Scotland 'needs long-term action' to solve housing emergency
And whilst this recognition is welcome, particularly for a sector which has for years gone into most fiscal or policy announcements bracing itself for challenges, it must be followed by long-term action.
Not least because, while housing associations and co-operatives are not for profit and have a social purpose, they are still businesses, with all the needs for predictability and certainty every business has.
They operate on 30-year business models with their only income coming from rents. This not only funds management and maintenance, but also the vital wraparound services which support tenants to stay in their homes, whether that's energy advice, help with employment or signposting to health provision.
In the last two Scottish Budgets we've seen the grant funding available for social housing first cut by £196million for 2024-2025 and then reversed by an uplift of £212m for 2025-2026. While this is welcome, few businesses can experience such unpredictability and volatility without consequences, let alone social purpose businesses tasked with putting a roof over people's heads.
Building homes is a lengthy process which requires time, planning and significant upfront investment. It's not something which can be scaled up overnight in response to changing budgets or be planned most efficiently and effectively with annual budgets.
And it's crucial we remember why building social homes matters. Last year the Scottish Government declared a national housing emergency amid record homelessness and around 250,000 people on social housing waiting lists.
We cannot end an emergency with short-termism. What we need to see is consensus across the political spectrum recognising our social homes as critical infrastructure. A warm, secure, affordable home for everyone being as important to the country as transport, energy networks, the health system and policing.
The Scottish Government has an opportunity following the Spending Review to provide our housing associations with a multi-year funding settlement to get Scotland building and achieve the goal of a warm, secure, affordable home for the thousands who need one.
At the Scottish Federation of Housing Associations (SFHA) Annual Conference in Glasgow last month, the First Minister indicated his willingness to look at a long-term funding package if a similar announcement was made in England.
Given the Chancellor's announcement of £39bn for housing in England over 10 years, SFHA expects the Scottish Government to use consequentials from the Barnett Formula to introduce an increased long-term settlement here in Scotland.
The importance of this government grant to housing associations cannot be overstated. Most importantly, it keeps rent levels truly affordable. Rents for social homes typically average half the amount of the private rented sector, and research shows that 20,000 children are kept out of poverty by living in a social home rather than a private rented home.
In the last parliament, the government grant in Scotland was £3.5bn and housing associations more than doubled this through private borrowing to £7.3bn. As well as keeping rents affordable, government investment gives private finance lenders strong confidence in the sector.
It is a delicate balancing act. In Scotland the government grant is still around 50%, but any changes to the ratio– as seen in England where grant has been as low as 15% in recent years – risks pushing rents up and adversely affecting private lending confidence.
An important piece of this puzzle is Mid-Market Rent (MMR): a form of affordable rented housing which offers rents below market rates and is generally used by younger individuals and couples.
The Scottish Government's Housing Bill, which is currently going through parliament, has proposed including these MMR homes in plans for private sector rent controls, something providers say would make development of these homes unviable. The last thing the housing sector needs is anymore uncertainty, so it's incumbent on the Scottish Government to exempt MMR from rent controls and give the sector stability.
We need a housing system which is a level playing field, offering choice between social homes, the private rented sector and home ownership according to the different needs people have at different times in their lives.
There is room for all, but one-size does not fit all. Choice according to need is vital if we are to achieve a re-balanced and mature housing system which delivers from generation to generation, according to need and aspiration, reinvesting the money in more homes. One which housing is seen as national infrastructure, providing a service and is not a commodity accessible to some but denied to many others.
Housing is fundamental to so many of the defining challenges of our time and policymakers must recognise it as critical infrastructure and the bedrock to all our lives it so evidently is. That must begin with a long-term funding plan.
