Scotland in 2026: Budget Decisions, Elections and a Defining Year for Housing Technology
2026 is shaping up to be a landmark year for Scotland’s housing sector — and particularly for the role technology will play in delivering homes that are affordable, efficient and fit for the future. With a major government Budget, a Scottish Parliament election, and long-awaited legislation expected to progress, the decisions taken this year will have lasting consequences for housing providers, local authorities and tech partners alike.
The £4.9bn Question: Investment Meets Delivery
All eyes are on the Scottish Government’s Budget in mid-January, expected to provide clarity on a £4.9bn multi-year investment in Scotland’s affordable homes programme. For housing associations and co-operatives, this funding is critical — not just for the number of homes delivered, but for how they are built, retrofitted and managed.
Richard Meade, chief executive of the Scottish Federation of Housing Associations (SFHA), has described the Budget as “hugely significant”, stressing the need for as much of the £4.9bn as possible to be public funding. That clarity matters for technology planning: funding certainty enables longer-term investment in modern methods of construction (MMC), digital asset management, energy modelling and smart building systems.
Without it, innovation risks being delayed or diluted.
Elections, New MSPs and a Reset Moment
Following the Budget, attention will quickly turn to the Scottish elections in May. Housing is expected to be a major manifesto issue, particularly against a backdrop of cost pressures, climate targets and an ageing housing stock.
The next parliament will look markedly different, with around a third of MSPs standing down. For the housing and technology sectors, this creates both risk and opportunity. New ministers and committees will need to get up to speed quickly on complex issues such as retrofit delivery, data standards, and cross-tenure decarbonisation — areas where evidence, digital tools and clear metrics will be vital.
Net Zero Uncertainty Is Holding Back Progress
One of the most pressing concerns entering 2026 is the continued lack of clarity on net zero standards for social housing.
Mr Meade has been clear that further delays are “unconscionable”, as uncertainty is already affecting housing associations’ decisions on retrofit and development. From a technology perspective, this uncertainty stalls:
Investment in energy efficiency software and monitoring tools
Large-scale procurement of retrofit technologies
Skills development and supply chain readiness
David Bookbinder, director at the Glasgow and West of Scotland Forum of Housing Associations, has echoed these calls, arguing that the next administration must finally set clear minimum energy efficiency standards and timescales across all tenures. Without firm targets, it is impossible to design scalable, data-driven solutions.
Heat in Buildings, Energy Efficiency and Tenement Reform
Several delayed or emerging pieces of legislation could move forward after the election:
The Heat in Buildings Bill, expected to set the framework for decarbonising Scotland’s homes
Further action on energy efficiency and climate change following a draft bill published in November 2025
A long-awaited Scottish Law Commission report on owners’ associations for tenements, which could unlock progress in mixed-tenure blocks
For housing tech providers, these developments matter enormously. Digital engagement platforms, building analytics, shared asset management systems and retrofit coordination tools will all be essential if mixed-ownership buildings are to be upgraded at scale.
A Busy Legislative Programme — and a Data Challenge
According to Ashley Campbell, policy and practice manager at the Chartered Institute of Housing Scotland, the new parliament will also need to implement regulations and guidance linked to the new Housing Act, including:
Awaab’s Law
Rent control
Domestic abuse protections
A new prevention duty
Many of these areas will require better data capture, reporting and tenant communication — reinforcing the need for robust housing management systems and interoperable platforms.
In May 2026, social landlords will also be required to report damp and mould data for the first time as part of their Annual Return on the Charter to the Scottish Housing Regulator. This marks a significant shift towards evidence-based regulation, where sensors, inspections apps, and real-time reporting tools can play a central role.
Why 2026 Matters for Housing Technology
Taken together, 2026 represents a turning point. Funding decisions, political leadership and regulatory clarity will determine whether Scotland can:
Accelerate retrofit at scale
Meet net zero commitments
Improve housing quality and tenant outcomes
Use technology as an enabler rather than an afterthought
For housing providers and tech partners alike, this is the year to be ready — with solutions that support compliance, transparency and long-term value.
At Tech Housing, we’ll be tracking how policy translates into practice — and how technology can help Scotland’s housing sector deliver on its ambitions in a year that will shape the decade ahead.