SFHA: stable levels of investment are required to meet affordable homes target

Responding to the latest housing statistics released today (Tuesday 13 December) by the Scottish Government, the Scottish Federation of Housing Associations (SFHA) said that while the figures are promising, stable levels of investment will be required in order to meet the government’s 50,000 affordable homes target. (1)

Today’s figures show that, in general, for all tenures – social rent (including housing associations), affordable rent and affordable home ownership – completions are decreasing while approval rates and starts are increasing.  

Breakdown of statistics

Looking at the breakdown, social rent starts and approvals are increasing but completion rates are decreasing.

Affordable rent starts, approvals and completions are flat lining.

Affordable home ownership completion rates are also levelling out but the statistics show an increase in starts and approvals.

SFHA Chief Executive Mary Taylor said:

“Today’s figures show that the process of increasing housing supply is picking up slowly. Housing association completions are down, but we are pleased to see that starts and approvals have increased which should increase future completions statistics and help deliver the Scottish Government’s 50,000 affordable homes target. This reflects the fact that housing grant rates were cut in 2009 and 2011 and then increased in 2013 and again in 2016 – it takes time for supply levels to build.

“The SFHA is working hard with members, Scottish Government and other partners to help deliver an increased supply of affordable homes. More homes will not only help solve Scotland’s housing crisis but improve people’s life chances, create jobs, and have a beneficial effect on health and wellbeing.

“However, in order to meet the affordable homes target, our members requires stable levels of investment to be able to plan – it cannot be turned on and off like a tap. We look forward to seeing evidence of the Scottish Government commitment to investment in tomorrow’s Scottish Budget.”

Ends

For further information, please contact Kirsten Walker on t: 0141 567 6221 m: 0788 788 8348 email: kwalker@sfha.co.uk

Visit our website at www.sfha.co.uk

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NOTES:

1. http://news.gov.scot/news/new-build-housing-completions-up-by-4-on-last-year
2. Social rent includes housing association rent, council house rent as well as home owner support fund rent. Affordable rent includes mid-market rent (MMR), National Housing Trust (NHT) Rent as well as other programmes such as the Empty Homes Loan Fund (EHLF) and Rural Homes for Rent (RHfR). Affordable home ownership includes open market shared equity (OMSE), new supply shared equity (NSSE), shared ownership (LCHO) as well as other programmes such as Home Owner Support Fund Shared Equity.
3. Graphs created by SFHA using Scottish Government statistics.
4. The Scottish Federation of Housing Associations (SFHA) was established in 1975 and has around 120 members providing affordable housing and wider community services across Scotland, as well as a further 200 sector associates. The SFHA is owned and governed by its members and exists to lead, represent and support the work of housing associations and co-operatives throughout Scotland www.sfha.co.uk