O&S Response to Firm Foundations
19/02/2008
Innovative solutions by the private sector are the only way the Government will meet its 2012 homelessness target, according to Orchard & Shipman, leading managers of accommodation on behalf of local authorities in Scotland and London.
In its response to the Scottish Government’s Firm Foundations housing consultation, Orchard & Shipman has identified a number of opportunities to increase the number of available homes for social tenants.
Click here to download the response in Adobe PDF format.
The response takes a holistic view of the housing sector in Scotland and highlights the need for Government, local authorities, RSLs and the private sector to work together to develop flexible solutions that will take a strategic approach to meeting housing need.
The Firm Foundations report recognises the importance of Private Sector Leasing, which Orchard & Shipman has pioneered in Scotland with The City of Edinburgh Council since 2005, stating that: “Private sector leasing schemes can play a part in allowing local authorities more flexibility in responding to the needs of homeless households.”
Andrew Morrison, Director of Policy & Business Development at Orchard & Shipman, said: “There is now broad agreement that an increased role for the private sector will be an essential part of achieving the Scottish Government’s 2012 homelessness target.
“In many places, such as Edinburgh, even if every available social let was allocated to the homeless, there would still be a significant shortage in provision.
“As the private rented sector is on the increase, it makes sense to utilise an option which suits the housing needs and aspirations of a large number of people.”
In its response, see attached, Orchard & Shipman has identified PSL as just one of the ways the public and private sector can work together to eradicate homelessness. In Edinburgh, Orchard & Shipman was contracted to acquire 1,500 properties within five years, but it is already ahead of target with some 1,200 properties signed up. New PSL contracts have also recently been started with Midlothian, East Lothian and Scottish Borders Council.
Orchard & Shipman also offers the following as solutions: Temporary to Permanent Housing; Public/Private Partnering to provide new homes of multi-tenure including home ownership without the need for a grant; and Community Interest Companies.
Scottish local authorities now have a greater need than ever before for temporary accommodation. In England 66% of temporary accommodation is from the private rented sector – in Scotland this is 7%. The cost of bed and breakfast accommodation to councils is £10-£13 million per annum in Scotland. More than 5,400 council and RSL properties are being used for temporary accommodation, removing them from the mainstream letting pool.
These costs could be virtually eliminated with a private sector solution.
The Scottish Government has indicated its next housing consultation will focus on how local authorities could discharge homeless duty into the private rented sector.
Andrew added: “Our Firm Foundations consultation response also takes a strategic view on how the private sector can deliver cost-effective solutions for local authorities and we are proposing a number of investment models that have exciting prospects for the Scottish housing scene.
“We look forward to working with Government, local authorities, social housing providers and the private sector to develop housing and finance solutions for the very real housing issues which Scotland faces in the coming decades.”
For further information please contact Andrew on (0131) 553 0052 or email andrew.morrison@orchard-shipman.com.