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More than 60% of developer contributions used for affordable housing in Scotland
Almost two-thirds of contributions made by developers through the planning system in Scotland last year were spent on affordable housing, new government research has found.
Almost two-thirds of contributions made by developers through the planning system in Scotland last year were spent on affordable housing, new government research has found #UKhousingA report released by the Scottish government found that £310m worth of developer contributions was agreed to be used for affordable housing in 2019/20, representing 63% of the total £490m contributions agreed during that period.
The remaining £180m went towards infrastructure, the vast majority of which was spent on education, transport, open space and leisure facilities.
The amount of developer contributions spent on affordable housing in 2019/20 was up 41% from £220m in 2017/18.
However, the value of developer contributions is concentrated in a relatively small number of areas, with the top five authorities, all of which are in the central belt of Scotland, accounting for 43% of contributions towards affordable housing in 2019/20.
Around 75% of local authorities in Scotland use developer contributions to secure affordable housing.
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Local authorities in Scotland can require developers to make contributions towards affordable housing when they submit a planning application under either Section 75 of the Town and Country Planning (Scotland) Act 1997 or Section 69 of the Local Government (Scotland) Act 1973.
The Scottish government’s research, which involved surveying all local planning authorities, found that councils believed the burden of developer contributions ultimately falls on landowners rather than developers, by reducing land values.
“While this is true in principle, in practice uncertainties and negotiation may mean that some costs are borne by other participants,” the report said.
Commenting on the report, Tammy Swift-Adams, director of planning at Homes for Scotland (HFS), which represents house builders, said: “This report shows the vital importance of homebuilding to the wider planning system and to achieving positive outcomes for communities and places.
“National and local affordable housing programmes are dependent on continued support for the wider industry, and HFS has long made the connection that the public and private sectors are intertwined when it comes to housing delivery.
“Providing more market housing directly results in an increase in affordable housing and this report helps to further articulate the wide-ranging benefits all parts of the housing sector bring.”
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