Fears over homes strategy

Aug 22 2008 by Gordon Bannerman, Perthshire Advertiser Friday

PERTHSHIRE Housing Association plans to roll out 126 new houses over the next 12 months.

But chairman Tom Band fears the credit crunch fall-out and Scottish government policy changes could halt the PHA’s affordable homes strategy in its tracks.

The association hasn’t been immune from turmoil in the banking sector, with commercial funding under threat.

Mr Band confirmed: “The banks and building societies with whom we have had good relationships for many years are now telling us they can no longer continue to support us.

“Arguably this could have a greater effect on the government’s affordable housing policy and unless resolved shortly could lead to housing associations’ new build programmes grind to a halt.”

PHA has reported that more than £10 million in grants and loans had been ploughed into 107 properties in the last financial year.

The next set of projects advancing include Tulloch Road, Wallace Crescent, Muirton Phase Two and Friarton Place in Perth, the old co-op building in Coupar Angus and Kintillo Road in Bridge of Earn.

But Mr Band noted that external factors would continue to have a “profound” effect on the future of PHA, which remains locked in talks with Hillcrest Housing Association.

He said the Scottish government expected to produce more “affordable housing” for less public money.

While the thrust of the changes was welcomed, PHA harboured reservations about aspects of the proposals.

“There is, we believe, a real danger that unless carefully thought through and sensitively applied the proposals could lead to some of the negative results that occurred in England.”

“The apparent desire of the government to focus activity on larger associations will also have a negative effect,” said Mr Band, who pointed out sensitivity to local needs had been an integral part of the PHA success.”