On 5 December, housing professionals from across Scotland came together for the virtual Housemark Scotland Leadership Forum.
The session provided a platform to examine the pressing issues facing the sector, share insights, and explore practical solutions to address Scotland’s housing emergency.
From regulatory challenges to financial pressures and tenant engagement, the discussion offered a comprehensive look at the current landscape and the way forward. Here are the 5 key takeaways:
1. Regulatory challenges: a growing list of priorities
The Scottish Housing Regulator outlined the increasing risks impacting the housing sector. Homelessness remains a critical issue, with applications rising by 4% and over 10,000 children now living in temporary accommodation – a 5% increase compared to last year. Worryingly, households with children are spending the longest time in temporary accommodation.
On housing quality, compliance with the Scottish Housing Quality Standard (SHQS) has declined since the pandemic, with delays in safety inspections and installations of vital equipment such as interlinked smoke and heat detectors. Tenant safety, particularly around damp and mould, cladding, and fire risks, was also highlighted as a key focus, with calls for improved communication between landlords and tenants. A phased approach to damp and mould data collection was discussed, with initial findings set to inform future policies.
Meanwhile, a thematic study on gypsy traveller participation showed how trust and tailored communication can lead to better outcomes, though systemic barriers and cultural misunderstandings remain a challenge.
2. Addressing the housing emergency
The housing emergency continues to dominate Scotland’s housing agenda. Thirteen councils, along with the Scottish Government, have now declared housing emergencies. However, the gap between housing need and supply is growing, with seven councils reporting no new housing developments in the past year.
Recent budget announcements reinstated some funding for affordable housing, but this is still below pre-pandemic levels when adjusted for inflation. Rising construction costs, energy efficiency upgrades, and compliance with new safety regulations are stretching budgets further. Forum participants stressed the need for bold and collaborative solutions to rebuild housing delivery capacity.
3. Balancing rising costs and reduced budgets
The financial pressures facing Scotland’s housing sector were brought into sharp focus. Maintenance costs have surged by over 50% since 2021 due to rising labour and material prices. Energy efficiency retrofitting and safety compliance requirements have added to the strain.
Many landlords are struggling to maintain surpluses as income fails to keep pace with costs, with inflation and high interest rates compounding the challenge. The cautious approach to borrowing in Scotland, compared to England, reflects the financial uncertainty in the sector. Meanwhile, fragmented digital investments highlight the need for coordinated strategies to modernise systems and improve efficiency.
4. Housing supply: Finding new ways to deliver
Delivering enough homes to meet demand remains a significant challenge, with rising costs and funding shortfalls stalling many projects. A growing reliance on mid-market rent models is raising concerns about affordability, with some warning this approach could prioritise numbers over truly affordable housing.
Participants suggested diversifying income streams through partnerships with private developers and exploring innovative funding models. Building the capacity of local authorities and registered social landlords (RSLs) to resume paused developments was also highlighted as a priority.
5. Tenant engagement
Tenant engagement was identified as a critical factor in navigating the housing crisis. Involving tenants in decision-making not only builds trust but also helps ensure policies and services meet their needs. Participants called for a holistic approach to housing emergencies, with stronger collaboration between local authorities, RSLs, and the private rental sector.
Moving forward
The Housemark Scotland Leadership Forum highlighted the complex, interconnected challenges facing Scotland’s housing sector. From tackling homelessness and improving housing quality to addressing financial and systemic risks, the road ahead requires bold action and collaborative solutions.
By placing tenants at the heart of decision-making and embracing innovative approaches, Scotland’s housing providers can rise to the challenge and create lasting, positive change for communities.
We’ll meet again on 18 Feb, you can learn more and book your place here.