Clackmannanshire Council has approved its Strategic Housing Investment Plan (SHIP) for the period 2026-2031, which will govern the operational framework for affordable housing development over the next five years.

Councillors heard that the Council's Resource Planning Assumption (RPA) funding from the Scottish Government for 2025/26 is £5.879 million. The plan outlined updates on progression for various council-owned sites, including Engelen Drive in Alloa, Pompee Road in Sauchie, and Lochies Road in Clackmannan.

A report presented to the Council highlighted the continuing challenge of rising tender costs for new builds, making it difficult to deliver projects within current benchmark funding levels.

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• Build Costs: Average local build costs are currently between £210,000 and £230,000 per unit.

• Grants: Grants per unit are significantly lower, ranging from £115,000 to £120,000.

This gap is putting pressure on the Council and its partner Registered Social Landlords to fill the funding shortfall, leading to some project delays.

Councillor Jane McTaggart, depute spokesperson for Place, acknowledged the "challenging situation" created by the combination of increasing demand and the rising costs of construction. She stated: “However, we are working hard to be flexible and imaginative in the way we work as a Council and with our partner Registered Social Landlords to meet those needs."

In the meantime, the Council is continuing to buy properties "off the shelf," having purchased 23 homes in the last financial year, with plans to buy 20 more for Council-ownership in 2025/26.