New study reveals social housing benefits, spurs sector reaction

The Scottish Federation of Housing Associations (SFHA) has raised concerns about the housing crisis in Scotland following the release of alarming new statistics. These figures reveal a significant drop in the number of homes completed by housing associations over the past year, prompting SFHA to urge the Scottish Government to take immediate action to address this issue.

According to the latest data released by the Scottish Government, housing associations completed only 3,378 homes in 2023-24, marking a 33% decline from the previous year’s total of 5,016 homes. This decline is part of a larger trend, with decreases in new home starts and completions observed in all sectors, including local authorities and the private sector.

The SFHA has warned that this decrease in housebuilding occurred before the Scottish Government’s £196 million cut to affordable housing budgets took effect, suggesting that the situation may worsen in the future. In response to these figures, SFHA, along with other housing and anti-poverty organisations, recently proposed a Housing Emergency Action Plan. This plan calls for the reversal of housing budget cuts and the full funding of local authority homelessness services.

Sally Thomas, chief executive of SFHA, emphasised the urgency of the situation, stating that the declining trend in housebuilding poses a serious threat to efforts to address the housing emergency in Scotland. With nearly 10,000 children living in temporary accommodation and a quarter of a million people on waiting lists for social homes, the need for affordable housing remains critical.

Homes for Scotland (HFS), a membership organisation for housebuilders, expressed similar concerns about the impact of declining construction rates on social wellbeing and the aspirations of the Scottish people. The latest statistics paint a grim picture of the housing situation in Scotland, with significant drops in both starts and completions across all sectors in the financial year ending March 2024.

Jane Wood, CEO of Homes for Scotland, stressed the need for immediate action to address the housing emergency, noting that the consequences of delayed responses are becoming increasingly evident. HFS, in collaboration with other housing stakeholders, has proposed a Housing Emergency Action Plan to boost the delivery of high-quality homes across all tenures.

The release of these figures coincided with a report highlighting the social value of housing. This research, supported by Shelter Scotland and Housing Associations’ Charitable Trust (HACT), underscores the positive impact of social homes on the lives of tenants, demonstrating improvements in financial security, safety, and overall wellbeing.

Shelter Scotland has linked the decline in social housing delivery to budget cuts, warning that increased investment in social housing is essential for improving lives and strengthening communities. Michael Mclaughlin from HACT emphasised the role of social housing in driving positive social, economic, and health outcomes for tenants.

Sheila Maxwell, from Link social value, highlighted the importance of gathering data to showcase the wide-ranging benefits of new social housing for tenants and the economy. Together, these findings stress the critical need for increased housing supply and the significant impact of social housing on individuals and society.