UK: This week, media headlines suggested that a breakthrough had been reached for RAAC-affected residents in Aberdeen. The Press and Journal reported that a £10 million funding agreement had been struck between Aberdeen City Council and the Scottish Government to support those living in Balnagask’s RAAC-affected homes. 

Housing Secretary Mairi McAllan remains adamant that the UK Government should contribute to RAAC remediation. She criticises a Conservative MSP for allegedly misunderstanding how budget constraints limit the Scottish Government’s response, yet she later allows flexibility of funding for Aberdeen. Similar flexibility could, and arguably should, be extended to other regions of Scotland. While the UK RAAC Campaign Group supports UK contributions, they maintain that RAAC remains a Scottish issue that the Scottish Government must resolve. 

Housing Secretary Mairi McAllan announced during portfolio questions in the Scottish Parliament on 2nd October 2025 that the Scottish Government would accelerate affordable house-building developments, “freeing up” £10m. According to her statement, this would create financial headroom for the council to address RAAC issues “from within its own budget.” Importantly, McAllan confirmed that any funds used through this mechanism would need to culminate in the building of new homes, highlighting that the budget is primarily for housing development rather than direct RAAC remediation. During Portfolio questions she stated: 

"I have today written to Aberdeen Council to confirm that its request for £10 million to meet the cost of RAC remediation does not meet the criteria of the Housing Infrastructure Fund. I have instead invited the Council to submit a proposal for additional grant support through the Affordable Homes Supply Programme for the equivalent amount." 

She added: "T 

his will not only help the Council in turn to meet the cost of remediation from within its own budget but also make a valuable contribution towards Scotland's supply of affordable housing." 

VIDEO: In a discussion on whether the £20 million Housing Infrastructure Fund (HIF), launched in 2016 as part of the 10-year Aberdeen City Region Deal, could be spent on RAAC remediation, Housing Minister Mairi McAllan stated that no eligible application had been submitted. She explained that the HIF is intended to fund housing developments that have stalled or cannot proceed due to excessive costs or the nature of the infrastructure works required, and it is the responsibility of councils to bring forward eligible HIF projects. While an offer was made of an additional fund, any support would be contingent on the construction of newly built homes. 

In an email from Murray Sharp, Senior Manager (Housing) at Clackmannanshire Council, he shared that Tony Cain, Policy Manager at ALACHo (the Association of Local Authority Chief Housing Officers), reiterated that Aberdeen City Council’s direct request for RAAC remediation funding did not meet the criteria of the Housing Infrastructure Fund. Instead, the government has invited the council to submit additional affordable housing proposals under the Affordable Housing Supply Programme for the equivalent value. 

For RAAC homeowners, the scale of the challenge is stark. Aberdeen City Council currently has around 500 homes in its RAAC portfolio, including 138 privately owned properties. A £10 million budget would allow, on paper, just £20,000 per home — far below the gap between current market valuations and what homeowners would find acceptable based on pre-RAAC valuations. 

Estimates suggest the council would need roughly £4 million to fund voluntary agreement offers averaging £30,000 per home. This would leave around £6 million for legal costs and rebuilding the estate, which I believe is likely insufficient given the scale of the work required. While other funding sources may be sought to support the rebuild, McAllan’s parliamentary statements indicate that constructing new homes would be an essential condition of any bid. 

Aberdeen City Council Executive Director Eleanor Sheppard has admitted that the “kind offer” requires further discussions with government colleagues, and that it will take “a wee bit of time” before clarity can be offered. 

Wilson Chowdhry, Chair of the UK RAAC Campaign Group, commented: 

“The announcement was presented as a win for RAAC homeowners, but in truth, no guarantees have been given. Families are clinging to hope, yet the government and council owe them transparency. We need a clear public statement confirming whether any of this money will reach private homeowners, and how they can access support if it does. Until then, residents remain in limbo. 

What worries many is that the flexibility attached to these funds could instead be used to push through a council-led rebuild programme. That approach could see compulsory purchase orders enforced, leaving homeowners pressured into accepting low voluntary agreements far below the pre-RAAC value of their homes. If that is the direction being taken, then this so-called funding solution risks becoming yet another mechanism to strip families of fair redress rather than a genuine commitment to help them recover.” 

The contrast between upbeat headlines and the official explanations has created understandable confusion. Until the Scottish Government, Housing Secretary Mairi McAllan, Aberdeen City Council’s Executive Director Eleanor Sheppard, and Chief Executive Stephen Booth issue a joint, unambiguous statement on how private homeowners will be supported, RAAC residents are left uncertain about their future. 

Mr Chowdhry, added:  

"I have written directly to Eleanor Sheppard, Stephen Booth, and Housing Secretary Mairi McAllan seeking answers to our concerns and clarity on how any funding will be applied to benefit private homeowners. I will share further updates once their responses are received."