Scottish government restores £200m to affordable housing budget

The Scottish government has announced a £200m increase to its affordable housing budget for 2025/26.

The move, announced in yesterday’s Budget by finance secretary Shona Robinson, effectively reverses a controversial £200m cut to this year’s Budget, which have contributed to the Scottish parliament and 13 councils declaring a ‘housing emergency’.

The announcement will mean affordable housing funding rising 38% to £768m, up from £556m this year.

Robison said the £768m will be spent on delivering over 8,000 new homes, with social rent, mid-market rent and low-cost home ownership to be built or acquired over the coming year.

However despite the increase campaigners have pointed out the figure of £768m is only 2% more than the £752 spent on affordable housing in 2023/24.

Callum Chomczuk, national director at Chartered Insitute of Housing Scotland, said: ”The restoration of £200 million more for affordable housing means we are still spending less in real terms than the budget in 2023/24, which was lacking at that time.

“Since then, we have had 13 local authorities and the Scottish Parliament all declare housing emergencies, alongside horrifying levels of homelessness presentations and children living in temporary accommodation.”

Chomczuk nevertheless welcomed the priority given to affordable and social housebuilding in the Budget but emphasised the need for a long-term plan.

Greg Reed, chief executive of 245,000-home affordable housing provider Places for People, said: “Today’s £768m investment in affordable housing turns a new page for Scotland, where a worsening crisis sees every twentieth person awaiting a social home and where 10,000 children are stuck in temporary accommodation.”

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Last month, Scotland’s social justice secretary announced that every pensioner household would receive a winter fuel payment from late 2025 after the existing benefit was cancelled by the UK and Scottish governments this winter.

Shirley Anne Sommerville also announced a £1m fund to help social landlords with tenancy maintenance to tackle homelessness. The most recent budget pledged £4m for homelessness prevention programmes.

Reed continued: “The SNP’s recent £1m investment in homelessness prevention, alongside a winter fuel allowance for pensioners, will provide a vital shot in the arm to communities – but a focus on existing homes is also urgently needed. A current shortfall of £20m is preventing suitable adaptations to many homes – such as stairlifts and ramps – meaning too few properties meet customers’ needs.”