The Scottish Federation of Housing Associations has urged changes to the way Section 75 Agreements are handled, saying housing associations need a greater role at an earlier stage to help speed up the delivery of affordable homes.
Research commissioned by the SFHA and carried out by Rettie and Third Revolution Projects found that some schemes are stalling because housing associations are being brought into the process too late to shape the homes being delivered. The report recommends that policy should require a Registered Social Landlord to be designated to a site at a set stage, such as before planning approval or after outline consent, so it can influence the mix and type of housing.
Section 75 Agreements are commonly used to secure contributions from private developers in the form of land, homes or financial payments for affordable housing. Across Scotland, they are often used to earmark a share of homes in private developments for social housing, with the Scottish Government’s National Planning Framework 4 setting a target of 25% affordable homes in proposals for market housing, although that target can vary.
The research looked at four areas – Aberdeen, Dumfries and Galloway, Edinburgh and Fife – and found that the effectiveness of the agreements varies significantly depending on local market conditions and council area. In higher-value areas such as Edinburgh, Section 75 Agreements were found to be more successful in delivering affordable housing, while in lower-development areas such as Dumfries and Galloway it can be harder to maintain those requirements.
SFHA Chief Executive Richard Meade said: “With Section 75 Agreements delivering up to a third of all affordable homes built in Scotland each year, it’s essential these agreements are working as intended to deliver the safe, warm, affordable homes we need.
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“Too often housing associations are brought in late to the development process. This is causing developments to either stall, or it means we risk losing opportunities to build homes appropriate for local needs, such as family-sized homes or specialist accessible housing. In some cases, housing associations are scaling back on this type of delivery.
“Whilst developer contributions do vary across Scotland, we are supportive of agreements tailored to local needs. However, what is clear in every area of Scotland is that building any type of housing is dependent on substantial and long-term public investment in social and affordable housing.”
Dr. John Boyle, Director of Research and Strategy at Rettie & Co, said: “Affordable housing contributions policies seem to work well across Scotland, but have most impact in higher value areas where land values can support these contributions. The vast majority of such housing delivered is for social rent and the quality of the housing is generally considered to be good. However, improvements could be made to enhance delivery, particularly by involving RSLs sooner in the drawing up of Section 75 Agreements and in ensuring that grant funding is effectively organised and long-term. The whole contributions system is heavily dependent on this funding.”
