The Scottish Government has announced further details to the Housing Emergency Action Plan commitment from September 2025, to Invest in a geographically targeted Housing First expansion scheme by incentivising registered social landlords to pledge an additional number of tenancies for Housing First through a £3 million capital grant that enables registered social landlords to acquire suitable properties.
SFHA is aware that the Cabinet Secretary has now written to all local authorities to inform them that, “£3 million is being made available to incentivise registered social landlords to pledge additional tenancies for Housing First.” The money is intended to increase the delivery of Housing First, “including working in partnership with registered social landlords to do so where appropriate.”
The funding will be paid to local authorities via General Capital Grant payment on 15 December. It does not include revenue funding for support/commissioning. All local authority areas will receive some of the £3m, distributed using the following methodology:
• Three-year average unintentional homelessness applications (50%)
• Reported rough sleeping three-months before application (25%)
• Heriot-Watt estimated Housing First demand by LA area (25%)
The money comes from the 2025-2026 budget and we expect funding will need to be spent this financial year. In areas where Housing First is not currently delivered, the announcement outlines the expectation that funding will be used to increase the availability of tenancies for people with multiple complex needs, where those tenancies are delivered alongside the support required to sustain them.
SFHA invites members to contact us with requests to be connected to councils to discuss the funding, if you are not already. We can work with our partners Homeless Network Scotland to facilitate connections. More information and delivery details will be available through local authority partners.
