Meeting of the Parliament 26 April 2023
I, too, welcome another debate on the issue of housing and how we realise high-quality dwellings for all our constituents as a right and not just a commodity.
In preparing for the debate, I reflected on a meeting that I had earlier this week with two people who used to run prominent housing associations here in the capital over several decades. We talked about the pressures that we face and the causes that have brought us to this point. They have worked through the different stages of the context that we are in and what we have gone through as a society.
First, we had the post-war expansion of social and council housing, which was followed by the selling off of that stock by many providers. Although that realised a successful outcome for individuals, it presented a challenge for us as a society that was not met. We then had the realisation of devolution and the huge positive impact that that has brought for social and council housing here in Scotland. A greater quantity of affordable homes has been provided since 1999. Since 2007, 118,000 affordable homes have been built, such that we have 30 per cent more homes per 10,000 of the population compared with elsewhere in the UK. In addition, in 2014, the right to buy was ended, which means that we are constantly increasing the stock that is available to citizens.
We have also had the implementation of the innovative housing first programme, which has been very successful here in Edinburgh and elsewhere, the strategising behind “Housing to 2040” and the commitment, which is still being maintained, of £3.5 billion-worth of investment.
However, despite that positive progress, as we have heard from members across the chamber, demand continues to grow and there is still a challenge, particularly here in Edinburgh. That is due to a variety of factors, and inflation has added to that. Indeed, this month, it was reported that, on average, 43 per cent of the income of people in Edinburgh is spent on rent. That is a very significant figure. As well as presenting a significant challenge for people in affording housing here in the capital, that takes money out of other aspects of the real economy.
We need more housing. In the private sector, the situation is influenced by a number of external challenges to do with investment, the inflationary pressures on building materials and the monetary effect of the availability of credit. We must continue to work with partners to increase the provision of private housing. It is clear, as others have said, that we need to build more social housing. That has been emphasised by the Government.
In a position of significant challenges for the public finances, we need innovative solutions, as has been argued, and we need to consider how we raise more finance. Devolution of capital gains tax and dividend income tax would certainly be welcome. In addition, is there more that we could do with land and buildings transaction tax, such as a surcharge on overseas buyers, as the UK Government has had for a number of years?
I believe that now is the time that we should work together collectively towards a land value tax. That will take time to realise, and we will need political consensus, but the benefits that that could bring to the public finances and the change that it could bring in terms of more equity of wealth would be significant.
Housing is a holistic issue. It is great that the three housing ministers are here. The issue is also about land reform, planning and finance, so I am glad that the Government is taking a holistic approach. I look forward to working with the housing ministers and colleagues across the chamber to realise affordable housing as a right, not a commodity—as a home, not just a house.
15:26