Falkirk Council plans to spend over £317m on new homes and improving housing stock in next five years

Members of Falkirk Council heard that £187.89 million will go on improving energy efficiency, including new windows and doors and replacement heating systems.

More than £128 million will be spent on 700 additional affordable homes, either through building new or buying back former council properties.

However, members were also told that the “priorities can change and the programme may be re-profiled” and that rising costs have caused some delays to projects.

Around £8.5 million has been earmarked for buying back properties, with a target of 80 a year.

Members were told that although this is a cost-effective way to get much-needed housing, the cost of such houses has increased and fewer are coming onto the market.

Councillors agreed that five per cent of any new homes should be wheelchair accessible and five per cent suitable for larger family homes – £12.6 million will be spent this year across three sites:Woodend Farm in Hallglen; Haugh Gardens, Langlees and Oakbank in Polmont.

Members heard that it is not yet clear how much a cut to housing investment, announced by the Scottish Government as part of its forthcoming budget, will impact the council.

The budget, however, is £11 million less than the £328 million that was approved over five years (2023-28) last year.

Members were told that the government’s housing investment is not just for councils but also includes housing associations and shared equity schemes.

Officers said that the cut is unlikely to impact this year’s spending and the council will find out soon how much it is likely to affect future plans.

But the report came with a warning that “if sites continue to come in over bench mark the number of developments and homes that can be delivered within the programme will reduce further”.

While very important, the government grant is just part of the funding for new housing and much of the investment will come from borrowing based on income from rents.

Councillors agreed to a five per cent increase in rents to maintain the investment that is needed.

Revenue raised by rents and grants can only be reinvested in housing programmes and is entirely separate from other council finance.

The SNP spokesperson for housing, Councillor Gary Bouse, said Falkirk Council should be proud of the investment it is making in improving housing in “truly challenging times”.

The impact of Brexit and Covid had led to a “huge labour shortage” that meant the cost of some trades has risen by 90 per cent, he said.

Labour councillor Jack Redmond praised the new housing in Bonnybridge, saying it had “transformed the area”.

But he criticised the Scottish Government’s decision reduce the housing budget by 20 per cent “to fund a council tax rise”.