Edinburgh lacks funds for new affordable housing in 2022.

The City of Edinburgh Council is facing a challenging situation as it anticipates a year without approving any new affordable homes due to a significant cut to the Scottish Government’s housing budget. This budget reduction has left the council £11 million worse off, impacting its ability to address the city’s housing emergency, officially declared by councillors last year.

The anticipated central grant funding for affordable housebuilding has been reduced by nearly a quarter, leading the council’s housing convener to describe the news as a major setback. Cllr Jane Meagher expressed concerns about the city’s housing situation, attributing part of the issue to the Scottish Government’s spending priorities while acknowledging the council’s responsibility.

In a report presented to the council’s housing committee, it was stated that Edinburgh is unlikely to approve any new grant-funded affordable homes this year, with uncertainty looming over potential commitments for the following year. Additionally, there has been a staggering 91% increase in the cost of building an affordable home, further exacerbating the challenge.

Cllr Meagher highlighted that the council’s ability to draw funding from other local authority underspend, a practice utilised in previous years, may not suffice to bridge the current gap. She emphasised the drastic reduction in the available funding, stating that it might result in the cessation of new approvals for house building in Edinburgh if the situation persists.

She underlined the crucial importance of having certainty about future housing budgets to make informed decisions regarding new approvals. The housing emergency in Edinburgh is primarily rooted in the shortage of housing supply, leading to various issues such as rental property scarcity and high house prices.

Despite the council formally declaring a housing emergency in November, there has not been an increase in spending. However, Cllr Meagher remains optimistic, believing that with increased public awareness and advocacy, progress can be made towards addressing these housing challenges.

Shelter Scotland expressed strong concerns about the potential scenario of no new social homes being approved in Edinburgh in the upcoming year. The charity’s director, Alison Watson, criticised the Scottish Government’s decision to slash the housing budget, stating that the city is facing a severe housing crisis with thousands of children without homes and a strain on local homelessness services.

Watson called for an acceleration in the delivery of social housing, emphasising the importance of tackling child poverty by increasing the availability of affordable housing. The pressure is on the new First Minister to prioritise the delivery of social homes in Edinburgh to address the pressing housing needs in the city.