Infrastructure Investment Plan 2021-22 to 2025-26: Programme pipeline update (September 2022)

Sector: Housing

Programme name: Affordable Housing

Programme description: The delivery of 50,000 affordable homes over the five years of the previous Parliament (2016-2021). Working with local authorities, housing associations and private developers, we are committed to investment and ensuring best value in order to maximise the number of affordable homes that can be delivered from available resources.

Estimated total investment: In the region of £6 billion of which £3.5 billion was made available through the Scottish Government towards the delivery of affordable homes with the remainder being an investment contribution by delivery partners.

How is programme being funded: Capital funded.

Programme delivery timetable: Delivery was targeted for the end of the last Parliamentary period.

Latest programme progress: The previous 50,000 affordable homes target was met during March 2022, a year later than planned, after delays caused by COVID-19 pandemic and global issues around supply and workforce affected the pace at which homes could be delivered.

Of the 50,000 affordable homes completed between 1 April 2016 and 23 March 2022, 34,407 homes (69%) were for social rent, 6,245 (12%) were for affordable rent, and 9,348 (19%) were for affordable home ownership.

Contribution to economic development: The delivery of 50,000 affordable homes over five years (excluding periods when construction was interrupted by COVID-19) has been estimated to support on average between 11,000 and 13,000 full-time equivalent jobs per annum in the construction and related sectors in the Scottish economy.

Contact for public enquiries: email: morehomesbusman@gov.scot

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 £5.86 billion of which £3.6 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 now 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. A total of 2,362 homes have been delivered by March 2022 towards the 110,000 target, of which 2,068 (88%) are homes for social rent. Delivering this ambitious 110,000 affordable homes target would support a total investment package of around £18 billion and up to 15,000 jobs each year.

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 of 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 2023.
• Establishment of an Innovative Finance Steering Group to oversee the development and delivery of new proposals which will be designed to contribute to publicly committed affordable housing targets.

Contribution to economic development: Delivering this ambitious 110,000 affordable homes target would support a total investment package 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 allocated to OMSE in 2022-23 and 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 2022-23.

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