Edinburgh housing: Council's 500 affordable homes a year falls 'staggeringly' short of target

The number of affordable homes set to be built in Edinburgh will fall 'staggeringly' short of the council's target, it has been warned.

Only 500 or less social rented homes a year can be built over the next few years, according to council figures published in a new report.

The figure includes homes for social rent, mid-market rent and low cost ownership projected to be built by the council and other registered social landlords such as housing associations.

Lothians MSP Miles Briggs hit out at the figures, saying the council needs to build '50 times more homes'.

A commitment was made in 2023 to build 25,000 affordably houses by 2027, bumped up from initial target of 20,000. But according to council figures published on Wednesday, only 950 homes will be completed in 2023 and 2024.

The report states that plans to ramp up affordable housing in the city are under threat, due to a huge gap in overall grant funding.

It comes as the cash-strapped council is facing an overall funding shortfall which has increased from £50 million in 2017 to £667 million in 2024.

Miles Briggs MS, said : “Edinburgh council’s projection of 500 affordable homes a year is staggeringly short of the 25,000 target. The council needs to be building 50 times as many homes to start reducing the housing crisis that has developed across the capital under the SNP's watch.

“Years of SNP financial mismanagement and short changing of councils has led to people not being able to get homes and ultimately a homelessness crisis.

“Having enough affordable homes is a crucial building block in eradicating homelessness and without these homes we are not going to see any progress made.

“Edinburgh and the South East of Scotland has the fastest growing population in Scotland, but without enough homes the housing market will continue to shrink and prices of homes will rise even higher.”

There are currently around 24,000 people waiting for council housing in the capital - however only 2,079 homes were advertised by social landlords between April 1 last year and January 1 2024, new figures revealed.

A report to the housing committee on February 27 said: "If costs continue to rise, then the number of homes that can be delivered will decrease. Edinburgh’s forward budget is not projected to increase from the current level of £45 million, which is only sufficient to deliver around 500 affordable homes each year.

"Edinburgh has spent more on affordable homes when slippage from the national funding programme allows, however, ad-hoc increases do not allow for a managed increase in the affordable housing programme in the city."

In response to the housing shortage, increasing demand, spiralling rents in the private sector and a record 5,000 homeless households currently in temporary accommodation, councillors unanimously declared a 'housing emergency' in the capital last November.

But council chiefs said that many house builders and developers are delaying new contracts due to cost inflation, reduced mortgage availability and affordability. In the last 12 months, two affordable development partners have suspended house building programmes.

The report reads: "Delivery of affordable housing remains a priority for the council and its partner Housing Associations. However, the cost of construction, borrowing and delivering services to existing tenants have all increased at a time when rents have been frozen or have been increased less than overall inflation. The amount of grant funding available per home has been increased by the Scottish Government but the national budget for delivering affordable homes has reduced by over 35 per cent in the last two years."

Edinburgh council has been contacted for comment.