Homes for Scotland (HFS), the representative body for the home building sector, has expressed "extreme frustration" following the announcement of the Scottish Budget 2026-27.

While the industry welcomed the government's rhetoric regarding "new hope" for young homeowners, it warned that the spending plans lack the specific, bold actions required to reverse historic lows in housing delivery.

The Budget, delivered by Finance Secretary Shona Robison on Wednesday, 14 January 2026, includes £66 million in Financial Transactions specifically for housing. Financial Transactions are unique capital funds—provided by the UK Government—that can only be used as loans or equity investments in the private sector, often supporting schemes like shared equity for first-time buyers.

However, HFS pointed out that without a clear replacement for previous successful initiatives like the First Home Fund, the "hope" offered in the Budget statement remains unsubstantiated.

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Jane Wood, Chief Executive of Homes for Scotland, commented: "It was extremely encouraging to hear the Cabinet Secretary for Finance talk of 'new hope for young Scots looking for their first home'. The Budget document itself also emphasises 'all-tenure' ambition and details £66m in Financial Transactions for housing. However, the lack of detail on what this will mean in practice is extremely frustrating."

Wood highlighted that the housing emergency, which has seen several local authorities declare formal crises, can only be resolved by a significant increase in home building across both private and social tenures.

"With home building levels now at or near historic lows, the only feasible way out of the housing emergency is to build significantly more homes... I am afraid today appears to be a missed opportunity to announce the bold initiatives that we believe would significantly stimulate construction. Support for first time buyers is absolutely fundamental."

With the Scottish Parliament election scheduled for 7 May 2026, the housing crisis has become a central battleground. HFS is urging all political parties to move beyond "supportive language" and commit to concrete policies that restore investor confidence and unlock land for development.

Key industry demands ahead of the election include:

- Dedicated First-Time Buyer Support: A clear, well-funded successor to previous shared equity schemes.

- Planning Reform: Addressing under-resourced planning departments to speed up delivery.

- Investor Confidence: Providing long-term policy certainty to attract the private capital necessary for multi-tenure projects.

The SFHA and Shelter Scotland have also echoed these concerns, noting that the government's target of 110,000 affordable homes by 2032 currently faces a significant delivery gap.