As 2024 closes, I’ve been reflecting on the opportunities and challenges Scotland’s housing sector has faced over the past year. While I don’t want to begin on a negative note, it’s impossible to ignore the increasingly alarming state of our housing market. The ongoing shortage of homes across all tenures is not a new issue, yet the national housing emergency declared by the Scottish Government in June 2024 underlines the severity of the situation we find ourselves in.

Last month’s announcement that affordable housebuilding starts have hit their lowest point in over a decade only intensifies my concern and I know that many of my peers across the sector share my apprehension about how we will meet the ambitious housing targets set for 2025 and beyond.

We have also witnessed the highest number of homelessness applications since 2011-12, increasing to 40,685. A truly shocking and saddening situation to find ourselves in, this alone should be a catalyst to accelerate change by decision-makers.

As a developer of mid-market rent (MMR) homes across the Highlands, we’ve witnessed firsthand the direct effects of the supply-demand imbalance. Enquiries for available homes are at an all-time high. This is because MMR homes are quickly becoming the most attractive housing option to large swathes of local communities, as they are priced slightly above affordable housing and below private rental rates.

In 2025, the proposed Housing (Scotland) Bill will progress, potentially ushering in some of the most significant and challenging legislative changes in HHA’s history. As the Bill progresses towards the Stage 3 vote early next year, it is crucial that the Scottish Government considers potential exemptions and amendments—particularly for the MMR sector. With rental limits already in place for MMR, it should be exempt from proposed changes that will only dampen investor appetite at a time that we truly cannot afford to do so. 
However, I cannot be wholly negative. To drive meaningful change, we must adopt a forward-thinking and collaborative approach.

I was encouraged to learn earlier this year that the Scottish Government will support the construction of 2,800 MMR homes with £100 million of investment, as announced in the 2024-25 Programme for Government. This funding, in combination with institutional investments such as pension funds, will help grow the sector to at least £500 million. This initiative is part of the Government’s strategy to leverage more private investment to deliver housing, and I’m hopeful it will accelerate the expansion of MMR homes across Scotland.

The recent Scottish Budget announcement further restores confidence, with £768 million allocated to the affordable housebuilding programme for 2025-26.

HHA has boosted its portfolio through strategic partnerships with The Highland Council and the Scottish Government. For example, in Aviemore through the Rural Affordable Homes for Key Workers Fund, we took handover of a selection of homes exclusively for key workers in the region. Importantly, this has helped to ensure that skilled workforces have access to high-quality and sustainable homes.

In partnership with Tulloch Homes, we have also added more than 100 homes to our ownership across landmark developments in Inverness, Kirkhill and Aviemore. This strategic tie-up with Tulloch Homes means that we have introduced MMR homes at exclusive housing developments, extending the variety of tenure available which is intrinsic to tackling housing challenges.

We are also working with Capstone Construction to create 24 new homes in the popular Slackbuie area of Inverness. The fantastic new homes at Slackbuie View will all be available at MMR and as part of our developer contribution, HHA has donated more than £180,000 that will support local primary and secondary schools, and community facilities. These homes will be a fantastic addition to the local community.

Importantly, new homes will help to support the local region which is poised for growth via the Inverness and Cromarty Firth Green Freeport. Attracting £3 billion in fresh investment, new homes for workers are vital to its success.

Looking at Scotland more broadly, effective planning is key to driving transformational regeneration, and our landscape is as dynamic as it is complex. The introduction of legislation on Masterplan Consent Areas now provides local authorities and private sector partners the opportunity to grant planning permission for regeneration projects. This will hopefully enable growth and remove the stumbling blocks to new development.

I think that it’s an exciting and positive opportunity for public and private sector organisations to collaborate and work together to deliver much-needed housing and I’m optimistic it will pave a way forward for a more streamlined planning process.

Next year, HHA will celebrate its 20th anniversary, and I’m incredibly proud of the positive contribution we’ve made to Scotland’s rental market. While much has changed over the past two decades, the core principles of providing good housing have remained consistent. At HHA, we believe everyone deserves a comfortable and fairly priced home, and this will continue to be our number one priority.