Scottish government issues call for evidence to help tackle infrastructure costs

This is part of the Scottish government’s work in liaising with the Scottish National Investment Bank, in relation to a recommendation from the Scottish Housing Investment Taskforce’s final report.

The taskforce was set up in April last year to identify actions that would unlock existing and new commitments to investment in housing across all tenures.  Made up of lenders, local authorities and housing associations and supported in its work by the Scottish government, the taskforce released its final report on 9 June this year.

Within its recommendations, the taskforce noted concerns, including from small and medium-sized enterprises, about infrastructure costs where the scale or availability of finance is preventing homes from being built.

The taskforce recommended that market testing should be undertaken to assess demand for new loan options. This would include working out which risk and reward sharing models would be most feasible.

To support delivery, the taskforce said the Scottish government should work with the Scottish National Investment Bank and use its market expertise.

The report also made the case for the Scottish government “allowing new entrants to deliver affordable housing on a ‘for-profit’ basis utilising public sector pension funds”.

It also recommended that the Scottish government make a long-term commitment to a minimum level of funding for new affordable housing supply, recognising it as “critical infrastructure”.

Earlier this month, the Scottish government said it would invest up to £4.9bn to deliver 36,000 affordable homes by 2029-30, deliver Awaab’s Law from March next year and implement planning reform.

The announcements were made by Màiri McAllan, cabinet secretary for housing, as part of Scotland’s new Housing Emergency Action Plan. The plan is intended to address the country’s “national housing emergency”, which was declared in May last year.