Local Housing Strategy: guidance 2026

The Local Housing Strategy (LHS)

Statutory responsibility to prepare a Local Housing Strategy

The Housing (Scotland) Act 2001 (‘the 2001 Act’) places a statutory requirement on local authorities to produce a Local Housing Strategy (LHS) that sets out its strategy, priorities and plans for the delivery of housing and related services. The 2001 Act states that a LHS must be:

• supported by an assessment of housing provision including the need and demand for housing and related services
• submitted to Scottish Ministers
• kept under review by local authorities

Section 89 (9) of the 2001 Act provides that two or more local authorities may, with the consent of the Scottish Ministers, exercise their statutory requirements jointly in relation to their combined areas.

Local authorities will also be aware of a range of other statutory responsibilities and powers in relation to housing. This includes, amongst others, The Housing (Scotland) Act 1987 which sets out the duties and powers of local authorities to consider needs of their areas and to provide housing accommodation.

The role of a Local Housing Strategy

A LHS is an important corporate document setting out each local authority’s strategic vision for the delivery of housing across all tenures and housing related services over a five-year period and beyond. It enables local authorities to set out the important contribution that housing makes to improving health and wellbeing, creating connected and sustainable places, reducing climate change, supporting economic growth and reducing child poverty.

The development of a LHS enables local authorities to identify and set a range of strategic priorities and outcomes and to enable progress to be monitored against national priorities and targets and local priorities and plans.

Each section of the LHS guidance includes a summary of areas that the Scottish Government expects to be addressed within the LHS. Where local authorities wish to refer to other strategies or publications a weblink to these should be included alongside a clear summary explaining how they link to LHS priorities and outcomes.

While the statutory responsibility for preparing a LHS lies with each local authority, the process of its development includes a strong focus on consultation and collaboration to help inform the development of LHS priorities and outcomes.

Housing Need and Demand Assessment (HNDA)

A Housing Need and Demand Assessment (HNDA) requires to be undertaken as part of the Local Housing Strategy process. The HNDA has four chapters on:

• local housing market drivers
• housing stock
• future housing need and demand estimates
• Specialist Provision

All four chapters act as an evidence base that can be used to inform the development of a LHS. Local authorities can augment HNDAs with robust additional data and research where this exists. The HNDA sets out current and future housing requirements, including the likely requirement for new homes as well as trends in affordability and tenure. A LHS should be informed by an up-to-date HNDA that the Scottish Government (Centre for Housing Market Analysis) is satisfied is robust and credible. Local Authorities will want to consider the timing of the HNDA to ensure that it informs both the development of a LHS and the Evidence Report for the Local Development Plan (LDP). An HNDA is expected to be undertaken at least every five years.

Each local authority’s Strategic Housing Investment Plan, which is prepared annually, is expected to reflect and align with the housing priorities and outcomes set out in each local authority’s LHS, including subsequent annual progress updates.

Local authorities should ensure that equality is central to considerations relating to all housing and housing services delivery.

In June 2025, the Scottish Government published a Public Service Reform Strategy. This sets out clear commitments to change our system of public services to unblock barriers to change – to be preventative, to better join up, and to be efficient. A LHS should be based on the following:

• a focus on prevention
• integration of local public services through strong partnership working, collaboration and effective delivery in support of the place principle
• investment in people who deliver services through enhanced workforce development and effective leadership
• a focus on improving performance, through transparency, innovation and the use of digital technology

A LHS should be:

• evidence-based, including findings from the HNDA as well as any other local evidence gathered
• developed in collaboration with stakeholders, including a strong focus on engagement with communities
• a corporate document, agreed and supported by all relevant local authority functions including economy and planning amongst others
• linked to the previous LHS to show progress achieved against outcomes and to carry forward outstanding actions, as appropriate
• clear in demonstrating how it supports equality, addresses inequality and meet human right obligations
• forward looking and action focussed
• clear, concise and meet accessibility requirements
• a standalone document (with relevant links included within it)
• reviewed with progress of delivery of priorities and outcomes to be monitored annually through a Local Authority LHS Priorities and Outcome Action Plan (a suggested format is included in this guidance)

Purpose of LHS guidance

The aim of this guidance is to support local authorities with developing a robust LHS collaboratively with a wide range of stakeholders, including, amongst others:

• Public Health Scotland
• health and social care partnerships
• house builders
• registered social landlords
• disability organisations
• community organisations
• residents

While each LHS developed by local authorities across Scotland will be different in terms of priorities and outcomes, the LHS guidance aims to support continuous improvement. It aims to drive a level of consistency in terms of the specific areas that the Scottish Government expects to see covered in every LHS.

The Scottish Government expects each LHS to be outcome focussed and for progress to be reviewed annually. More information on the annual review requirements is provided below.

This guidance includes information on the important links between housing and other key areas including:

• economy
• planning
• health
• social justice
• fuel poverty
• climate change
• current Scottish Government priorities, plans and targets