Councils race to unlock £20m housing fund before deadline

North east council leaders are seeking to access a long-promised £20 million housing fund that has remained unused since its creation nearly a decade ago.
The Housing Infrastructure Fund was launched in 2016 as part of the 10-year Aberdeen City Region Deal, intended to support infrastructure works that would enable the delivery of affordable housing across Aberdeen and Aberdeenshire.
But with just one year left before the deal ends, concerns are growing that the money could go unspent.
At a recent meeting of the Aberdeen City Region Deal Joint Committee, councillors expressed frustration over the continued inaccessibility of the fund. They are now seeking clearer guidance on eligible uses, including whether the money might help address pressing issues like the Raac concrete crisis in Torry.
The fund is intended to “unlock difficult sites that are of strategic importance,” according to officials. However, Aberdeen City Council’s strategic place planning officer, David Dunne, acknowledged that accessing the money has proven difficult.
“We’ve had limited success,” he told the committee, noting that three applications from the city had all been rejected. “It’s more challenging within the city due to the nature of the infrastructure,” he added, stressing that the lack of success was not due to a lack of effort.
Dunne suggested that, if the criteria allowed the fund to be used directly for affordable housing, it could help deliver up to 200 new homes, building on the councils’ existing track record.
Aberdeenshire Council has also faced repeated rejections, with proposals for sites in Balmedie, Blackdog, Ellon, Fraserburgh, Mintlaw, and Peterhead all turned down. Head of planning Paul Macari said both councils have sought guidance from the Scottish Government but have consistently been told that their applications do not meet the fund’s eligibility criteria.
“It’s incredibly frustrating for officers who are trying to unlock this funding,” Macari said.
Aberdeenshire Council leader Gillian Owen added that the lack of clarity reflects poorly on the council. “The £20 million just sitting there makes it look like we haven’t made an effort – when that’s far from the case,” she said.
Aberdeen City Councillor Miranda Radley voiced concern about the timing. “We’re in a declared housing emergency, and with only a year left on the deal, we’re still no closer to accessing this money,” she said.
Her concerns were echoed by Aberdeen City Council co-leader Christian Allard, who called the situation “extremely frustrating.”
In response, both councils have agreed to jointly approach the Scottish Government to request a meeting and push for clarity on how the fund can finally be accessed, Aberdeen Live reports.
A Scottish Government spokesperson said the release of funds depends on qualifying proposals. “To date, no proposals from either local authority have met the Housing Infrastructure Fund criteria,” the spokesperson said, adding that the Scottish Government continues to urge the UK Government to provide further funding support, so far without success.