Housing bodies in Budget plea for investment in affordable homes

Three key housing bodies have called for a meeting with Scotland’s Finance Secretary ahead of the Budget in early January.

Shelter Scotland, the Scottish Federation of Housing Associations (SFHA) and the Chartered Institute of Housing (CIH) have warned the next government will need to build almost 16,000 affordable homes to curb rising homelessness.

Such a project will require at least £1.64 billion annually, with Shelter Scotland’s director Alison Watson saying the country faces “a simple choice: invest in the homes we need now or pay the price for generations”.

She added: “Scotland needs these new homes for social rent to prevent more families being pushed into poverty, to 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 hope the Finance Secretary will listen to these calls and hope she finds the time to meet us.

“We need our politicians to step up and invest in a future where everyone in Scotland has their right to a safe, affordable home upheld. It is time to build Scotland, build hope and build more social homes.”

SFHA chief executive Richard Meade said building more affordable homes is “crucial” to solving every major challenge facing Scotland, including poverty, health and the economy.

“The evidence is clear about the scale of investment that requires, but it’s not just about building homes – it’s about building the future Scotland that we want to see: a fairer, wealthier and healthier one,” he added.

CIH national director Callum Chomczuk admitted the housing target is an “ambitious” one, but added: “If we want to truly end the housing emergency, get children and families out of temporary accommodation, and make the housing system work for everybody then it starts with building the social and affordable homes we need.

“We hope the commitment made in the housing emergency action plan is reflected in full in the Budget and sets Scotland on the path to an annual programme of 15,693 social and affordable homes.”

Housing secretary Mairi McAllan said: “We have a strong track record in affordable housing, having supported the delivery of more than 140,000 affordable homes since 2007, with over 100,000 of these for social rent.

“That’s 47% more per head than England, and 73% more than in Wales, as of March 2024. However, we know more must be done.

“That’s exactly why our Housing Emergency Action Plan, which I published in September, ensures that £808 million will be available for affordable homes in Scotland this year alone, including £80 million targeted at immediate acquisitions and to support the delivery of around 8,000 affordable homes.

“The plan also sets out a commitment of up to £4.9 billion over the next four years as part of a significant uptick in funding and certainty which will help deliver up to 36,000 affordable homes.”

She added: “This is a significant uplift in funding compared to the previous spending review period and provides the sector with the longer-term funding certainty needed to drive up delivery of much-needed affordable homes.

“We are calling on the UK Government to reverse cuts to the Scottish Government’s capital funding to support housebuilding and other vital infrastructure.

“Decisions in the 2026-27 Scottish Budget will be announced by the Finance Secretary on 13 January.”