First Minister has
confirmed the Scottish Government intends
to establish a new national
housing agency with a focus on simplicity,
scale and speed to
enable the delivery of housing
of all types, helping to meet housing
need across Scotland.
The executive agency will be called ‘More Homes Scotland' and is
expected to start operating from 2027-28 and be fully functional
in 2028-29, subject to the outcome of the Scottish Parliament
election.
It will focus on a number of key areas –
large-scale affordable housing projects; rural and
island
housing; acquiring, preparing and
releasing land; enabling infrastructure work to unlock
stalled sites; and closer working with the Scottish
National Investment Bank to make best use of private
finance.
A process to co-design the functions and operating model of the
new agency will be led by the Cabinet Secretary for Housing in
partnership with local authorities and the Scottish National
Investment Bank over the coming months, with an update expected
to be provided to the Scottish Parliament in March.
The First Minister made the announcement on a visit to a housing
development in Wallyford, East Lothian alongside Housing
Secretary Màiri McAllan. The 90-home site,
developed by Wheatley Homes, includes
mid-market and social rented homes.
The First Minister said:
“Since 2007, the Scottish Government has supported
the delivery of 141,000 affordable homes in
Scotland, including 101,000 for social rent - proportionately far
more than other parts of the UK. We have helped thousands of
families to have a warm, safe and affordable place to
call home.
“However, Scotland is facing a housing emergency. We recognise
the difficulty that many Scots – in particular young Scots - have
finding a home they can afford to rent or buy.
“We have firm foundations and have recently stepped up our
efforts. The 2026-27 draft Scottish Budget includes the single
largest funding allocation to affordable housing since records
began in 1989. We have committed to invest up to £4.9 billion
over the next four years, backed by a record £4.1 billion of
public investment, helping to deliver 36,000 affordable homes and
providing a place to live for around 24,000 children. This is
providing record funding and more multi-year certainty than ever
before
“This, 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.
“A new national agency will mean less duplication, greater
expertise, increased efficiencies, and making our substantial
investment go further. It will also provide enhanced support to
our local authority partners and we will work in partnership with
the Scottish National Investment Bank to attract more commercial
investment.
“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.
“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 Scottish National Investment Bank Chief Executive
David Ritchie said:
"The Bank has invested more than £130 million in housing to date,
with a robust pipeline of more potential housing investments. We
welcome More Homes Scotland being established to bring momentum
in finding housing solutions.
“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 unlock finance, getting
much-needed homes built across Scotland."
Background
A record £926 million of funding has been allocated to the
Affordable Housing Supply Programme in the draft Scottish Budget
2026-27 - the biggest allocation for affordable housing since
records began in 1989.
Between 2007-08 and 2024-25, the annual average supply of
affordable housing per head of population in Scotland has been
14.4 homes per 10,000 population, 69% higher than Wales (8.6
homes per 10,000 population), 45% higher than England (9.9 homes
per 10,000 population) and 16% higher than Northern Ireland (12.4
homes per 10,000 population – average across the years 2010-11 to
2021-22).
Housing Emergency Action
Plan
Delivery costs of the new agency will be determined in the design
process and reported to Parliament in due course, in line with
public sector reform principles.
