Infrastructure Investment Plan 2021-22 to 2025-26: programme pipeline update - March 2023
This pipeline provides information relating to key major infrastructure programmes with an investment of £20 million or more included at Annex D of our Infrastructure Investment Plan, published in February 2021.
Sector: Housing
Programme name: Alternative Funding to Support Affordable Housing
Programme description: The Affordable Housing Supply Programme is focussed on delivering more affordable and social homes, helping to create great places, and continuing to ensure the right types of homes in the right places to support Local Housing Strategies and regional development priorities / Delivery of the Housing to 2040 strategy vision and aims.
Estimated total investment: We currently estimate that total investment will be in the region of £6 billion of which £3.5 billion is available through Scottish Government capital grant towards delivery of affordable homes, with the remainder being an investment contribution by delivery partners.
How is programme being funded: Capital funding committed from Scottish Government for five years to 2025-26 as well as borrowing by local authorities and registered social landlords / Housing Capital budget and private sector investment.
Programme delivery timetable: Initial phase 2021-22 to 2031-32.
Latest programme progress: We have started to deliver against our commitment to 110,000 affordable homes by 2032, of which at least 70% will be available for social rent and 10% will be in our remote, rural and island communities. To December 2022, a total of 7,493 homes have been delivered towards the 110,000 target, of which 6,172 (82%) are homes for social rent.
Also, in line with the Housing to 2040 Vision, we will continue to support the delivery of housing as follows:
- Funding City Regional Deal housing activity including investing in strategic sites to deliver strong place-based investments over the next 20 years.
- Continued support for housing infrastructure investment, building on the Housing Infrastructure Fund (HIF), which has invested nearly £50 million to date in unlocking developments. Since the new round of HIF grant funding was opened in October 2021, we have made £4.85 million of grant approvals, supporting transportation infrastructure works in the Dunfermline area that will ultimately help unlock delivery of c.8,000 new homes.
- Continued delivery of over £100 million of long-term loan investment delivering up to 1,850 mid-market rent (MMR) housing across Scotland by the end of 2024.
Through the Innovative Finance Steering Group, we will provide strategic advice to the Scottish Government on opportunities for innovative finance models to support affordable housing sector to deliver 110,000 affordable homes target by 2032.
Contribution to economic development: Delivering this ambitious 110,000 affordable homes target would support a total investment package over the period 2021-22 to 2031-32 of around £18 billion (in 2022 prices) and up to 15,000 full-time equivalent jobs each year in the construction and related sectors in the Scottish economy.
Contact for public enquiries: email: morehomesbusman@gov.scot
Programme name: Housing Supply Supporting Home Ownership
Programme description: The delivery of support for Help to Buy, First Home Fund and Open Market Shared Equity.
Estimated total investment: £208 million.
How is programme being funded: Financial Transactions capital.
Programme delivery timetable: 2021-2023.
Latest programme progress: Financial Transactions funding totalling £84 million was made available across both the First Home Fund (FHF) and Help to Buy (Scotland) Affordable New Build and Smaller Developers Scheme (HtoB) in financial year 2021-22, with £64 million for Open Market Shared Equity (OMSE). £60 million has been made available to OMSE in 2022-23 and we will continue to support OMSE in 2023-24 which contributes towards the Affordable housing supply Programme targets.
The First Home Fund (FHF) and Help to Buy (Scotland) Affordable New Build (HtoB) both closed on 31 March 2022. A small number of transactions across both schemes will settle during financial year 2023-24.
Contribution to economic development: A strong and growing house-building industry is key contributing factor to Scotland's future economic prosperity.
Contact for public enquiries: email: morehomesbusman@gov.scot
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