The building of more than 1,800 new affordable homes has ground to a halt across Scotland as a result of funding cuts to the Scottish Government's flagship affordable homes supply programme, aimed at ending the homelessness crisis.

That is the findings of data collected by members of the representative body Homes for Scotland (HFS) which reveals that around 5,000 new energy efficient homes are on sites that are stalled because of the cuts. Some 1,826 of those were designated as affordable housing which have been programmed for delivery and have been thrown into a limbo state.

The survey also found that 1,542 of the stalled homes, of which 848 were affordable, are from sites within local authorities which have already declared local housing emergencies - Edinburgh, Glasgow, Fife, West Dunbartonshire and West Lothian.

It comes as the Scottish Government's affordable homes budget has taken a cumulative hit of over £280m over the past three years without taking inflation into account - based against the 2021/22 allocation of £779.776m - despite a pledge by outgoing First Minister Humza Yousaf of a £80m uplift for affordable housing over the next two years.

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Housing campaigners have been concerned by a £196m (26%) cut to the budget in the 2024/25 alone, without taking into account inflation, with the spending plans set at £555.862m before an extra £40m was promised by Mr Yousaf.

If the budget had kept up with inflation since 2021/22 in 2024/25, it is estimated the spending plans would have been at £958.32m.

When inflation has been taken into account, instead of getting £2.6bn over the three years - the affordable homes budget is at £2.06bn - an estimated drop of £570m.

Homes for Scotland chief executive Jane Wood said: “These latest insights clearly illustrate the impact the devastating cuts to the affordable housing budget have had on all-tenure housing delivery across Scotland, leaving thousands of vitally needed new homes across the country facing years of delay or, even worse, completely mothballed at a time of national emergency.

Jane Wood  (Image: NQ)

"This only adds further pressure to the households already in some form of housing need.

“With latest Scottish Government statistics showing housing starts and completions in rapid decline and new independent research highlighting the alarming contraction in small and medium sized home builders, the housing sector is calling out for genuine emergency action from government."

Six years ago, the Scottish Government launched an action plan to build affordable homes which was meant to curb homelessness, cut the use of temporary accommodation and rapidly rehouse people.

But there are 4,700 households more stuck in housing limbo in 2023 than there were six years ago - a rise of 43% - with 15,625 in temporary accommodation last year - the highest for over 20 years. Over two decades, that number has trebled with just 5403 in the makeshift homes in 2003.

The number of children in the housing limbo has followed suit hitting new records. There were 9,860 children in such transitory homes towards the end of 2023, 3245 (49%) more than when ministers launched the action plan.

And the councils' spend on placing the homeless in temporary accommodation such as bed and breakfasts and hotels because there is a shortage of permanent homes shot up to over £720m of public money over the last five years because of the housing shortage.

Meanwhile, the Scottish Government has fallen way behind in a key target in its 2021 Programme for Government to deliver 110,000 social and affordable homes by 2032 with 70% for social rent.

There have been 19,980 affordable homes completed, that have received some sort of public money support in the first two years till March 31 this year - meaning it is already 2,620 short of an 11,300 homes a year target.

But concerns have deepened around the number of starts to affordable homes which makes the future of completions far bleaker.

In the very same two years there were just 13,655 affordable homes begun, against a target over the period of 22,600.

It is the lowest return over a two year period for nearly a decade.

With seven years and nine months of the target to go 90,020 homes remain to be completed to meet the target, at an average of over 11,600 a year.

Ms Wood added: “The impact of the cuts that have devastated the housing budget are now clear for all to see.

"The Scottish Government must utilise all powers within its own control to ease the pressures facing the housing sector to catalyse the delivery of new homes across all tenures, whether this be urgently reviewing proposed regulation and policy or tackling the untenable planning processing times that are stifling the speed of future development."

The Scottish Federation of Housing Associations chief executive Sally Thomas said the First Minister John Swinney "has to prioritise housing and take action".

She said: “Even before the Scottish Government’s devastating cut to the housing budget, developing new homes had become ever more challenging due to the rising costs of materials, labour and construction. Alongside this, the planning system isn’t working efficiently enough to allow projects to get underway quickly and at scale.

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“And our rural communities face their own significant challenges, not least when it comes to local jobs. There is simply not enough homes for the workforce they need to build and maintain houses.

“These issues were all contributing to a slowing down in the delivery of social homes, but the budget cuts to our affordable homes programme have utterly pulled the rug from under the feet of our housing associations - during a national housing emergency and with record homelessness. There are solutions to all of this, but we cannot turn the tide alone."

Overall, the number of homes completed last year fell by 17%.

Some 19,632 homes were built across the country in 2023-24, a drop of 4,150 from the previous year, while construction began on 16,404 homes – down 15%.

In the social housing sector, 5,043 homes were completed – a drop of more than 25% from the previous year – while 3,500 residences were started in a 14% reduction.

Meanwhile, completions and starts dropped by 13% and 16% respectively.

(Image: NQ)

Housing minister Paul McLennan said: “Since 2007, Scotland has delivered more than 131,000 affordable homes, with more than 93,000 of those being for social rent. We will invest nearly £600 million in affordable housing in 2024-25, the majority of which will be for social rent. This includes up to an additional £40 million in 2024-25 and an equivalent commitment in 2025-26 to increase affordable housing supply and help reduce homelessness.

“To maximise the impact of this investment, we are concluding our review of the Affordable Housing Supply Programme with inputs from stakeholders to ensure resources are being deployed to optimal effect. We are also working on the development of specific options to attract private investment through the Housing Investment Taskforce.”