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Scottish Government 'unlikely' to meet 2032 affordable housing target

New research suggests the Scottish government is unlikely to achieve its goal of delivering 110,000 affordable homes by 2032.

  • The Fraser of Allander Institute (FAI) research indicates a potential shortfall of 35,000 affordable homes by 2032.
  • Workforce shortages and rising material costs are cited as key factors hindering housebuilding efforts.
  • Building affordable homes is particularly challenging in rural areas due to higher construction costs.

The Scottish government is unlikely to meet its target of delivering 110,000 affordable homes by 2032, according to new research from the Fraser of Allander Institute (FAI).

The FAI's analysis suggests that based on recent delivery trends, approximately 75,000 affordable homes could be completed by 2032, falling short of the 110,000 target. Factors contributing to this include workforce shortages and rising material costs, which are putting pressure on housebuilding.

Ben Cooper, Economist Fellow at the Fraser of Allander Institute, stated that the research highlights the capacity pressures facing affordable housing delivery. He noted that achieving these ambitions will be increasingly challenging without addressing financial, workforce, and capacity pressures within the housing and construction sectors.

Richard Meade, chief executive of the Scottish Federation of Housing Associations (SFHA), has urged the Scottish government to address wider systemic challenges. He emphasised the need for sustained, long-term investment and concrete steps to overcome barriers across the housing and construction sector, particularly in rural and island communities where costs are highest.

Why this matters: The potential shortfall in affordable housing delivery could impact the availability of homes for those in need across Scotland.

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