Increased funding for affordable housing

Major investment in rented homes and support for home ownership.

Over £590 million will be made available for 2017/18 to increase the supply of affordable homes in Scotland.

Councils across the country will share £422 million to deliver more affordable homes in their local communites. The remaining investment will fund national schemes, including support for first time buyers and increasing rural and island housing.

The total budget is an increase of £18 million compared to last year.

Announcing the funding on a visit to Link Housing Association’s new development in Edinburgh – where 161 city centre homes are being built for social and mid-market rent and shared equity, supported by £7.3 million from the Scottish Government – Communities Secretary Angela Constance said:

“A good supply of affordable homes is vital to ensuring everyone has an equal chance of getting on in life. That is why it is key to this Government’s commitment to tackling poverty, reducing inequality and building strong local communities. It also boosts the economy by supporting 14,000 jobs right across the country.

“We’re determined to increase and accelerate housing supply – working in partnership with councils and housing associations to deliver quality homes to fit local needs.

“We are committed to delivering at least 50,000 new affordable homes over this Parliament backed by £3 billion. This major and increased investment for 2017/18 that I'm announcing today supports our ambitious commitment.”


The Scottish Government’s extra homes pledge is expected to support, on average, 14,000 jobs a year in construction and other related industries over the next five years.

The total budget for affordable housing supply is £590 million in 2017/18 and includes £422 million in grant subsidy divided between Scotland’s 32 local councils.

Details of the Resource Planning Assumptions for each local authority for 2017/18 can be found here.

Further information about More Homes Scotland is available on the Scottish Government website.

Link Housing Association’s development at City Park, Edinburgh, is being built to the greener homes standard and is a joint development between the Link Group and J Smart & Co. 161 units are being delivered over three phases – funded through £7.3 million from the Scottish Government's Affordable Housing Supply Programme. There are also an additional 40 unsubsidised homes for private sale on the site too.


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