Affordable Housing Supply Programme (AHSP) - Deliverability Review

Strategic context

Local and national housing emergency declarations

Since June 2023, thirteen local authorities^[1] have declared housing emergencies prompted by a range of issues specific to their areas but primarily associated with the availability and delivery of housing as well as rising pressure in terms of homelessness. In recognition of the pressures facing the housing sector, on 15 May 2024 the Cabinet Secretary for Social Justice declared a National Housing Emergency, recognising contributory factors driven by Westminster decisions including such as Brexit labour availability; local housing allowance (LHA) rates; and a 9% cut to Scotland’s capital funding from the UK Government. For this reason, the Housing Emergency requires action at all levels of government, including local government and UK Government.

The Minister for Housing’s statement in the Parliamentary debate on the Housing Emergency on 20 June 2024 described how the Scottish Government’s plan to respond to the housing emergency is organised under three strategic pillars:

1. More high quality, permanent homes

2. The right homes in the right places

3. A permanent home for everyone

A subsequent update on progress being made on the response to the Housing Emergency was provided by the Minister for Housing at a Local Government, Housing and Planning Committee meeting on 14 January 2025.

Part of this approach includes the continued focus on the target of delivering 110,000 affordable homes by 2032, of which 70% will be for social rent and 10% in rural and island communities. In response to the housing emergency, the Scottish Government recognised that some additional flexibility could assist local authorities and registered social landlords with immediate pressures. The Affordable Housing Supply Programme was adjusted to allow targeted investment to support voids being returned into use during 2024 to 2025. Additionally, by leveraging the flexibility that is already included within the existing project appraisal processes, the programme is enabling a wide range of housing to be supported that best meets the priorities of the local area, including family homes and homes that are designed to meet a particular need.

The affordable homes target was always intended to be an ambitious target, but it remains imperative that collectively we continue to do all we can to make progress towards this goal. In 2023 to 2024, Scotland’s overall new build house completions rate per 10,000 people was 36 – higher than for England at 34, for Wales at 15 and for Northern Ireland at 28.

It continues to be our long-term strategic commitment to the delivery of the affordable homes Scotland requires. To deliver that, it will be essential for the Scottish Government, UK Government, local authorities and Registered Social Landlords to work together to support the delivery of homes to meet the needs of the people of Scotland.