Local Housing Strategy: guidance 2026

People seeking asylum and unaccompanied asylum seekers (minors), Purpose Built Student Accommodation, Key Worker Housing and Armed Forces/Veterans Housing

People seeking asylum and unaccompanied asylum seekers (minors)

The Home Office is responsible for all provision of asylum accommodation, including hotels procured as contingency initial asylum accommodation. The UK Government’s current asylum dispersal plans include challenging targets that all Scottish local authorities are expected to support. This may place additional pressures on local authority housing as people with a positive decision on their asylum claim will be granted refugee status and may need to access housing.

Local authorities may have evidenced the housing needs of people seeking asylum as part of their HNDA. The Scottish Government is refreshing HNDA guidance for publication later in 2026 and this is expected to include information on how authorities can consider ways in which the housing needs of people seeking asylum can be gathered. In taking account of the needs of people seeking asylum, and people who have recently had asylum claims granted (newly recognised refugees), local authorities should also consider the possible need for accommodation for unaccompanied asylum-seeking children (UAS children). We expect that UAS children under the age of 16 will be placed in residential care or foster care – those settings may also be the most appropriate available settings for UAS children aged 16 or 17.

Many UAS children who are 16 or 17 however (and many UAS young people who are entitled to continuing care once they reach 18) may benefit from being placed in supported accommodation. Information submitted by local authorities in late 2023 suggests that approximately 70% of 16 and 17 year old UAS children, and an even higher proportion of UAS young people who have turned 18, stay in supported accommodation - this can either mean that they stay with a host family, or that they live with some degree of independence in flats, with support staff being available to help them.

Local authorities have a duty to provide care for UAS children who are placed with them through the UK Government’s National Transfer Scheme, or who present themselves within the local authority area, and most UAS children arrive when they are 16 or 17. The possible need to secure supported accommodation of a suitable standard for UAS children and young people and an understanding of the flows of asylum seekers through to refugee status and the demand that will put on accommodation locally should therefore be considered by local authorities when developing a LHS.

Summary of areas expected to be included in LHS

a. a summary of a local authority’s policy in relation to support provided for people seeking asylum and unaccompanied asylum seeking children who are placed with a local authority through the UK Government’s National Transfer Scheme, or who present themselves within the local authority area.

Purpose built student accommodation

The report Research on purpose-built student accommodation and student housing in Scotland published in 2022 highlights that student accommodation in Scotland is a complex, interdependent system interacting with local housing systems and communities. The report states that future growth in demand should be a consideration for development plans and housing strategies.

National Planning Framework 4 contains policy that supports proposals for homes that improve choice, specifically referencing those undertaking further and higher education.

Local authorities are encouraged to engage with educational institutions in relation to identifying future demand for student accommodation both in the development of the HNDA and a LHS.

Summary of areas expected to be included in LHS

a. evidence of engagement with educational institutions in relation to requirements for student accommodation including consideration of the impact of current supply and demand on the wider local housing system.

Key worker housing

Local authorities are encouraged to consider any specific housing requirements relating to key workers in the area. There is no one size fits all approach in relation to key worker policies and it is for local authorities to set their own policies. ‘Key workers’ can include doctors, nurses, teachers and police officers but also extends to private sector businesses, both temporary and permanent staff.

As part of the LHS consultation and engagement process, we would expect there to be engagement with businesses, public sector employers, communities the enterprise agencies, and the relevant local employability lead amongst others.

Local authorities may wish to consider the Scottish Futures Trust briefing paper on key worker housing and Brodies LLP Advice in connection with questions arising in respect of key worker housing in relation to key worker housing requirements.

Key worker housing requirements may be more pronounced in areas of housing pressure and/or rural communities. The Rural and Islands Housing Action Plan highlights that rural and island areas face particular challenges when it comes to recruiting and retaining staff.

The Scottish Government is making up to £25 million available from the Affordable Housing Supply Programme over the period 2023 to 2028 in the form of the Rural Affordable Homes for Key Workers Fund. The fund enables local authorities and registered social landlords to purchase existing suitable properties in rural and island areas which can be rented directly or leased to employers to provide affordable homes for key workers.

Local authorities and registered social landlords are encouraged to engage with a range of organisations in their localities including public sector employers, key agencies, as well as local businesses and communities to identify potential proposals for the Rural Affordable Homes for Key Workers Fund and opportunities for collaboration.

Summary of areas expected to be included in LHS

a. a summary of the local authority’s key worker policy and if no policy is in place information on any future plans that it has to develop one together with information on any relevant key worker housing allocation policies.

b. a summary of how the local authority has engaged with a range of organisations to identify any key worker housing requirements.

c. a summary of any specific priorities to deliver affordable housing for key workers, including the Rural Affordable Homes for Key Workers Fund (which will operate over the period 2023 to 2028).

Armed forces/veterans housing

Local authorities should fully consider the housing requirement of the Armed Forces and Veterans Community and ensure that appropriate engagement takes place with relevant organisations, such as with Veterans Scotland, and the local authority's Armed Forces and Veterans Champion, to inform the development of a LHS.

Local authorities should be aware of the reports Summary Characteristics of UK Armed Forces Veterans from Scotland's Census 2022 and Scotland’s Census 2022 - UK Armed Forces veterans which present census data on UK Armed Forces veterans – key findings include the age profile of veterans and how the veterans’ population is spread across Scotland. Local authorities should be aware of and recognise the diversity of the veterans community and ensure that this is considered when delivering services and support.

Local authorities should also be aware of their duties under the Armed Forces Covenant to ensure that veterans experience no disadvantage as a result of their services career.

Summary of areas expected to be included in LHS

a. a summary demonstrating that consideration has been given to the needs of Armed Forces Communities including spouses, partners, children and the bereaved and that engagement has taken place with relevant organisations such as Veterans Scotland and the local authority's Armed Forces and Veterans Champion.