Record investment in affordable housing
Budget boost of £158 million.
The affordable housing supply programme is set to receive a £158 million boost as part of the 2026-27 Draft Scottish Budget, compared to last year’s published budget.
In the next financial year, £926 million has been allocated to the Affordable Housing Supply Programme – 20% higher than the previous year - as part of a wider investment of up to £4.9 billion over the next four years, including a record £4.1 billion of public sector funding, to help deliver 36,000 affordable homes.
The funding is part of a package of support for housing which also includes:
- £106 million for Discretionary Housing Payments, helping struggling households to remain in their homes
- £8 million for rapid rehousing transition plans, reducing the time spent in temporary accommodation
- Providing support for women and children affected by domestic abuse with a £2 million fund to leave
- An extra £4 million for a range of initiatives to support the implementation of new homelessness prevention duties in the Housing (Scotland) Act 2025
- At least a further £1.3 million invested through the Scottish Empty Homes Partnership to bring empty homes back into use.
Housing Secretary Màiri McAllan said:
“This is the biggest total funding allocation to affordable housing in Scotland since records began in 1989.
“Our investment is rooted firmly in our top priority of eradicating child poverty and is a critical investment in growing our economy.
“The budget settlement builds on commitments made in our Housing Emergency Action Plan, which includes record public sector funding of £4.1 billion over the next four years and is estimated to see 36,000 affordable homes delivered and up to 24,000 children provided with a home.
“We’ve also confirmed a package of measures to limit the time families spend in temporary accommodation, support women and children experiencing domestic abuse and fund a range of homelessness prevention and response initiatives.
“The Scottish Government is serious in our ambition to tackle the housing emergency and the funding proposed in the Budget marks a step – change ensuring more families will have the opportunity to live in a warm, safe and affordable home with the many benefits that brings.”