Measures must be taken to solve our housing crisis

By Justin Sullivan FRICS, RICS president elect

FOLLOWING the results of the General Election and with the declaration of a housing emergency in Scotland announced earlier this year, it is paramount now more than ever to work to support the housing sector and provide adequate and sustainable homes for the people of Scotland.

The government’s most recent housing statistics indicate that private sector house builds were down by 17% at the start of this year. Similar trends can be seen for social housing, with completions down by 27%.

Between 2022 and 2023, the number of social housing applications rose by 5%, a reflection of the cost-of-living crisis and challenging economic environment that communities across Scotland are facing.

And the private rental sector continues to face its own set of challenges. The most recent RICS residential market survey indicated that demand for rental property rose at the fastest rate in nearly a year through May, however supply was broadly flat. As a result of the high demand and limited stock, rents are expected to increase over the next three months at the sharpest rate since August 2022.

Earlier this year the Scottish Government cut the affordable housing budget for 2024-2025 by just under £200 million, before £80 million was then restored, but is more than a fifth less than 2023-2024.

It’s clear that Scotland needs more housing. There are simply not enough houses across both private and public sectors to serve Scotland.

But it’s not just limited budget that’s causing challenges for Scotland’s housing sector. Increased costs of raw materials, higher interest rates and planning delays are all limiting the number of homes that can be built in Scotland.

RICS is calling on the Scottish Government to support the sector, including resourcing social housing providers to overcome these issues, so that we can build infrastructure to serve our people and economy.

However, it’s not just additional housing that’s required, but sustainable, well-built housing that’s fit for the future. In response to the climate emergency, Scotland has committed to a legally binding target of net zero emissions by 2045. Strategies like the Heat in Buildings Strategy aim to encourage more homeowners to retrofit their houses using a fabric first approach and employ cleaner heating systems, such as heat pumps and heat networks.

To support such strategies, RICS launched the first residential retrofit standard earlier this year to support the nationwide effort to decarbonise the residential property sector.

This new standard comes as a response to a demand for high quality, residential retrofit advice, spurred on by increasingly high energy prices and net zero targets, and will provide a framework within which RICS members can advise their customers on retrofit options in homes. It also ensures that consumers receive advice from skilled, regulated professionals and ultimately protects the public interest by upholding high standards in a growing market.

Upskilling the public in this area is particularly important, which is why we’re proud to host the third edition of the Green Home Festival at our Edinburgh office in August. An event aimed at providing guidance to help everyone reduce their carbon footprint and become more energy efficient in relation to their homes.

Scotland, like the rest of the UK, is facing a shortage of skilled professionals and we need more support to address this ongoing challenge.

The latest RICS construction monitor showed us that surveyors in Scotland are continuing to see shortages across all skills, with shortages for both bricklayers, traditional skills and construction professionals worsening at the beginning of this year compared to the end of 2023.

RICS is continuing to encourage the Scottish Government to put additional resources and funding into apprenticeship schemes, to deliver training which will close the skills gap.   

In 2022, 16% of employers in Scotland offered formal apprenticeships. It is very encouraging to see reports that a third of employers plan to continue, or will start, offering apprenticeships in the future.

To achieve this, we need sufficient government funding and greater clarity around the operation of the apprenticeship levy in Scotland to support employers looking to build a better workforce.

With dedicated resources allocated to funding apprenticeships and training, we can address and work to close the skills gap. In turn we can work towards providing more suitable housing for local communities in Scotland.

As a professional body, RICS recognises that we are custodians of our built and natural environment, protecting our rich history and heritage, in Scotland or beyond.

We will continue to work closely with Scottish Government and champion the importance of the built and natural environment as both a key economic driver and in the role it plays in promoting a sustainable and growing economy.