Housing
The next item of business is a statement by Nicola Sturgeon on housing. The cabinet secretary will take questions at the end of her statement, therefore there should be no interventions or interruptions during it.
Last October, in the consultation paper "Firm Foundations: The Future of Housing in Scotland", the Government set out its vision for the future of housing in Scotland. It is a vision of more houses of all tenures, that are built to higher environmental and design standards, that meet the needs of those on lower incomes, and that contribute to the creation of sustainable, mixed communities. Our proposals are ambitious and radical. They have to be if they are to tackle the problems that afflict housing in Scotland—problems that, as we all know, result in too many people failing to find homes that meet their needs and which they can afford.
"Firm Foundations" generated an enormous amount of interest, and I am pleased to say that there has been huge support for many of our key proposals. Given the critical role of local government in taking forward so much of our agenda, I am particularly pleased by the extent to which the Convention of Scottish Local Authorities and the Government agree on the priorities for action, which include increased supply throughout all tenures, the creation of mixed communities, and joint working between councils. In my statement, I will set out the Government's plans to build on that support in the coming months and to work with our partners in local government and throughout housing to translate our vision into delivery on the ground for the people of Scotland.
"Firm Foundations" recognised that improved supply is the key to achieving our vision for the sustainable economic growth of Scotland. Our proposal to set ourselves, as a country, the goal of increasing the rate of house building to 35,000 new houses a year by the middle of the next decade was strongly supported and endorsed by stakeholders. In proposing that goal, we recognised that making the supply of houses more responsive to demand is a long-term challenge that requires both reform of the planning system and a change in cultural attitudes towards the building of new houses.
In recent months, it has become clear that developments in the credit markets will have a significant adverse effect on house building in the short to medium term. As we all know, the situation is fluid, and the Government will require to be flexible in its response. However, we all understand that the root cause of the situation is not reduced demand for housing but reduced liquidity in the market. The underlying long-term requirement for more housing remains. People continue to need homes that they can afford and which meet their needs. Accordingly, I confirm our commitment to that goal. We will work to ensure that house building is best placed to grow again when market conditions recover.
Today, as part of our drive to improve the operation and responsiveness of Scotland's housing system, we are publishing, jointly with COSLA, new guidance that enhances the role of local housing strategies. Next month, we expect to publish the revised Scottish planning policy on housing. Taken together, those will create a stronger national framework for housing and planning to ensure that the right number of houses can be built in the right places.
I said a moment ago that the credit crunch will not deflect us from the long-term goal of increasing the supply of new housing, yet we cannot and must not ignore the impact that the credit crunch might have on some households in the short to medium term. I confirm that the Scottish Government will press the United Kingdom Government to do everything possible to restore normality to the operation of credit markets and to improve its financial regulatory arrangements to encourage more responsible lending. We will also press the UK Government to make good on its promise to reform the income support mortgage interest scheme so that it can help a much wider range of people.
As a Government—and, I am sure, as a Parliament—we recognise the significant effort and sacrifice that people have made to buy their own homes. For that reason, I want our Government to take some direct action in the coming months. I want to encourage anyone who is facing difficulties in paying their mortgage to take action as soon as possible and to get advice on their options from both their mortgage lender and independent agencies. We will also provide additional specific support and training for money advisers, and later this year we will produce revised standards for money and housing advice and consult on a new lighter-touch accreditation scheme.
Together, those measures will help us to ensure that home owners can obtain high-quality advice, without charge, that will help them to make the best choice possible in their circumstances. In addition, to ensure that people do not slip through the net, we will develop legislation to ensure that lenders that intend to repossess notify local authorities.
I can also announce that we intend to launch a home owners support fund to help those who cannot obtain help from elsewhere to remain in their homes if possible. The new fund will include and build on the existing mortgage to rent scheme. To support the fund, we will increase in the first instance the resources that currently are available to the mortgage to rent scheme. Over the next two years, we will make available £25 million to help home owners who face the repossession of their homes.
In developing that approach, we will work with lenders and social landlords to extend the options that are available to home owners who face repossession, beyond the single option that currently is available under mortgage to rent. We want specifically to include the option of shared equity and shared ownership, which allows people to retain ownership of their homes instead of giving up home ownership completely.
When first-time buyers who have bought their homes as part of the Government's shared equity schemes find themselves in difficulties in meeting mortgage payments, we will explore with social landlords how those first-time buyers might be allowed to adjust their stake in accordance with household circumstances rather than give it up altogether or face repossession.
