Housing: availability and affordability

Housing costs have a big influence on poverty. In the three year period from 2015-2018, a net addition of 150,000 people experienced absolute poverty once housing costs were taken into account (pensioners are less likely to be in poverty after housing costs). This includes 50,000 children. Where households are struggling with housing costs this will impact on their ability to afford other necessities required to support health and wellbeing.

There is a need to build more affordable housing so that everyone can have a home that meets their needs. Current targets for delivering new affordable homes build on success in exceeding the previous target of delivering 30,000 affordable homes by March 2016. The current target is to deliver at least 50,000 affordable homes by 2021. Building new properties is the principal means of achieving this, and Chart 1 illustrates the number of affordable homes completed in 2020/21 and the times series going back to 2000/01.

Despite progress on affordable housing the challenge of delivering sufficient affordable housing in a context of changing demographics, social trends and economic influences remains substantial. It is worth noting that across the period 2001 to 2019, the number of households in Scotland has increased by around 301,000 homes, or 14 percent. In 2019 there were 2.50 million households in Scotland.

Shelter Scotland published a report called ‘Affordable Housing Need in Scotland Post-2021’ in which they prescribe delivering an additional 53,000 affordable homes between 2021 and 2026 as part of the efforts to tackle child poverty, meeting housing needs, and helping to re-start the economy.  These additional affordable homes can also contribute to improving the populations health and wellbeing.  The report highlights the importance of considering how affordable houses are distributed within the community as well as the size, density, and type of dwellings built.  Shelter has also noted that reaching this numerical target may still fall short of what is required to meet housing need. Suitability of housing and the provision of appropriate adaptations to support independent living are vital considerations in meeting housing needs, and changing demographics add to this challenge. Currently, waiting lists for social rented housing are long, with nearly 160,000 applicants on a housing register at the end of March 2018.

Chart 2 shows how the distribution of housing tenures in Scotland has changed in recent years. Whereas home ownership levels have remained fairly stable since the turn of the century, renting a home in Scotland has changed dramatically. The private rented sector has more than doubled its overall share since 2001, reaching 14% in 2018. In contrast, the social rented sector has shrunk from 28% to 23% in the same timeframe. The biggest increase in private sector renting has been in the under 35 age group, many of whom are unable to afford their own home or to access social housing due to the high demand and associated long waiting lists. The relationship between tenure and the aspects of housing that influence health is complex but important, particularly in relation to health inequalities. Rents in the private rented sector are often higher than for social housing, and, although recent policy and legislation has improved matters, tenants in the private rented sector have less security of tenure. In terms of aspirations, the 2016 Scottish Household Survey found that only 3% of householders want to live in private rented accommodation, whilst 14% want to live in social rented housing. The vast majority (79%) aspire to home ownership.

A 2014 report by the Joseph Rowntree Foundation highlighted that the number of households in poverty in the private rented sector had doubled in the previous decade, whilst the number in social housing almost halved. A 2017 report provides more recent information on the relationship between tenure and poverty. 

The combined influence of the welfare system and the affordability of housing can have a substantial impact on poverty and on health inequalities. The Income and Employment section has more information. Many households in Scotland rely on benefits to meet their housing costs; principally Housing Benefit for social housing, and Local Housing Allowance in the private rented sector. These don’t necessarily cover the full cost of rent, particularly in the private rented sector, and the shortfall can contribute to housing affordability problems.