Scottish housing debt to increase by 5%

21st August 2008

Scottish housing debt is expected to increase by 5 per cent by March next year, the first increase for more than a decade.

The Scottish Government has released statistics predicting that councils' combined debt will total £1,935 million by the end of this financial year - causing an increase of £93 million on March this year.

According to the statistics, council rents have increased by around one per cent a year over the last 10 years. But average spending on management and maintenance is expected to go up by 5.5 per cent this year, to £1,766 per home.

This week's data round up also shows councils' spending on bricks and mortar increasing by 11.4 per cent to £505.7 million by the end of this year. Spending on loan charges is expected to increase to £608 per home this year, compared to £560 per home in 2006-7. And housing budget surpluses are expected to fall to £185.6 million this year, compared to £206.6 million last year.

The number of council homes in Scotland has plummeted by 290,000 over the last 11 years, due to right to buy, transfers to housing associations and demolitions. They will number around 322,900 by the end of next month.