GLASGOW’S HOUSING STRATEGY 2016 UPDATE: RESIDENTIAL DEVELOPMENT REPORT GLASGOW CITY COUNCIL Development & Regeneration Services GLASGOW’S HOUSING STRATEGY 2016 UPDATE: RESIDENTIAL DEVELOPMENT REPORT GLASGOW CITY COUNCIL Development & Regeneration Services Glasgow City Council Residential Development Report CONTENTS FOREWORD 1. Designed by GCC Graphics Copyright © 2016 Glasgow City Council. Maryhill Locks from River Kelvin PRIVATE HOUSING DEVELOPMENT • FEATURE ON: OATLANDS • FEATURE ON: TORYGLEN 2. STUDENT ACCOMMODATION 3. AFFORDABLE HOUSING Glasgow City Council Residential Development Report FOREWORD Councillor Frank McAveety Leader of Glasgow City Council I am pleased to present this first annual update of the Residential Development Report, as part of Glasgow’s ambitious Housing Strategy. It’s clear from this report that, across our city, we are continuing to see strong demand for all types of housing in both the private and rented sectors. This is great news for Glasgow, with more and more people wanting to make our city their homes. There’s no doubt that the last year has brought plenty of challenges and uncertainties in what are already difficult times for house builders and developers. National schemes like the Housing Infrastructure Fund and Help to Buy are going some way to support the housing industry. As Leader of the city, I can offer my assurances that Glasgow City Council will be doing all we can to support it too. Central to our People Make Glasgow Home strategy is the intention to deliver 25,000 new homes across our city in 10 years. I am delighted that we are well on course to meeting this target. Glasgow City Council is driving billions of pounds of private and public sector investment through both the Glasgow City Region City Deal and Glasgow’s Affordable Housing Supply Programme. This investment in the fabric of Glasgow will unlock opportunities for future development, to ensure our city can continue to thrive and prosper in the years ahead. Glasgow City Council is committed to working with all partners to deliver more homes for our city. We are a growing city, with growing ambitions, and we require a housing supply to match. I look forward to working with you to deliver our shared ambitions. Richmond Gate, Oatlands Glasgow City Council Residential Development Report 1. PRIVATE HOUSING DEVELOPMENT Richmond Gate, Oatlands Glasgow City Council PRIVATE HOUSING DEVELOPMENT Prior to the housing ‘boom’ of the early to mid 2000s, average private house building activity saw around 1500 houses built each year. House building activity has not yet returned to these average levels. Currently, there are 1179 private houses onsite in the city. However, confidence is returning to the city’s house building sector, due in no small part to the Council’s success in working with partners to make residential development in the city attractive, alongside the £1.13bn City Deal. Glasgow City Council is pump-priming sites for development; investing in up-front infrastructure and land remediation, taking new and innovative approaches to ensure flexibility and shared risk between partners. PRIVATE SECTOR HOUSING COMPLETIONS 2010-111156 2011-121135 2012-13924 2013-14824 2014-15718 2015-161335 King’s View, Toryglen Residential Development Report Glasgow City Council Residential Development Report Ten years into the construction of Avant Homes’ Richmond Gate, the development offers a blend of stylish modern homes, striking public artworks, green spaces and excellent facilities. The transformation of the expansive 32.2 hectare site began in April 2005 with completion expected in 2022. The eventual development value is expected to total approximately £140 million. Avant Homes has already built over 700 homes at Richmond Gate and once complete, will provide Glasgow with over 1,400 apartments and houses. In addition to providing outstanding properties to help address the housing needs of the city, Richmond Gate is designed to be beautiful, as well as functional. This is why Avant Homes’ plans included the planting Richmond Gate, Oatlands of hundreds of trees along boulevards, with plenty of space for public art. In addition, a park and play area have been created for children to play in, following workshops with OATLANDS FEATURE local schoolchildren. When completed, the development will also include £2million worth of proposed park improvements with the new Oatlands Square a major focal point. “Oatlands is an area of real historical importance and we wanted to preserve its distinct personality and sense of community, whilst also offering buyers a fantastic choice of new homes that perfectly combine form and function. Sales at Richmond Gate continue to gather momentum with 94 properties sold so far in 2016, our most successful year to date. The development is also creating a fantastic community hub in the heart of one of the greatest cities in the UK, of which we are very proud.” Theresa Barbour, Avant Homes’ sales and marketing director Glasgow City Council ACCELERATION OF THE TRANSFORMATIONAL REGENERATION AREAS PROGRAMME TO DELIVER UP TO 6500 HOMES THROUGH OUR SPECIAL PURPOSE REGENERATION VEHICLE, TRANSFORMING COMMUNITIES: GLASGOW (TC:G) Transforming Communities: Glasgow (TC:G) is a regeneration company comprised of the Council, Glasgow Housing Association and the Scottish Government to drive one of the most ambitious