Those measures demonstrate that we understand the sacrifice that those who have struggled to buy their own home make and that we are prepared to target support wherever we can. Last year, we announced the low-cost initiative for first-time buyers—LIFT. As part of that, we launched the revised open market shared equity pilot scheme. We are committed to helping more people to achieve their home ownership aspirations when that is sustainable for them. We have taken on board the views expressed in the responses to "Firm Foundations", and we have assessed the changing credit situation, which has meant that first-time buyers have to find ever larger deposits.
Following its recent assessment of the changed housing market, the Council of Mortgage Lenders said that an expansion of the shared equity schemes would
"help underpin confidence at this uncertain time".
I can confirm today that we intend to expand our shared equity schemes, backed by investment of £250 million over the next three years. It is our judgment that, in the current market climate, that approach offers more effective help to first-time buyers than direct grants.
It is also important in the current climate that first-time buyers and others have good information about the condition and value of houses before they make what for many is the biggest financial commitment of their lives. We were pleased that the regulations to introduce the home report into the Scottish housing market received strong, if not unanimous, support from across Parliament earlier this year. The surveying profession and others in the market are making good progress in their preparations for the new system, which will come into force on 1 December this year.
An important feature of "Firm Foundations" was its recognition that not everyone is able, or wishes, to own their own home. Consequently, it gave equal weight to proposals on renting in both the private and social sectors. That included a review of the private rented sector, which is under way, to ensure that the sector is capable of delivering the right types of housing in the right places to help to meet housing need. A consultation launched earlier this week on proposals to give local authorities more scope to use the private rented sector to house homeless people when that is appropriate also has an important role to play.
At the same time, we are continuing our important work to improve standards in the sector through measures such as the mandatory private landlord registration scheme—which, I am pleased to say, has an approval rate of 78 per cent compared with just 15 per cent in May 2007—and the new repairing standard, which came into force last September. In April, we launched the national landlord accreditation scheme. Part funded by the Government, it promotes best practice in the sector through training and advice for landlords and agents.
I turn to the social rented sector. Responses to our proposal to end the right to buy for new social housing were almost universally positive, so I confirm today that we will legislate to implement that commitment at the earliest opportunity.
What struck me about the responses was the impassioned pleas for us to consider further restrictions. Social housing landlords have given us the clear message that they want to protect their stock, which will help them to meet pressing housing need and assist them on the road to the 2012 homelessness target. I make it clear that we will not remove an existing right-to-buy entitlement but, having listened to respondents, we remain committed to reviewing the policy further in line with our manifesto commitment. Therefore, through working with key stakeholders to examine a range of options, we will conduct a short-term review over the summer and draw up detailed proposals for public consultation.
Support for our proposal to kick-start a new generation of council house building was also extremely strong. In April, I announced that £25 million of Government funding would be provided over the next three years to support that initiative. I have discussed with COSLA the principles that will underpin how we allocate that money. Our aim is to secure the maximum number of extra homes in the right places for the minimum outlay per home. To achieve that, we will focus our investment on councils that are well placed to progress new-build programmes. Those councils will have resources from prudential borrowing or other sources, well-developed plans for building quality houses that meet local need, and the necessary infrastructure to manage such homes effectively. We will also focus our investment on places with housing need and where the homes will help the council to meet the 2012 homelessness target.
We are developing the detail behind those principles with COSLA to make the final process as transparent and non-bureaucratic as possible. In addition, so that councils that are just beginning to consider building new houses have time to develop their plans, we will allocate the £25 million in more than one tranche.
I acknowledge that some councils have a limited ability to borrow because of high debt, so the scheme might not benefit them, but it is right to concentrate our resources where they will have the greatest impact. We will, of course, continue to work with all councils on ways to address their affordable housing need and the long-term sustainability of their housing business.
"Firm Foundations" described the imperative to make our investment in new social housing more efficient, which is why, last month, we changed the assumptions that underpin awards of housing association grant so that they are more realistic and at the same time secure better value for the taxpayer. The next stage will be to reform the investment processes to permit a more strategic and competitive approach. As members have said before, that could be done in a variety of ways. We need to explore all the options before deciding on the form that the new system will take. I make it clear that we intend to work with the Scottish Federation of Housing Associations, COSLA and other housing stakeholders to develop specific proposals on which we will consult in the autumn.
Procuring new stock efficiently is critical to our aim of delivering more and better-quality social housing. However, I want to be sure that the new stock—and all our existing stock—is managed and maintained to deliver improving value for tenants and the taxpayer. Local authorities and housing associations are responsible for delivering that value. To ensure that they do so, we have the Scottish Housing Regulator. "Firm Foundations" proposed a series of reforms to modernise the regulator's powers and duties by making it more explicitly focused on protecting and promoting current and future tenants' interests, reducing the burden of regulation on landlords, and concentrating its efforts on assessing and improving the value that landlords provide.
