Scottish government plans to launch national housing agency

More Homes Scotland is expected to start operating from 2027-28 and be fully functional in 2028-29, subject to the outcome of the Scottish parliamentary election in May this year. 

Màiri McAllan, cabinet secretary for housing, will lead the process to co-design the functions and operating model of the new agency over the coming months, in partnership with local authorities and the Scottish National Investment Bank. An update is expected to be provided to the Scottish parliament in March, almost two years after ministers accepted there is a housing emergency in the country.

Mr Swinney said a new national agency will mean “less duplication, greater expertise, increased efficiencies and making our substantial investment go further”.

“It is a new body that will offer simplicity, scale and speed – boosting delivery and maximising savings, as part of our commitment to a decade of public sector modernisation and reform,” he said.

“More Homes Scotland will meet the needs of this time. It will deliver – for a new generation of Scots – new homes more quickly, more affordably, in more liveable, climate-friendly communities.”

David Ritchie, chief executive of the Scottish National Investment Bank, welcomed More Homes Scotland being established to “bring momentum in finding housing solutions”.

The development investment bank was launched in November 2020. According to its website, it delivers “patient, mission impact investment” to the Scottish economy.

Mr Ritchie said: “The bank has invested more than £130m in housing to date, with a robust pipeline of more potential housing investments.

“As a mission-led investor, the bank makes commercial investments that drive long-term societal and economic growth for Scotland. Our ‘place’ mission is focused on improving communities, and a good home is a key tenet of that.

“Working with private investors and homebuilders, we have developed innovative approaches to unlocking finance, getting much-needed homes built across Scotland.”  

The announcement comes after the Scottish government unveiled its draft Budget for 2026-27 last week. This includes a commitment to invest up to £4.9bn over the next four years, backed by a record £4.1bn of public investment in delivering 36,000 affordable homes.

In his announcement about More Homes Scotland, Mr Swinney said that this Budget, along with other policy measures, has “given confidence” to the investment community.

“However, we must have a public sector delivery model that can rise to our enhanced ambitions,” he added.

Mr Swinney outlined his plans for a Scottish housing agency on a visit to a housing development in Wallyford, East Lothian alongside Ms McAllan. The 90-home site, developed by Wheatley Homes, includes mid-market and social rent homes.

Sector reaction

Richard Meade, chief executive of the Scottish Federation of Housing Associations, welcomed the first minister recognising that social and affordable housing is “a key driver” of both economic growth and efforts to tackle poverty. 

“While we await further details on the proposals for a new housing agency, we do appreciate the Scottish government’s willingness to explore reforms which can accelerate the delivery of the safe, warm and affordable homes Scotland needs to end the housing emergency,” he said.

“It is crucial, however, that any reforms to delivery are underpinned by significantly increased public funding – beyond what has already been announced in the Scottish Budget and Spending Review.

“Any new housing agency must work in partnership with Scotland’s housing associations and co-operatives and be laser-focused in our shared mission to deliver the secure, warm and affordable homes everyone deserves.”

In November, the Scottish Housing Regulator reported growing investor confidence in the sector after a rise in borrowing activity boosted total debt to above £7bn for the first time.

In June last year, the Housing Investment Taskforce, which is made up of lenders, local authorities and housing associations, made several recommendations aimed at supporting investment in delivering affordable housing at scale.

The report made the case for the Scottish government to allow new entrants to deliver affordable housing on a ‘for-profit’ basis.

It also recommended recognising housing as “critical infrastructure” and advised the Scottish government to make the nation attractive for investment in all forms of housing, through “clear, consistent and long-term policy”.