programmes of urban renewal in the UK. TC:G continues to forge ahead with the delivery of the 8 Transformational Regeneration Areas (TRA). The TRAs are exemplars of housing-led regeneration which are creating excellent quality housing and sustainable communities. TC:G Highlights in 2016 • Exceptional progress has been made in the redevelopment of Sighthill, with remediation work on this 50 hectares site underway. Sighthill is perfectly positioned just north of the city centre with increased connectivity created by the development of a new iconic foot-bridge made possible through the Glasgow City Deal. TC:G are currently in the process of selecting a partner to develop out the site, which will include residential and Sighthill Transformational Regeneration Area Residential Development Report commercial aspects, as well as a new community school campus. • The £100 million Laurieston regeneration project has already seen the development of 201 social rented homes, 69 homes sold ‘off plan’, and strong demand for 39 mid market rent homes. Phase 2 will be on sale in late 2016, with the potential for the development of a hotel, student accommodation and retail space. 1000 new homes will be delivered in Laurieston. • North Toryglen is well underway with one of the city’s state of the art care homes open to residents, 100 social rented housing units completed, phase 1 of 55 private houses complete and sold, with phase 2 at planning application stage. Coming Up in 2017 • Marketing of sites to develop 9.6hectares in popular Pollokshaws to provide 450 new homes providing predominantly private sector housing which is suitable for family living, alongside retail and commercial opportunities. • Delivery framework and plans to be developed for Gallowgate building on the initial £6million housing development, and for East Govan & Ibrox following the Charette last year. • Progressing marketing of Maryhill Locks site for the development of 140 new homes. • Masterplan review underway for Barmulloch with site clearance to be completed by end of next year. Glasgow City Council AN ACCELERATED PROGRAMME FOR RELEASING LARGE RESIDENTIAL SITES FOR PRIVATE HOUSING DEVELOPMENTS INCLUDING CASTLEMILK, DRUMCHAPEL AND EASTERHOUSE, WITHIN THE FIRST YEAR INVESTIGATE NEW PRIVATE RENTED HOUSING SUPPLY WITH A PILOT GLASGOW PRIVATE RENTED SECTOR DEVELOPMENT PARTNERSHIP AND THROUGH WORKING WITH PARTNER ORGANISATIONS TO DEVELOP DELIVERY MODELS In the last year, the Council and its There is continued and strong demand property arm, City Property, have for private renting in the city with accelerated the marketing of large average rents up 7.2% over the year to residential sites for the potential delivery stand at £733 per month, with 70% of of 1700+ homes. properties let within a month and 28% let Residential site releases include:- within a week (Citylets data). • • Disposal of two sites in Castlemilk The Council has commissioned a market to the private developer Cruden who leader in real estate to examine the will deliver up to 200 new homes potential for growing the city centre across the sites. resident population, to utilise Glasgow’s Two sites in Drumchapel with the potential of delivering approximately 150 new homes. underused spaces above retail units in the city centre to bolster city centre apartment living, and to attract new investment, particularly in private renting, into and around the city centre. The first LAR Housing Trust development in the city consists of 40 flats on London Road and will be available from early-mid 2017. A number of sizeable developments for rent are in planning or development which will PEOPLE MAKE GLASGOW HOME ACTION PLAN COMMITMENT deliver over 1300 new private rented houses in the city centre and along the waterfront. Additionally, there is also interest from new entrants into the Glasgow private rented market who recognise the strength and potential of this market. Yoker Mid Market Rent Residential Development Report Glasgow City Council Residential Development Report ESTABLISH A MEMORANDUM OF UNDERSTANDING WITH SCOTTISH CANALS TO INCREASE REGENERATION ACTIVITY AROUND THE CANAL CORRIDOR AS PART OF THE REGENERATION OF NORTH GLASGOW AN ACTION PLAN TO BRING EMPTY HOMES AND UNDERUSED SPACE ABOVE SHOPS AND LONG TERM EMPTY RETAIL UNITS INTO EFFECTIVE RESIDENTIAL USE A Memorandum of Understanding (MoU) Association, and Shelter Scotland, was signed by Glasgow City Council, Scottish Canals and BIGG Regeneration The Glasgow Shared Services Project, a tri-part project in conjunction with Glasgow City Council, Glasgow Housing commenced in 2015 with a dedicated officer in place to develop and deliver on 5 February 2016 which solidifies the Glasgow’s Empty Homes Strategy. commitment between the partners to The key elements of the strategy are to: bring significant regeneration activity to both sides of the Forth and Clyde Canal • assistance, energy efficiency on the north side of the city centre. measures, in parallel with assisting The partners will deliver funding worth owners to develop successful over £11million for the next stages of a strategies to bring their property surface water management programme back into use that will enable land near the canal to be regenerated. This includes the signpost owners to forms of loan • assist owners if they decide to rent development of the vacant 100 Acre their empty property