Housing Supply Task Force - Minutes of 1st Meeting 2009
Monday 16 March 2009
Present:
Alex Neil MSP, Minister for Housing and Communities
Councillor Harry McGuigan, CoSLA
Jonathan Fair, Chief Executive, Homes for Scotland
Brian Gegan, Chair, Scottish Federation of Housing Associations
Ronnie Jacobs, Regional Director, Miller Homes
Graeme Brown, Director of Shelter Scotland
Kennedy Foster, Council for Mortgage Lenders
Ken Ross, Chairman, Scottish Property Federation
Rachel Gwyon, Head of Housing Markets and Supply, Scottish Government
Jim Mackinnon, Chief Planner, Scottish Government
In attendance:
Caroline Johnson, CoSLA
Kathy Cameron, CoSLA
Jen Wallace, Consumer Focus Scotland
Apologies:
Martyn Evans, Consumer Focus Scotland
Owen Kelly, Scottish Financial Enterprise
HSTF Secretariat:
Ewan Cameron, Housing Markets and Supply, Scottish Government
Ian Fairweather, Housing Markets and Supply, Scottish Government
Simon Cuthbert-Kerr, Directorate for the Built Environment, Scottish Government
1) Welcome and Introductions
1. The Minister welcomed everyone to the meeting, in particular representatives of the new member organisations, Ken Ross (Scottish Property Federation) and Jen Wallace (Consumer Focus Scotland). Unfortunately the representative from Scottish Financial Enterprise was not able to attend this meeting on this occasion, but would attend future meetings.
2. The Minister stressed the value that he and his Ministerial colleagues placed on the Task Force and proposed that the group should meet every two months over the remainder of the year with one or two key issues for discussion. A detailed work programme would be prepared for the Task Force to cover its work over the year. This would take into account Members' views on the topics that should be discussed.
2) Remit of the Task Force
3. Members discussed the proposed remit for the reconvened Task Force. There was general agreement, subject to some minor amendments. The remit was agreed as:
"To build on the work undertaken by the Housing Supply Task Force to prepare for a recovery in house-building; strengthen relationships between key stakeholders; act as a cross sector forum for consideration of the implications for all the housing supply systems of the economic downturn; and champion new ideas and innovative solutions to support the delivery and funding of increased housing supply across all tenures".
3) Implementation of Task Force recommendations
The Minister gave a brief update report on progress of the recommendations set out in the Task Force's report, and emphasised the importance of taking these forward.
4) Planning
4. Jim Mackinnon, the Scottish Government's Chief Planner, updated members on the progress made on the planning modernisation process established by the Planning (Scotland) Act 2006 and the actions set out in Delivering Planning Reform. The key points were that:
- 8 set of regulations made under the 2006 Planning Act had now completed their parliamentary process.
- NPF2 had completed its Parliamentary process.
- A consultation was shortly planned on the consolidated Planning Policy for Scotland.
- A new notification direction had been established which meant that fewer planning applications should be called in by Government.
Another joint SG/COSLA seminar on planning was planned for the end of April.
The SG has commissioned GVA Grimley to do some work on development economics, with a related event planned for 1 April which would involve the Cabinet Secretary for Finance and Sustainable Growth and key agencies.
Half of local authorities had thus far responsed rate to his letter regarding the extent to which development is being held up by a lack of funding for infrastructure
5. A number of points were made in the subsequent discussion, including:
That the world will look very different when the economic system stabilises, with a significant reduced level of finance available for development and a need for resources to be prioritised.
A call for the introduction of mechanism through which this applications for affordable housing could be "fast-tracked" to ensure delivery;
Agreement that supplementary planning guidance should only be issued where there was a clear justification for it;
Acknowledgement that, while the picture was not consistent, many local authorities have demonstrated flexibility in their approach to the planning process.
Confirmation that the Chief Planner would be meeting with all Scottish local authorities to discuss their approach to planning applications and the provision of planning guidance; and
Recognition that the level of resources within planning departments was a critical issue for the success of the modernisation process.
6. In conclusion, it was agreed that all relevant parties would share, on an anonymised basis, information on any difficulties their members were having with the progress of a planning application, whether because of the actions of local authorities or developers. The aim would be to establish a dialogue with the relevant parties to see if a solution can be brokered.
Action
Secretariat to circulate Jim Mackinnon's presentation to Members. Where appropriate, HfS, SFHA, SPF and CoSLA to share anonymised examples of developments facing delays as a result of the actions of planning authorities or developers.
5) Funding of Infrastructure
7. Jonathan Fair gave a short presentation setting out the developer perspective on this issue. The key points of this were that:
The economic downturn has significantly diminished developers' cash flow, the value of their land and their capacity to, make "upfront" contributions to infrastructure costs.
No alternative option would be appropriate for all circumstances. A range of options should therefore be considered and applied where appropriate.
There is a real lack of clarity about what the house-building industry and housing supply system in Scotland might look like once market conditions begin to improve. A return to the mortgage lending practices of the past was however highly unlikely
Development of a new form of infrastructure charging system to replace developer contributions would require an appropriate transition period.
Consideration would need to be given to the potential impact of other key issues such as future building standards requirements.
8. In subsequent discussion, the key points were that:
The downturn and related financial pressures, were also being keenly felt by local authorities and housing associations.
The Chief Planner has written to all local authorities, seeking their views on the extent to which a lack of funding for infrastructure investment is currently the key obstacle to development. 18 responses had been received.
It would be important to focus on the effective supply of land in development agreements - i.e. that which is capable of being developed in the current economic climate.
OFT were concerned about examples of new home-owners being expected, in perpetuity, to meet the maintenance costs of infrastructure for their housing developments.
The British Property Federation have done some thinking about the scope to introduce the Tax Increment Financing model.
9. In conclusion, Members agreed that there should be a substantial discussion on this issue at the next meeting of the Task Force, informed by a discussion paper on key issues and possible options.
Action
Jonathan Fair to circulate his presentation around members
CoSLA to encourage local authorities to respond to Jim Mackinnon's letter of developments facing delays due to delivery of infrastructure
Ken Ross to circulate the British Property Federation's paper on Tax Increment Financing.
Jim MacKinnon to provide CoSLA with a summary of local authority responses to his letter.
Jonathan Fair, Rachel Gwyon, and Councillor McGuigan to work together to develop a discussion paper on infrastructure funding for the next meeting of the Task Force.
Secretariat to arrange for items on building standards and infrastructure investment to be placed on the agenda of the next meeting.
6) Programme and Focus of Future Meetings
10. It was proposed that the next meeting would be scheduled for 11 May. The agenda for the meeting should focus on:
Action
Secretariat to prepare scoping paper on land supply issues.
Secretariat to arrange for an official from Building Standards to attend the next meeting.
Secretariat to ensure the timing for the next meeting allows for meaningful discussion on the three agenda items.
7) AOB
11. There was no other business.
HSTF Secretariat
March 2009