1. rics.org RICS Scotland Housing Commission Emerging Issues Housing Policy Advisory Group Meeting 28 th January 2014 rics.org

2. Context to Commission RICS UK Commission: ‘More Good Homes and Better United Kingdom’ published in June 2013 Thorough & comprehensive analysis lacked Scottish detail given: –Differences in housing system operation –Level of devolved powers that affect housing RICS Scotland Chair: short term, independent, solutions focused Commission for Scotland

3. rics.org Purpose of the Commission: 1.Provide a sector-wide view of current condition of the Scottish housing system 2.Pinpoint the most significant barriers to effective housing system operation 3.Develop new, consensual ideas to alleviate them Aims of Commission: 1.Deliver an objective & credible housing system assessment 2.Define policy options for practitioners and enablers 3.Shift housing to a higher position on political & media agenda

4. rics.org Scope of Commission 1.Panel of 10 Commissioners with remit to: –Assess & evaluate the evidence provided –Ask further questions for clarification –Discuss evidence & develop recommendations 2.Process for submitting evidence: 3 Methods –Respond to set Commission questions –Submit proposals on any element of housing system operation which could be improved –Provide examples of innovation & good practice

5. rics.org Scope of Commission 3.Scope of evidence –Oral evidence: 22 evidence providers –Written evidence: 38 written submissions Contributions from cross-sector interests including Government officials Private practitioners e.g. architects, economists Lenders & finance sector Construction industry Estate managers & private landlords Housing sector organisations & charities Professional bodies & academics

6. rics.org Themes & Recommendations How do we plan it? How do we pay for it? How do we build it? How do we manage it? In order to develop a housing system that functions for all…

7. rics.org Planning Housing: Emerging Issues 1.The strategic assembly of a generous & more effective land supply is essential –Land premiums are a signal of housing system dysfunction that needs action 2.Strategic planning should be elevated on corporate & political agendas to address short-termism –Drive innovation/collaboration to enable housing development 3.Planning authorities must improve certainty by taking strategic action on infrastructure & enabling delivery –Do we expect the private sector to do too much?

8. rics.org Planning Housing: Emerging Issues (cont.) 4.Master-planning must focus on building communities through good design/density & connectivity to economic & social infrastructure 5.HNDA analysis should be demystified & improved We need better intelligence of household circumstances & consumer intentions across all tenures The impact of intermediate housing in meeting housing need must be recognised Leadership is needed on using HNDA intelligence to set housing supply targets & define 5-year land supply

9. rics.org Paying for Housing: Emerging Issues 1.House price to earnings ratios are too high despite (some) price readjustment during recession –Rising interest rates could exacerbate problems & create repossession risks for those highly indebted 2.SME builders are struggling to access bank finance & development funding 3.Risk profile of social housing sector is changing: finance over shorter period & less favourable terms –Innovative funding/joint venture models need to emerge 4.Potential impact of Land & Building Transaction Tax

10. rics.org Building Housing: Emerging Issues 1.Lack of viable/reliable land supply & low levels of prime land in locations where people want to live 2.A de-skilling of the construction industry is a genuine risk –Evidence of reduction in industry capacity, a loss of skills & apprenticeships & deficit in the material supply chain 3.Clyde Gateway, Ravenscraig & Dundee Waterfront are exemplary housing regeneration projects: we need more! –Collaboration, strategic land assembly, infrastructure investment on a major scale 4.Energy & carbon reduction agenda increases build costs –Puts further pressure on a weakened construction sector

11. rics.org Managing Housing: Emerging Issues 1.Improving the condition of Scotland’s private housing stock is an urgent priority –Homeowners need support to invest in conservation & repair –Low cost finance, reductions in VAT for refurbishment 2.Investing in empty homes delivers real benefits: –From a cost efficiency, sustainability, environmental & regeneration perspective 3.Given its increasing influence, the growth & improvement of the PRS needs strategic focus, leadership & investment 4.We need to make the case for housing in Scotland –Impact on economic growth, health, well-being & attainment

12. rics.org Timetable & Next Steps End of January: Emerging issues presented at RICS Scotland Residential Conference: further sound- boarding Mid February: Approval of draft report by Commissioners End of February/Early March: Commission reconvenes to consider recommendations Mid March: Report finalised Mid April: Report launched