Those proposals attracted widespread support during the consultation on "Firm Foundations". I can confirm that, in consultation with COSLA, the SFHA, tenant groups and lenders, we intend to develop detailed proposals for ensuring that tenants and taxpayers receive the value that they have a right to expect. Just as important, given the vital role of private lenders in supporting the delivery of new social housing, the modernised regulator will continue to perform the important role of reassuring lenders by keeping governance and sustainability under constant review and by being empowered to act decisively whenever governance or sustainability are at risk.
I turn to the city of Glasgow, which is very close to my heart. Protecting and promoting the interests of tenants and taxpayers are the twin aims that are at the heart of my approach to the challenging issues in Glasgow. A few months ago, I promised a review of grant arrangements with Glasgow Housing Association. That review is now under way. I am confident that the new arrangements that flow from it will deliver transparency and accountability and show a clear link between the money that the Government invests and the positive outcomes that are delivered for tenants. As part of the review, I am considering ways in which the arrangements can better support regeneration. I have asked the council and Glasgow Housing Association to make proposals for the transformational regeneration areas that are ready to go, and I expect to see progress on that front very soon.
The Minister for Communities and Sport and I have made it abundantly clear that we want to see second-stage transfer delivered where it can be sensibly achieved, therefore I welcome the real progress that has been made over the past few months. Five transfer business plans have been submitted and another five are due to be submitted this week. It gives me particular pleasure to announce that two housing associations have now set dates for second-stage transfer ballots. Subject to agreement on the detailed proposals and the necessary approvals, Parkhead Housing Association and Cassiltoun Housing Association in Glasgow are aiming for ballots to take place on 17 November. I am delighted to say that they and the GHA are committed to ensuring that that aim is met.
To be working towards a date for the first second-stage transfer ballots after so long is a sign of real progress. Tenants in Glasgow will be given the chance to have their say at long last. However, let me be clear: I expect to see even more progress in the months ahead. I have made it plain to the GHA that I see it as a transitional organisation. [Applause.] To that end, I expect to see more ballots and, in areas in which transfer cannot sensibly be achieved now, I expect realistic proposals from the GHA to empower tenants. [Applause.]
Order. I asked for no interruptions. That includes clapping.
I have outlined a substantial programme of work that will deliver lasting improvements to all aspects of our housing system. It is a challenging programme for challenging times. It is aimed at getting the fundamentals right over the medium to long term, and I am pleased to say that it commands extensive support among stakeholders. We have made a good start with stakeholders in taking the programme forward, and it is important that we pursue it consistently while, of course, continuing to respond to the impact that the current credit crunch is having on households and the housing system as a whole. I look forward to working closely with all stakeholders and members in developing and implementing all our initiatives over the coming months.
As I intimated earlier, the cabinet secretary will take questions on the issues raised in her statement. We have around 40 minutes for such questions, after which we will move on to the next item of business. The times for this item of business and the next debate are tight.
I thank the cabinet secretary for early sight of her statement. I recognise that there was a lot in it, particularly about people who face repossession and so on, with which we can all agree. I look forward to further debate in committee on some of the detailed issues of the housing policy, including homelessness, that the statement could not address.
I recognise, as the cabinet secretary said, that "Firm Foundations" secured support for some of its proposals, but ultimately it did not secure support for its key proposals. The document is troubling because, despite assertions, it did not respond to the coherent opposition to the central proposition around the role of housing associations in particular and developing that agenda. "Firm Foundations" was unconvincing when it was first published, and the changing context of the current housing circumstances means that it is now well past its sell-by date. The current housing circumstances present a huge challenge to the United Kingdom Government and the Scottish Administration, to which I hope that the cabinet secretary will rise.
I note in passing that the £2,000 grant for first-time buyers is now officially dead, and that the cabinet secretary has had sufficient sense to back off slightly from the single developer model and will consult further on it. I urge her to hold on to the option of jettisoning that model altogether. Regrettably, the key notion of driving efficiencies into housing associations remains, despite the strongly expressed views of housing associations and others that that will expose them to risk in the financial markets, will result in increasing rents and potentially will involve a raid on their reserves, which we all know should be used for the good maintenance of properties and to ensure that they meet the Scottish housing quality standard.
I have three specific questions for the cabinet secretary. First, she said:
"We will work to ensure that house building is best placed to grow again when market conditions recover."
Does she acknowledge that private sector house builders and housing associations now argue that housing associations have a critical role to play as an anchor for the whole housing sector, in order to sustain the house building sector while conditions remain as they are? I urge her to reflect on how she might use the housing associations creatively—giving them more resource, not less—in order to provide that anchor.
