Council approves purchase of more homes on Dreghorn Estate

Edinburgh Reporter

2 days ago

The council's Finance Committee has approved spending £6.65 million to purchase 38 homes currently owned by the Ministry of Defence, bringing the total number bought in this development for rent by the council to 78.
The council says this action, unanimously approved on Monday morning, will prevent 15 civilian households becoming homeless, and will help the local authority deal with the housing emergency.
There was a lot of comment during the meeting on the positive way that the collaboration between council officers and the residents had been conducted. But one member of the committee, Cllr Simita Kumar, who leads the SNP group, said that she had to rely on social media for much of her information.
She said: ''Securing these 38 homes is a step forward for residents and local housing, but this is just the start of the process. The uncertainty tenants have faced shows the Council and Ministry of Defence must do much better on communication.
'As we await condition surveys, it's clear significant investment will be needed to make these homes safe, energy-efficient, and truly fit to live in.'
Cllr Watt said she and the officers had tried to be disciplined about communication but there were several stakeholders involved who had been quick to share information. As part of what was approved today the council officers will set up regular periodic calls with residents which councillors can join to receive the most up to date information.
At the meeting
Most councillors attended the Special Meeting online, as is usual for a special meeting, although Cllrs Simita Kumar, Joan Griffiths and Phil Doggart as well as the Convener Cllr Mandy Watt were in the Dean of Guild Court Room along with council officers. Local councillor Conor Savage also sat in the public gallery supporting the residents who were there to present a deputation.
Finance and Resources Convener Mandy Watt said: 'We're doing everything we can to make sure these residents will remain in their homes and to increase the amount of affordable and social housing we have in the city – and I know the residents are very grateful that this proposal has had so much support from councillors.
'Purchasing these homes is a sensible way to boost the housing we have, and Dreghorn is a community that provides a great place for council tenants to have a suitable, safe and affordable place to call home.
'Council colleagues have worked over many months to negotiate this purchase from the Ministry of Defence, listening to the concerns of Dreghorn residents at every turn and ensuring good value for the council. This is a huge step towards a positive outcome – a fantastic example of doing things differently to make sure we address our housing emergency.'
The financial details are set out in the council report:
6.1 The net purchase price of £6,650,000 will be funded with £3,289,000 from the
Scottish Government National Acquisition Fund grant delivered through the
Affordable Housing Supply Programme with the balance of £3,361,000 funded
through rental income and prudentially borrowed over a 30-year period.
6.2 In addition to the purchase price, additional capital works for asbestos removal,
lettable standard works, net zero carbon and lifecycle costs have been estimated at
£4,737,232 in total (£124,664 per unit).
6.3 The principal re-payment for the net purchase costs, asbestos removal and lettable
standard works, is estimated at £4,794,772 plus interest costs of £3,972,565 at
5.25% interest rate, a total loans charge cost of £8,767,337 over the 30-year period.
Annual average costs are £292,245.
6.4 The funding requirements for net zero carbon and lifecycle costs will be factored
into future years' HRA budgets and approved through the relevant annual budget
setting process.
6.5 The purchase of the 38 properties is estimated to generate additional net income to
the HRA of £135,522 by year 10, which increases to £1,967,023 by year 30. This
has been calculated using the same percentage rental income increase
assumptions as used in the 2025/26 HRA Business Plan.
Dreghorn residents
Deputation
Three of the residents from Dreghorn addressed the committee, and spoke of the uncertainty they were living under for the last six months.
Reident Mandy Burgen said: 'What sits before you this morning is a proposal that is a testament of determination and what can be achieved when we all work together collaboratively.
'It proves that solutions can be found and that circumstances can be changed. In March, we sat before you with the support of Living Rent and raised awareness of the desolate prospects that were evolving for the families of the Dreghorn Estate.
'Today proves you listened, and now we ask you to act and that our voices be heard again.
'Since November 2024 the families in the Dreghorn community have been no strangers to the feelings of dejection. Imagine feelings of deprived aspirations, a constant sense of futurelessness and having to hit the pause button on every aspect of your lives. It isn't about losing a house. It's about losing our homes, our family security and livelihoods and the fear of being ejected from our community connections on a micro and macro sociological level.'
