The Scottish Federation of Housing Associations (SFHA) has warned that private investment alone cannot solve Scotland’s deepening housing emergency, calling for long-term public funding commitments to be central to any future strategy.
The statement comes in response to the final report of the Housing Investment Taskforce, a Scottish Government-commissioned group established to explore how to unlock more investment for new homes across the country.
Chaired by Housing Minister Paul McLennan MSP, the taskforce brought together lenders, local authorities, housing associations, and investment bodies — including the Scottish National Investment Bank — to consider new approaches to delivering affordable and market housing.
Key Recommendations: From Rent Controls to Infrastructure Status
The taskforce’s final report proposes a series of actions, including:
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Exempting Mid-Market Rent (MMR) homes from rent control regulations, currently proposed in the government’s Housing Bill;
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Designating housing as critical infrastructure, akin to roads or energy;
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Developing a long-term housing investment plan;
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And controversially, allowing for-profit delivery of affordable housing.
While welcoming much of the report’s tone and ambition, SFHA Chief Executive Sally Thomas emphasised the critical role of public funding in social housing — and pushed back against the idea that private capital could bear the load alone.
“Private finance should supplement, not replace, government funding,” Thomas said.
“Our housing association members reinvest surpluses into tenants’ homes. This tried and tested model is why social sector rents are about half the cost of the private sector.”
Certainty and Stability Needed
SFHA welcomed the report’s recognition that MMR homes should be exempt from rent controls — a stance that aligns with industry concerns that applying strict rent caps could deter future investment in the sector.
“These are all sensible positions, and we hope we will now see swift action,” Thomas added, calling on ministers to introduce relevant amendments to the Housing Bill to give certainty to MMR providers.
But while backing increased private participation, the SFHA warned that the real stumbling block remains unresolved: a lack of long-term public funding.
Private finance alone cannot end the housing emergency. What’s needed is a clear, long-term public investment plan, matched with private capital — as we do with other forms of national infrastructure.”
Context: Scotland’s Housing Emergency
Scotland is currently facing one of the most severe housing shortages in decades. Social housing waiting lists remain long, with homelessness applications rising and private rental costs hitting record highs in urban areas.
The Scottish Government has declared a “national housing emergency”, with ministers under mounting pressure to boost delivery and ease regulatory uncertainty for developers and housing associations alike.
Paul McLennan previously said the taskforce would help “unlock new routes to finance housing delivery”, including through pension funds, institutional investors, and co-investment models — but acknowledged that public funding would still be “central” to social housing.
The taskforce’s proposals are expected to inform upcoming amendments to the Housing (Scotland) Bill, due to be debated in Parliament later this summer.