Sally Thomas is the Chief Executive of the Scottish Federation of Housing Associations (SFHA) who represent Scotland's housing associations and co-operatives
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
24 minutes ago
- Telegraph
Reeves opens door to weakening OBR's influence
Rachel Reeves has opened the door to weakening the Office for Budget Responsibility's (OBR) scrutiny of tax and spending as she struggles to balance the books. It is understood that Downing Street wants to end the prospect of being forced to raise taxes or cut spending twice a year after a bruising time for Ms Reeves during Labour's first year in power. Options on the table include ordering the OBR to assess whether the Government has met its fiscal target just once a year or bringing forward a mechanism that would give the Chancellor more breathing space to meet her tax and spending goals. The International Monetary Fund (IMF) put the ideas forward at its latest health check of the British economy in May. Ms Reeves admitted last month that officials were 'looking at how the OBR works', adding that maintaining a 'grip on the public finances' should be balanced with being able to 'deliver better fiscal policymaking'. It is understood that Sir Keir Starmer has also privately questioned why the watchdog delivers its verdict twice a year when the Government has committed to just one fiscal event. However, multiple sources said the fiscal rules themselves that state the Government will only borrow to invest and get overall debt down were non-negotiable. 'This is not about more borrowing,' said one, while a Treasury spokesman highlighted that Labour's 'fiscal lock' meant the OBR could not be sidelined if the Government decided to loosen the purse strings. The watchdog is currently required by law to deliver its verdict on the Chancellor's ability to balance the books twice a year, even though Ms Reeves has repeatedly said she will deliver just one autumn Budget. The Chancellor rushed through a series of controversial welfare reforms this spring after a stagnant economy and surge in borrowing costs wiped out the £9.9bn buffer she had against her main rule of balancing the books on day-to-day spending. However, Labour backbenchers subsequently forced the Chancellor into an embarrassing about-turn on cuts to sickness and disability benefits and reforms to winter fuel allowance eligibility that have left a £5bn black hole in the public finances. Government sources said they wanted to avoid a repeat in the future, as rating agency Fitch said there were still 'sizeable' risks to getting debt down, adding that more tax rises were on the way. However, Treasury officials remain extremely nervous about investor reaction to any suggestion that the rules will be loosened and it is understood there is little appetite for major legislative changes. The Chancellor's tears in the House of Commons this month triggered a lurch in borrowing costs not seen since Liz Truss was in power as investors feared her replacement would abandon the party's already loose fiscal rules. Speaking to the Guardian earlier this month, Ms Reeves insisted the OBR would remain independent. She said: 'We are looking at how the OBR works, but I think it is really important to have those independent economic institutions, because if you start undermining those and getting rid of the checks and balances on a government, I do think that is risky.' 'Backed into a corner' She noted she was taking a series of recommendations by the IMF seriously. The Fund called for 'further refinements' to how her borrowing rules are assessed to 'improve predictability and reduce pressure for frequent fiscal policy changes'. However, economists warned that the move could be seen as a desperate manoeuvre by investors. Simon French at Panmure Liberum said: 'Changes to the fiscal framework as suggested by the IMF are sensible. But as a government you want to be making those changes from a position of strength, not when backed into a corner. 'This is the problem facing Treasury advisers – they can construct a sensible abstract argument for a framework that triggers less frequent fiscal changes. But the bond market considers context. And the context would look like the Chancellor is simply kicking the can down the road.' A Treasury spokesman said: 'Our fiscal rules are non-negotiable, they are the basis of the stability that underpins growth, and we have shown at the autumn Budget and spring statement that we will meet them. 'The first Bill passed by this Government included the fiscal lock, which prevents the sidelining of the OBR and demonstrates that this Government will never play fast and loose with public finances.'