in the private Hill former distillery site in Port Dundas sector which has a potential capacity for up to 500 homes and 6,000 square metres of • provide a matchmaker scheme with the aim to match owners of empty commercial space. This £5.67million project properties in the private sector with will address the site remediation, access potential purchasers. and infrastructure work costs. Summary of Key Achievements in the first year Firhill Timber Basin PEOPLE MAKE GLASGOW HOME ACTION PLAN COMMITMENT • 330 empty properties brought back into use across a range of tenures in the first 13 months of the project, more than double the highest ever total in Scotland Glasgow City Council • Assistance provided to partner housing associations which has resulted in funding of nearly £2million for 37 additional social housing units across a range of house types • Supporting the Town Centre Empty Homes Fund Initiative to fund the conversion of 37 disused commercial premises into residential properties, and supporting Glasgow’s Affordable Housing Supply Programme to convert shops into residential use. • As well as bringing empty homes back into use, the expertise from the project has delivered significant savings for those organisations involved including: • Around £900,000 VAT savings delivered for partner housing associations in a range of projects across the city where these were not previously identified • Partnership established with GCC Council Tax Services and the identification of £90,000 in unpaid council tax revenue the first year. Residential Development Report INCREASING THE RANGE OF HOUSING OPTIONS ON OFFER INCLUDING SELF BUILD AND CUSTOM BUILD PILOTS Even in the first year of establishing the pilot, there is considerable interest with approximately 120 households registering an interest. The first self build plots are at Maryhill Locks on Bantaskin Street, providing 6 serviced plots for sustainable self build. A design code has been developed that simplifies the planning process, and a design workshop has been held so that prospective self-builders have access to architects to hone their design ideas. These 6 plots have now been allocated and site servicing work has commenced. The first self builders are expected to be on site late winter/early Spring. The next self-build project will be on a larger site and it is anticipated the required land remediation will begin before the end of this year with the self build plots released early in 2017. Due to demand expressed for co-housing in the city, the Council is looking into the feasibility of supporting the development of co-housing where individuals plan the design together and tailor it to include PEOPLE MAKE GLASGOW HOME ACTION PLAN COMMITMENT Bantaskin Street, Maryhill Locks elements of shared facilities and amenities. Due to the considerable level of interest in self-build, further sites throughout the city are being investigated. Glasgow City Council Residential Development Report HELPING FIRST TIME BUYERS TO ACCESS HOME OWNERSHIP BY ESTABLISHING A PILOT GLASGOW MORTGAGE GUARANTEE SCHEME The Council has established a The Council and Credit Union continue Mortgage Guarantee pilot with to work to promote the scheme to Glasgow Credit Union as the provide another option for households mortgage provider. The scheme finding it difficult to get a mortgage’. operates with the Council providing funding to cover any mortgage default, which reduces the lenders exposure to risk and thereby enables the lender to provide mortgages requiring a much lower deposit than the majority of other lenders. PEOPLE MAKE GLASGOW HOME ACTION PLAN COMMITMENT Traditional Glasgow Tenement Glasgow City Council Residential Development Report Glasgow City Council North Toryglen is a new mixed-tenure March and August of 2016. Cruden development on a brownfield site in the sought to create a vibrant mix of homes south of Glasgow. It is one of the city’s based predominantly on family-sized eight Transformational Regeneration accommodation across all tenures but also Areas (TRA) and is delivered through providing flats. Transforming Communities: Glasgow. state of the art care home run by Glasgow to deliver the North Toryglen development. City Council which provides high quality Phase 1 consists of 100 socially rented residential care for older residents. 2015, and 55 affordable one, two and three-bedroom homes for sale by Cruden Homes, with residents moving in between TORYGLEN FEATURE The wider development includes a 120-bed Cruden Holdings (West) were appointed homes which were completed in December King’s View, Toryglen Residential Development Report The ultimate aim of the development is to ensure the successful delivery of spacious, energy-efficient and affordable homes to create a new mixed community. Glasgow City Council Residential Development Report 2. STUDENT ACCOMMODATION Merchant Studios, City Centre Glasgow City Council Residential Development Report STUDENT ACCOMODATION PUBLICATION OF A STATEMENT ON STUDENT ACCOMMODATION WITHIN A YEAR PEOPLE MAKE GLASGOW HOME ACTION PLAN COMMITMENT Glasgow’s place at the centre of student housing. This acknowledges the education, creativity and innovation contribution that students make to the endures with students coming to the city economy and to the social mix, vitality and to study at its 3 Universities - Glasgow vibrancy of an area, and seeks