Scottish government to invest nearly £5bn in affordable housing

The Scottish Government has vowed to invest up to £4.9bn in affordable homes over the next four years as part of its Housing Emergency Action Plan published yesterday afternoon (3 September).

The funding aims to deliver around 36,000 affordable homes by 2029-30, providing a home for up to 24,000 children. It also seeks to give housebuilders long-term assurance.

The emergency strategy focuses on three key areas – putting an end to children living in unsuitable accommodation, supporting the housing needs of vulnerable groups and supporting growth and investment in the housing sector.

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A number of other measures will also be put in place to meet these goals.

These include doubling investment in acquisitions this year to £80m, which seeks to take between 600 and 800 children out of temporary accommodation.

Awaab’s Law is due to be implemented in Scotland from March 2026 subject to parliamentary approval. The legislation, which is due to come into force from 27 October in England and Wales, means that social landlords will have to address all emergency hazards and damp and mould hazards to fixed timeframes.

Meanwhile, a new £1m national “fund to leave” will provide financial support for up to 1,200 women and their children to flee an abusive partner.

The government also said it will unlock land for housing in rural areas by working with the Scottish National Investment Bank, landowners and public bodies.

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Màiri McAllan, cabinet secretary for housing, said: “Tackling the housing emergency will be a cornerstone in our efforts to achieve the Scottish Government’s key priority of eradicating child poverty. I am determined this action plan will deliver positive and lasting change.

“We cannot tackle this emergency alone though and I need everyone from across the private and public sector to pull together and deliver this plan to ensure everyone in Scotland has access to a safe, warm and affordable home.”

In May 2024 the Scottish government declared a national housing emergency after figures showed the highest number of live homelessness cases on record and almost 10,000 children living in temporary accommodation as of September 2023.

Callum Chomczuk,  national director at CIH Scotland, said the £4.9bn still falls short of what the CIH has estimated to be the amount required to meet housing need.

Before the action plan was published, CIH Scotland, Shelter Scotland and the Scottish Federation of Housing Associations called for £8.2bn over the next five years to deliver 78,465 social and affordable homes.

Chomzcuk said: “The Housing Emergency Action Plan published today by Scottish Government sets out a number of welcome priorities that CIH Scotland have called for in recent months.

“We are delighted that there is a commitment to exclude mid-market rent homes from rent controls, giving social landlords assurance to keep developing; the fund to leave will help victims of domestic abuse leave an abusive home- the main cause of homelessness for women; and the additional £40 million for acquisition - if new money - will support social landlords to buy properties to move families and children out of temporary accommodation. These are all to be applauded.”