Government unveils £10m funding deal for RAAC homes in Aberdeen

Government unveils £10m funding deal for RAAC homes in Aberdeen

The Scottish Government reached a £10 million funding agreement with Aberdeen City Council to help meet costs associated with RAAC-affected properties in Torry.

Late last year, Aberdeen City Council officially lodged documents outlining the proposed demolition process for 372 buildings affected by RAAC in the Balnagask community.

A council meeting accepted officers’ recommendations for dealing with RAAC, drawn up after an independent study recommended that the buildings should be demolished and replaced.

Now housing secretary Màiri McAllan has confirmed the government will accelerate planned affordable house-building developments through the Affordable Homes Supply Programme to the council, enabling the council to free up £10m which can be used to support residents and homeowners affected by RAAC. 

Ms McAllan said: “I am acutely aware that this is a really worrying time for the residents and homeowners in Balnagask. I also understand the financial burden RAAC remediation is putting on Aberdeen City Council.

“That is why we have been working at pace to consider Aberdeen City Council’s request for flexibility of funding. In 2016, the Scottish Government committed to funding Aberdeen City Council through the Housing Infrastructure Fund. While the council’s request for £10m to help meet the costs of RAAC remediation does not meet the criteria of the Housing Infrastructure Fund, in light of the unique circumstances, I have instead invited the council to submit a proposal for additional grant support through the Affordable Housing Supply Programme for the equivalent amount.

“This will make a valuable contribution towards Scotland’s supply of affordable housing while creating the headroom for the council to meet the cost of remediation from within its own budget, as is the correct approach.”

Despite the funding announcement, Aberdeen City Council did not confirm whether the Balnagask properties could yet be saved from demolition.

An Aberdeen City Council spokeswoman told Scottish Housing News: “We welcome the invitation to bid for additional grant support of £10m of funding from the Affordable Housing Supply Programme budget.

“The council is looking forward to discussing with the Scottish Government how these additional funds could be utilised.”

The housing secretary added that she is continuing to press the UK Government to create a UK-wide RAAC remediation fund.

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