Three major housing organisations in Scotland have requested an urgent meeting with the Cabinet Secretary for Finance and Local Government, Shona Robison, ahead of the upcoming Scottish Budget, warning that a failure to commit substantial construction funding will see homelessness continue to rise.
Following new research on the country's affordable housing needs, Shelter Scotland, the Chartered Institute of Housing Scotland (CIH), and the Scottish Federation of Housing Associations (SFHA) stress that Scotland must build at least 15,693 affordable homes per year throughout the next Parliamentary term to meet demand. The construction and delivery of housing on this scale would require a minimum annual investment of £1.64 billion, starting in the financial year 2026-2027.
The organisations acknowledge that this investment is substantial, but they argue that building costs are not expected to fall, and the long-term social and financial cost of inaction is far greater. Investing in social housing construction is also cited as crucial for achieving wider government objectives, including reducing child poverty, tackling climate change, improving public services, and stimulating economic growth.
CIH National Director, Callum Chomczuk, highlighted the scale of the challenge: "Our joint research is clear. Scotland needs an additional 15,693 affordable homes annually between 2026 and 2031. This is over 75,000 homes over the next Parliamentary term. By contrast we delivered a little over 8000 social and affordable homes in 2024."
Alison Watson, Director of Shelter Scotland, reinforced the urgency: "We face a simple choice: invest in the homes we need now or pay the price for generations. Scotland needs these new homes for social rent to prevent more families being pushed into poverty, to get the 10,180 children out of temporary accommodation and into permanent homes... It is time to build Scotland, build hope and build more social homes."
Richard Meade, CEO of SFHA, concluded that delivering the desperately needed social homes is vital for solving almost every major challenge the country faces, from poverty and homelessness to strengthening the economy. He added: "The evidence is clear about the scale of investment that requires, but it's not just about building homes – it's about building the future Scotland that we want to see: a fairer, wealthier and healthier one."
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