Local Housing Strategy: guidance 2026

Local housing system

Overview

A LHS should include a clear and concise description of the local authority area to help illustrate the context within which LHS priorities and outcomes are to be delivered, together with a short summary of the key housing issues for the area. This should include evidence from the HNDA and any other relevant local data.

Local authorities may also highlight how the local authority area links with neighbouring local authorities, the urban/rural split of the area and the overall number and distribution of the population. A LHS should consider any specific issues that have a particular influence on housing and housing related service delivery including local strategic drivers and findings from the EQIA.

Strategic Policy and Delivery Context

Housing to 2040 sets out the Scottish Government’s ambitions for how it wants the housing and communities of the future to be, with actions on how to achieve that. The strategy sets out how integral housing is to the Scottish Government’s objectives, including:

• tackling poverty and inequality
• supporting economic growth
• creating and supporting jobs
• meeting energy efficiency and decarbonisation aims
• creating better health outcomes
• delivery of fuel poverty and child poverty targets
• creating connected, cohesive communities

A LHS is expected to reflect all tenure housing and local authorities are expected to work collaboratively with all partners including the house building sector in the delivery of affordable and market housing.

The local housing system is a system of complex flows which includes existing supply, tenure, affordability, new housing delivery, construction and demolitions. The housing system will be shaped over time by the scale and direction of these flows combined with the wider external influences upon them. This includes, for example, construction capacity and costs, house prices, cost of living, finance.

It is important that local authorities are aware of and understand these flows, processes and impacts to consider how LHS priorities and outcomes can help address imbalances in housing supply and demand over the period of the LHS.

Local authorities should consider the full range of funding programmes and powers available when developing housing priorities and outcomes. These include:

• the Affordable Housing Supply Programme (including for Gypsy/Traveller accommodation)
• the Rural and Islands Housing Fund
• the Rural Affordable Homes for Key Workers Fund
• investment opportunities including supporting the delivery of mid-market rent
• charitable bonds
• the Housing Infrastructure Fund
• making some or all of their region a short-term let ‘control area’
• utilising powers to charge a Council Tax premium on second and empty homes
• rent control areas
• Houses in Multiple Occupation that are controlled
• purpose build student accommodation
• use of compulsory purchase orders and other measures to bring privately owned empty homes back into use
• bringing social voids back into use
• the Low-Cost Initiative for First Time Buyers Schemes
• Partnership Support for Regeneration

Summary of areas expected to be included in LHS

a. a summary of the local authority area, local strategic drivers, the key housing issues in the area such as regeneration, demolitions, age of housing stock, together with urban/rural split, house condition, and population information. A Summary of how these collectively impact on the delivery of housing and housing related support.

b. a short summary of relevant points from the HNDA and any other local data that have informed LHS priorities and outcomes.

c. a summary of the local authority strategic vision for housing over the period of the LHS and its priorities for housing including housing delivery across all tenures while considering both national and local priorities.

d. demonstrate a good understanding of the housing drivers and delivery context, housing need and demand, housing supply, stock and flows across the housing system, between tenures. Demonstrate how this has informed decisions relating LHS priorities including, specific areas, housing priorities (size, type, tenure) as well as specific requirements for specialist and /or supported- housing.

e. a summary of delivery outcomes that a local authority can achieve, the priority areas of focus for delivery, including information on available funding sources to support delivery across all tenures.