Rising costs threaten plans to build more affordable homes

PLANS to build thousands of affordable homes are being hit by shortages and rising costs, MSPs were warned yesterday.

The Scottish Government has committed to delivering 110,000 affordable homes by 2032, of which 70 per cent will be available for social rent. A further 10 per cent will be provided in remote, rural and island communities.

Mark Rodgers, from Highland Council, told Holyrood’s Local Government, Housing and Planning Committee that targets could be missed.

‘The challenge is, are we actually building the right homes at the right size, in the right place, at the right time, for the right people at the right tenure?’ he asked.

“I would have to say to you, I think the answer is absolutely not.’ Building in rural areas ‘comes with its own challenges’ said Donna Birrell, CEO at the Rural Stirling Housing Association. However, she warned: ‘I don’t think I’ve ever seen it quite as difficult as this.’

Roslyn Clarke from the Applecross Community Company in the Highlands said lack of competition from contractors had led to higher costs.

Elaine Scott, head of housing strategy and development at City of Edinburgh Council, said pressure in the city’s market is having ‘an enormous impact’, with businesses reporting issues in being able to recruit and retain staff.

She said the council has developed its own partnership with Scottish Futures Trust offering ‘a few hundred homes’.