Why housing is key to reducing poverty in Scotland

In this blog, Susanne Flynn, CIH Scotland policy and practice officer, looks at the findings of JRF’s latest Poverty in Scotland report and why housing is key to reducing poverty.

On 5 October 2026, the Joseph Rowntree Foundation (JRF) released its annual Poverty in Scotland report, which found that despite some recent progress, poverty in Scotland remains persistently high. Legal targets to reduce relative child poverty to 10% by 2030/31 are set to be missed by a wide margin. 

The report's latest data shows that between 2022 and 2025, 17% of people in Scotland were in relative poverty, with 11% in deep poverty and 7% in very deep poverty. In addition, one in five children were living in relative poverty, with poverty rates highest for children in ethnic minority families, at 47%. 

The report describes the reasons behind these rates as ‘complex’, but points to a range of factors, including cost of living pressures, the constraints of short-term plans and budgets, and a disconnect between local and national government, which it says is hampering the delivery of effective poverty reduction measures. It calls for local government to play a bigger role. 

While the Scottish government continues to highlight the steps it is taking to address poverty, including a commitment of £3.5 billion over 2026/27 to policies that tackle poverty and the cost of living, the report suggests that this won’t be enough to deliver meaningful change at the scale required. It calls for a bold and properly funded plan which puts poverty reduction at the centre of council services. 

We know that housing, alongside social security and employment, continues to be one of the main policy levers that can be used to effectively tackle and reduce poverty. More social and affordable housing has traditionally kept poverty levels lower in Scotland than the rest of the UK, but the report shows that rising housing costs, particularly in the private rented sector, continue to be a key contributor to poverty. It shows around one in 10 private renters are being pulled into poverty due to the cost of their rent. A new briefing by Citizens Advice Scotland (CAS) also shows that rising rent debt and a shortage of affordable and suitable housing are leaving people facing housing insecurity and financial hardship, as demand for homelessness advice continues to increase.  

In September 2025, the Scottish government committed to the delivery of 110,000 affordable homes by 2032, with at least 70% for social rent and a target of 9,000 homes to be delivered annually over the next four years.  

However, progress to date has been slow, with just over 36,500 homes having been completed as of June 2026. The 9,000 homes target also falls far short of the 15,693 homes that are needed annually between 2026-31 to address Scotland’s housing shortage – as set out in our joint research with Shelter Scotland and the Scottish Federation of Housing Associations (SFHA). 

But housing’s role in reducing poverty is not just about bricks and mortar – it is also the foundation for strong, thriving communities, supporting better health and wellbeing and reducing inequalities. Social landlords are often at the heart of these communities, providing a range of services to support their tenants, including financial support, debt advice, community centres and even access to food banks. 

If the Scottish government is to meet its aim of eradicating child poverty, it must increase the supply of social and affordable homes to the 15,693 a year that our research shows are needed. This should be backed by increased investment for local authorities to ensure that young people have access to the education and employment opportunities which will provide them with the best start in life and allow them to thrive. To truly tackle poverty, we need to start by making sure everyone in Scotland has access to a stable, secure and affordable home.