The research will be undertaken by Rettie & Co and Third Revolution Projects and will assess whether the current system for developer contributions is working to deliver the social and affordable homes required to meet housing need.

Typically Section 75 Agreements are intended so that developers contribute land, homes, or one-off payments for affordable housing as part of their overall developments.

Whilst developer contributions vary across and even within local authorities, the Scottish Government’s National Planning Framework 4 (NPF4) sets a target for 25% of all proposals for market homes to be affordable. The framework does allow for this target to be variable depending on local factors as well as viability.

SFHA’s research will identify the extent to which Section 75 Agreements are being used across the country and will also examine barriers and opportunities in how these agreements are being used to deliver social homes. It will also seek to understand the way in which developer contributions are being applied to housing association’s own development projects.

With up to 30% of affordable homes across Scotland being delivered through private development in some way, the research will assess how these agreements work and how the system could be improved to deliver more affordable homes.

Rettie & Co have considerable experience in this field having also supported the Scottish Government’s research into developer contributions in 2021.

The research will analyse a series of case studies across Scotland where different local authorities apply their affordable housing policy in different ways depending on local circumstances. 

The findings of the research will be published later this year and will include views from housing associations and co-operatives, local authorities, private developers, community groups and other public bodies.

SFHA chief executive, Richard Meade, said: “With Section 75 Agreements contributing up to a third of affordable homes delivered in Scotland each year, it’s critical that we understand how these agreements are working in practice.

“Given the urgent need for more safe, warm and affordable homes throughout Scotland, it’s essential that we find out how Section 75 Agreements can be improved to support housing associations and co-operatives in their development programmes.

“We trust this research will demonstrate the barriers and opportunities housing associations face in different local authorities under Section 75 Agreements and believe this will inform policymakers to support the delivery of more social and affordable homes.”

Dr John Boyle, director of Research and Strategy at Rettie & Co, added: “Working alongside our colleagues at Third Revolution Projects, Rettie are delighted to be working with SFHA on this timely assignment that will investigate closely the use of developer contributions for affordable housing from an RSL perspective and examine how the system could provide higher levels of social housing.

“The results should be able to inform policy discussions and development in this area.”