Budget cash for affordable housing should pay for ‘at least’ 8,000 homes

Extra cash for affordable housing in the Scottish budget should allow “at least” 8,000 more homes for rent and low cost ownership to be built, the housing minister said.

Although the Scottish Government has declared a housing emergency, cash for affordable housing was cut in the Budget for this current year.

But draft spending plans for 2025-26 will see resources rise by more than £200 million, with a total investment of £768 million planned by the Scottish Government for next year.

Paul McLennan said this would build on the “strong track record” of the SNP in this area, adding that 133,000 affordable properties have been built since the party came to power in 2007.

Spending on affordable housing in Scotland is 45% more per person than in England, and 70% more per person than in Wales, he said.

And the housing minister added: “By increasing the affordable housing supply budget in 2025-26 by more than £200 million, housing providers will be able to deliver at least 8,000 properties for social and mid-market rent and low-cost home ownership.”

Mr McLennan spoke out as he visited the site of a new affordable housing development in Haddington, East Lothian, on Monday.

The minister said: “Investing in safe, warm and affordable homes is key to our top priority to tackle child poverty.

“We already have a strong track record in affordable housing, having supported the delivery of 133,000 affordable homes since 2007 – this includes our £2.9 million investment in the development at Haddington.”

The Scottish Government also plans £4 million of investment next year to help work by councils and others aimed at preventing homelessness, while £2 million will go towards transforming empty properties into affordable homes.

Councillor Andy Forrest, East Lothian Council’s housing spokesperson, said the council, like others in Scotland, had recently declared an “affordable housing crisis”.

He added: “We welcome the announcement of more subsidy funding for affordable housing and any additional revenue for frontline services to help prevent homelessness.”

Alison Watson, director of housing and homelessness charity Shelter Scotland, said: “The Scottish Government has rightly acknowledged that last year’s cut to the affordable housing budget was a mistake.

“Since that decision was taken, countless people and families have needlessly endured the plight and suffering caused by Scotland’s chronic shortage of homes.

“While the commitment to more affordable homes is welcome, building more social homes is the only way to end the housing emergency, and the government knows this.

“It’s time for cash to lead to change. Investment in social housing is investment in the people of Scotland, and generations to come. Nothing short of a substantial increase in the delivery of social homes, and at pace, will cut it.”