Cutting housing investment ‘not an option’ says CIH as Scotland forecast to miss delivery targets

The Chartered Institute of Housing (CIH) Scotland has warned that current investment in affordable housing falls short of identified need as new research reveals the government is likely to miss its own delivery targets.

The membership body responded to calls for evidence from two Scottish parliament committees carrying out pre-budget scrutiny ahead of the 2027/28 Scottish budget. It set out the case for increased investment in housing supply, adaptations and homelessness prevention.

In response to the finance and public administration committee, CIH Scotland said the government’s current £4.9bn to support the delivery of 36,000 social and affordable homes by 2029/30 is insufficient to fully address the housing crisis.

While this commitment means an average of 9,000 homes would be built per year, the government’s own affordable housing target of 110,000 homes by 2032 would require the delivery of 11,000 homes annually.

However, research commissioned by CIH Scotland, the Scottish Federation of Housing Associations (SFHA) and Shelter Scotland found that 15,693 social and affordable homes need to be delivered each year to meet housing need.

A new report by the Fraser of Allander Institute commissioned by the SFHA and the Association of Local Authority Chief Housing Officers found that the government is “unlikely to meet” either of its 2029/30 or 2032 headline targets.

The report stated: “This is not simply a result of policy choices, but of external factors that are largely outside government control, particularly in the construction sector. At the same time, the funding available to support new developments is struggling to keep pace with rising costs, making it harder for councils and housing associations to bring projects forward.”

In response to the public service reform committee, CIH Scotland warned that failure to invest in housing will increase the risk of homelessness and result in additional costs to services like the NHS. This would undermine the government’s aim to deliver £0.5bn in savings through efficiencies each year for the next three years.

Gillian McLees, national director of CIH Scotland, said: “We know that the Scottish government faces some difficult financial decisions in the coming years, but cutting investment in housing is not an option. Investing in housing is part of the solution.”