Published on:
16
June 2008
Ochil View Housing Association and Clackmannanshire Council are voicing their disappointment at the latest Affordable Housing Investment Programme allocation.
The Government grant for affordable housing in Clackmannanshire is £2.1 million for 2008/09.
In Clackmannanshire the funding to support the building of new houses goes to the local housing association, Ochil View. The allocation for 2008/09 represents the lowest annual award of Government grant to the Association for 7 years.
£2.1 million falls far short of programme commitments and represents a 53% cut in the Association's allocation for 2007/08 of £4.5 million. This huge cut in spending on social rented housing comes at a time when homeless cases and waiting lists are growing.
The Association's Director George Tainsh said: "Although yet to receive formal notification of this year's development programme the draft funding announcement confirms that the Association faces a very difficult period in terms of providing much needed affordable rented housing in Clackmannanshire.
"Not only has the level of grant allocation substantially decreased to the extent that it fails to match legally committed expenditure, but new rules on housing association grant introduced in April 2008 means that considerably more of the Association's own resources and private borrowings will be required to make individual housing projects financially viable.
"It is inconceivable that a reduction in government subsidy and the increased cost of borrowing can have any other outcome than reducing the amount of affordable housing delivered at a time when the government aspires to increase the rate of new house building.
"It is therefore particularly disappointing that recent announcements in the press appear to imply that the situation is one of increased investment when in fact it is quite clearly the opposite."
John Gillespie, Clackmannanshire Council's Head of Housing, added: "The Council is working in partnership with Ochil View Housing Association to provide quality and affordable housing that meets the needs and aspirations of local people.
"The fruits of this partnership are visible in Tullibody with attractive and popular new housing at Paterson Place replacing the Newmills blocks. Only through the Council's ability to provide continuity to Ochil View will we be able to maintain momentum of redevelopment, looking forward to the Ash Grove scheme followed by new housing for the elderly in Sauchie.
Clackmannanshire Council is investing £8 million in its existing housing in 2008/09. During extensive consultation tenants have expressed the view that their priorities are for new doors, kitchen and bathroom replacement programmes. These desirable improvements are already well underway, and in the case of doors, nearing completion.
Thanks to this investment, the Council is on target to deliver Scottish Quality Housing Standard by 2015.
The 2008/09 capital programme expenditure is £8.665 million, including £3.86 million on new kitchens, £1 million on replacement bathrooms and £1.14 million on central heating systems.
John added: "At today's prices a new build Council house would cost in excess of £100,000 to construct and without changes to Right to Buy legislation we could lose any new houses provided. The county needs additional funding to ensure that we can respond to local needs. That is why the recent announcement is such a disappointment. We have a practical Business Plan which commits the council to use its reserves to meet the Scottish Quality Housing Standard."