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EXPERT COMMENT
to complete by March 2030.The AHP found that 35% of homes started under the previous AHP 2016-23 are still to be completed, with no deadline set for completions. Looking back at figures for 2023-24, the latest year for which figures are available, just 37% of new build homes completed in London were affordable. This was two percentage points lower than the previous year but an increase from 19% in 2016-17. The GLA is on track to exceed its target for at least 60% homes under the AHP 2021-26 to be for social rent. Currently, 84% of starts are for social rent. The Mayor of London is also on record as having welcomed the biggest funding settlement for housing from the Government as well as key policy changes which he hopes will boost the delivery of social and affordable homes across the capital. London will receive £11.7bn over 10 years – up to 30% of the national total – through the Government’s new Social and Affordable Homes Programme. Sadiq Khan has long argued that tackling London’s housing crisis is critical to realising national growth ambitions, calling for a new funding deal and policy reforms to put the capital on track to deliver the scale of genuinely affordable and social housing that Londoners desperately need SCOTLAND’S HOUSING PICTURE Scotland’s housing policy differs to the rest of the UK, as devolved powers enable the Scottish Government to make independent decisions on all aspects of housing. A new report warns that Scotland is in a “state of housing emergency” with the numbers of SME homebuilders having fallen to their lowest level in 20 years. These latest insights are provided by SME homebuilder members of sector body Homes for Scotland (HFS), who, combined, built more than 2,500 homes across all tenures in 2024, including 1,075 for social rent. Red tape and rising costs are highlighted as key issues, with nearly nine in 10 survey respondents saying Government policies are making it harder for them to build. Planning holdups are pinpointed as being problematic, with 96% of SME builders reporting that slow planning decisions block progress, stopping much-needed new homes from being delivered. Sector leaders are now demanding action if the Scottish Government is serious about combatting the housing emergency. HFS wants planning to be streamlined, reflecting the recent reforms proposed by the UK Government to boost housing delivery in England.
to boost planning department resources, standardise Section 106 agreements, adopt clear timelines, set common infrastructure standards, and back SME builders by releasing more land for small sites. It says that the Planning and Infrastructure Bill is a “welcome step forward”, with new measures like the Nature Restoration Levy offering a pathway to unlock development in affected areas. But it also says that urgent clarity is needed, particularly around unresolved water neutrality rules. MORE BUILDERS NEEDED The report also warns that expanding the workforce is necessary to achieve the Government’s ambitious housing targets, a move that could also boost “green” jobs and innovation. The HBF believes that the Government should now prioritise practical Further Education college training, green skills should be properly funded, and clearer plans are needed for consumer protections and faster grid connections to ensure that more environmentally friendly homes can be delivered at scale. The report offers several suggestions of how the Government can get housebuilding back on track. It suggests a new equity loan scheme to support first time buyers, interim funding to unlock affordable housing delivery through Section 106, more resources for local planning teams, and a more proportionate and coordinated approach to new regulations. LONDON’S NEW HOMES London faces particular challenges when it comes to building new homes.The Mayor of London’s Affordable Homes Programme (AHP) 2021-26 requires building to start on 17,800 new affordable homes by next year, but new figures show more than 12,000 of these builds are not yet under way. In May, the Government agreed to reduce the Mayor’s targets from a previous range of 23,900 to 27,100 starts, to the current range of between 17,800 to 19,000, with the Greater London Authority (GLA), saying the reduction “responds to the difficult conditions London currently faces”. The recently published annual London Assembly Affordable Housing Monitor finds that in 2023-24, the net addition to London’s affordable housing stock was 7,674, well below the GLA estimate that London needs a net 42,841 affordable homes each year between 2016 and 2041. By March 2025, the GLA had completed 871 homes under the AHP 2021-26.This means it has a minimum of 16,929 homes
Over the past year, the Government has made some bold and positive steps to fix the planning system, and these have been welcomed by the industry. But unless ministers act quickly to address the wider constraints blocking delivery, that early progress risks being wasted.
Neil Jefferson , Chief Executive, Home Builders Federation
EXPERT COMMENT
Our small and medium homebuilders are facing a barrage of costs and delays that make it increasingly harder for them to deliver the range of homes that Scotland needs and to grow their businesses sustainably. Without a thriving SME homebuilding sector, many sites in rural and town centre locations, or those on smaller or trickier pieces of brownfield land which require additional remediation, would just never be built. We need to see Government-backed funding solutions to increase the development of private and affordable homes by SMEs who face disproportionate infrastructure costs.
Fionna Kell , Director of Policy, HFS
EXPERT COMMENT
Builders like us can deliver projects in our local communities providing training and jobs while also supporting and boosting the local economy. We are desperate to play our part in delivering the homes that Scotland needs. We just need the Government to help us unleash this potential.
Susan Jackson , Joint Managing Director, Campion Homes
First Time Buyer October/November 2025 105
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