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2015 Subsidy Working Group

The Joint Housing Delivery Plan for Scotland recognises that the effective operation of the Affordable Housing Supply Programme subsidy framework is central to the Scottish Government’s housing ambitions. In April 2015 a short-life working group (the 2015 Subsidy Working Group) was set up to consider the first action point contained within the plan – to provide advice to ministers on whether adjustments to the current subsidy framework and benchmarks are needed to account for inflation and other financial pressures.

The Working Group which included officers from the Chartered Institute of Housing Scotland (CIHS), the Scottish Federation of Housing Associations (SFHA), the Glasgow and West of Scotland Forum (GWSF), the Association of Local Authority Chief Housing Officers (ALACHO), the Convention of Scottish Local Authorities (COSLA) and Scottish Government, concluded its report in June. The increased grant subsidy benchmarks recommended within the report have been approved by Ministers and the benchmarks set out below will now apply to all new tender applications received from 25 January 2016.

  West Highland, Island Authorities and remote and/or rural Argyll Other rural City and urban

RSL social rent – greener*

£84,000

(3 person equivalent, benchmark)

£74,000

(3 person equivalent, benchmark)

£72,000

(3 person equivalent, benchmark)

RSL social rent – other

£82,000

(3 person equivalent, benchmark)

£72,000

(3 person equivalent, benchmark)

£70,000

(3 person equivalent, benchmark)

RSL mid-market rent – greener*

 £46,000

(3 person equivalent, benchmark)

RSL mid-market rent – other

£44,000

(3 person equivalent, benchmark)

Council social rent – greener*

£59,000

(flat rate benchmark for council projects)

Council social rent – other

£57,000

(flat rate benchmark for council projects)

To qualify for the higher “greener” subsidy, new homes must include energy for space heating, as detailed within Section 7 of the 2011 Building Regulations.