Secondly, what targets has the cabinet secretary set for social rented housing in different areas of Scotland? Given the fact that home ownership is not now going to be an option, the fact that repossession is a genuine possibility for some, and the level of homelessness, I am interested to know what her targets are.
Thirdly, does the cabinet secretary recognise the disappointment that many housing associations in Glasgow feel because her signalled commitment to independent scrutiny of the Mazars report—which would give confidence to the GHA and to those housing organisations—has not been honoured? Does she acknowledge the significance of having public confidence in that matter? Given the role of public moneys in the work of the GHA, will she at least take responsibility by convening the meetings between the GHA and housing associations?
You really must close now, Ms Lamont.
I have said elsewhere that they require supervised contact. Will she consider convening those meetings to ensure that the progress on which she is insisting is realised?
I genuinely thank Johann Lamont for her questions, which, in the main, were expressed constructively. I hope that we can continue in that tone this afternoon.
No.
David McLetchie says no. I will cross that bridge when I come to it. For the moment, I will continue in a constructive tone.
I said in my statement that I want to work with the SFHA, COSLA and other housing stakeholders as we take forward our proposals for further reform of the affordable housing subsidy regime. That is right and responsible. I hope that Johann Lamont is not suggesting that we should not look critically at those matters. I hope that she is not suggesting that, for example, this year we should not have taken decisions to bring some of our assumptions around HAG into line with the assumptions that housing associations already make. In a tight financial climate, that is the responsible thing to do, to ensure that we get the maximum bang for our buck—to build as many houses as possible with the investment that we have. Moreover, I believe that further reform is necessary. In challenging times, further reform becomes more rather than less necessary. I also recognise the need to work with key partners to find the way forward that is right for them and for the overall conditions of the housing market.
I will answer Johann Lamont's three specific questions as briefly as I can.
I agree that there might be creative roles for housing associations in the current climate. The Minister for Communities and Sport and the Cabinet Secretary for Finance and Sustainable Growth recently met Homes for Scotland, the umbrella body that covers private house builders, to discuss some of the issues that they are currently facing. I know that housing associations believe that they might have roles as the situation develops. I assure Johann Lamont that we will stay close to both parties to ensure that if we can face up to some of those challenges creatively, we will not lose the opportunity to do so. I know that members who have an interest in the situation will want to continue to discuss that.
I have been very clear about our target for house building. We remain committed to a long-term target of 35,000 new houses per year. I want that to include increases across all tenures, because that is essential if we are to create the kind of mixed and sustainable communities that we want.
We are going to have to face up to more challenging circumstances than we thought when "Firm Foundations" was launched, but it is right to remain focused on increasing the rate of house building as much as we can—I hope above the rates that we have seen in the past few years. We will focus our attention on doing that as successfully as possible.
On the GHA, I had hoped that Johann Lamont would find it within herself to welcome the date for the first two second-stage transfer ballots, progress towards which was not delivered under the previous Administration, but it is now being delivered under the Scottish National Party Administration. I know that people throughout Glasgow will welcome that progress.
I have two things to say about the Mazars report. First, it has been independently reviewed, and I caution Johann Lamont and any other member against calling into question the independence of the Scottish Housing Regulator, because that could have quite serious implications. I hope that no responsible member of Parliament would do that.
Secondly, I have said very clearly that the book is not closed on the Mazars report. I have urged the GHA and the Glasgow and west of Scotland forum of housing associations to get around the table and discuss some of the issues that the report raised. I am pleased to say—more optimistically than I dared to hope—that they had a meeting last week and both sides said that it was constructive. I encourage them to continue to talk and to find solutions that both sides want.
I thank the cabinet secretary for early sight of her statement. I welcome the dropping of the £2,000 grant to first-time buyers in favour of expanding the funding for shared equity schemes. Another bad SNP policy has been dropped in favour of a good Conservative one.
However, I am disappointed that the Government intends to further restrict the right to buy, and my party will oppose any legislation that the Government introduces to do that. The right to buy has enabled 480,000 Scottish households to buy their own homes. Why is the cabinet secretary so determined to remove the right to buy from one group of tenants and so take home ownership out of their grasp?
In addition, housing associations have been expressing to me their concerns about future funding. Will the cabinet secretary today guarantee that she will not reduce the level of housing association grant in future?
The cabinet secretary will be aware that the chief executive of Homes for Scotland said earlier this week that the number of new houses being built in Scotland this year could be down no less than 20 per cent on last year. What impact does the cabinet secretary think that that will have on plans to boost the number of affordable homes?
I thank Jamie McGrigor for his questions and for his enthusiastic support for our plans to expand shared equity schemes to further help first-time buyers. That is a very important step to take in the current climate; the Council of Mortgage Lenders has been clear that it thinks that it is an important step that will help to sustain confidence.
