The Scottish Federation of Housing Associations (SFHA) has welcomed the long-term funding commitments for affordable housing in the Scottish Budget 2026-27, yet cautioned that the current system requires a "radical overhaul" to be effective.

The draft Budget, unveiled by Finance Secretary Shona Robison on Tuesday, 13 January 2026, allocates £4.1 billion in public funding to the Affordable Housing Supply Programme (AHSP) over the next four years. This investment is part of a wider government strategy to deliver 36,000 more affordable homes by 2030.

While the SFHA appreciated the multi-year certainty, the federation expressed serious concerns regarding the timing of the funds. Analysis suggests the increase is heavily "back-loaded" toward the end of the four-year period, leaving early-year funding broadly flat in real terms once inflation, rising construction costs, and labour shortages are factored in.

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SFHA Chief Executive, Richard Meade, stated: "The Scottish Government's draft Budget confirms a continued commitment to affordable housing, with £4.1bn in public funding for the Affordable Housing Supply Programme over four years, and this progress is appreciated. However, a closer look at the spending review shows that much of the increase is back-loaded towards the end of the period. This risks slowing delivery at precisely the point when we need to accelerate the building of affordable and social homes."

The SFHA is advocating for a more ambitious £8.2 billion commitment over the course of the next Scottish Parliament (2026–2031). According to research conducted by the SFHA alongside Shelter Scotland and CIH Scotland, the country needs to build 15,693 affordable homes every year to effectively address the housing emergency—a target that is currently significantly higher than the government's projected delivery.

Richard Meade added: "We need to see an £8.2bn commitment... alongside a radical overhaul of the housing system, if Scotland is to build the 15,693 affordable homes it needs every year to respond effectively to the housing emergency. We will continue to make the case for greater investment in affordable housing in Scotland so that everyone can have a safe, warm affordable home."

The call for reform comes as the sector faces intense regulatory pressures and a continued decline in the number of social housing lets, further straining the existing housing stock's ability to meet rising demand.