The housing and homelessness charity said every level of government has a duty to respond to Scotland’s housing emergency and urged Chancellor Rachel Reeves to act in her first budget tomorrow.

According to Shelter Scotland, sustained UK Government cuts meant housing benefits had failed to keep pace with ballooning housing costs and called for an increase to the capital budget in Scotland to encourage social housing investment.

Director Alison Watson said: “The housing emergency is devastating communities across Scotland and this budget is a chance for the UK Government to show that it’s serious about ending it.

“A decade and a half of austerity has driven people into poverty; sustained UK Government cuts mean the cost of keeping a roof over your head far outstrips the value of housing benefits.

“Councils’ response to the housing emergency has been undermined by the Home Office’s disastrous and cruel approach to people who have come here fleeing violence, so they too need to see meaningful support.

“The capital budget available to Scotland also needs to increase to support investment in the social homes we so desperately need.

“Business as usual clearly isn’t working so we urgently need to see a different approach from every level of government.”

Citizens Advice Scotland (CAS) has said that Wednesday’s Budget must also focus on making life easier for those who are struggling financially.

CAS chief executive Derek Mitchell said:  “Every day our CAB advisers are inundated with people whose income is just not enough to live on. People are not able to put food on the table. Many are getting into debt and are scared of losing their homes or having their energy cut off.

“This first Budget is an opportunity for the new UK government to make life better for people who are experiencing the most harm. We need to hear about bold, targeted, and urgent action. 

“We want to see the Chancellor make good on manifesto commitments and outline plans to review the flawed Universal Credit system. There have been some encouraging indications about lowering UC deductions. This would be welcome, but what we really need to see is a wholesale review of UC, as was promised in Labour’s manifesto in the election.   

“It’s also imperative that the government targets more help towards energy costs for those on the lowest incomes to prevent even more debts rising.”

Boost to social housing pledged

Ahead of tomorrow’s Budget, the deputy prime minister has written to Parliament to set out how it will support both affordable housing and social housing need.

According to Angela Raynor, the Budget will include an immediate one-year cash injection of £500 million to top up the existing Affordable Homes Programme which will deliver up to 5000 new social and affordable homes, bringing total investment in housing supply in 2025/2026 to over £5 billion. This comes ahead of the multi-year Spending Review next spring, where the government will set out details of new investment to succeed the 2021-26 Affordable Homes Programme. This new investment will deliver a mix of homes for sub-market rent and home ownership, with a particular focus on delivering homes for Social Rent.

The government will also consult on a new five-year social housing rent settlement, which caps the rents social housing providers can charge their tenants, to provide the sector with the certainty it needs to invest in new social housing. The intention would be for this to increase with Consumer Price Index inflation figures and an additional 1%. The consultation will also seek views on other potential options to give greater certainty, such as providing a ten-year settlement.

These measures to increase affordable housing come alongside changes to England’s Right to Buy scheme. To address the depletion of the existing social housing supply, the Chancellor will confirm at Budget that councils will be able to retain 100% of the receipts generated by Right to Buy sales. This will enable councils to scale up the delivery of social homes whilst still enabling longstanding tenants to buy their own homes.

The Chancellor will also set out how Right to Buy discounts will be reduced to protect existing social housing stock to meet housing need, whilst ensuring long-term tenants can still benefit. This will deliver a fairer and more sustainable scheme that also presents better value for money for councils.

The Chancellor will also confirm £128m of funding to support the delivery of new housing projects, comprising of:

• Confirmation of a £56m investment at Liverpool Central Docks which is expected to deliver 2,000 homes in North Liverpool, along with office, retail, leisure, and hotel facilities. This will transform Liverpool’s former dockland into a thriving waterfront neighbourhood.
• A £25m investment in a joint venture to establish a new fund with Muse Places Limited and Pension Insurance Corporation to deliver 3,000 energy-efficient new homes across the country, with a target of 100% of these being affordable.
• The confirmation of £47m to local authorities to support the delivery of up to 28,000 homes that would otherwise be stalled due to ‘nutrient neutrality’ requirements. This funding will not only unlock much needed new housing but also clean up our rivers in the process.

