Scotland is suffering from a "chronic" housing shortfall which is now approaching 100,000 homes, resulting in the loss of 8000 new job opportunities.

 Industry body Homes for Scotland, which represents 200 member organisations with an aim to deliver more homes for the country, say the“housing gap”is the result of significant and consistent undersupply over the last 14 years.

Its analysis states that for the last 14 years, Scotland has not achieved a yearly requirement of 25,000 new homes.

The group says ministers must set an all-tenure target of at least 25,000 new homes per year – the minimum quantity the group believes is needed to meet with current demand - believing it would provide Scotland with 8000 new jobs.

HFS’s chief executive Nicola Barclay said the current shortfall figure is 12% less than pre-2008 recession levels.

The group said that in just one year the housing shortfall has cost £52 million in missed local infrastructure investment which could have been spent on education, health and community facilities. It said it also cost over 8000 new job opportunities.

HFS commissioned independent consultancy Lichfields to explore the social and economic benefits of new homes and its report calls for local authorities and government to look beyond the bricks and mortar of home building and recognise the huge additional social and economic potential this unlocks at a regional and national level.

Taking statistics for 2019, when approximately 22,500 new homes were built, the study calculates the gain that could be achieved by increasing completion levels to 25,000. They say it would improve access to fit-for-purpose, energy-efficient accommodation for thousands of additional households.

It would improve health and education outcomes and enhance quality of living, with additional investment in community facilities, affordable housing and infrastructure.

It also had the potential to create 8000 additional new jobs and increased economic output of £300 million in one year.

The Herald:

The benefits are in addition to the £500 million already paid in developer contributions annually for affordable housing, community facilities and infrastructure, the 79,000 jobs the home building sector currently supports and the more than £3 billion that it generates in terms of economic output.

HFS chief executive Nicola Barclay said: “Having a home is the most basic of human needs. Indeed, it is recognised by the UN as a human right. Yet there are still too many examples of people in Scotland without a home at all or living in substandard accommodation, and we all have personal examples of people we know struggling to find a home that they can afford as house prices and rents continue to soar due to lack of supply.“Crucially, the standard of housing has a direct link to educational attainment and the life chances of our children. Poor housing quality also has myriad impacts on health – a heavy personal cost borne by the individuals themselves, and to our health service.

“As the 2019 figures show, although we have been making progress towards the 25,000 homes of all tenures that we believe is necessary, there remains a significant housing gap. It is also still 12 per cent less than pre-2008 recession levels, resulting in a cumulative undersupply approaching 100,000 homes. The impact of reduced output due to Covid and supply chain issues during 2020 and 2021 has only exacerbated this situation."

Official figures show that the number of new build completions dropped by 35% in Scotland in 2020 A total of 4,834 all-sector new build homes were completed in Scotland in the year to end December 2020, a decrease of 35% (7,839 homes) on the previous year.

Decreases were seen across private-led completions (37% or 6,130 homes), housing association completions (32% or 1,389 homes) and local authority completions (20% or 320 homes).

The number of new build homes started across all sectors also decreased over the same period, with 17,883 starts, a decrease of 27% (6,680 homes) on the previous year. Private-led starts dropped by 32% (5,596 homes), local authority starts dropped by 41% (860 homes) and housing association approvals dropped by 5% (224 homes).

Ms Barclay added: “As well as fuelling house price inflation, this is causing regional disparities and preventing people from getting on and leading fulfilling and independent lives, whether that is moving out from the parental home, relocating for work, starting a family or downsizing.

“What I hope the report clearly illustrates is that housing cannot be viewed in isolation. The hugely positive impact that having a decent home has on people’s daily lives and the environment in which we live cannot be understated. This is reflected in the report’s case studies which highlight the importance of warmth, space and security - regardless of individual circumstance.

“Scotland already derives so much benefit from home building but there is still so much more potential to maximise. Now is the time for us all to support the delivery of more homes and commit to an all-tenure target of 25,000 homes per year.”

A Scottish Government spokesperson said: “Scotland has led the way in the delivery of affordable housing across the UK with more than 105,750 affordable homes delivered since 2007, over 73,000 of which were for social rent.

“Homes have never been simply bricks and mortar – good housing and homes support our health, our wellbeing, our life chances and our job prospects. Everyone should have a home that brings those opportunities and that is why we’ve set a target to deliver 110,000 affordable homes by 2032, of which at least 70% will be available for social rent and 10% will be in our remote, rural and island communities. Delivering this ambitious target would support a total investment package of around £18 billion and up to 15,000 jobs each year.”