Behind the 'housing' headlines

Back in January this year the BBC news web site reported:

'A council said it wants to build houses again, but could not afford to take part in a government scheme aimed at encouraging authorities to do so.

Highland Council said it did not make "financial sense" until it reduced its high loan debt.
It said the Scottish Government subsidy available would, "at best", cover about 20% of supplying new council houses.

However, the equivalent housing association grant subsidy would be nearer 70%.

Margaret Davidson, Highland's housing and social work chairwoman, said the council would assure the Scottish Government it was committed - and has real enthusiasm - to increasing housing supply.

She said: "It's a real disappointment that we are unable to undertake new council house building in the Highlands at this time. The sums do not add up...'

Around 5 months later the BBC then reported,

'A shortage of social rented housing and accommodation for homeless people in the Highlands is to be tackled jointly by the local council and government.

Highland Council said it would be working with the Scottish Government in an effort to ease the problems.

The move followed what the authority said was a "very positive" meeting with Housing Minister Alex Neil.

The projected need for new affordable housing units over the next 12 years in the Highlands averages at 784 per year.

Previously, the authority said it could not meet demands from the public for affordable homes because of a lack of government funding.

It said support for the provision of such properties was predicted to fall from £40m to an anticipated £26m in 2010-11.'

That news report did not elaborate on what specific measures were going to be taken. However a report on the BBC news pages from the 11th of July gives a little more information,

Low levels of government funding for the building of social housing could continue for the next 10 years, a Highland councillor has forecast.

Margaret Davidson's warning followed a report from Shelter Scotland suggesting the number of council properties for let was at its lowest in 50 years.

Highland Council's housing chairwoman said government will need to be "imaginative" in how it funds projects.

The authority has previously sought to have its £146m housing debt cleared.

Ms Davidson, who was elected as an Independent, said: "We cannot just keep asking for more money because it is crystal clear that it isn't going to be there over the next decade even.

"The consequence of bailing out the banks last year means public services are going to be really squeezed."

She said new ways of financing the provision of new social housing - including the setting up of housing co-operative in Scotland - may have to be considered. '

We look forward to seeing how the forthcoming Highland wide Local Development Plan will deal with the issues of social housing provision.