Finance and public administration committee pre-budget scrutiny

Scotland’s population is ageing faster than the rest of the UK, but at the same time healthy life expectancy is decreasing, meaning that more people are likely to need support to live well over a longer period of time. As the Fiscal Sustainability Report recognises, this is a significant challenge and will be financially unsustainable if not addressed. We agree that the Scottish government must focus on interventions that will improve population health and reduce the pressure on health-related spend. Prevention is always better than cure.

The provision of good quality housing and support services is key to addressing this challenge. The right housing improves people’s health and wellbeing at all stages of life, reducing costs for health and social care partners. Increasing investment in housing and housing services will result in:

• Reduced poverty and better life chances including education and employment
• Reducing homelessness and time spent in temporary accommodation
• Reducing rough sleeping and related health conditions
• Reducing instances of damp and mould and related respiratory issues
• Greater independence for older people and people with mobility issues
• Reduced hospital admissions from trips and falls
• Reducing/delaying unnecessary moves to expensive residential care
• Increased community cohesion, reduced social isolation and loneliness
• Improved outdoor space and encouraging active travel.

Specifically in relation to our ageing population, housing is key to maintaining independence and supporting people to live well for longer. Accessible housing, aids, adaptations and support at home can prevent trips and falls, unplanned hospital admissions or moves to residential care before necessary. New adaptations research from CIH Scotland and partners which is due to be published on 12 August has found that:

• The average cost of installing adaptations has increased but this has not been reflected in budgets.
• The need for adaptations is projected to increase from 342,448 in 2022 to 372,627 by 2040.
• Delivery costs are estimated to rise from £68 million per year in 2025 to over £76 million per year by 2040.

The 2022 census shows that 74 per cent of households aged 65+ own their own home but we know that the private market is not catering to people’s changing needs. A discussion paper published by CIH Scotland and partners last year calls for greater focus on housing for older people through national and local housing strategies and the planning system.

The Scottish Housing With Care Taskforce estimates that only 0.5 per cent of over 65s in Scotland live in a retirement community despite evidence of benefits including reducing delayed hospital discharge, tackling loneliness and freeing up larger homes for economically active households.

Independent evaluation of a specialist housing with care development in Forres delivered by Hanover Housing Association in partnership with Moray H&SCP demonstrated positive results in reduced emergency hospital admissions, length of stay, readmissions and reduced costs for the NHS. Despite positive results, the NHS later decided not to extend the contract. This demonstrates the complex and fragile nature of these partnerships which often place higher financial risk with the housing provider making it more difficult to develop.

The Scottish government should:

• Commit to long term funding for the Affordable Housing Supply Programme to tackle homelessness and ensure that everyone who needs it has access to social and affordable housing.
• Commit to long term funding focussed on homelessness prevention including the implementation of the new Homelessness Prevention Duty being developed through the Housing Bill.
• Fulfil its commitment to review the delivery of adaptations and commit to cross-tenure funding that will ensure people are able to live well at home for longer.
• Review funding mechanisms for specialist accommodation, such as housing with care, to ensure financial viability. 

Investing in affordable housing supply will support jobs across Scotland, providing opportunities for young people to enter skilled professions, not only in construction and maintenance roles but across the wider housing profession. The housing workforce includes a range of roles from administration and customer service, estate and asset management, to strategic planning and investment.

CIH Scotland and SFHA have developed an online housing career resource and we encourage young people to develop and grow their careers through our Big Conversation events and CIH Futures, a board run by young housing professionals. However, housing lacks the recognition of other professions and many young people won’t be aware of the options that are open to them when considering further education or moving from school into work. We think the Scottish government could and should do more to support and promote housing as a career.

The supply of housing, especially affordable housing is also essential in ensuring people can access jobs that are available. We know this can be a particular issue in rural areas where depopulation affects fragile economies. 

The Scottish government should:

• Work with the housing sector to develop a national housing workforce planning strategy that reflects the increasing demands and complexity of housing organisations in Scotland.
• Create a national framework to promote high standards and professionalism within the social housing sector, with a focus on CPD for all practitioners.

As above, investing in affordable housing supply will boost economic growth directly through construction and ongoing management and maintenance. Homes for Scotland states that home building in Scotland contributes to the economy through job creation, spend on goods and services, tax receipts and increased resident expenditure. It is estimated that increasing housing supply to pre-2008 levels of 25,000 homes per year would create:

• 8,100 extra jobs (direct, indirect and induced)
• £62 million increase in annual resident expenditure
• £53 million more tax paid nationally
• £3 million more council tax paid locally
• £52 million extra investment in infrastructure
• £123 million increase in capital expenditure (on land and suppliers)
• £0.3 billion increase in economic output. 

CIH Scotland and partners are currently finalising new research into affordable housing need across Scotland. The report will show how many social and affordable homes must be delivered over the next parliamentary term to tackle homelessness and emerging housing need, and it will estimate the cost of delivery. We will share the report with the committee when it is published in September.

The Scottish government should:

• Classify housing as essential infrastructure and a priority for capital investment.
• Commit to delivering social and affordable housing in line with the findings of new research due to be published in September. 

For more information on the pre-budget scrutiny 2025-26, visit the Scottish parliament's website.

For more details on our response please contact the CIH Scotland policy team by emailing scotland@cih.org.