Rural Scotland People, Prosperity and Partnership

HOUSING

Our Housing Policy

While our basic aim is the same for urban or rural Scotland, we know that there are particular housing problems in rural areas. These include: the scattered nature of settlements; the distances involved which increase costs; the extreme weather conditions which contribute to poor conditions, especially dampness; the tenure pattern and, in some parts, pressure from second home buyers and commuters which tends to restrict the supply of affordable housing. We also recognise that while applications under the homelessness legislation are generally lower in rural than in urban areas, rural areas have particular problems, such as the use of residential caravans, often in poor repair, and holiday accommodation being available only for winter lets.

Substantial resources have been made available to address the special problems of housing in rural areas. We have made sure that rural local authorities receive a greater share of the resources available for council housing compared to the scale of their housing stock. Since 1979, rural local authorities have been allocated £1,669 million for public sector investment. For 1995-96, with just over 23% of the total housing stock, rural local authorities were allocated 25.5% or £108 million of the resources available for public sector investment. Since 1979 they have received £500 million for private sector housing investment. For 1995-96, with only 29% of the Scottish population, they were allocated £37 million. Since its inception in 1989, Scottish Homes has invested over £329 million in rural areas providing over 9,000 new or improved homes. In 1995-96 it plans to invest over £60 million to provide over 1,700 homes.

Scottish Homes

We asked Scottish Homes, as one of its first priorities after it was set up in 1989, to draw up a policy to address the rural housing challenge. In 1990, following extensive consultation involving a series of meetings run by Rural Forum and detailed research, Scottish Homes published its policy document "The Role of Scottish Homes in Rural Scotland", which identified the need for new approaches to tackling rural housing issues and was seen as part of a move towards a more effective and better integrated policy for rural areas.

An innovative approach to address the challenge of rural housing was needed. Underlying the whole approach are the two important principles of supporting economic development and working in partnership with other agencies and local communities. Scottish Homes seeks to implement its policies in ways which are sympathetic to and supportive of rural communities and which create sustainable investment. For example, it:

  • created 10 Rural Demonstration Areas to try out existing policy mechanisms and demonstrate new techniques. The Demonstration Areas have been evaluated and it was recommended that Scottish Homes continue to pilot new instruments and initiatives. This led to a range of innovative projects throughout rural Scotland which will continue testing new approaches;

  • developed Local Housing Agencies, which are private sector organisations set up to provide specified housing services in a local area on behalf of Scottish Homes to provide more localised service delivery. Two agencies are being piloted - Tighean Innse Gall in the Western Isles and Eildon Housing Association in the Borders.
Scottish Homes

Scottish Grants

The condition of rural housing

Local Authorities

Local authorities also have an important role to play in meeting the rural housing challenge. Often they are working in partnership with Scottish Homes in implementing its rural housing policy. For their own investment under the system of Housing Plans, local authorities are required to draw up strategies and set targets in respect of local priority issues and the four identified national priority issues:

Authorities are required to assess their progress against these targets on an annual basis. Rural local authorities are responding to the new system and the main features of local authority housing investment in rural areas are works of energy efficiency to combat condensation and dampness in the public sector and a substantial improvement and repairs grant programme to combat the high incidence of below tolerable standard housing in both owner-occupied and tied houses. Increasingly, local authorities are looking to partnership with housing associations and other private sector partners to tackle their housing need.

Action on community care and homelessness should take account of rural problems and solutions for example, people living in residential caravans and housing and community care packages that enable people to live in their own homes rather than move into supported housing in the larger towns. Extra capital allocations have been given for such projects as reducing the use of residential caravans while care and repair schemes assist the elderly and disabled people to carry out repairs and adaptations allowing them to stay in their own home.

We also strongly encourage local authorities to consider stock transfers to housing associations as a means of improving the stock by opening up access to private finance. We look to local authorities and Scottish Homes to work in partnership to secure satisfactory housing provision. This will mean that resources are more effectively used, promoting an increased contribution from private funds, promoting better use of vacant or under used housing and promoting the co-ordination of housing and economic investment programmes designed to stimulate growth through the enterprise network.

Expanding Owner Occupation in Rural Areas

Our policy of increasing opportunities for home ownership has been successful in rural areas, as it has been across Scotland. Overall, home ownership has increased from 35% in 1979 to 57% in 1994 and is set to increase still further. We have set a target of 60% within the current Parliament. The Right to Buy is, of course, available to public sector tenants living in rural areas and many have taken advantage of the opportunity. Shared ownership schemes are also used extensively in rural areas and can be particularly beneficial in helping local people enter home ownership in pressurised housing markets. Rural Home Ownership Grants can also help people on modest incomes build their own home.

Our policy of encouraging private sector provision has also paid dividends with private sector completions rising steadily in rural areas over the past decade. Almost 50,000 new homes have been built in rural areas since 1985. In 1994, a record year for private house building in Scotland, over 6,000 new homes were completed by private developers in rural areas, a significantly higher proportion per head of the population than in urban areas.

Making the Most of the Stock

Empty property is a matter of serious concern since it represents a wasted resource which could be brought back into use for those in housing need. Scottish Homes has a number of initiatives aimed at bringing empty houses back into use but of particular relevance to rural areas is the Rural Empty Homes Initiative. This started as a pilot in the Angus Glens Rural Demonstration Area and established that there was potential for bringing empty properties on estates back into use, with grant assistance from Scottish Homes for rehabilitation. Nine such grants were awarded in the pilot - not many, but even enabling one or two families to remain, or come to live, in an area can make all the difference to the viability of the local school or the village shop. The scheme has been expanded throughout rural Scotland.

Rural local authorities generally have a lower level of empty houses than their urban counterparts. There are a number of reasons for this. They may have an attractive housing stock, with few houses which are difficult to let. Most do not face the problems of urban regeneration, under which blocks of flats or whole estates may be empty, awaiting comprehensive redevelopment and refurbishment, or even demolition.

Nevertheless, rural authorities should seek to ensure that they reduce the number of empty houses to an absolute minimum. In October 1994, we published a Good Practice Note on Void Management which described a range of actions that landlords can take to reduce the number of empty houses. The Note points out that a pro-active management policy will minimise rent lost through property lying empty and it makes specific recommendations. These recommendations are relevant for rural authorities, which should use them to make sure that houses which are being vacated are reoccupied quickly by people in housing need.

We will continue to encourage rural local authorities and Scottish Homes to work together along with other partners such as housing associations, local enterprise companies, the private rented sector and local communities to meet the local housing challenge and to ensure that the specific housing needs of rural areas are taken into account at all levels.



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Reviewed 21 April 1997