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Scottish government needs to plug £700m funding gap, SFHA warns ahead of Budget
The Scottish Federation of Housing Associations (SFHA) has called on the Scottish government to address a £700 million gap in the country’s Affordable Housing Supply Programme (AHSP) due to inflation.
The warning from the SFHA comes as it released new figures that showed a 41% decrease in social homes started in the 12 months to end September 2023.
This was down from 5,535 to 2,243 in comparison to the same period in the previous year.
At the same time, the Scottish government’s own statistics showed a 14% drop in the number of approvals for affordable new build homes.
The SFHA expressed concern back in June that the AHSP target “risks becoming an impossible dream”.
At the time, the member body warned first minister Humza Yousaf that the target of building 110,000 affordable homes by 2032 had “not just stalled, but is at risk of going into reverse”.
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The SFHA and the Poverty Alliance have addressed the falling numbers in an open letter to Mr Yousaf, arguing that building new social housing is a vital factor in lowering child poverty.
As a result, they want the £700m gap addressed in this week’s Scottish Budget.
Sally Thomas, chief executive of the SFHA, said: “Delivering the social homes we need is central to the Scottish government’s guiding mission of ending the injustice of poverty.
“We know that up to 20,000 children across Scotland are kept out of poverty because of social housing, but with a further 10,000 children stuck in the insecurity of temporary accommodation and the devastating effects that has on their well-being and life chances, it is more than urgent that the Scottish government begins to address the £700m funding gap in the AHSP.
“The Scottish government’s current target of delivering 110,000 affordable homes by 2032 is not just stalling, but is in reverse. Failing to increase the AHSP will not only see this target become an impossible dream, but it will plunge households across the country further into poverty.”
Housing minister Paul McLennan said in response: “I am pleased that the number of affordable homes completed in the latest year is the highest annual figure since 2000, supporting just over 10,500 households to have an affordable place to live.
“The combined challenges caused by a hard Brexit and economic mismanagement by the UK government have triggered various issues including the rising cost of construction supplies and workforce challenges.
“This has undoubtedly impacted on the number of new build homes started over the past year. Despite these challenges, the housing sector has done incredible work to deliver homes and we will continue working with partners to mitigate these impacts.
“We are also making £3.5bn available in this parliamentary term towards the delivery of more affordable and social homes. Despite the challenges facing the housing sector, we have already delivered 15,765 homes towards our next target of 110,000 affordable homes in Scotland by 2032.”
