Prices have been rising more quickly than income so more people are going into debt or finding it impossible to afford a house, and it is recognised that a major factor is supply not keeping pace with demand.

Recent research has shown that the Highlands have experienced the fastest price rises in Scotland and that, unlike many parts of the UK, there is no sign of a cooling off.

Difficulty in finding appropriately-priced housing causes problems in recruitment and retention of key workers in both private and public sectors.

In the Highlands and Islands, labour markets are currently extremely tight and incomers are vital for the economy. A lack of affordable housing can also lead to increased commuting times and congestion.

The issue will be on the agenda at a dinner which SCDI is holding in partnership with LifeScan Scotland early next month in Inverness where the speaker will be deputy first minister and health secretary Nicola Sturgeon MSP. It will cover all aspects of her portfolio, but her housing responsibilities will be of interest to all the employers present.

Late last year, the Scottish Government consulted on increasing the rate of new housing supply by 10,000 a year by the middle of the next decade. Its proposals include setting housing targets in each new local authority development plan, national support for planning authorities and new analytical tools in gauging the market demand for housing.

However, while welcome, SCDI is concerned that the measures proposed will not come to fruition sufficiently quickly enough to accelerate the delivery of new homes.

Good progress is now being achieved in removing development constraints due to water and sewerage capacity, but there is still a pressing need for national utilities and planning authorities to work more closely together to connect new developments to essential infrastructure. Scotland should consider proposals in England to allow authorities to pool developer contributions from multiple developments to fund key infrastructure and to create a government-backed "public infrastructure investment fund". With reasonably set developer levies, affordable housing could attract private investment too.

Supporting infrastructure is especially important for the creation of new settlements. In SCDI's view, the proposed Tornagrain development — with the public, designers and consultants working on a shared, sustainable vision — represents best practice in Scotland.

Tomorrow's homes need to be "future-proofed", with 21st century living firmly in mind. They must meet the needs of people, communities and the economy, but reflect that these needs are changing. The Highland Housing Fair in 2009 should offer this region's businesses the chance to showcase sustainable housing from affordable to executive, including: the practical use of quality local materials; energy efficiency and techniques and technologies that can be retrofitted; and the potential of the latest communications technology to facilitate home and flexible working, increasing the labour pool, relieving pressure on housing and offices in towns and cities, and cutting traffic congestion.

The Scottish Government's consultation sets firm foundations, but it must be built upon.

Printer friendly version

Email this article to a friend

Bookmark this

---