Strategic Housing Investment Plan 2010 - Falkirk Council

Private Finance
6.16 In addition to Scottish Government funding from the AHIP, RSLs are expected to
access private finance to fund their affordable housing developments. The amount
of private finance required depends on the notional rental income and level of HAG
available in respect of each development. The use of private finance has been
assumed in all projects and is estimated to be around £17.267m (Appendix 1a)
over the period of this 5 year SHIP.
RSL Reserves
6.17 Some RSL development partners have suggested that they would be willing to
consider using their reserves to bridge any funding gap in the delivery of an
affordable housing project. However, this would only be considered as a last resort
once all other avenues of funding have been exhausted. Only one RSL (Key
Housing Association) has included the use of reserves in their template
submissions for the 2010 SHIP (Appendix 1a).
Mortgage to Rent Scheme
6.18 Since the introduction of the above Scheme in 2003, 32 dwellings have been
purchased by RSLs facilitated through £1.71m of grant subsidy. In June 2009,
Falkirk Council agreed to participate in the Scheme and, to date, 8 properties have
been purchased through £244k of Scottish Government grant funding and £315k
from Council contributions. It is anticipated that there will continue to be a steady
flow of purchases through this Scheme over the period of this SHIP.
Open Market Shared Equity Pilot
6.19 The Open Market Shared Equity Pilot scheme which is operated by Link Group in
the Falkirk Council area allows certain categories of people to buy homes that are
for sale on the open market. The scheme was temporarily expanded across the
whole of Scotland for a one year period ending 31 March 2010. The aim of the
scheme was to help support the housing market during the current difficult
economic climate. In 2009-10, 21 homes were purchased through the scheme in
the Falkirk Council area facilitated through £650k of grant funding from the Scottish
Government. Due to the very high level of demand from potential buyers, some
applicants who previously applied were unable to access the scheme as all the
available funding had been allocated. £20 million from the 2010-11 budget was
allocated to extend the scheme across Scotland to help some of these applicants to
buy a property. As at October 2010, a further 8 homes have been purchased
through the scheme in the Council area facilitated by circa. £171k of grant funding.
It is unknown, at this time, if the scheme will be further extended into 2011-12.
Commuted Payments
6.20 The planning system makes provision for securing commuted sums towards
affordable housing through the use of Section 75 planning agreements. The
Council has negotiated a total of £500k in commuted sums which will be used by or
on behalf of the Council to upgrade existing housing stock in the
Larbert/Stenhousemuir areas.
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