Scottish councils demand housing powers and debt write-off

Ahead of May’s elections, councils have called for changes to housing policy, including the devolution of key funding programmes and the write-off of historic debt. 

In a white paper, Convention of Scottish Local Authorities (COSLA) warned the country faced a deepening housing emergency, with shortages affecting most regions.

They highlighted the average price of a new-build home, now above £330,000, was pushing many families out of the market. As a result, COSLA said councils were being forced into ‘crisis management’ rather than prevention, as demand continues to outstrip supply. 

To give context, separate research from the Office for National Statistics shows an estimated 15,000 households in Glasgow are in temporary accommodation, with another 15,000 in overcrowded, ‘hidden’ accommodation.  

In a bid to improve the situation, the organisation said control of the Affordable Housing Supply Programme should be transferred from central government to local authorities.

The current system can lead to delays and missed opportunities, with around £400m in funding left unspent at a national level. 

What’s more, the white paper also argues the UK government should write off historic housing debt. COSLA claimed repayments currently account for 25% of council house rental income and warned this was limiting investment in new homes and improvements to existing properties. 

Councils are also looking for longer-term funding settlements, claiming short-term budgets make it harder to plan large housing projects. 

COSLA said any new national housing agency should operate in partnership with councils and not undermine local decision-making.

The paper also highlights the need for greater investment in rural and island areas, where some communities face long-term population decline. 

Councillor Maureen Chalmers, COSLA Community Wellbeing Spokesperson said: ‘As we approach the 2026 Scottish parliament elections, we face both challenge and opportunity.

‘Scotland’s housing system is under severe pressure, but with a renewed partnership between national and local government, we can reset how Scotland delivers homes and supports communities based on our nine key asks.

‘Local government stands ready to play its full part. With the right tools and the right support, councils can help create a housing system that is fair, sustainable, and fit for the future.’

Image: Openverse

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