Scottish Government Establishes New Housing Agency to Address Supply Crisis
In a significant move to confront Scotland's deepening housing emergency, First Minister John Swinney has unveiled plans for a new national housebuilding agency named More Homes Scotland. The announcement came during a visit to a construction site in East Lothian, where Mr Swinney outlined the agency's ambitious mandate to dramatically increase the pace of housing delivery across the nation.
Strategic Focus on Affordable and Rural Housing
The newly established agency will concentrate specifically on large-scale affordable housing proposals, with particular attention to rural and island communities that have historically faced severe housing shortages. More Homes Scotland will also prioritise the acquisition of land and the essential infrastructure work required to revive stalled development sites that have languished due to various obstacles.
Housing Secretary Mairi McAllan will lead the design process, collaborating closely with local authorities and the Scottish National Investment Bank. This partnership aims to attract substantial private funding to complement public investment, creating a more robust financial foundation for housing projects.
Operational Timeline and Parliamentary Oversight
The Scottish Government has confirmed that an update regarding the agency's progress will be presented to the Scottish Parliament in March. Officials anticipate that More Homes Scotland will become fully operational by the 2028-29 financial year, marking a strategic component of the government's decade-long public sector modernisation and reform agenda.
First Minister Swinney emphasised the urgency of the housing situation, stating: "Scotland is facing a housing emergency. We recognise the difficulty that many Scots – in particular young Scots – have finding a home they can afford to rent or buy." He highlighted the Scottish Government's track record since 2007, having supported the delivery of 141,000 affordable homes, including 101,000 for social rent – proportionately exceeding achievements in other UK regions.
Clarification on Agency's Role and Limitations
During discussions with the Press Association, Mr Swinney clarified that More Homes Scotland will not engage directly in construction activities. Instead, it will function as an enabling agency, working collaboratively with local authorities, housing associations, and individual developers to eliminate barriers that hinder housing delivery.
The agency will not possess planning powers, but will cooperate with councils to ensure the planning system operates with greater efficiency. Mr Swinney explained: "We've got to be constantly looking at the planning system to make sure it delivers the ability to construct new homes within Scotland, and that we do everything within our power to use the resources available to us to speed up the system."
He further revealed that the Scottish Government is committing over £900 million to affordable housing in the forthcoming financial year, with the new agency tasked to ensure these funds are deployed swiftly and effectively to maximise impact.
Support from Investment Bank and Housing Charity
David Ritchie, Chief Executive of the Scottish National Investment Bank, welcomed the establishment of More Homes Scotland, noting that the bank has already invested more than £130 million in housing projects with a robust pipeline of potential investments. He stated: "As a mission-led investor, the bank makes commercial investments that drive long-term societal and economic growth for Scotland. Our 'Place' mission is focused on improving communities, and a good home is a key tenet of that."
Housing charity Shelter Scotland also expressed cautious support for the initiative. Chief Executive Alison Watson remarked: "Today's announcement is a step in the right direction, but it must also be matched by the funds to build the homes we need." She pointed out that last week's Scottish Budget set an ambition of building 36,000 affordable homes by 2030 – more than 20,000 short of the target required to deliver the government's promise of 110,000 affordable homes by 2032.
Political Opposition and Critical Perspectives
The Scottish Conservatives responded sceptically to the announcement, with housing spokeswoman Meghan Gallacher warning that the new agency "cannot be another SNP talking shop that fails to deliver." She criticised what she described as the SNP's "appalling failure to deliver the homes we have needed over the last two decades," and questioned the timeline that would see the agency not fully operational for another two years.
Despite these criticisms, the Scottish Government maintains that More Homes Scotland represents a fundamental shift in approach. The agency aims to reduce duplication, enhance expertise, increase efficiencies, and extend the reach of substantial public investment. By fostering stronger partnerships with local authorities and attracting commercial investment through the Scottish National Investment Bank, the government hopes to create simpler, faster pathways to housing delivery that will benefit a new generation of Scots seeking affordable, climate-friendly homes in liveable communities.
