Housing bodies cautiously welcome Scottish goverment’s housing focus in 2024/25 programme

Sector bodies have cautiously welcomed the Scottish government’s 2024-25 legislative programme’s focus on housing.

However, the Scottish Federation of Housing Associations has warned the measures announced yesterday by John Swinney do not go far enough in tackling the country’s “housing emergency”.

John Swinney yesterday set out his first programme for government as first minister, after taking over from Humza Yousaf in May.

He said the government remains committed to investing nearly £600m in affordable housing, with £40m allocated for turning existing homes into affordable housing.

He said there will be a “strong focus” on working with partners to enable existing accommodation that is not currently in use to be made available as swiftly as possible to meet the need for housing.

In February, the Scottish government passed its 2024/25 budget, which saw funding for affordable housing supply cut by £196m to £556m. 

The government will also provide a further £100m to support the construction of around 2,800 mid-market rent homes.

>> See also: Crisis flags repeated missed opportunities to prevent homelessness in Scotland

>> See also: Proposed rent controls in Scotland could discourage investment in housing supply, CIH warns

The first minister also stated that a “key aspect” of his programme would be to ensure people have “a safe and secure place to call their home”.

As part of this, he said the government will carefully consider the findings of the Grenfell Inquiry report, published yesterday. 

He added that the government is taking action to ensure the assessment and remediation of buildings with potentially unsafe cladding is carried out.

Swinney said the Scottish government will also be progressing its plans to introduce rent control measures to ensure that tenants have the protection they need.

Callum Chomczuk, national director of Chartered Institute of Housing Scotland, said: “We are encouraged by the recognition of the priority for social and affordable housing in the Programme for Government and we welcome the announcement of new funding of £100m to support the development of mid-market rent housing.”

He noted that the additional 2,800 homes will play a key part in addressing the homelessness crisis.

Chomczuk added that “the acknowledgement that the rent control provisions in the Housing Bill must be amended so that the proposals retain investor confidence is a positive sign, and an issue the sector has been campaigning on since before the Bill was introduced.

“While we wait further details on whether that is applicable to individual landlords, institutional investors or both, we are encouraged by the Programme for Government announcement.”

He said he hopes that the focus on affordable and social housing in this year’s programme for government “will send a message about future spending priorities in the Scottish government and its leadership with regards to the housing emergency.”

Chief executive of the Scottish Federation of Housing Associations (SFHA), Sally Thomas, welcomed the first minister’s focus on housing, but said the programme “does not go far enough in tackling Scotland’s deepening housing emergency”.

In a statement, she said: “With nearly 10,000 children growing up in temporary accommodation, and the number of homes started by housing associations at the lowest level since the 1980s, we must now see action on funding for affordable rented housing in the Scottish government’s Budget in December.”

Thomas said the SFHA welcomes the news that the Housing Bill will progress through parliament, but that clarity is needed on rent controls for mid-market rent (MMR) developments.

However, she added: “MMR is an essential form of affordable rented housing which is delivered by housing associations; however, these much-needed homes would be put at risk by long-term rent controls and should therefore be exempt in order to increase supply.”

Thomas acknowledged that the Scottish government is facing “deeply difficult financial constraints” but said that affordable rented housing is fundamental to the first minister’s priorities and must be protected.

She said: “At SFHA, we are ready to work with government and other partners to achieve this”.

Thomas criticised the delays in the Scottish government granting funding for aids and adaptations in housing.

Thomas added: “Delays in allocating funds have real consequences. Adaptations such as grab rails and wet rooms support tenants to live well in their homes, help keep people out of hospital and enable quicker and more efficient discharges from hospital: saving significant spending to the health service.

“The Scottish government’s delay in allocating funds to housing associations for aids and adaptations is affecting all of this and causing profound uncertainty for social tenants.”

“The Scottish government must urgently release this funding to Scotland’s housing associations and co-operatives so they can meet the needs of their tenants and take pressure off the health system.”