Why Invest in Scotland
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Housing Land Situation and Promotion of Sites 2008 –2012
Gordon MacCallum – Keppie Planning
I have been working over 30 years in the Scottish housing market both in private practice for the last 10 years and 20 years in Local Authorities at various levels.The housing land position is at its most dynamic at this point in time as a number of key factors are combining to create the environment for significant housing release.
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Recent statements by Ministers, both at National and Scottish Government levels, about the chronic affordable housing shortfall and the need to significantly increase housebuilding in Scotland from 25,000 to 35,000 units per annum, will require significant land releases and increased homebuilding rates. (The current rate is less than 25,000 per annum).
The new system of development plans will require to allocate land for at least a 20 year period in a phased basis and it is anticipated, for example, Aberdeen and Aberdeenshire will require to identify 80,000 units, Dundee and Highland at least 40,000 units and levels in the central belt are anticipated to grow by between 15 – 20%.
The momentum, for the first time in 30 years, has switched from development plan protection control policies to a new system that will require change and a clear dynamic to create new housing development, either as extensions of existing settlements, or new sustainable communities.
Authorities such as Aberdeen city, Aberdeenshire, Dundee, West Lothian, Midlothian, North Lanarkshire, Highland and Glasgow city have embraced the concept of new communities, whilst most of the others have plans for significant urban extensions, such as South Lanarkshire, Fife, Renfrewshire, East Renfrewshire, West Dumbarton and all 3 Ayrshire authorities.
The context for the new phase of Local Development Plans will be set in the framework of growth and looking forward for the next 20 years.
This time over the next 3 – 4 years will be central in identifying suitable and sustainable residential sites to promote through the development plan process. This is currently underway and is being tackled through the current crop of local plans leading into the new local development plans being prepared after October 2008 when the 2006 Act legislation comes into force.
There has not been a better time for land investment and key searches provided it is professionally assessed and sites have a legitimacy in planning terms.
Keppie Planning are encouraging and advising their clients in the industry to investigate and establish positions/options on a range of sites throughout the country.
Intelligent Land Investments, as advised by Keppie Planning, are at the forefront of this activity and moving forward to the future by creating an attractive portfolio of sites some in partnership and some through shared ownership.
The Government’s policy of delivering affordable housing can only be achieved by allocating house land to enable the private sector to assist in delivering social/low cost housing, this further adds to the momentum.
At this point in time, investing in medium to longer term land taking a 5 to 10 year view has not been a more inviting proposition, especially with other investment options being less attractive.
Whilst Gordon MacCallum is a Director of Keppie Design, his comments are personal and based on his professional experience of the industry over the last 30 years.
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There are a number of factors which make Scotland an attractive proposition for those looking to invest in land:
People:
Scotland’s population is growing on average by 19,250 per year. The population is also on average getting older. With more older people staying at home their children when grown up are putting a greater demand on housing stocks. Economy:
Scotland has areas of real economic vibrancy and some world class urban and rural environments. The growth in Scotland's Gross Domestic Product (GDP) has averaged 2% over the past 25 years. Recent economic performance has been stronger than the average across 25 EU states. The workforce is highly qualified. Around 30% of people of working age hold some form of higher education qualification compared to 26% in the UK. Scottish Financial Services have a European and world profile. The sector is one of the fastest growing parts of the economy, with an annual growth rate of 4.8% between 2002 and 2007. Recent performance has been better than the UK average for the sector. Housing:
Housing is the largest single urban land use and influences the appearance of urban and rural landscapes. At the end of 2005, there were approximately 1.6 million owner-occupied homes (67% of the total housing stock); 363,000 homes rented from local authorities (15%); 252,000 homes rented from housing associations (11%); and 178,000 privately rented homes (7%). The house building industry makes a significant contribution to the economy (an estimated £5 billion in 2004). It is also a major employer, directly and indirectly responsible for the livelihoods of more than 110,000 people.Housing supply is under pressure in many areas. Economic, financial and demographic factors have fuelled the demand for houses to buy, driving up house prices. Since 2002, all parts of Scotland have experienced house price increases at a rate well above the growth of average earnings. The sustained house price increases in recent years have not been met with any significant increase in the overall supply of new housing. While house prices were 72% higher in 2006 than in 2002, the level of new build increased by only 2%.
While Edinburgh and the Lothians, Perth and Kinross, Highland and Argyll and Bute have the highest levels of need for affordable housing, areas around Glasgow (East Dunbartonshire, South Lanarkshire and East Renfrewshire) also have sizeable shortages. New affordable housing can play an important role in creating more sustainable mixed communities or enabling households with particular needs to live independently within the community.
Affordable Housing:
Affordable housing is defined broadly as housing of a reasonable quality that is affordable to people on modest incomes. In some places the market can meet all or most affordable housing needs, but elsewhere it is necessary to make housing available at a cost below market value to meet identified needs
The current Scottish Executive pledge is that at least 7,250 Affordable Houses must be built in Scotland per year.
(Source: http://www.scotland.gov.uk/ Scotland.gov 2008)
With an increasing and aging population, a growing and sustainable economy, and shortage of housing with affordable housing in particular, it is an excellent time to invest in strategic land in Scotland. All of Ilandi’s sites have been chosen with these factors in mind giving them the strongest possibility of being zoned for planning in the future. For information on how to invest and possible returns please complete the enquiry form found here.
Simply contact one of our experienced team so we can start to work together on your investment T: 01698 891 352
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