 20%), who are in financial difficulty and are struggling with loans secured on their property and if applicants meet the basic criteria set out in guidance note HOSFGN/001, money advisers will assist the homeowner to submit an application for consideration by HOSF officials. The role of money advisers does not involve calculation of entitlement to HOSF. Therefore, this is a formal notice under section 17(1) of FOISA that the Scottish Government does not have all of the information you have requested.

The HOSF threshold levels were previously updated in 2017, but will be considered as part of an ongoing policy and operational review of the programme. The 2017 figures were set-out in the April 2017 Home Owners' Support Fund: property thresholds guidance note, and are based on the available information at the time. The thresholds use the greater value of either the previous HOSF threshold, the equivalent Open Market Shared Equity (OMSE) threshold for the relevant area (which are reviewed and updated with the latest house price data), or the calculated house prices by apartment size for each HOSF area, with the calculated house prices being based on the 2010 matched Registers of Scotland (RoS) / Assessors data on house prices by property size that was available at the time. 2010-based figures were only used if these were higher than the other two measures considered. As the guidance note sets out, this results in all thresholds being equal or higher than the respective OMSE thresholds used by HOSF prior to 2015. The threshold figures used within these calculations are based on the lower quartile of house prices for urban areas and the median of house prices for rural areas. HOSF is a nationwide scheme and this approach to modelling offers the flexibility to assist applicants as best as possible.

The Programme out-turn report for the Affordable Housing Supply Programme (AHSP) is an annual statement that focuses on how the AHSP resources were spent, this includes the Home Owners Support Fund.

The following table shows the number of applications made to HOSF and the number of homes purchased for each year since 2016-17. The Mortgage to Rent (MTR) and Mortgage to Shared Equity (MTSE) schemes are delivered as part of the HOSF programme. Each application is assessed on a case by case basis to determine which scheme best meets the applicant’s needs. During the last six years there have been no cases eligible for MTSE and, therefore, no equity stakes taken. Instead, properties were purchased by Registered Social Landlords with subsidy support from Scottish Government. This is due to the circumstances of applicants not meeting the MTSE eligibility criteria, in particular applicants with complex debts.

Home Owners Support Fund Applications*

Year		Received	Homes Purchased		Equity Stake (%)
2016-17		113	65		0
2017-18		91	39		0
2018-19		106	32		0
2019-20		79	28		0
2020-21		20	8		0
2021-22	Figures will be published shortly**

* Figures for applications received and homes purchased do not necessarily relate to the same cases.
** 2021-22 figures will be published shortly.

HOSF officials consider income and household expenditure as part of eligibility checks to ensure any capital is within the scheme limits. However, the Scottish Government do not retain or report on the amount of capital held by applicants. Therefore, this is a formal notice under section 17(1) of FOISA that the Scottish Government does not have all of the information you have requested.

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