Glasgow is ready to build ‘hundreds’ of extra homes if more money is provided by governments, a senior councillor has said.

Affordable housing targets for this year have been reduced — despite the city facing a housing emergency — after a Scottish Government budget cut.

A 24% reduction in funding means Glasgow has £78.7m to spend in 2024/25 rather than the £104m initially expected. 

Last year, the targets — which were missed — were to complete 1,415 affordable homes and have site starts on 1,043. In 2024/25, the aim is to finish 878 units and have 761 site starts.

Cllr Ruairi Kelly, SNP, city convener for neighbourhood services and assets, said the targets don’t “reflect housing need in the city” or the “capacity to deliver”.

Speaking at a city administration committee meeting, he added plans are “in place” with partners in the social landlord sector which could see “hundreds of additional approvals and starts “given the money”.

“Money is the limiting factor for us at the minute,” he said.

Cllr Kelly also said the budget cut was “regrettable” and talks had been held with the Scottish Government over “the importance of investing in Glasgow, where we have the capacity to deliver at a much higher rate than almost anywhere else in the country”.

He added the reduction in funding was an “inevitable knock-on effect” of a 9% cut to the Scottish Government’s capital budget. 

Talks with the Scottish Government are ongoing, Cllr Kelly said, and there is a commitment to “any additional funding that comes through the budget from the UK Government on the 30th [October]” being “prioritised towards housing”. Chancellor Rachel Reeves will deliver Labour’s first budget on October 30.

A report to the committee showed the 2023/24 affordable housing targets were missed, with 1,353 completions and only 661 site starts. There were 821 approvals against a target of 878. For 2024/25, the approvals target is down to 489.

Council officials said there had been “another extremely challenging year for the construction industry” and while inflation was “not as volatile” as it had been, it “remains an issue”.

“Unit targets for site starts were significantly under target due to a number of later than anticipated approvals,” the report added. “In the main, these were as a result of development cost increases, and underestimation in timing of securing statutory consents.”

Glasgow has received an extra £11.5m from the Scottish Government towards acquiring homes in 2024/25. It is estimated this could provide an additional 83 properties.