SFHA welcomes £3.3bn funding proposed for next Affordable Housing Programme

The Scottish Federation of Housing Associations (SFHA) has today (Friday 5 February) welcomed the Scottish Government’s £3.3 billion funding proposal for the next Affordable Housing Supply Programme (1). SFHA said the funding would help to “make a real difference” to tackling housing need in Scotland.  

Together with the Chartered Institute of Housing (CIH) Scotland and Shelter Scotland, SFHA has been campaigning for the Scottish Government to commit to delivering 53,000 affordable homes, including 37,100 for social rent, between 2021 and 2026. The three housing organisations had called for this to be backed up by funding of at least £3.4 billion to allow social landlords to build the homes to the required building and energy efficiency standards, while keeping rents affordable. (2) 

Further funding may be made available through the UK Government’s budget in March. SFHA has called for the UK Government to confirm Scotland’s Financial Transactions funding, and, if further support is made available, for the next Scottish Government to increase the £3.3 billion in order for social landlords to be able to deliver the 53,000 affordable homes that Scotland requires over the next five years. (3) 

SFHA is also calling for the Scottish Government to carry out an urgent review of grant subsidy levels, before May’s Scottish Parliament election, in order to ensure that social landlords can deliver as many affordable homes as possible, with the ultimate target of 53,000. SFHA said that, with costs of construction rising and social landlords expected to meet new higher building and energy standards, the review would be critical to ensuring the homes can be built to the scale, type and quality needed as well as in the locations required. 

SFHA Chief Executive Sally Thomas said: 

“We welcome the Scottish Government’s proposed funding of £3.3 billion for affordable housing during the next parliament – this will help to make a real difference to tackling need, and we will be looking for this to increase in the next parliamentary term if we are to deliver the 53,000 homes Scotland requires. Our research with CIH Scotland and Shelter Scotland found this will require investment of at least £3.4 billion in order to ensure social landlords can build these homes, and to the required energy and building standards, while being able to maintain affordable rents for tenants.  

“While a record number of homes have been delivered over the course of this parliament, progress must be maintained at a level which meets, and does not increase, housing need. The recent Social Renewal Advisory Board report made recommendations for a fairer and more equal post-pandemic Scotland, central to which is making sure everyone has access to a safe, warm, affordable home (4). The next Scottish Government can help to realise this by ensuring that social landlords have the funding they need to deliver the affordable homes Scotland requires between 2021 and 2026.” 

Sally Thomas added:  

“It is welcome that £100 million will be made available to social landlords over the next five years as part of the Social Housing Net Zero Heat Fund. However, this is only a small proportion of the investment needed to bring social housing stock up to the required energy standard. The government’s own research has shown that complying with the Energy Efficiency Standard for Social Housing Two could cost at least £3.7 billion to bring half of Scotland’s social housing stock up to this standard.” (5) 

Sally Thomas concluded: 

“We are disappointed that the government hasn’t increased the adaptations budget as our own research has identified a funding gap of £7 million a year. Addressing this will realise significant savings in other budget areas, such as health and social care, and allow people to live safely and well in their own homes for longer.” 

Ends 

For further information, please contact SFHA Communications Manager Kirsten Walker on m: 0788 788 8348 email: kwalker@sfha.co.uk   

Visit our website at www.sfha.co.uk