I accept that there is a difference of opinion between my party and Jamie McGrigor's on the right to buy. David McLetchie made that very clear when I appeared before the Local Government and Communities Committee to discuss the issue; it has been made abundantly clear. We will have to agree to differ.
I have said repeatedly that, as someone who grew up in a house that was purchased under the right to buy, I accept that the right to buy has helped many people to aspire to home ownership who would not otherwise have been able to do so. However, we are in different circumstances and every Government has a responsibility to respond to the circumstances in which it finds itself. Given the shortage of affordable homes to rent, it would seem crazy to spend lots of taxpayers' money incentivising local authorities to build more affordable housing only for that stock to be sold off under the right to buy. Indeed, local authorities have made it clear that they are not prepared to build new stock if it can be sold off in that way. I have made it clear that we will not take away the existing right to buy—although we intend to review it further—but those who struggle to find housing perhaps have a legitimate expectation that they should have a right to rent. We must not lose sight of that.
On the housing association grant, I can scarcely believe that a Tory is asking me to guarantee that I will not try to deliver further efficiencies in the use of taxpayers' money. Even if we take into account all the legitimate differences between Scotland and England, levels of subsidy are higher in Scotland than they are elsewhere in the United Kingdom. We need to address that issue, particularly in the current financial climate, if we are to ensure that the desired number of houses is built. We will continue to do what we can to drive through efficiencies, but we will do that by working with housing associations, as I indicated in my statement.
On Homes for Scotland's point about the situation now facing private developers, of course I accept that that is serious. As I said, we have had discussions with Homes for Scotland and we are aware that the arrangements for some private developments mean that the situation will have an impact on the availability of affordable housing. Of course we need to be very aware of that issue and be prepared to respond to it.
The cabinet secretary thanked Mr McGrigor for a number of things; let me add that I thank him for his brevity, which I recommend to other members as an example.
I will try to take that on board, Presiding Officer.
I, too, thank the cabinet secretary for the advance copy of her statement, which includes aspects that the Liberal Democrats can support, such as the extension to the mortgage to rent scheme to give home owners the opportunity to retain ownership of their homes.
Before last year's election, the Government made its great promise that it would give all first-time buyers a £2,000 grant. I am glad that the Government has finally decided to listen to all the stakeholders and Opposition members who warned about the folly of such a pledge by abandoning the first-time buyers grant. I welcome today's announcement that that will be scrapped.
The Liberal Democrats welcome the Government's announcement on ending the right to buy for new build, but precisely when will the Government introduce legislation to change that? Has the Government considered the Liberal Democrat policy of devolving powers to give local authorities more control of their housing supply? Under our plans, councils would be able to take the key decisions on the right to buy in their area. That means that a council could decide to abolish the right to buy altogether, to vary the discounts, to change the qualification period or, indeed, to apply pressured area status for up to 10 years to either a specific geographic area or a particular housing type. Key housing stakeholders such as Shelter support our policy. Will the Government's summer review include such an option to protect existing stock?
I thank Jim Tolson for those comments. I think that there is much common ground between my party's position on such issues and the position of the Liberal Democrats. I also thank him—and other members in the chamber—for the warm support for our plans to help first-time buyers. That support is gratefully received.
Jim Tolson rightly raised some important points about the right to buy. We have made it clear that we intend to legislate at the earliest opportunity—which, if memory serves me correctly, will be later next year—to remove the right to buy for new-build houses. I think that the many issues that Jim Tolson raised about giving local authorities greater flexibility, such as by allowing further variation of discounts and the extension of pressured area status, need to be further considered. I assure him that all the issues that he has raised today will be up for discussion in the short-term review and the subsequent consultation that we intend to conduct.
We come to questions from back-bench members. I repeat my plea for brevity. A large number of members would like to ask questions, and I would like to fit all of them in.
I warmly welcome the many excellent provisions in the cabinet secretary's statement, especially with regard to second-stage transfer. Does she agree that, if communities are truly to thrive and to transform themselves, it is fundamental that they should be able to take housing decisions about matters that impact directly on them? Will she work to ensure that the Parkhead Housing Association and Cassiltoun Housing Association ballots are followed by many others in the months and years ahead, to ensure that the GHA gradually fades into history?
The announcement today of the date for the first two ballots is important both in its own right and symbolically, because it signals clearly to tenants throughout Glasgow that the dam on the issue has broken and that they have the prospect of having a say in their futures. That is incredibly powerful for them, especially after the long years of frustration in which it seemed not only that no progress was being made but that no progress was in prospect.