Chancellor of the Exchequer, Rachel Reeves, said: “We need to fix the housing crisis in this country. It’s created a generation locked out of the property market, torn apart communities and put the brakes on economic growth.

“We are rebuilding Britain by ramping up housebuilding and delivering the 1.5 million new homes we so badly need.

Deputy prime minister Angela Rayner added: “We have inherited a housing system which is broken, with not enough homes being built and even fewer that families can afford.

“This is a further significant step in our plan to get Britain building again, backing the sector, so they can help us deliver a social and affordable housing boom, supporting millions of people up and down the country into a safe, affordable and decent home they can be proud of.”

Responding to the announcement, Kate Henderson, chief executive of the National Housing Federation, said: “We strongly welcome the £500m top-up to the affordable homes programme. This vital injection of funding, which we’ve been urgently calling for, will support housing associations to continue to deliver much needed affordable homes in the immediate term and prevent a collapse in delivery.

“We share the government’s ambition to build 1.5 million homes over this parliament and stand ready to deliver the social homes needed, which is why we welcome a consultation on a new rent settlement.  This will provide both transparency for residents and long term certainty and financial stability for social housing providers. We also support the government’s decision to review right to buy discounts.

“To achieve the affordable homes needed across the country, alongside this short-term top-up, we look forward to a new long term housing strategy announced at the next spending review, including a significant boost in funding for social housing.”

Rachael Williamson, head of policy and external affairs at CIH, said: “We agree with the government that we need to fix the housing crisis and strongly welcome its commitment to increase investment in affordable and social housing in the forthcoming Budget and subsequent Spending Review.

“The £500m top-up to the Affordable Homes Programme is essential for maintaining momentum and keeping the programme running in the immediate term, ahead of the new funding needed in the Spring. The £128m funding for new housing projects is also welcome and demonstrates an understanding of the urgent need for more affordable homes and long-term solutions that support the sector in building and maintaining quality housing.

“This focus on creating new affordable social homes, alongside measures to improve and protect existing ones through Right to Buy reforms and increased rent stability which we’ve long called for, represents a positive step towards tackling our broken housing system. Long-term certainty is essential for the social housing sector to effectively plan and invest so the introduction of a five-year rent settlement is welcome. However, to fully support effective planning and sustainable investment, a 10-year settlement is needed. This level of certainty would empower housing providers to make the long-term commitments required to deliver the affordable homes that our communities urgently need and provide greater transparency for residents.

“We share the government’s vision of a fairer housing system that can empower people with safe, affordable, and quality homes and look forward to working together to contribute to its Housing Strategy.”

Darren Baxter, principal policy adviser, Joseph Rowntree Foundation, added: “Having a secure and affordable home gives people the certainty they need to build a life for themselves and their families. Investing in building social homes will make a real difference to the lives of people who are currently locked out of the economic security these homes could give them.

“It’s welcome to see that alongside this investment, the government plans to take steps to reduce the number of homes lost to the private sector through the Right to Buy discounts. Taken together, these measures are a very positive move towards ensuring everyone has a decent and affordable home, and a hopeful sign for more investment in the future.”

Regulation of property agents

Elsewhere, Propertymark has welcomed Minister of State for Housing and Planning, Matthew Pennycook’s commitment to implement the regulation of property agents.  

During a question-and-answer session in the House of Commons on Monday 28 October on housing, Pennycook said: “The government is committed to ensuring that those living in the rented and leasehold sectors are protected from abuse and poor service at the hands of unscrupulous property agents. The government will set out its position on the regulation of letting, management and estate agents in due course.” 

Nathan Emerson, CEO of Propertymark, said: “Many renters will be unaware that there is currently no requirement for estate or letting agents in England to be qualified or licenced to operate or open their own business leaving many people open to unscrupulous and illegal practice. With over 64% of landlords in England using letting and management services to rent their property, it’s crucial that regulation is introduced to professionalise the industry, stamp out bad practice, create transparency and gives consumers more control over who manages their property.”