to ensure University, Strathclyde University, and that the provision of high quality student Glasgow Caledonian University - at the accommodation is in appropriate locations world renowned Glasgow School of Art and that the character and amenity of and Royal Conservatoire of Scotland, existing areas is protected. The statement and Glasgow’s 3 further education outlines that the Council will generally colleges – City of Glasgow College, support student accommodation if it Glasgow Clyde College and Glasgow meets the criteria outlined in detail in the Kelvin College. statement. The unprecedented development of student accommodation in Glasgow continues. The attraction of the city’s cultural and entertainment offering as well as the international reputation of these educational establishments suggests that students from across the UK as well as from overseas will continue to come to live and study in the city. The Council consulted at the end of 2016 on supplementary planning guidance PURPOSE-BUILT STUDENT ACCOMMODATION DEVELOPMENT Development Status Proposals Bedrooms 8 1,071 Under Construction 6 2,484 Under Consideration 13 2,711 Consent 9 3,189 Complete (between 01/16-11/16 which forms an important part of the new City Development Plan. This includes SG10: Meeting Housing Needs which Merchant Studios, City Centre includes statutory planning guidance on Figures: Snapshot at November 2016 Glasgow City Council 3. AFFORDABLE HOUSING Mosspark Boulevard, Cardonald Residential Development Report Glasgow City Council Residential Development Report AFFORDABLE HOUSING The Council continues to work with Housing Associations and developers in the city to deliver more high quality homes through Glasgow’s Affordable Housing Supply Programme. Queen Elizabeth Square, Gorbals 2016-17 OUR AFFORDABLE HOUSING INVESTMENT PLAN WILL DELIVER AFFORDABLE HOUSING SUPPLY PROGRAMME 989 NEW HOMES COMPLETED & 986 NEW HOMES STARTED • 7500 houses over the next 5 years including social rent, mid market rent and low cost home ownership • Job and training opportunities for residents, helping to support the construction sector into the future as well as supporting Small and £1.06BILLION HOUSING INVESTMENT OVER NEXT 5 YEARS Medium Sized Enterprises (SMEs) via the supply chain • A positive contribution to the built form of the city’s already impressive architectural heritage through design excellence • A creative approach to energy efficiency helping to reduce the impact of housing construction and modern living on the environment AN EXPANDED PROGRAMME OF COUNCIL NOMINATED LAND DISPOSALS TO REGISTERED SOCIAL LANDLORDS (RSLS) WITH 20 SITES BEING BROUGHT FORWARD FOR AFFORDABLE HOUSING DEVELOPMENT WITHIN THE FIRST YEAR The Council is working closely with RSLs and City Property on nominated land disposals and on these there has been significant progress in the last year. All of these sites will contribute towards Glasgow’s Affordable Housing Supply Programme. • • 10 nominated land disposals were settled by the end of the financial year 2016 In December 2016, Glasgow City Council’s Executive Committee approved that negotiation take place to dispose of sixteen sites throughout the city for mixed tenure housing development resulting in an estimated £60million of construction activity. To deliver more homes, all public land, not just Council land, should contribute towards achieving national economic and social justice objectives of building more homes. In October 2016, the report ‘Brexit and the Glasgow Economy: impacts, action and asks’ identified that the Scottish and UK governments should commit to the transfer of surplus land holdings to Glasgow City Council to enable their inclusions in the city’s Strategic Housing Investment Plan. THE COUNCIL WILL WORK IN PARTNERSHIP WITH THE WHEATLEY GROUP AND THE SCOTTISH GOVERNMENT TO DELIVER WHEATLEY GROUP’S COMMITMENT TO DEVELOP 1700 NEW AFFORDABLE HOMES IN THE CITY FROM 2015-2022 The Council and Wheatley Group have developed a mutually beneficial partnership to deliver more homes for Glasgow’s residents. Glasgow City Council This was formalised in March 2016, when 231 George Street the Council and the Wheatley Group signed Glasgow a strategic agreement. This commits the G1 1RX Development & Regeneration Services Wheatley Group to investing in the city particularly through the Bond Finance it has Phone 0141 287 2000 secured to increase the supply of housing www.glasgow.gov.uk in Glasgow, and commits the Council [email protected] as strategic housing authority to support the development opportunities available to Wheatley Group through a range of mechanisms including nominated disposal and joint initiatives. The Council will continue to work in partnership with the Wheatley Group to deliver their important development programme which will see 234 new homes started and 263 completed in 2016/17. PEOPLE MAKE GLASGOW HOME ACTION PLAN COMMITMENT King’s View, Toryglen GLASGOW IS OPEN FOR BUSINESS We are keen to discuss any potential projects or delivery mechanisms which may contribute to meeting our strategic priorities for housing investment in the city. Glasgow City Council Development & Regeneration Services 231 George Street Glasgow G1 1RX Phone 0141 287 2000 www.glasgow.gov.uk [email protected] Designed by GCC Graphics Copyright © 2016 Glasgow City Council.
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