The Scottish Federation of Housing Associations (SFHA) has issued a call for a sustained increase in housing budget allocations following the release of new figures revealing a significant drop in the number of homes built by housing associations in Scotland.

According to statistics published today by the Scottish Government, the number of homes completed by housing associations fell by more than 26% in the last year, decreasing from 4,091 homes in 2024 to 3,016 homes in 2023.

Against the backdrop of Scotland's declared housing emergency, the data also revealed a sharp decline of over 20% in housing association approvals, from 2,195 to 1,738. The number of homes started also saw a marginal decrease of 5%, from 2,114 to 2,002.

The figures come after the Scottish Government reversed a previous £200 million cut to the country's affordable homes programme. While the SFHA welcomed this additional funding, it has urged both the UK and Scottish Governments to collaborate on establishing a long-term funding settlement for housing associations, noting that 250,000 people remain on social housing waiting lists.

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The SFHA has highlighted the upcoming Chancellor's Spending Review in June, where the UK Government is expected to outline a long-term housing plan for England to meet its target of delivering 1.5 million homes by 2030. The federation argues that any Barnett consequentials arising from this review must be allocated to Scotland's affordable homes programme.

Carolyn Lochhead, SFHA Director of External Affairs, described the statistics as underlining the scale of the national housing emergency: "With the number of homes built by housing associations falling by a quarter last year, these statistics again underline the scale of our national housing emergency."

While acknowledging the recent funding boost, she stressed the need for a more sustained financial commitment: "Whilst the additional funding in the Scottish Budget is a welcome starting point to reverse these concerning trends, we need ramped-up funding over a number of years if we are to deliver the homes Scotland desperately needs."

Lochhead also pointed to the concerning drop in housing approvals: "Today's statistics also highlight a sharp 20% decline in the number of homes approved for housing associations: if there are fewer homes approved in one year, then that's fewer homes which are built in future."

She concluded by calling for a long-term financial plan: "Following the Chancellor's Spending Review, we need to see the UK and Scottish Government commit to a multi-year funding settlement for the Affordable Housing Supply Programme to give our housing associations the confidence they need to build."