Scottish Government Extra Money For Housing From Scottish Government Goes Nowhere Near Tackling The Problem

27th April 2024

Efforts to boost affordable housing supply by acquiring properties to bring into use for affordable housing and help reduce homelessness will be given an £80 million uplift over the next two years.

The funding, announced by First Minister Humza Yousaf on a visit to Hillcrest Housing Association's Derby Street development in Dundee, will increase the Affordable Housing Supply Programme budget to nearly £600 million in 2024-2025.

Investment will help reduce the time spent in temporary accommodation, including by children, and will also accelerate discussions with COSLA in relation to the number of local authority void properties.

The First Minister said:

"Housing is essential in our efforts to tackle child poverty and reduce inequality across Scotland, and it supports jobs and growth in the economy. Providing good quality, affordable housing is at the very core of what my Government is doing to make Scotland a better place.

Homes For Scotland published a groundbreaking report examining "Existing Housing Need in Scotland" on 22 January 2024.

This followed a survey of 13,690 people across Scotland undertaken by The Diffley Partnership and Rettie & Co given our concerns that the present method does not represent a comprehensive enough picture.

The independent research was commissioned in response to the Local Development Plan Guidance published by the Scottish Government in May 2023 to assist planning authorities with the crucial evidence gathering stage, recognising that, for a variety of reasons, it is not always possible for them to have access to primary data on the full range of housing needs in their area.

It uses a broader definition of existing household need than that currently used (i.e. overcrowded households that have at least one concealed family household and homeless households in temporary accommodation) which HFS believes drastically underestimates real need.

The survey found that, overall, 28% of Scottish households currently have some form of housing need. This equates to around 693,000 households in Scotland.

This includes 15,000 overcrowded households that have at least one concealed family household, which concurs with the Scottish Government's MATHLR figure for existing need in Scotland based on its tighter definition.

When accounting for those who can make in-situ repairs, this reduces the overall need figure to around 550,000 households. Based on secondary data analysis, it is estimated that around 330,000 of these households require affordable housing, with the remainder (220,000) able to afford a market housing solution.

The survey therefore demonstrates that:

levels of existing housing need in Scotland are more complex and much higher than is currently being accounted for.

there is a straightforward, robust and efficient approach available to local authorities and the Scottish Government, or to anyone seeking to gather data on existing housing need beyond the secondary data already incorporated in the HNDA tool.

HFS hopes that the Scottish Government, local authorities and wider stakeholders welcome and utilise the survey findings to ensure that the housing needs of all those living in Scotland are met.

Dealing with empty homes may help some but the real problem is that Scotland is not building enough new homes for the increasing needs. The consequence is that the extra money being put in may only help to increase property prices.