Inside Housing – Home – Scotland’s rent freeze will lead to fewer social homes, poorer-quality housing and an end to the sector’s role as a leader on decarbonisation

In Scotland, the Right to Buy was abolished in 2014, which has protected our stock of social housing. Nevertheless, there remains an urgent need for more good-quality, affordable rented housing. The Scottish Federation of Housing Associations’ joint research with the Charted Institute of Housing Scotland and Shelter Scotland found that at least 53,000 new affordable homes are needed by 2026, which will require an investment of at least £3.4bn.
The Scottish government has not shied away from this challenge, setting a target of 100,000 new homes by 2032 after the election last year. It then upped the target to 110,000 when the Scottish National Party and Scottish Greens reached their partnership agreement in 2021. This has all been hugely welcome, and we have been glad to work in partnership with Scottish government on this. We hope we can continue to do so.
In the days after the announcement, I hosted a meeting with more than a hundred of our members who had made themselves available at very short notice to voice their alarm and concerns. They were clear that if they are required to freeze rents without additional financial support, the impact will be:
Massively reduced ability to invest in maintaining existing properties, which will lead to a drop in the quality of tenants’ homes
A halt to the investment that the sector has led in making homes more energy efficient, as we strive to meet ambitious Scottish government targets on climate change
Greatly diminished ability to build new affordable homes; not least since lenders will have reduced confidence in their ability to repay debt
For many, a reduction in their ability to provide the kind of financial, employability and energy support to tenants that is so crucial to help them through these difficult times
Housing associations and co-operatives have gone the extra mile countless times over the past few decades, creating the most energy-efficient homes in Scotland and raising the quality and availability of low-cost, affordable housing. They have achieved this through a stable, responsible approach to running their businesses for the benefit of – and in many cases in partnership with – their tenants.
They are now facing months of uncertainty, which, for businesses that are required to operate to 30-year operating plans and maintain the confidence of private lenders, is a matter of the utmost gravity.
We understand, and indeed support, the motivation to keep bills manageable. But an indiscriminate approach to the whole rented sector in Scotland will result in fewer social homes, poorer-quality housing and an end to the sector’s role as a leader on decarbonisation. We do not believe this is what the Scottish government wants, and we will work tirelessly alongside our members to prevent these unnecessary consequences.
Sally Thomas, chief executive, Scottish Federation of Housing Associations



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