SFHA: Housing market shows signs of recovery, but approvals must increase

While the publication of the Scottish Government’s Scottish Housing Market Review – Q4 2021 shows “some welcome signs of recovery”, the Scottish Federation of Housing Associations (SFHA) has warned of a worrying decrease in affordable homes being approved.

SFHA: Housing market shows signs of recovery, but approvals must increase

According to the document, a total of 2,094 affordable homes were delivered in the third quarter of 2021, an increase of 917 on the same period in 2020. In addition, the number of homes delivered in the 12 months to Q3 2021 increased by 20% (1,464 homes) to 8,792 completions, compared with the previous year.

However, over the last year, approvals have dropped by 23.4% to 8,581 whilst starts decreased by 3.4% to 10,023.

The SFHA said that if the Scottish Government doesn’t address this issue, then it risks being unable to deliver its target of 110,000 affordable homes by 2032. 

Aaron Hill, SFHA director of policy and membership, said: “While the Housing Market Review highlights some welcome signs of recovery, with an increase in the number of affordable homes being delivered, we’re concerned to see a drop in developments being approved. If the Scottish Government doesn’t find a solution that will speed up this process, then it risks being unable to deliver its target of 110,000 affordable homes by 2032. With housing associations and co-operatives already facing issues that are affecting their ability to build – including rising costs and supply chain issues – it’s vital that when they are able to develop, they don’t face further barriers to delivering much-needed affordable homes.

“SFHA, and our members, will continue to work with the Scottish Government to find solutions to the challenges the housing sector is facing, ensuring social landlords can build the homes Scotland desperately needs.”

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