Does the good news on housebuilding stand up?

The excitement amongst homebuilders and social housing providers could be heard across Scotland last week when it became clear that housing funding would be restored in Shona Robison’s budget.

Last year the budget was slashed by around £200 million, forcing social housing providers and developers to rethink homebuilding plans for the coming year. Yet, this was always unlikely to be a sustainable position, with the Scottish Parliament and councils across the country declaring housing emergencies. First Minister John Swinney, who is the final arbiter of budget priorities, has also been around the block enough times before to know which way the political wind is blowing.

That is why it was not a complete shock to see £768m – a real terms increase of more than a quarter – ringfenced for more affordable homes next year. According to the Scottish Government, this means 8,000 more homes for social rent, mid-market rent and low-cost home ownership will be built or acquired. This was welcomed by much of the industry and should genuinely help to unlock developments across Scotland.

PR expert Jack Hope specialises in the built environment

The move was followed last week by an intervention by Prime Minister Sir Keir Starmer saying he will unleash a “golden era of building” homes and critical infrastructure, such as schools, hospitals, railways and reservoirs, in England.

To the builders, developers, and young people and families across the country who are desperate to buy their own home, this will be music to their ears. But do both of these positive announcements last week stand up to reality?

Well, it is certainly not the first time that we have heard there will be sweeping changes to the planning system. Time and time again when councillors, MSPs, MPs and others are faced with the electoral reality of supporting unpopular planning decisions in their own constituency, reforms are watered down and do not deliver the radical change needed. Certainly all the housebuilders we represent are clear that the planning system needs significant improvements to unlock the current log jam where developments are delayed in an under-resourced system which appears to operate at a snail’s pace despite the widely acknowledged housing crisis.

Similarly, on closer scrutiny, the new funding for affordable homes is not quite as transformational as it might seem at first glance. First of all, it can be argued this is just another peak on the yearly rollercoaster of public spending before a future trough. Chief executives crave certainty to allow them to plan for multiple years. Solving this problem could deliver real gains in terms of the number of homes being built.

Prime Minister Keir Starmer said he would unleash a 'golden era of building' (Picture: Ian Forsyth/Getty Images)

The other reason is that the funding is perhaps just not enough. According to the Scottish Parliament Information Centre, “in real terms (at 2024-25 prices), the overall budget is 3 per cent lower than it was in 2022-23”. Similarly, when we compare it to 2021-22, funding is at least £200m down in real terms.

Having housing at the front and centre of political debate is hugely important given the impact of a safe, warm home on individuals’ lives. Hopefully these changes indicate that the tide is starting to finally turn in addressing the housing emergency.

Jack Hope is a Public Affairs and Public Relations Consultant for Perceptive Communicators which specialises in the built environment