Housing to 2040: Fairer Scotland Duty

Summary of assessment findings

The purpose of this section is to set out how the policy changes laid out within Housing to 2040 will impact on inequality caused by socio-economic deprivation.

A focus on homes and communities

The Housing to 2040 Vision sets ambitious goals for homes and communities across Scotland. There are 20 top level actions with Housing to 2040, with around 100 supporting policies and interventions to deliver them.

There are two key strategic choices in Housing to 2040 which are central to addressing inequalities caused by socio-economic disadvantage - ambitious targets to increase affordable housing supply and plans to address unreasonable rent increases within the new Rented Sector Strategy.

These strategic choices are underpinned by evidence from Joseph Rowntree Foundation that housing costs constitute the most important and most direct impact of housing on poverty and material deprivation[i] and their key conclusion that increasing affordable housing supply will help tackle poverty[ii], and that Government action is important to ensure those in the private rental sector have adequate protections around cost.[iii]

A summary of the policies and interventions which will impact on inequality caused by socio-economic disadvantage are laid out below.

Housing to 2040 sets out a new target for delivery of affordable homes, with an aim to deliver 100,000 homes by 2032, with 70% of these for social rent. Evidence tells us that housing costs are a key driver of poverty and inequality in Scotland and this commitment to continue to increase supply of affordable and social homes will make an important contribution to tackling poverty in Scotland. In setting this central strategic objective, we considered a range of options for the number of affordable homes, the time period over which they would be provided and the balance between social rented and affordable homes in the programme, drawing on analysis of housing need and demand, the impact of Covid, advice from stakeholders and calls for longer term certainty in our planning cycles.

Equality considerations will continue to shape the Affordable Housing Supply programme as we work with local authorities to ensure the needs of diverse communities across Scotland are met, including the provision of larger homes where these are needed.

Housing to 2040 includes a commitment to helping rural and island communities to thrive by ensuring they have access to high quality, affordable and market housing which has been planned alongside economic and physical infrastructure. Steps will also be taken to improve communities’ say on the way homes are used in their area, including new powers for local authorities to manage the number of second homes where these are a problem.

It also includes a continuing commitment to ending homelessness and rough sleeping by embedding a Housing First approach. This will continue to bring people out of homelessness and into settled accommodation, meaning that if homelessness does happen it will be brief and non-recurrent. Homelessness prevention pathways will be embedded for particular groups at risk of homelessness and rough sleeping, including victims of domestic abuse, advancing equality of opportunity for people with protected characteristics.

Housing to 2040 recognises that addressing inequality caused by socio-economic disadvantage requires action across tenures, not only in the social rented sector. A new Rented Sector Strategy and a new Housing Bill will allow us to take action to tackle unreasonably high rents in the private rented sector and support access to the social rented sector.

We know from the evidence that housing costs are linked to poverty and inequality. Housing to 2040 recognises the importance of fully understanding the dimensions of housing affordability and commits to exploring a broader concept of affordability with stakeholders.

The route map sets out our commitment to achieve net zero by 2045 and to doing so in a fair and just way which does not exacerbate fuel poverty. Work to deliver zero emissions affordable homes, regulations to require new build homes to use zero direct emissions heating systems and plans to address the energy efficiency and heating systems of existing homes will help to reduce the contribution homes make to climate change. This work will be done alongside an enduring commitment to tackling fuel poverty and so the costs of the transition, particularly for those least able to pay, will be a crucial part of future decisions and approaches.

In Housing to 2040, a commitment is made to addressing housing quality and accessibility. A new all-tenure housing standard, alongside a new Scottish Accessible Homes Standard, will improve the quality of new and existing homes and future proof housing stock to meet people’s needs. An all-tenure approach to housing standards is crucial to ensure no-one is left behind and current exemptions for different property types no longer prevent everyone from being able to expect a good quality home. This will help to address the housing challenges faced by people in poverty or on low incomes or those living in particular areas with a high proportion of low quality homes.

Housing to 2040 commits to taking early action to bring digital connectivity to new social housing, with a new requirement from 2021/22 that all new build social rented homes delivered through the Affordable Housing Supply Programme are digitally enabled. Digital connectivity will be included in the review of the Social Charter in 2021 and will be included in the consultation on the new Housing Standard to see how it can be made available in all homes, no matter what tenure. 

Housing to 2040 also focuses on place, aiming for good quality neighbourhoods where homes are well-connected to services, facilities, transport links and green and blue space. This focus, translated through an increased focus on place-based assessment and spatial planning in National Planning Framework 4, will help to tackle the challenges some communities face in accessing the services and facilities people need and improve outcomes particularly for people living in deprived areas. A place-making approach will also support community involvement, helping to build community cohesion and drive community wealth building.

Housing to 2040 puts equality as an overarching principle at its heart, seeking to drive better outcomes for everyone. It makes a commitment to deliver the right to an adequate home, something which will have a major impact on outcomes for people experiencing socio-economic disadvantage.

The wider benefits of housing policy

As well as improving outcomes directly related to housing and communities, we expect Housing to 2040 to have a broader impact across Scotland’s National Outcomes and therefore helping to tackle some of the inequalities created by socio-economic disadvantage in other areas of society and the economy.

Safe and warm homes and good neighbourhoods will help to improve people’s physical and mental health, helping to tackle health inequalities we know are caused by socio-economic disadvantage.[iv] This will also contribute to children’s wellbeing and happiness, helping to provide a healthy start to life and contributing to social and physical development. Homes with room for children to play, learn and study can contribute to education attainment[v] and help to close the poverty-related attainment gap.

Housing also creates and supports jobs and drives inclusive economic growth and social benefits. Housing makes a crucial contribution across all four pillars (economic, human, social and natural) which underpin our vision of an economy that delivers sustainable and inclusive growth for the people of Scotland.

Our current investment in affordable housing leverages economic output in the region of £1.4 billion per year and supports around 10,000 to 12,000 jobs in the construction and related industries in Scotland.[vi] Scottish Government funding for social housing levers at least as much again in capital investment from other sources.[vii]

Total investment to decarbonise Scotland’s (domestic and non-domestic) buildings is estimated to be in the region of £33 billion over the period to 2045, and is likely to support around 24,000 jobs each year as investment reaches its peak in the late 2020s.[viii]

Housing to 2040’s ambition for the house building and construction sectors, as well as for heat decarbonisation, present significant opportunities for inclusive economic growth. This, alongside commitments to modernise construction, develop training routes and embed Fair Work principles, presents opportunities to diversify the construction workforce and create good jobs, helping to tackle some of the labour market barriers faced by people experiencing socio-economic disadvantage.