Fyne Homes Ltd

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Fyne Homes Ltd

• Peter McDonald
• Rural Housing Service Annual Conference
• New HAG, New Times, New Finance

27th Feb 2009
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Perspectives and challenges
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The Governments perspectiveWords and Numbers

• Efficiency
• 170
• Prospectus
• 14
• Specialist role/lead developer
• 75,000
• Reform/competition
• 5
• Consortia

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Fyne Homes perspectiveA different approach

• People and places
• Homes and communities
• Jobs and local economies
• HAG investment touches the lives of thousands of
  people and HAG reform will impact on the lives of
  thousands of people

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THE FACTS Gigha, Strachur and Kilmun

• Average number of units 11
• Average works cost/unit 145,000
• Average HAG age/unit 61
• Average HST/unit 90,000

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Challenges in Rural Areas Sites
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Challenges Rain
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Challenges Archaeology
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Challenges Geography

• Proposed Regions for Prospectuses

Inverclyde Renfrewshire East Renfrewshire West
and East Dunbartonshire Argyll Bute
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Challenges Geography

• Proposed Regions Group E

Argyll Bute
Inverclyde Renfrewshire East Renfrewshire West
and East Dunbartonshire
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Challenges Geography

• 2nd Largest Local Authority in area
• 2,700 square miles
• 26 Inhabited Islands
• Peninsulas
• Kintyre almost an island
• Mountains
• Sea Lochs
• Glasgow to Campbeltown
• Straight line 60 miles
• By road 160 miles

• No fully integrated Transport system
• Poor water / sewerage capacity, in some cases
  none
• High development costs
• No good sites just bad and awful

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Challenges Cal Mac

• Cost of taking 17m Artic between
• Rothesay / Wemyss Bay 243.20
• Colintraive / Rhubodach 83.68
• Tarbert / Portavadie 228.34
• Gigha / Tayinloan 276.04
• Oban / Tiree 465.93

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Challenges Planners

• Density (14s a big development in AB)
• Roads specification
• Car parking requirements
• Style materials
• Culture development is controlled and managed
• Timescales

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Challenges Material costs
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Challenges Choosing a lead developer

• Risks in developing for others how exactly will
  this work?
• What about charitable status?
• Will the banks lend to the lead developer to
  build and to the receiving RSL to buy?
• How will this affect local relationships?
• Can a large developer procure more efficiently
  than a smaller one?
• Will the local construction industry be put at
  risk?

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Challenges The wonderful world of the HAG
subsidy target

• In rural Scotland there has to be
• A realistic approach to rural costs
• An understanding of infrastructure difficulties
• An appreciation of transport issues
• Support to maintain quality of design and place
  making
• In short there has to be a separate HST for rural
  Scotland.

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An alternative perspective

• Encourage partnerships/people working
  together/synergies
• Promote incentivisation across programmes
  rather than projects
• Streamlined appraisal
• Encourage innovation with contractors and design
  teams
• Provide longer term programmes to give the
  construction sector more certaintycan this not
  be done now?

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But above all we need to keep our focus on
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And finally.......

• Thanks for listening