Ahead of the publication of the Scottish Government's Draft Budget on 06 February, Sally Thomas, SFHA Chief Executive, has written to Cabinet Secretary for Finance, Economy and Fair Work Derek Mackay to ask the government to prioritise funding in the following areas:
Adaptations: SFHA has identified an annual shortfall of £7 million for adaptations required in housing association homes to enable people to stay in their homes, return to them after hospitalisation, and to promote physical and mental wellbeing.
Fuel poverty and energy efficiency: SFHA is a member of the Existing Homes Alliance Scotland and supports its call for a doubling of investment in energy efficiency improvements and heat decarbonisation from the current budget of around £119 million per year to at least £240 million a year. In addition, SFHA is calling for support for housing associations to help them to meet the cost of the Energy Efficiency Standard for Social Housing Two (EESSH2). Scottish Government figures show 91% of the cost of meeting EESSH1 (around £300 million) came from landlords' own resources, and the costs of EESSH2 are set to exceed this.
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Post-Brexit support: SFHA is asking the government to provide funding for partnerships between housing associations and support organisations to ensure wrap-around advice and support – such as financial inclusion and welfare rights services – for tenants, especially those on the lowest incomes and those with care and support needs who may be most affected by any increase in the cost of living after Brexit.
Low level housing support for vulnerable tenants: Ring-fencing funding of £500,000 could help social landlords to offer vital housing support beyond basic housing management, helping to prevent homelessness and keep vulnerable people safe and well at home.
However, SFHA's key ask is for the government to end the uncertainty regarding funding for the next affordable housing supply programme. Housing associations require this in order to be able to plan ahead and make strategic decisions regarding how they meet a range of future housing needs, including new build developments that require acquisition of new sites, investment in their existing stock or buying existing homes to add to the range of homes they make available.
Sally Thomas, SFHA Chief Executive, said: "The biggest issue facing the affordable housing sector is the uncertainty regarding the next housing programme. This must end in order to ensure that we not only meet the existing homes target but that social landlords can continue to deliver the homes Scotland needs beyond 2021. Clarity from the Scottish Government on the scale of future investment and Housing Association Grant levels will be essential for that process to be successful and to avoid a halt in the current programme.
"There is already evidence of housing associations withdrawing from planned developments due to uncertainty about future investment – this risks the success of the existing programme and makes it extremely challenging for the housing sector to plan beyond 2021, despite being well placed to do so.
"Continuing to fund social rent through Housing Association Grant has many benefits, including meeting outstanding housing need, keeping rents affordable, saving the NHS money by helping people to stay safe and well at home, and supporting economic growth through creating jobs and apprenticeships.
"We are calling on the Scottish Government to maintain existing investment levels – a programme of 10,000 affordable homes per year – until its Housing to 2040 work is finalised."
