Nearly all councils receiving less money for social housing despite emergency

All councils in Scotland bar one will receive less money for social housing this year than they did four years ago, figures have shown, despite the Government calling a national housing emergency.

The Scottish Government’s own data shows less cash was allocated in 2025-26 for the affordable housing supply programme than in 2021-22.

Councils will share a total of £660 million from the scheme in the coming year, lower than the £724 million given out in 2021-22.

Edinburgh is the only local authority that will see its budget rise – from £52.4 million to £59.4 million – amid an acute housing crisis in the region.

Money for the other 31 councils will fall.

The reduction comes despite ministers reversing £200 million in budget cuts to the housebuilding scheme.

Shelter Scotland said that while it welcomed the improved funding settlement, councils are still seeing less from the Scottish Government than they did four years ago.

Alison Watson, director of the charity, said: “It is time for Scotland’s politicians to be frank with the nation: there is no plan to end the housing emergency.

“It has been a year since a national housing emergency was declared by the Scottish Parliament, but almost all local authorities continue to have less money to spend on new social homes than they did in 2021/22.

“A Housing Bill, like the one currently going through the Scottish Parliament, that will not reduce rents, will not make it easier to build social housing and will not inject more cash into services to prevent homelessness cannot be the answer.

“We need radical action from our politicians.”

She said Scotland needed a “programme for housing, from the Government, not a programme for homelessness”.

During a statement to Parliament on Thursday, Social Justice Secretary Shirley-Anne Somerville said the Scottish Government was investing £768 million to build 8,000 social and mid-market rent homes.

Ms Somerville said that came on top of £4 million for a homelessness prevention fund and £2 million to increase the number of empty homes being returned to use.

She told MSPs: “We are making progress but we know that there is much more yet to do as we move into our next phase of our response.

“That is why the latest programme for government reiterated our commitment to the delivery of the 110,000 affordable homes target by 2032.”

Scottish Tory MSP Meghan Gallacher said the Scottish Government’s proposed rent controls were making the housing crisis worse.

She quoted businessman Tom Hunter, who claimed the crisis could be resolved “tomorrow morning”, explaining, “it’s very simple – build baby build”, in a reference to Donald Trump’s “drill baby drill” comment about oil.

But he said a lack of clarity in Government policy was putting off firms from building. He said he knew of developers who took build-to-rent projects to cities such as Manchester due to concerns around the rent cap.

Ms Somerville said businesses needed certainty more than anything else and that she had written to developers to “reassure” them that rent controls would not be extended into other parts of the housing sector.

She added: “We have taken forward changes at stage two [of the Housing Bill] through the Government to provide certainty for investors, for the build to rent market, for the PBSA [purpose-built student accommodation], and that certainty is something that this Government is determined to provide.”

Housing minister Paul McLennan said: “We have increased the Affordable Housing Supply Programme budget by £200 million for 2025-26 to £768 million, including £40m targeted towards acquisitions to support the local authorities with the most sustained homelessness and temporary accommodation pressures.

“Local authorities will also be provided with £15 billion this financial year for a range of services, including in homelessness services.

“There is also an additional £4 million invested in the Ending Homelessness Together budget for 2025-26 to help local authorities, frontline services and relevant partners prepare for the new prevention measures in the Housing Bill and to help them to respond to the housing emergency by preventing homelessness before it occurs.”