SFHA and Scottish Government tackling construction costs
SFHA and Scottish Government set up government working group to explore solutions to cost pressures in relation to development.
At SFHA’s request, the first meeting of a sector-wide group looking at development cost pressures took place on 26 April.
The group was set up after evidence suggested the cost of developing homes has increased by 17%, bringing the average cost now well above £200,000 per home, and rising interest rates meaning this will increase further. This issue is widespread amongst RSLs and private developers, raising concerns that increasing costs of development could result in a substantial reduction in affordable and social homes being built this year.
The group, jointly chaired by SFHA and Scottish Government, was attended by built environment, local authority, housing association and third sector organisations with an interest in planning and development. Organisations in attendance included SFHA and members, Scottish Government, Homes for Scotland and members, GWSF, and Scottish Enterprise.
Over the coming months, the group will look to potential solutions to address increasing cost pressures across affordable housing development. A programme of topics to explore was agreed including funding, collective procurement, off-site/modular construction, land cost mitigation and risk sharing.
The group will meet again in summer and SFHA is keen to get input, experience and ideas from members to bring to the group.
Anyone who would like to contribute should please email Susie Fitton, Policy Manager: sfitton@sfha.co.uk