Made up of a cross section of housing industry experts and led by the Royal Institution of Chartered Surveyors (RICS) the commission has made a series of recommendations across all property tenures.
In particular it calls for a renewed emphasis on establishing a sufficient quantity and quality of land for housing, including the creation of new communities across Scotland aimed at addressing potential crises in Scotland’s housing market.
The report says that the imbalance that exists between supply and demand for housing remains an on-going problem in today’s, and potentially tomorrow’s, Scottish housing market.
It makes 15 recommendations and identifies three key issues for Scotland’s housing future, namely: housing land supply, new housing growth and the emerging importance of the private rented sector.
‘A substantial increase in land supply for housing would assist development partners in their business preparation, reduce land costs and impact positively on the affordability of housing. In addition, scaling up production of new house building across all tenures is in our view an essential aspect in a sustainable housing solution for Scotland,’ the commission report points out.
‘By promoting the creation of up to eight major new communities, either as new towns, regenerating existing communities or an expansion of existing plans, could make major in-roads in addressing Scotland’s acute housing need in the decade that lies ahead. At the same time this would give a continued shot in the arm to the Scottish economy, by creating new jobs and supporting existing economies,’ it adds.
The report also suggests that a greater level of attention toward the private rented sector could help alleviate pressure on the market. According to the latest RICS Residential Market Survey, a net balance of 25% of chartered surveyors reported a rise in tenant demand within the private rented sector, with respondents reporting growth in demand through 2014.
‘An effective, regulated private rental market is vital for future housing in Scotland. Significant investment in a private rented growth plan for Scotland is required to provide security for the growing number of families and individuals depend on privately rented properties,’ said commission chairman Tom Barclay.
The report further recommends that the Scottish government put in place a Change Fund to support the social housing sector. ‘The social housing sector has the potential to play a major role in delivering smarter and better housing outcomes in Scotland. However, in terms of finance, evidence from lenders suggests that the risk rating of the housing association sector in Scotland has increased as a result of welfare and pension reforms, as well as a reduction in capital subsidies,’ it explains.
‘The fund would facilitate potential partnerships, both constitutional and non-constitutional, helping shape new business models, evaluate transfers of stock between organisations, and, in essence, help provide a stimulus to give greater vitality to the sector,’ it adds.
