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Scottish social landlords need support to tackle the housing shortage
Enhanced government support is needed to address the labour shortage directly and address budget deficits, writes Ross Barty, regional business manager at Scottish Procurement Alliance
Ross Barty is regional business manager at The Scottish Procurement Alliance
To say the past few years have been turbulent would be an understatement and at times it has certainly felt like the house of cards is about to fall.
In the face of a housing crisis, debilitating cuts to the sector, development costs rocketing and an intensity of pressure unlike anything many have experienced in their entire careers, the sector remains vibrant and committed to rising to the challenge.
However, optimism and a roll-up-your-sleeves attitude can only go so far, and if housing associations and local authorities are not given adequate help soon, there will be major consequences.
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Until we address the real issues around current support mechanisms, budget deficits and skill shortages, the chances of housing associations and local authorities meeting key targets is a dubious proposition at best.
To put this into perspective, the Scottish government reported that despite the housing crisis in the past year, a quarter of local authorities opted against building affordable homes.
With housebuilding at record lows, social landlords know they must deliver, despite cuts to the development budget such as the £196m from the Affordable Housing Supply Programme, and developers going bust.
“The next generation of bricklayers, electricians and plumbers are just not coming through at the rate that they used to”
The pressure on social landlords has never been greater but it’s equally felt by developers with rising costs, labour shortages, planning delays and supply chain interruptions all causing havoc, but crucially the budget gap and the drop in housing development is a real concern for the viability of developers.
Funding must become more accessible and readily available for new build housing. Additionally, access to competent contractors is essential, and this is only possible if we have a continuous stream of skilled workers. It was only in May this year when reports suggested 26,000 workers would be needed to meet demand.
The next generation of bricklayers, electricians and plumbers are just not coming through at the rate that they used to, and without the adequate skill set available, the procurement process becomes even harder.
To address this, there needs to be a broader government strategy in place to provide adequate support to all these critical trades, including green jobs, to give them the best possible shot at addressing the skills shortfall.
In addition to this, not only are housing associations and local authorities contending with skills shortages, but they are also under-resourced and must navigate procurement without the necessary nuance or skill set to properly identify appropriate suppliers.
Increasingly, I hear stories of individuals with no prior procurement experience being asked to initiate processes for substantial projects. This is a recipe for disaster and has far-reaching costs.
With the support provided through our Added Value Services programme, we have been able to navigate these challenges with ease while offering basic training to help organisations that struggle to understand the complexities of a procurement process.
“Increasingly, I hear stories of individuals with no prior procurement experience being asked to initiate processes for substantial projects. This is a recipe for disaster”
This year the Scottish Procurement Alliance has supported the delivery of hundreds of homes through our frameworks and we have been right at the centre of supporting partners to deliver these new homes and the challenges surrounding delivery.
But this period of struggle has necessitated the need for collaboration between the government and the public sector.
It’s clear that enhanced government support is needed to address the labour shortage directly, address budget deficits and provide social landlords with the support they desperately desire.
Ross Barty, regional business manager, Scottish Procurement Alliance
