Half of all affordable homes are needed in eastern Scotland, says report

Half of all affordable homes needed in Scotland are required in the east of the country, a housing report says.

The report advises that Scotland must deliver a minimum of 15,693 affordable homes a year in the next parliament, which equates to a total of 78,465 over five years to combat homelessness in the country.

Funded by Shelter Scotland, the Scottish Federation of Housing Associations (SFHA) and the Chartered Institute of Housing (CIH) Scotland, the report reveals that out of 15,693 affordable homes needed to be delivered in the next year 7,860 are required in eastern Scotland.

Shelter Scotland have said the research shows “the devastating reality” of Scotland’s housing emergency.

Shelter Scotland director Alison Watson said: “This research shows the devastating reality of Scotland’s housing emergency and the decades of underinvestment in housing that have brought us to the point. The need for social housing is increasing and yet Scotland is not building anywhere near enough to meet demand.

“The Cabinet Secretary for Housing recently announced a housing emergency action plan. While there is much to welcome, it falls short on delivering the new social homes needed to stop homelessness rising.

“Scotland needs these new homes for social rent to prevent more families being pushed into poverty, get the 10,180 children out of temporary accommodation and into permanent homes, to stop young people being locked out of secure housing and to protect communities from a broken and biased housing system.

“We face a simple choice: invest in the homes we need now or pay the price for generations. Scotland cannot afford another lost decade on housing.”

The research was conducted by University of Sheffield, University of Liverpool and Sheffield Hallam University as an update to research produced five years ago that informed the Scottish Government’s current affordable housing supply programme.

It has identified that the need for social housing is greater now than previous research findings

The findings of the new report show a near-50% increase in estimated need relative to the 2020 report.

The Scottish Government declared a national housing emergency in May 2024 and 13 local authorities have also declared a housing emergency since 2023.

Richard Meade, Scottish Federation of Housing Association (SFHA) chief executive, said: “The announcement of increased long-term funding for the housing budget set out in the Housing Emergency Action Plan is a welcome step in the right direction.

“However, the research is clear that Scotland will need over 15,000 social and affordable homes per year and total public investment of at least £8.2 billion over the course of the next parliament. SFHA looks forward to working with the Scottish Government and MSPs across parliament to achieve this.”

The report comes as the Scottish Parliament starts its Stage 3 line-by-line consideration of the Housing (Scotland) Bill.

Housing Secretary Mairi McAllan has said the legislation “will be a landmark Bill” and be a “gold standard” homelessness system.

Ms McAllan said: “The Scottish Government has a strong track record in affordable housing having supported the delivery of over 139,000 homes since 2007 with more than 99,000 of these for social rent.

“However, I want to go further and faster, ensuring that the entire housing sector, public and private, plays its part in delivering the homes we need.

“That is why I have set out in my Housing Emergency Action Plan a commitment of up to £4.9 billion through a mix of public and private sector leveraged investment over the next four years, further details of which will be published in the spending review.

“This long-term certainty and increase in funding will support a significant increase in delivery of around 36,000 affordable homes and provide up to 24,000 children with a warm, safe home.”

She added: “Our planning system will also be key to unlocking the delivery of homes we need.

“The Scottish Government is taking forward a package of actions on planning including a new notification direction to planning authorities, through which ministers will closely monitor the application of planning policy and intervene when needed.”