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Scottish affordable housing starts and approvals fall to 10-year low
Affordable housing starts and approvals in Scotland fell to a 10-year low in 2023, according to the latest government statistics.
There were 6,239 affordable housing approvals in the calendar year 2023, according to Scotland’s chief statistician. This represents a 5% decrease on 2022 and the lowest number since 2012.
Meanwhile, construction started on 6,046 new affordable homes in 2023 – a 20% decrease from 2022 and the lowest number since 2013.
Affordable completions also fell last year, though less dramatically than starts and approvals. There were 9,680 affordable completions in 2023, a 5% decrease on 2022 and the lowest number since 2021.
Just 2,073 new build homes were started by housing associations in 2023, a 22% decrease on 2022 and the lowest number since 1988.
Meanwhile, local authorities started 1,192 affordable homes, a 49% decrease on 2022 and the lowest number since 2013.
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Housing associations completed 534 homes in 2023, a decrease of 12% on the previous year. Local authorities completed 718 homes, a fall of 30%.
The figures came as Fife last week became the fourth Scottish local authority to declare a housing emergency, while the Scottish government recently approved an £196m cut to its affordable housebuilding budget for 2024-25.
The Scottish government pointed out that affordable completions in 2022 were the highest on record, with the latest figures comparable to pre-pandemic levels.
However, sector bodies said the data on starts and approvals meant the Scottish government’s target to deliver 110,000 affordable homes by 2032 was “all but over”.
Sally Thomas, chief executive of the Scottish Federation of Housing Associations, said the number of homes being delivered by housing associations “are in absolute freefall”.
She added: “And this is before the Scottish government’s devastating £196m cut to affordable housing has even taken effect.”
Although the government is keen to attract more private investment, Ms Thomas said: “We’re concerned that this isn’t a solution. Social homes need government investment if we’re not to burden housing associations with debt which will force up rents.”
“The Scottish government has a target to deliver 110,000 homes by 2032 – the hopes of achieving that are now all but over. We need them to restore the much-needed funding and urgently work to forge a credible path out of our national housing emergency,” she added.
Callum Chomczuk, national director at the Chartered Institute of Housing Scotland, said: “The housing statistics published today are devastating for anyone in need of a home.”
He continued: “It is clear and clearer that our housing and homelessness system it is risk of systemic crisis; it needs political intervention and we need funding for more social housing. Only by building more social homes can we address Scotland’s growing housing emergency.”
Scottish housing minister Paul McLennan pointed out that “Scotland has delivered more than 128,000 affordable homes since April 2007, over 70% of which were for social rent”.
He added: “In the year 2022-2023, Scotland delivered by far the most affordable homes per head of the population of any country in the UK – 69% higher than the rate in England, building on our track record of doing more than any other part of the UK to provide and keep social homes.
“There’s no doubt that inflation, supply chain issues and labour shortages linked to Brexit have created a challenging environment which is reflected in today’s statistics. We will continue to work with local authorities, housing associations to increase the delivery of more affordable homes, the majority of which will be for social rent, including supporting acquisitions of existing properties.”
The minister also blamed UK government cuts to the devolved nation’s capital budget.
The Scottish government said it remained focused on delivering its affordable homes target by 2032 and will bring forward a review this year, previously pencilled in for 2026-27, to support this.
