Over 1,800 affordable homes halted by funding cuts

More than 1,800 affordable homes are currently stalled due to funding cuts in the Affordable Housing Supply Programme (AHSP), according to a recent report.

Data gathered from members of Homes for Scotland (HFS) shows that approximately 5,000 new, high-quality, energy-efficient homes are facing delays, with 1,826 designated as affordable housing. These delays stem from a 26% reduction in the AHSP budget in the Scottish Budget announced in March.

The statistics highlight the close relationship between public and private sector housing delivery, with 22% of stalled affordable homes located on mixed tenure sites.

Furthermore, the survey reveals that 1,542 of the stalled homes, including 848 affordable units, are situated in local authorities that have already declared housing emergencies, such as Edinburgh, Glasgow, Fife, West Dunbartonshire, and West Lothian.

Expressing concern over the situation, HFS chief executive Jane Wood stated, “The impact of the devastating cuts to the Affordable Housing Budget is evident in the significant delays and mothballing of vitally needed new homes across Scotland. This further exacerbates the housing crisis, leaving 693,000 households in some form of housing need.”

Wood called on the Scottish Government to take urgent action to address the decline in housing starts and completions, as well as the contraction in small and medium-sized home builders. She emphasised the need for government intervention to accelerate the delivery of new homes across all sectors.

In response to the crisis, HFS and other housing stakeholders have presented a Housing Emergency Action Plan to the Scottish Government, outlining proposed solutions and urging regulatory and policy reforms to facilitate faster development processes.

It is crucial for the Scottish Government to leverage its authority to alleviate the pressure on the housing sector and stimulate the construction of much-needed homes. By addressing planning processing times and reviewing existing regulations, the government can play a pivotal role in overcoming the challenges faced by the housing industry.