I made it clear in my statement—and am happy to do so again—that I see the ballots as a first step. I want second-stage transfer to happen where it can sensibly be achieved. That is why I said that I want further ballot dates to follow. In those areas where second-stage transfer cannot sensibly be achieved—at least not now—the GHA has a responsibility to come forward with plans and proposals for empowering tenants. I have asked the GHA to do that and expect that it will. The end result of the process will be much more control and empowerment for Glasgow tenants. Labour said that it wanted to deliver that through stock transfer in Glasgow; I am glad to say that it looks like the SNP will deliver that.
Will the cabinet secretary confirm that, on the basis of the criteria that she has set out in her statement today, Edinburgh will not benefit from the £25 million that she has allocated to new council housing? Given the current state of the housing market, would it not be better for her to use some of the new £0.25 billion that she is allocating to shared equity schemes to meet the demand for new social rented housing? Is she aware that Edinburgh housing associations are deeply worried about their ability to build new social housing, given the standstill in the budget for housing associations and current inflation pressures? Is she aware that, unless there is a rethink, housing associations will have to increase rents, lose wardens or not build as many houses as they planned? That is what housing associations are saying. Will she have a rethink on the HAG support that she is offering?
I knew that it would not take long for scaremongering about issues such as lost wardens to appear in the chamber. I thought that we were managing at long last to have a constructive, sensible debate that focused on the issues, but I will answer Sarah Boyack's questions.
Sarah Boyack asked whether Edinburgh would be able to share in the £25 million that has been provided to kick-start new council house building. I have made clear what the criteria for that investment will be; those criteria were discussed with COSLA. If she had listened to my statement, she would have heard me accept that some local authorities may not be able to take advantage of the money that has been allocated. It is right that we should use the £25 million to best effect, to ensure that it builds as many houses as possible, in the right places.
If Sarah Boyack had listened to my statement, she would also have heard me say that, nevertheless, the Government intends to work with all local authorities to assist them in confronting the challenges that they face, such as meeting the Scottish housing quality standard and tackling debt. Assistance will be available to councils such as the City of Edinburgh Council and Renfrewshire Council. The Government will not shy away from such challenges.
I will not repeat what I have already said about housing association grant. We want to work with housing associations, which are vital partners in achieving the aims that we have set. However, it is important that we trade in reality, rather than myth. Over the comprehensive spending review period, the affordable housing investment programme budget will increase by 19 per cent compared with planned expenditure over the past three years. That is the reality, so let us not talk about budgets being at a standstill or being cut.
I have made it clear that we have taken what I think are sensible decisions on housing association grant this year. It would have been negligent of us not to take those decisions and bring our assumptions into line with housing associations' assumptions so that we and they can get maximum value for taxpayers from the money that we invest. As I have said repeatedly, we will continue to discuss, liaise and work with housing associations as the situation that we face develops so that we get the right solutions for all of us.
When does the cabinet secretary expect to introduce legislation to ensure that lenders notify local authorities when they intend to repossess properties? What discussions have ministers had with private landlords? What support will be offered to homeless people taking on private lets to enable them to settle in new accommodation?
I thank Stuart McMillan for that question, which goes to the heart of the important issue of the prevention of homelessness and meeting the 2012 homelessness target. It is especially important in the changed financial climate that we ensure that people who might face the prospect of homelessness get access to support and advice. That is why I outlined today the measures that we intend to take and why we intend to use legislation to ensure that not only landlords but creditors notify local authorities if they are considering repossession, which will add an important protection for people facing that situation. Those regulations will be consulted on shortly.
Using the private sector to assist local authorities in meeting the homelessness target was a key proposal in "Firm Foundations". Albeit that members have expressed legitimate questions and concerns about using the private sector, I think that most of us accept that it is the right thing to do, as long as the appropriate protections are in place. The consultation document on that talks about what those protections might be. I hope that all members take the opportunity to read the consultation document and respond to it, if they feel that to be appropriate.
I invite the minister to be clear today and confirm that she has dropped the lead developer model. Will she acknowledge that, particularly in the present financial climate, housing associations have a particularly valuable role to play? I welcome the focus on regeneration that she has indicated for the GHA, but will she acknowledge that housing associations other than the GHA are also often well placed to be partners in regeneration and will she encourage that role for them?
I am not signalling that we have dropped the lead developer proposal. I am saying that we want to consult partners in the housing association movement on what the right way forward should be. A range of options is available to us to achieve the objectives that we have set. That is why, as we draw up proposals for consultation, it is important that we have a discussion in which everything is on the table—that is what we intend to do.
