The lack of new housing is a result of a ‘consistent undersupply’ over more than a decade, HFS has said
Scotland is suffering from a chronic housing shortage of about 100,000 new homes, according to a report.
The lack of new housing is a result of a ‘consistent undersupply’ over more than a decade, industry body Homes for Scotland (HFS) has said.
The group represents 200 member organisations with an aim to deliver more homes for the country.
It has called on the Scottish Government for an all-tenure target of at least 25,000 new homes per year – the minimum quantity the group believes is needed to meet with current demand.
HSF’s chief executive Nicola Barclay said the current shortfall figure is 12% less than pre-2008 recession levels.
In an HFS report released on Thursday, authors said local authorities and government should recognise the additional social and economic potential new homes have at a regional and national level.
Based on figures from 2019, the year prior to the Covid pandemic when approximately 22,500 new homes were built, they said in just one year the country has missed out on benefits that include £52 million of local infrastructure investment which could have been spent on education, health and community facilities, as well as support for over 8,000 jobs.
The report, titled Social and Economic Benefits of Home Building in Scotland, also spoke about the gain that could be achieved by increasing new housing from 22,500 to 25,000 a year.
It said this would result in improved access to fit-for-purpose, energy-efficient accommodation for thousands of additional households, an enhanced quality of living with additional investment in community facilities, affordable housing and infrastructure and increased economic output of £300 million.
HFS said these benefits are in addition to the £500 million already paid in developer contributions annually for affordable housing, community facilities and infrastructure; the 79,000 jobs the home building sector currently supports; and the more than £3 billion that it generates in terms of economic output.
As the 2019 figures show, although we have been making progress towards the 25,000 homes of all tenures that we believe is necessary, there remains a significant housing gap, Barclay said.
The impact of reduced output due to Covid and supply chain issues during 2020 and 2021 has only exacerbated this situation, she said.
She said as well as fuelling house price inflation, the shortage of new homes is causing regional disparities and preventing people from getting on and leading fulfilling and independent lives.
