Spending cuts threaten Scottish house building

Speaking at the Scottish Federation of Housing Associations’ annual conference in Glasgow this week, Alex Neil said housing associations needed to think radically with bold ideas to increase supply.

‘The trail of destruction left by the UK government means that next year, Scotland’s housing sector faces the stark prospect of a reduction in funding for low cost homes,’ he said.

In May the Scottish Government published a green paper asking for innovative ways to increase supply of homes in Scotland with limited funds. It had an open ended finish date, but will be debated in the Scottish Parliament on 16 September.

Mr Neil continued: ‘It is in the interest of every housing association in Scotland to join that debate and help shape the future direction of our housing system.’

He highlighted what he believed were examples of good practice by housing associations, such as securing investment from wider sources such as the European Investment Bank.

SFHA chief executive Mary Taylor responded: ‘Our members appreciated the frankness of the minister’s speech which dealt with the potentially huge impact of upcoming public spending cuts on the housing budget in Scotland.

‘While we accept that the cuts pose a serious risk to any publicly-funded activity, the SFHA will be doing its best to minimise the impact of any cuts to our sector, which benefits the economy and society as a whole.’

She pointed out cuts do not just affect new-build homes but also quality, energy efficiency and ability of housing providers to meet the Scottish Government’s target of eradicating homelessness in the country by 2012.

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