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Addressing Affordable Housing Challenges in the Inner Moray Firth: Creative Solutions and Actions

This document by Di Alexander explores the critical challenges facing affordable housing in the Inner Moray Firth. It identifies key problems such as market-led supply failures, land supply shortages, infrastructure constraints, and weaknesses in public investment. The report highlights causes for these issues, including rising demand and limited new housing development. Creative solutions are presented, including increased affordable housing construction, fiscal reforms, and enhanced local planning and land use strategies. The report emphasizes collaboration and strategic investment for sustainable growth.

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Addressing Affordable Housing Challenges in the Inner Moray Firth: Creative Solutions and Actions

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  1. ROOM TO GROW Solving the (affordable) housing problem in the Inner Moray Firth. Creative Solutions/Options for Action Di Alexander 23/02/05

  2. 4 Main Problems • Market-led, affordable supply failure • Effective land supply shortages and Planning system restrictions • Infrastructure provision constraints • Strategic public investment weaknesses

  3. Causes of Supply Failure • Supply too small + demand too great = rocketing prices (37% up in 2004) • Because property is best investment - big windfall gains - reliable pension fund - good little earner/better than stock market • Area very attractive to outsiders

  4. Solutions to Supply Failure • Build more houses – mostly affordable ones • Fiscal reforms “to put boundaries on people’s financial expectations” • Encourage in-migration with new housing policies

  5. Causes of Land Supply Shortages • “Land supply is key constraint to increasing housing supply” • “Planning system restrictions are main constraints on land use for housing” - zoning system favours up-market housing - “effective” land supply too restricted - Housing in Countryside policy ditto - Affordable Housing Quota system could be better - Planning Permission process too onerous

  6. Solutions to Land Supply Shortages • We are not short of land in the Highlands • Planning system land use emphasis should prioritise affordable housing position • Meantime use SPP3 to the full - designate more sites as “affordable” - zone more “effective” land in Local Plans - use Exceptions Sites policy more readily - locally responsive quota system/beware PAN74 - make PP process simple and very user friendly

  7. Causes of Infrastructure Constraints • Scottish Water unable to deliver - basic programming information - level of investment required - joined up plans with key partners • SEPA’s requirements can be OTT • As can Roads Depts (e.g. 4 house rule) • And other agencies

  8. Infrastructure Constraints Solutions • Greater local influence over SW progs • Much bigger local budget required • Economic, stand-alone WWT systems • Relax 4 house rule • Better partnership working and planning

  9. Causes of Strategic Public Investment Weaknesses • £25m still isn’t enough! • Too few LCHO opportunties - to satisfy demand - to make overall market work better - to get bigger bang for the public buck • Subsidy-leaking LCHO methods • Lack of Joined-up investment • Too little investment in sustainability e.g. timber

  10. Solutions to Strategic Public Investment Weaknesses • How much investment is enough? £50m? • 50/50 split on rented HA and LCHO will increase affordable housing supply • All LCHO methods should lock in subsidy - e.g. Rural Housing Burdens - new shared equity model • Scottish Ministers must sort out SW issues • Prioritise investment in sustainable development

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