Calls for long-term funding as housing association new builds fall by a quarter

The Scottish Federation of Housing Associations (SFHA) has called for a long-term boost to the housing budget after new figures revealed a huge drop in the number of homes built by housing associations. 

According to Scottish Government statistics published today, the number of homes built by housing associations fell by more than 26% in the last year from 4,091 homes in 2024 to 3,016 homes in 2023.  

Amid the backdrop of Scotland’s housing emergency, there was also a sharp decline of more than 20% in housing association approvals from 2,195 down to 1,738, whilst the number of homes started was also marginally down 5% from 2,114 to 2,002. 

It comes after the Scottish Government reversed a previous £200million cut to the country’s affordable homes programme. 

The additional funding has been welcomed by SFHA, but it has urged both the UK and Scottish Government to work together to introduce a long-term funding settlement for housing associations noting that 250,000 people remained on waiting lists for a social home. 

Any additional funding for the affordable homes programme would be available after the Chancellor’s Spending Review in June, where it’s expected that Ministers will set out a long-term plan for housing in England to meet the UK Government’s target of delivering 1.5million homes by 2030. SFHA say any Barnett Consequentials from this must be put into the affordable homes programme.  

SFHA Director of External Affairs Carolyn Lochhead said: “With the number of homes built by housing associations falling by a quarter last year, these statistics again underline the scale of our national housing emergency. 

“Whilst the additional funding in the Scottish Budget is a welcome starting point to reverse these concerning trends, we need ramped-up funding over a number of years if we are to deliver the homes Scotland desperately needs. 

“Today’s statistics also highlight a sharp 20% decline in the number of homes approved for housing associations: if there are fewer homes approved in one year, then that’s fewer homes which are built in future. 

“Following the Chancellor’s Spending Review, we need to see the UK and Scottish Government commit to a multi-year funding settlement for the Affordable Housing Supply Programme to give our housing associations the confidence they need to build.”