Another resident, Amy Monaghan, explained that she is a worried single disabled mother of two children, both of whom are neurodivergent. She said: 'I work as a dinner lady at one of the schools local to Dreghorn Estate and also care for my autistic brother part-time. November of last year, I've been living under a cloud of constant fear and anxiety that I would lose my house, possibly lose my job because of it, and that my children will lose their friends and stability that's been hard earned over the past few difficult years.
'For my family this house represents more than four walls to shelter in. We've built relationships within our community, discovered support systems, and adapted out lives around a space that is perfect for the complex needs of my children. Our neighbours have become our extended family through this ordeal and having the community is what has helped us cope – and beyond that will help us thrive.'
Catherine Lomax spoke on behalf of her daughter who is a disabled adult living independently in the Dreghorn Estate, but who has been affected by the threat of eviction. She said: 'The situation was hopeless, and Sarah was in the depths of depression and anxiety. The threat of eviction was devastating. She was desperately stressed and stopped doing all her normal activities as her mind was entirely focused on becoming homeless. Her coping mechanism was to run away and hide. Since then, the whole community has pulled together to support each other. Losing her home would be a terrible upheaval of her life, but now we have hope that she will keep it and as an added bonus, the campaign has resulted in deep friendships and support within the community.'
Cllr Kumar commented that the residents had painted a really positive picture of their dealings with the council officers and elected members, but wondered if they had an ask for what would happen now. The residents replied that the future of Dreghorn is to keep building the community and that working together is testament to the housing policy – and 'that we can make these things work'.
Cllr Younie also asked about the new residents association and what they would like the council to do to better support them moving forward. The reply was the same: 'Going forward it is about building sustainable communities. Through this we have bonded even tighter together.'
The Finance Convener asked what it would mean to the residents and Ms Burgen said that personally it would allow her to make plans again. She said: 'The incredible amount of work means security. When this news broke six months ago I was in America at my daughter's wedding. She wanted me to go and see her in August. I have had to hit the pause button on that as I didn't know – I could have been homeless going forward. When we saw this proposal today we were over the moon about it and we just ask everybody to pass this proposal today.'
Cllr Savage began his address to the committee with thank yous – particularly for council officers and councillors. He said: I want to thank the residents for their patience and engagement, especially given the pressure and uncertainty they've been under. I am confident the residents association will grow going forward.
'These are homes not just houses, and today we have a unique opportunity to save the community, tackle the housing crisis and homelessness in the city.'
Cllr Savage said to The Edinburgh Reporter after the meeting: 'I am incredibly happy. We heard from the deputation the impact this whole situation has had on them, so I am happy to see that the committee has approved this. There has been so much hard work done on this by council officers, by the council, other elected officials and as I said to the meeting the work done on collaborating and engaging has been absolutely essential.'
Asked about the unknown level of costs – which could be as much as £4.737 million to remedy asbestos in the properties and upgrade them to net zero carbon homes, Cllr Savage did not reply, saying instead: 'I think we have a unique opportunity to save a community to tackle the housing crisis in the city as well as homelessness, in what in my opinion is a good deal as well.'
Cllr Doggart asked for more clarity about the repairs needing done to these houses. He said: 'Are we buying properties that are not in a particularly good state at the moment?' He was assured by the council officers that there will be condition surveys carried out as part of the conditions of purchase. Council officers believe there will only be a little work required on the basis of the condition of previous homes purchased.
When the purchase is settled the existing leases will be terminated, and capital spending will afterwards be incurred on the repairs. Cllr Doggart asked about the future level of rents receivable. Council officers said that these would be individual conversations with tenants and so had not yet been finalised.
Cllr Doggart was assured the purchase price reflects current condition and an officer confirmed that when the houses are purchased – probably in September or October – any remedial works will then be scheduled.
Green councillor Alex Staniforth asked that the council maintains the green space around the development to a high standard. The council will become liable for a charge for this common area when they take over ownership, and this was agreed as part of the committee decision.
In summing up Cllr Watt said she was happy about the level of support this proposal has had, and this decision of the committee will be referred to full council next week for ratification.
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