Housing subsidies increased for affordable homes for rent

Housing subsidies are being increased for affordable homes for rent, giving a boost to Scotland’s affordable homes target.

Over the next three years, housing subsidies are being increased for affordable homes to rent being delivered by councils and registered social landlords (RSLs).

Subsidies help councils and RSLs acquire land or buildings and to build, convert or improve housing for social and affordable rent.

An expert group, which included housing associations and council representatives, recommended increasing subsidy levels, and all recommendations have now been agreed in full and will be implemented for any new grant applications.

Each new home will see an increase in grant subsidies of up to £14,000, with incentives being offered for homes that are achieving the higher greener standard.

As a result, RSLs in city and urban areas subsidy goes up to £58,000 to £70,000, and for council homes from £46,000 to £57,000.

Housing Minister Margaret Burgess said: “I would like to thank the group for their work on the report. We are aware of the pressures being faced by councils and housing associations, and support their recommendations on increasing subsidies.

“Housing is at the heart of our ambitions to create a fairer and prosperous country and councils and registered social landlords will play a critical role in realising that.

“We have a strong record on housing, having exceeded our target to deliver 30,000 affordable homes in this Parliament. We also started a new generation of council house building and have taken steps to safeguard social housing for the future by abolishing the right to buy.

The new target is now to deliver 50,000 affordable homes, which will be backed with £3Bn of investment. The new target is a 67% increase in affordable housing supply, with 70% of the new target being for social rent.

 

 

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