On housing associations more generally, I am glad that Patricia Ferguson welcomed the progress with GHA. She is right that housing associations are much more than landlords. She has made that point before in the chamber, and I have concurred with it before. Good housing associations should be much more than landlords. I have used examples of housing associations in my constituency that perform that wider role exceptionally well, and I know that Patricia Ferguson will have similar examples in her constituency. Housing associations have a vital part to play in regeneration. That is a message that I am delighted to continue to convey because it is one that I believe passionately.
In the section of her statement dealing with the council house building programme, the cabinet secretary acknowledged that some councils have limited ability to borrow because of high debt and that the house building scheme will not benefit them—quite so. Will she acknowledge that, with stock transfer, the high debts of those councils that will not benefit from her scheme would be written off by the Treasury, thereby facilitating new investment in new homes by new social landlords? Why does she refuse to encourage positively first-stage stock transfers in those areas as a way of generating new social housing across Scotland?
Whether local communities decide to go down the stock transfer route is not up to me; it is up to local communities. That option is not closed to any community in Scotland. If my memory serves me correctly, when the City of Edinburgh Council's tenants were asked about the option they rejected it. Their democratic right to make that choice should be respected by members—
Who advised them to make that choice? The Scottish National Party and the Scottish Socialist Party.
And me.
Order.
I would like it not to be the case that tenants are in effect blackmailed over the debt and told, "Go down the stock transfer route and get the debt written off; don't go down that route and the debt stays." I would like there to be other options for considering how to remove the debt burden from councils. That is why the Government has vigorously lobbied the United Kingdom Government to put other options on the table. It is unfortunate that to date the UK Government has responded with a flat no, and I would welcome support from all parties in our quest to make it change its mind.
In the meantime, we will continue to work with local authorities to help them to manage debt and to help them to meet the Scottish housing quality standard and the homelessness target. Discussions on such matters are not always easy, because the solutions are not always easy, but I am committed to working with local authorities, so that by working together we can find a way through the issues.
I make a different point about council house building, which is related to the point that Sarah Boyack made. In her statement, the cabinet secretary said that her aim is to secure the maximum number of extra homes in the right places, where there is housing need. Will she explain the connection between housing need and the state of a council's finances? By saying that the councils that will have the maximum access to resources will be those that are able to secure resources through prudential borrowing, she is setting as a criterion the financial status of councils, which is not necessarily related to need.
That was a perceptive and legitimate question, as I have come to expect from Ross Finnie—[Interruption.] If Labour members stop heckling, I might be able to answer the question.
As I said in my statement and as I explained in detail when I appeared before the Local Government and Communities Committee—I appreciate that Ross Finnie is not a member of the committee—in partnership with COSLA we have developed key principles around which decisions will be taken about the allocation of the £25 million. Some councils will satisfy some principles but not others, and I accept that some councils that have housing need might not be able to access the £25 million, because of their lack of prudential borrowing capacity. That is why it is so important to reiterate that we will continue to work with such councils, to help them to find other solutions to the circumstances in which they find themselves. Ross Finnie made an important point, to which I was glad to try to respond.
I hope that the cabinet secretary agrees that the proposed housing transfer ballots on 17 November represent significant progress, in that they will present the first opportunity for GHA tenants to move to proper community-based social landlords. That is something that the Labour Party failed to achieve when it was in power.
I welcome the cabinet secretary's assurance that more GHA tenants will move to community ownership if they choose to do so. Does she agree that the GHA, as a transitional organisation, must implement effective proposals to ensure that it downsizes its organisation, whether that happens voluntarily or otherwise?
I repeat what I said about SST ballots. The two ballots represent progress but not enough progress; I want there to be more progress. I know that Bob Doris and other members accept that not every area of Glasgow is able to pursue SST at this stage. That is why it is important that, in the interests of community empowerment if not community ownership, the GHA makes proposals that will deliver such empowerment. That is what I have asked the GHA to do and it is what the GHA will do. I am sure that all members will take the opportunity to scrutinise those proposals and comment on them in due course.
The cabinet secretary says that she wants to secure the maximum number of homes for the minimum outlay per house. I understand that the new housing association grant level for new house building will be set at around £75,000 per unit. In my constituency, the housing association in Hillhead in Kirkintilloch has just completed phase 1 of a four-stage development. The unit cost for that first phase was £127,000, as a result of preparatory works, demolition and so on. The unit cost for phase 4 is projected to be £78,000.
Question, please.
How is the housing association to find the difference, when money that is held in reserve is for planned maintenance of the older housing stock that it took over?
