More than half of Scotland’s population currently live in areas where homelessness services are failing, according to recent research by Shelter Scotland. This situation highlights the deepening housing emergency across the country, with significant implications for local authorities and those at risk of homelessness.

Widespread Failures in Homelessness Services

Shelter Scotland’s data reveals that 2.9 million people reside in areas where local authorities do not provide fully functioning homelessness services. This means that many individuals and families are not guaranteed access to housing if they become homeless, exposing a critical gap in support and protection.

The Scottish Housing Regulator has identified Glasgow City Council and Edinburgh City Council as experiencing “systemic failure” in their homelessness services. Furthermore, nine other councils, including Aberdeen City, Clackmannanshire, and Dumfries and Galloway, are considered at heightened risk of similar failures.

Consequences of the Housing Emergency

Alison Watson, director of Shelter Scotland, emphasised the gravity of the situation: “This is the reality of the housing emergency. We are not building the social homes we need, and the consequences are clear, more local authorities in failure and more people having their housing rights breached.”

Watson also highlighted the political dimension, stating that ending the housing emergency is a matter of political will. “Whoever is in government next must offer a new approach, and the new money to match it. They must provide local authorities the resources to uphold people’s rights – otherwise, more money will be poured into temporary accommodation while more families are left without a home.”

She concluded with a call to action: “We cannot stand by and let that happen. Change is only possible if people demand it.”

Efforts to Strengthen Homelessness Services

The Scottish Housing Regulator’s reports indicate that both Edinburgh and Glasgow councils are taking steps to address these issues. Edinburgh City Council has been progressing an action plan since 2023 aimed at improving the housing system’s performance and outcomes, including homelessness services.

This plan was refreshed in June 2025 to focus more sharply on housing supply and demand. It involves working closely with Registered Social Landlords (RSLs) to increase the number of permanent homes available to people experiencing homelessness, alongside expanding temporary accommodation and enhancing homelessness prevention activities.

Similarly, Glasgow City Council is implementing improvements to its homelessness service. It is advancing an action plan that includes collaboration with RSLs to boost the provision of permanent homes for those affected by homelessness.

What this means for landlords

For landlords and letting agents, these developments underscore the ongoing pressures within Scotland’s housing sector. The shortage of social and permanent homes for those experiencing homelessness may increase demand for private rented accommodation, potentially affecting rental market dynamics.

Landlords should be aware of the heightened scrutiny on local authorities and the political focus on housing rights, as these factors could influence future housing policies and funding priorities. Engagement with local housing initiatives and Registered Social Landlords may present opportunities to contribute to solutions addressing homelessness.

Source: Based on reporting from Property118

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