Innovation Fund Not Enough to Meet Housing Need

Commenting on the announcement of a £50m innovation fund for affordable housing by the Scottish Government... the Scottish Federation of Housing Associations (SFHA) said it wouldn't be enough to meet rising demand for affordable housing in Scotland.

£20m of the £50m fund has been earmarked for housing associations and co-operatives to build new affordable homes, with the Government looking for ways to increase private cash for affordable housing.

SFHA Chief Executive Mary Taylor said:

"It is disappointing to say the least that £50m is the only new money for affordable house building next year. Projects ready to go on site may be at risk as a result of this decision.

"However it is useful that £20m has been earmarked for housing associations and co-operatives and we will work with local authorities and others to maximise the number of homes built. But substantial public and private finance are both needed to build the quality affordable homes Scotland desperately needs.

"Private finance can not wholly replace public subsidy towards the cost of building quality affordable homes, which will be assets to their communities. While we welcome ideas for new ways to lever in private money, associations bring in private finance. Increasing borrowing also adds to the costs of providing housing. Cutting the level of subsidy per unit will only increase rents - at a time when Housing Benefit is to be cut - putting households under further pressure.

"What we need is significant public investment to build more homes."

Dr Taylor continued:

"At a time when at least 250,000 households are on waiting lists and the construction sector is struggling, the Scottish Government is missing a trick here. Housing is set to be one of the biggest losers in next year's Scottish Budget.

"This is particularly disappointing given the recent report from the Scottish Parliament's Finance Committee which recommended significant investment in affordable housing to boost the economy quickly. We call on the Scottish Government to recognise the need for continued levels of significant investment to build new homes, to benefit society and the economy."

 

 

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