Mairi McAllan has raised fears a cut to affordable housing quotas in England could mean less money for the Scottish government's ambition to tackle the housing emergency and end homelessness.
The housing secretary has written to her UK counterpart Steve Reed seeking clarity on the issue ahead of the Chancellor unveiling her Budget next month.
Her letter followed media reports south of the Border that the UK government and the mayor of London have agreed to change the quota for the amount of affordable housing for new developments in London from 35% to 20%.
City Hall said the measures were introduced to help speed up planning decisions, incentivise developers and build more houses. Developers are promised a fast-tracked application if they agree to build 20% of affordable housing in their plans.
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As part of the announcement, the Mayor of London Sadiq Khan has also been given more planning powers and funding.
Ms McAllan is seeking clarity from Mr Reed on whether the changes to the affordable housing quotas in London will lead to a cut to the UK affordable housing budget.
Such a move could lead to less funding for the Scottish Government which is determined by the Barnett formula.
This means that if spending on affordable housing in England is decreased per person, funding for each of the devolved administrations would also fall by the same amount per person.
However, although funding for the Scottish Government is affected by spending on devolved areas it does not mean that the Scottish Government has to spend the money in the same area as the UK government.
"I write following recent media coverage reporting claims that the UK Government is poised to reduce affordable housing delivery targets, starting in London.
"I would welcome your comments on the validity of these reports...as well as clarity on your government’s position and intention regarding policy and financial support for the delivery of affordable housing more generally," Ms McAllan told Mr Reed.
"With the UK budget imminent, I am deeply concerned that you may be considering de-prioritising affordable housing at a time when there is increasing pressure on the housing system across the UK and the subsequent detrimental effect this would have on Scotland’s ability to continue to prioritise the delivery of affordable, and, in particular, social rented homes."
She added: "You will be aware that I recently published a Housing Emergency Action Plan which reinforced the importance of a long term approach to forward investment in affordable homes and the Scottish Government remains committed to delivering 110,000 affordable homes by 2032, recognising the critical role that housing plays in helping to eradicate child poverty as well as promote positive environments for the people of Scotland to live and thrive.
"I look forward to your response and reassurance that housing and, in particular affordable housing, remains a top priority for the UK Government."
Back in 2016, Mr Khan said that London needs to build about 66,000 new homes per year to meet demand, with more than 50% of those should be affordable.
In 2017, he doubled down to introduce a fast-track route for major developments if they provided at least 35% affordable housing.
The Home Builders Federation reported that only 30,000 residential properties last year were built, with the government expecting 88,000 from the capital per year to meet the city's housing needs.
In 2022-2023, there were 25,000 affordable homes built and last year just under 4,000 were built, according to City Hall figures.
The Scottish Government last year declared a housing emergency.
But last week, Ms McAllan was warned her plan to end the housing emergency will not work amid a £3.3 billion funding shortfall.
A report published by the Scottish Federation of Housing Associations (SFHA) calculated that £8.2bn would be needed to build the required number of homes to address the crisis.
Yet it stated ministers have only set aside £4.9bn failing to take account of the number of homes needed, the impact on inflation on building costs and new cost relating to standards it is introducing for the sector.
In its latest policy paper Delivering the Social Homes We Need, launched ahead of the 2026 Holyrood election, SFHA revealed the average cost of building a social home had increased by around 30% in just four years from £150,293 in 2019 to £195,077 in 2023.
It added that current figures are likely to be even higher, with some housing associations facing costs of up to £300,000 per home for projects which were either smaller in scale, specialist in provision, or situated in remote and rural areas.
The Scottish Government has insisted it has a strong track record in affordable housing, having delivered more than 140,000 affordable homes with over 100,000 for social rent.
Ministers say the figure is 47% more per head of population than England and 73% more than Wales as of March 2024.
The UK Government has been approached for comment.
