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Scottish government confirms 16% increase in affordable housing investment
The Scottish government said it will raise the amount of capital funding for affordable housing over the next parliament, with further funding expected, after initial confusion about the size of the budget.
More than £2.8bn in capital funding will be invested in affordable housing over the next five years, with further funding to come through financial transactions and the transfer of management of development funding budgets, the government said.
The capital investment plans were first announced late last month as part of its Draft Infrastructure Investment Plan for 2021-26.
The £2.8bn figure sparked fears amongst housing bodies – including the Scottish Federation of Housing Associations (SFHA) and the Glasgow and West of Scotland Forum of Housing Associations – that the government’s affordable housing programme was set for a 20% cut from the £3.5bn allocated this parliamentary term.
The organisations said this funding fell far short of the £3.4bn needed to deliver the 53,000 affordable homes that the sector has calculated the country needs over the next five years.
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However, the government has now clarified that further funding will be announced for affordable housing as part of the overall Scottish Budget.
It added that the spend was a 16% increase on the £2.4bn capital investment in affordable housing during the current parliament.
Under the current parliament, the Scottish government has a target to build 50,000 affordable homes. However, earlier this year the government admitted it would miss this target due to the impact of the COVID-19 crisis.
It is not yet known whether the Scottish National Party government will pursue a similar target if it is re-elected in next May’s election.
Scottish housing minister Kevin Stewart said: “We plan to invest over £2.8bn in capital over the next five years to deliver more affordable and social homes reflecting and supporting local housing strategies and regional development priorities – which is £388m more than the equivalent planned investment over the current five-year period.
“This represents a planned increase of 16% in capital investment in affordable housing, ensuring the right types of homes in the right places to support demographic need, economic opportunity and to assist in delivering climate change targets.
“Further activity will be funded to deliver more affordable and social homes through financial transactions and the transfer of management of development funding budgets, and will be set out as part of the overall Scottish Budget in due course.”
Sally Thomas, chief executive of the SFHA, said: “SFHA welcomes this clarification from the Scottish government regarding the funding for affordable housing, announced in the Draft Infrastructure Investment Plan, and we look forward to seeing the full details.
“We also look forward to continuing discussions on the next affordable housing supply programme, including grant rates and quality standards.
“Scotland needs 53,000 affordable homes, including 37,100 social homes, to be delivered between 2021 and 2026, and this remains a key priority for SFHA and our members and will be reflected in our full consultation response to the Draft Infrastructure Investment Plan.
“The coronavirus pandemic has highlighted the importance of good-quality, warm, safe affordable homes. Together with our members, we will work with the Scottish government to ensure we can deliver the homes Scotland needs for the remainder of this programme as well as the next.”
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