Scottish Budget: SFHA Welcomes Extra Funds But Shortage of Homes for Rent Must be Addressed

The SFHA has welcomed the news that the Scottish Parliament has voted to add £16m to the amount of new money for affordable homes during the final Budget debate yesterday (Wednesday), on top of what was in the draft Budget 2011-12.

However the Federation added that the shortage of affordable homes for rent must be addressed, with 250,000 families on waiting lists across Scotland. Supporting home ownership will help some people but won't reduce underlying demand for rented homes.

The £50m ‘Challenge Fund', split between housing associations, council and private developers will be topped up by £16m in 2011-12.

The total affordable housing budget was set to fall over 30% in plans set out in the draft budget.

SFHA Chief Executive Mary Taylor said:

"The SFHA is pleased that the MSPs across the political spectrum have heeded the advice of the Finance Committee and two of Scotland's leading economists that investing in affordable housing is the best way to boost the economy quickly.

"We have consistently argued for continued substantial investment in affordable housing to meet need and create jobs. As such we welcome the decision to add an extra £16m to the Challenge Fund."

Dr Taylor stated:

"Housing associations and co-operatives, the main developers of new affordable housing, provide tremendous social and economic value to communities in Scotland. Not only do they provide high quality, badly-needed affordable homes, the sector adds tremendous value by levering in at least 40% of the cost of a new-build house from private finance.

"Given extra funds, our members proved they can get vital projects under way quickly, as the record number of homes built in 2009-10 with accelerated funding showed.

"We must continue to invest in affordable housing in order to meet overwhelming need for affordable homes and

"We recognise how tight Scotland's finances are, but the SFHA believes that affordable housing stood to be cut more than its fair share next year - over 30%."

Dr Taylor added:

"We welcome the money for the Energy Assistance and Home Insulation packages, it is vital we invest if we are to meet our fuel poverty and climate change targets.

"The decision to increase funding for Scotland's Urban Regeneration Companies to £12.5m, is a sound one. These companies will do valuable work in improving the physical environment and life chances in some of Scotland's poorest communities."

 

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