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Scottish Government plans to increase 50,000 affordable homes budget
The Scottish Government plans to increase its investment in housing by nearly £140m to help meet its target of delivering 50,000 affordable homes by 2021.
In its draft 2018/19 budget, published yesterday, the Scottish Government said £722.5m of the £3bn previously pledged over five years would be available for councils, housing associations and developers to build affordable housing. The 50,000 affordable homes target includes 35,000 social rented homes. Last year £583.6m was made available.
The planning budget could also see a significant increase, from £4.1m to £7.5m in real terms. The Scottish Government recently announced that wide-ranging changes will be made to the country’s planning system to encourage more housebuilding and a bill has recently been introduced to the Scottish Parliament.
A £150m Building Scotland Fund will also be established. It is intended to support construction jobs and accelerate housing delivery as well as industrial premises and research and development.
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The Scottish Housing Regulator budget has increased from £4m in 2016/17 to £4.6m in real terms.
The government will introduce a Land and Buildings Transaction Tax (LBTT) relief for first-time buyers on the first £175,000 of the price of a house which, together with the existing zero rate of LBTT for homes up to £145,000 will mean that 80% of first-time buyers will pay no LBTT, the government claimed. The Scottish Government will consult on the policy before introducing it.
The first £10m of a previously announced £50m fund to tackle homelessness and rough sleeping will be made available in 2018/19.
The Scottish Government is in the process of setting up a new social security agency and the social security budget has been increased from £95.9m to £98.7m in real terms.
Sarah Boyack, head of public affairs at the Scottish Federation of Housing Associations, said: “The increase of £138.9m for the More Homes Programme is a very welcome announcement for the social housing sector.
“This funding – and the increase in the planning budget – should further assist our members in contributing towards the Scottish Government’s 50,000 affordable homes target and help to house more people who are in desperate need of a home of their own.
“The investment will also secure jobs and training opportunities – key challenges identified by our members in our Brexit report earlier this year.
Nicola Barclay, chief executive of Homes for Scotland, said: “With homebuilding in Scotland supporting more than 60,000 jobs and contributing billions each year to the economy, we are pleased to see the Scottish Government confirming its ambition for the housing of all types our country needs.
“As well as a significant funding increase for affordable housing, the additional funding for skills bodies, colleges and universities that will help to plug the skills gap is also welcome.”
