New research to look into how Scotland developer contributions could boost social housing supply

This figure is around a fifth of the number that must be built to meet the country’s housing need, according to research by Shelter and other sector groups.

The fall in starts followed previous funding cuts to the government’s affordable housing supply programme, though this was later reversed with £4.1bn committed to the scheme over the next four years, subject to the result of next month’s Scottish parliamentary elections.

Announcing the research this week, the SFHA pointed out that up to three in 10 affordable homes in Scotland are built through some form of private development.

The group said Section 75 agreements, planning obligations that force developers to contribute to affordable housing and local services, will be the focus of the work.

Investigators will assess how far these contracts between councils and house builders – the equivalent of Section 106 in England – are being used in Scotland and what challenges and opportunities there are for delivering social homes via these agreements.

The study will also look at how Section 75 agreements apply to developments by housing associations.

Under national planning policy, a quarter of new market homes should be affordable, but this target can vary depending on location and the viability of the scheme.

In 2021, research by Rettie and the Scottish government found that two-thirds of developer contributions to councils went on affordable housing, with the rest going on infrastructure.

Richard Meade, chief executive of the SFHA, said it is “critical that we understand how these agreements are working in practice”.

He added: “Given the urgent need for more safe, warm and affordable homes throughout Scotland, it’s essential that we find out how Section 75 agreements can be improved to support housing associations and co-operatives in their development programmes.

“We trust this research will demonstrate the barriers and opportunities housing associations face in different local authorities under Section 75 agreements and believe this will inform policymakers to support the delivery of more social and affordable homes.”