Glasgow Times
32 minutes ago
- Glasgow Times
Rangers legend praises Beatson's new menu at Glasgow cafes
Tinderbox and Glasgow coffee roaster, Matthew Algie, have teamed up with the charity for the second year in a row to raise money for cancer patients and their families across Scotland. The cafe has expanded its menu this year, adding three new refreshing lemonades – cloudy lemonade, strawberry and cherry, and tropical – with 50p from each drink going to the charity. Tropical, cloudy and strawberry and cherry lemonades are available (Image: GT/Beatson Cancer Charity) The expansion follows the success of last year's tropical cooler, which saw almost 1,000 drinks sold. Sports stars have already tried out the new summer range, including former Rangers player and Scottish football figure Gordon Smith. Mr Smith said: "Beatson Cancer Charity, Tinderbox, and Matthew Algie are on to a winner with this – it's undoubtedly the drink of the summer. "I've been a long-time supporter of the Beatson Cancer Charity and all the amazing support they give to families in the West of Scotland. (Image: GT/Beatson Cancer Charity)"Initiatives like this are vital – they help raise awareness and much-needed funds for such an important cause." All the drinks are made with locally sourced ingredients, including those from Glasgow-based Matthew Algie. Carlo Ventisei, owner of Tinderbox, said: "After such a strong response to last summer's collaboration, we wanted to do even more. "The new menu is a way to offer variety while continuing to support a cause that means a great deal to our team and customers." Bella the Bee launching the new menu (Image: GT/Beatson Cancer Charity) Heilidh Wilson, corporate fundraiser at Beatson Cancer Charity, added: "We're delighted to be working with Tinderbox and Matthew Algie for a second year. "Last summer's response was incredible, and it's brilliant to see the collaboration grow. "Every drink sold helps us continue supporting people facing cancer across the west of Scotland – and we hope this expanded menu encourages even more people to get involved and support in a meaningful way." The lemonades will be available until the end of September at Tinderbox cafés in Byres Road, Charing Cross, Braehead, Princes Square, Glasgow Fort and Merchant City.
Glasgow Times
32 minutes ago
- Glasgow Times
New plans to build flats on former bowling club site in Glasgow
Hundreds of residents have opposed Nixon Blue's previous attempts to erect homes on the old Corunna Bowling Club land at St Vincent Crescent. But a fourth bid to develop the site has now been received by Glasgow City Council. It reveals the company wants to provide 20 flats as well as new publicly-accessible open space and a community room. Nixon Blue also intends to demolish the current clubhouse, which community campaigners have been keen to take over. The developers argue the reuse of the building is 'economically unviable' and the site is now in a 'state of dilapidation' due to vandalism, creating an 'eyesore'. They have also said knocking down the clubhouse will allow 'the formation of and access to a new publicly accessible open amenity space that currently does not exist in the immediate vicinity.' 'This, in our view, provides significant benefit to the wider community,' the developers claim. READ MORE: Residents rally to save former bowling club after plans for flats denied Corunna Bowling Club, established around 1860, closed in 2017 after 'years of dwindling membership'. Plans for 39 homes on the site were refused in 2018 and an appeal was rejected in 2019. A second bid for 36 homes in 2021 was withdrawn before another application, for 20 homes and new public gardens, was refused later that year. An appeal over conservation area consent for the planned demolition was dismissed in February 2022. An independent reporter, appointed by Scottish Ministers, ruled the demolition of the Corunna clubhouse, without planning permission in place, could detract from the character of the St Vincent Crescent conservation area. More than 300 objections to Nixon Blue's last bid to develop the bowling green land were submitted to the council. They said the site was protected open space and contributes to the 'character and appearance' of the St Vincent Crescent conservation area. Planners also believed Nixon Blue had failed to show the club was incapable of repair and re-use. The applicant had argued the 'fresh approach' would have a 'positive and transformational effect'. Alasdair Edwards, the reporter, believed the clubhouse has a 'neutral impact' on the conservation area, but, without planning permission, there 'is a risk that the site is cleared and left vacant'. This 'could be, depending on how it was left and managed, visibly significant and detract from the character and appearance of the conservation area', he added. The old Corunna Bowling Club clubhouse (Image: LDR) The developers now want to build a five-storey block containing 14 three-bedroom flats, five two-bedroom flats and a four-bedroom duplex townhouse. There would be a private roof garden and communal garden for residents as well as 21 spaces in an underground car park. Public open space and a new community room are included too. Nixon Blue has drafted heads of terms for the management of the community access to these areas. They propose two options: selling the community room to Friends of St Vincent Crescent Conservation Area (FSVCCA) for 'an agreed value set by an agreed valuation surveyor' or leasing the building out at a nominal sum. It states the FSVCCA has 'suggested that they may use the former clubhouse as a community hub'. 'Nixon Blue Ltd proposes to demolish the former clubhouse as part of the new planning application. 'The former clubhouse has been severely vandalised and is in a state of dilapidation. Nixon Blue Ltd proposes to offer back a small community meeting room building for use to FSVCCA as well as making the landscaping/garden area to the front of the development accessible to the local community.' An application for conservation area consent for the demolition of the clubhouse has also been submitted.