I am sure that David Whitton knows that grants for new builds by housing associations have never equalled the total unit cost of building those houses. That has never been the intention. The subsidy that is paid in Scotland is considerably higher than it is elsewhere in the UK. There are some legitimate reasons for that—in some cases, for example, one would expect the subsidy to be higher because of differentials in rent levels—which must be factored into the equation. Nevertheless, there is a disparity. If the Parliament is serious—the Government certainly is—about ensuring that we get maximum benefit from the taxpayers' money that we spend on affordable housing, we need to tackle those inefficiencies. We are trying to do that without threatening the ability of housing associations to continue to build houses.
Members of all parties rightly talk about the need to increase the rate of building of affordable housing but, frankly, I have more respect for those members who do so while not simultaneously undermining our attempts to achieve that. Labour members cannot have it both ways—they cannot say that they want more houses but be unprepared to take the hard decisions that will allow us to deliver those additional houses in a tough financial climate. They should decide which side of the fence they are on because, frankly, it is not possible to straddle it.
I am grateful for the advance copy of the statement, elements of which I welcome.
The cabinet secretary mentioned the Government's vision of building more houses of all tenures to higher environmental and design standards. Does she recall the existing commitment to consult on measures to improve the environmental performance of existing housing across all tenures? The timescale for that consultation appears to be in some doubt. When will it be published?
The framework document for the Scottish sustainable communities initiative—which was also mentioned in "Firm Foundations"—will be published later this week. Patrick Harvie's point about the need to ensure the environmental quality of both new and existing stock is well made. With his permission, I will be more than happy to come back to him in writing with detailed timescale information on the work on existing stock.
In her statement, the cabinet secretary said that she intends to introduce legislation that will ensure that lenders who intend to repossess properties notify local authorities. Why? Is it an attempt to ensure that local authorities have enough houses to give to homeless people? What is the reason for that proposal? Perhaps the home owners support fund that the cabinet secretary mentioned is meant to be an advocacy service, because her statement made no reference to how people who are threatened with homelessness and who obviously do not have the money to pay a mortgage could find the money for an advocate.
Finally—
Very briefly, please.
The cabinet sectary made conflicting statements. As has been mentioned, she said that the Government would focus investment on meeting need, but—
Could you come to a question, please, Ms MacDonald?
She also said that the Government would concentrate resources where they would have the greatest impact. Those appear to be contradictory statements, certainly in relation to Edinburgh. Will she explain that apparent contradiction?
I have already indicated our keenness to continue to work with councils such as the City of Edinburgh Council to assist them in addressing the challenges that I recognise they face.
On Margo MacDonald's earlier questions, the reason why we want to change the law to place an obligation on lenders to notify local authorities if they are considering repossession is to allow local authorities to ensure that the person who is facing repossession has access to the advice and support that they need to consider the options that they might have, which will vary depending on the circumstances.
I refer Margo MacDonald to my statement, in which, before I spoke about the home owners support fund, I said that we intend to provide specific support and training for money advisers to ensure that home owners can obtain, without charge, high-quality advice that will help them to make the best choice in their circumstances. One of the choices and options that may be open to home owners in that circumstance is to access the home owners support fund. Under the present mortgage to rent scheme, in particular circumstances, home owners who face repossession can choose to switch to rent. We want to expand the options so that, for example, consideration can be given to home owners retaining a share in their home and moving to shared equity, rather than just moving to rent. We want high-quality and free advice to be in place and to lead to some of the options that will open up for home owners who are in that position.
I thank the cabinet secretary for her statement, particularly the points on Glasgow and the GHA. She spoke about regeneration and pilot schemes. Will the joint forum involving Glasgow City Council, the GHA and Government officials report regularly—for example, monthly—to the Parliament or to ministers? Will the minutes of the forum meetings be made available?
I thank Sandra White for her support for the commitments that I made on the GHA. In respect of the transformation of regeneration areas in Glasgow, just as I and other members have been rather frustrated by the lack of progress on SST, we have been frustrated by the lack of progress on the transformational areas. In recognition of the fact that the GHA cannot deliver regeneration on its own, I have asked it to work with Glasgow City Council to produce proposals for those transformational areas that are ready to go now. That is not a forum. I have asked both parties to have discussions, meetings or whatever and to come up with joint proposals. I am sure that, when those proposals are produced, the Parliament will have an opportunity to consider them properly.
In light of the minister's reaffirming of the 2012 homelessness target, what dialogue has she had with Aberdeen City Council? She has assured us that the situation is being monitored but, with added pressure on council services following cuts to homelessness charities, and with that 2012 goal in mind, can she assure me that there will not be a diminution of services in Aberdeen?
As the member will perhaps be aware, the Scottish Housing Regulator will reinspect Aberdeen City Council's housing function later this year. The Government is in regular discussions with all local authorities on their progress towards the homelessness target. The target is challenging, but we are all committed to meeting it and those discussions will continue.