Swinney: Government in extensive discussions with private housebuilders

The Scottish Government has been in “extensive discussions” with private housebuilders to increase construction, the First Minister has said.

Figures released on Tuesday show a struggling housebuilding sector as the country grapples with a housing emergency.

Last year, the private sector completed the least amount of homes since 2017, with just 13,725 built, while the social sector completed just 3,611, the lowest since 2014.

The number of social homes which began construction in Scotland last year was also the lowest figure on record at 3,070.

Speaking to the Press Association in Stirling, John Swinney said the sector was facing “challenges” brought on by rising construction costs.

“What we see in the construction sector are some of the challenges about the cost of construction of houses, because the cost of construction of houses has gone up significantly as a consequence of the global pressures around about the access to raw materials following the invasion of Ukraine, so general construction costs have increased,” he said.

The First Minister added that his Government had put more than £900 million into the affordable housing sector for the next financial year and there was an uptick in housebuilding in recent months.

He added: “What we’ve got to do is to take the steps that I took in the Housing Bill, for example to make Scotland an attractive place for housing investment to be undertaken by the private sector and we’re now taking forward extensive discussions with the private sector about their involvement in housebuilding in Scotland, particularly in relation to mid-market rent properties.

“So, there has to be a combination of interventions: the Government’s affordable housing programme; the attractiveness of Scotland for investment purposes; and also, for example, bring void accommodation into use by the public sector.”

But Scottish Labour housing spokesman Mark Griffin said the SNP cannot “get the chance to spend another five years worsening the housing emergency”.

“We need a change of government to end Scotland’s housing emergency and deliver a better future for Scots,” he said.

“Scottish Labour will deliver the most ambitious housebuilding programme in the history of devolution with 125,000 new homes – so Scottish families have the safe secure homes they need and home ownership can be within reach for the next generation.”

Scottish Tory housing spokeswoman Meghan Gallacher branded the figures “atrocious”, adding: “Housebuilding has collapsed across Scotland and there is a spiralling housing emergency on the SNP’s watch.

“John Swinney and (Housing Secretary) Mairi McAllan have decimated the industry and have no plan to fix this emergency.

“Their reckless rent controls, endless red tape and anti-growth policies have driven away investment and are choking off housing supply.”

The charity Shelter Scotland warned the Scottish Government risked missing its target of 110,000 new affordable homes by 2032.

“Once again, social housebuilding remains too little, too slow, too late for the tens of thousands of people impacted by the housing emergency,” said the charity’s director, Alison Watson.

“The Scottish Government pledged 110,000 affordable homes by 2032 – 70 per cent of which should be for social rent.

“Our new analysis shows they are on course to break that promise, which means housing need will continue to grow.

“No party has put forward a credible plan to deliver the homes Scotland needs, meaning politicians of all parties are planning for more people to be pushed into homelessness.

“We need new money and a new approach. Failing to act will cost families and taxpayers more, with local authorities forced to make more cuts to fund temporary housing.”

The Scottish Federation of Housing Associations described the situation in affordable housing as in “freefall” , with chief executive Richard Meade saying it should be a “wake-up call to our politicians about the urgent need to address the national housing emergency”.