Chamber and committees

In areas which operate a common housing register there is no longer any duplication across housing lists and this therefore provides a more accurate measure of housing demand within that area.

However as not all areas currently have a common housing register there is still likely to be an element of double counting when looking at numbers on housing lists for Scotland as a whole.

In order to maintain accurate and up to date lists, social housing providers are required to regularly review their lists to ensure that they include only those who still require a social house.

In 2009-10, £60 million was allocated to the Open Market Shared Equity pilot. For 2010-11, a further £20 million was allocated to extend the Open Market Shared Equity pilot. For 2011-12, the Scottish Government will allocate around £5 million to the Open Market Shared Equity scheme.

In 2009-10, the Scottish Government allocated £32.564 million for New Supply Shared Equity/Shared Ownership to housing associations. In 2010-11, the Scottish Government allocated £21.902 million to New Supply Shared Equity/Shared Ownership for housing associations and a further £2.5 million to the New Supply Shared Equity with Developers Trial. For 2011-12, the Scottish Government plans to allocate £8 million to the New Supply Shared Equity with Developers scheme. The Scottish Government has also announced a £50 million Innovative Investment Fund scheme. New housing for shared equity will be eligible for funding under this scheme. Applications for funding are currently due to be received at the end of May 2011 and details on allocations will be announced thereafter.

The receipts from the sale of the homes will be distributed between partners according to the order set out in the legal agreements for the National Housing Trust initiative. After paying any reasonable costs incurred by the Special Purpose Vehicle (SPV) and the Scottish Futures Trust (SFT) in relation to the sale, receipts will firstly be directed towards clearing the local authority debt. Any calls on the Scottish Government Guarantee will then be reimbursed, although the scheme is designed to minimise the risk of any such calls. Once these items are settled receipts will be used to clear any accrued interest on the private sector''s loan note. SFT''s contribution to the SPV''s set-up costs will then be repaid before the private sector recoups its loan note, equity stake and any pre-agreed return beyond this. The remainder will then be paid to a body nominated by the local authority to contribute towards affordable housing provision in the local authority area.

This option was considered at an early stage of National Housing Trust development. However, it was decided to allow private developers to determine when to sell the homes, after the minimum required rental period of five years has elapsed. This is because the private sector''s entire equity stake and any return beyond this is at risk in the initiative, unlike the local authority funding which is underpinned fully by a Scottish Government guarantee. Providing the developer with some control over the timing of sales therefore enables them to take decisions to minimise their financial exposure. This consequently also protects the public sector.

The Scottish Government will guarantee the total amount of loan finance each local authority is willing to provide towards the purchase of homes under the first tranche of the initiative. This guarantee will ensure that the local authority can continue to pay the interest on its loan finance should there be a shortfall in rental income. It also guarantees that the local authority can repay the capital at the end of the initiative should there be a shortfall on capital receipts when properties are sold.

Section 157 will be commenced as soon as is practicable in the next parliamentary session following consultation with COSLA and local authorities.

Homes Fit for the 21st Century: The Scottish Government''s Strategy and Action Plan for Housing in the Next Decade: 2011-2020 was published on 4 February 2011. Copies are available from the Scottish Parliament Information Centre (Bib. number 52409).

The Scottish Government does not hold this information centrally. Registered Social Landlords administer New Supply Shared Equity on behalf of the Scottish Government.

The number of people the Scottish Government will be able to help under New Supply Shared Equity in 2011-12 will depend on the bids received for competitive funding arrangements which were outlined in the Scottish draft budget in November 2010.

In addition, the Scottish Government aims to help 200-250 people access homeownership in 2011-12 under the New Supply Shared Equity with Developers Scheme.