Glasgow Historic Buildings Hit £1B Heritage Deficit Crisis 2026; Glasgow

Key Points

• Glasgow’s deteriorating historic buildings face a £1 billion heritage deficit, with restoration costs exceeding market value
• Councillor Ruairi Kelly, responsible for buildings in the city, revealed the figure at a council meeting
• Available funding for heritage properties falls significantly below what is required for necessary repairs
• Over the past ten years, £250 million has been allocated to preservation of Glasgow’s heritage buildings and assets
• 68 significant buildings have been identified as being at risk, including St Vincent Street Church designed by Alexander “Greek” Thomson
• The Built Heritage Commission was established last year to manage and restore vacant and dilapidated properties
• Council chiefs have written to the Chancellor of the Exchequer requesting VAT equalisation on restoration works
• Developers currently face 20% VAT on commercial building construction and repair, but only 5% when converting to homes
• Without viable options, some listed sites face partial or full demolition
• Finding new uses that give buildings “a new lease of life” is considered the most practical way forward

Glasgow (Glasgow Express) June 20, 2026 – Glasgow’s deteriorating buildings face a £1 billion heritage deficit – as the cost of restoring them is higher than what they are worth on the market. The councillor responsible for buildings in the city Ruairi Kelly revealed the figure as he said available funding for heritage properties falls far below what is needed.

How Serious Is the Funding Gap for Glasgow’s Heritage Properties?

At a recent meeting, councillors heard that available funding was significantly lower than what is required to address the deteriorating state of historic buildings across the city.

As reported by the journalist covering Glasgow Live, Kelly stated that the heritage deficit represents a critical challenge for Glasgow City Council’s built heritage budget.

Furthermore, Kelly noted that over the past ten years, £250 million has been allocated to the preservation of the city’s heritage buildings and assets.

However, this substantial investment has not been sufficient to close the gap between available resources and the actual cost of necessary restoration work.

Which Buildings Are Most at Risk in Glasgow?

The church designed by Greek Thomson is among 68 significant buildings, including the Elder Park farm and Kings Park courtyard, which have been identified as being at risk. St Vincent Street Church, designed by Thomson, is considered one of the last great Thomson works still standing and is recognised by the World Monument Fund.

Norry Wilson, the founder of history page Lost Glasgow, warned the city is at risk of losing the heritage site. Speaking to STV News, he said:

“Thomson built all over Glasgow, building magnificent tenements, churches and public buildings. This is the last of Thomson’s absolutely great churches, and if we are to lose this on our watch, future generations wouldn’t be very kind to us”.

Wilson added: “Glasgow’s problem is two-fold. We are too poor just now, but we were once so rich – so we had this huge inheritance of Georgian and Victorian architecture which we now cannot afford to maintain”.

What Are Experts Saying About Glasgow’s Ability to Save These Buildings?

Lilly Erskine, senior associate at civil engineering firm Narro, said:

“It’s hugely important that Glasgow keeps its built heritage. It’s a city whose identity is founded in its links to industry and to the arts and all of that is shown in the buildings around us”.

Erskine continued:

“There is very rarely a need for a building to be pulled down. There is almost always a way to save them from a structural perspective. We can repair them, we can hold them up. Bar making them float, we can do anything. But it’s often the financial implications that get in the way”.

Melanie Hay, director of conservation architects Hamilton Hay Van Jonker, said projects must be both economically and environmentally sustainable.

“Development has to be economically viable – you can look at buildings that are beyond the point of no return, and people just don’t want to invest in them, so it’s striking that balance”.

Hay added:

“Fifteen years ago, you didn’t pay VAT on a refurbishment project, now you’re paying 20%, so that can really stagnate the market. So things at a national level can be done to instigate development there”.

What Is the Council’s Approach to Addressing the Heritage Crisis?

The city council acknowledges it is urgently looking to secure investment and in turn refurbishment or re-development, with a view to be used by the community, public or private sector. However, if no other options are viable, there is a warning that some of the sites listed, and others, face partial or full demolition.

Councillor Ruari Kelly said more than £250m has been spent on “protecting and developing” built heritage over the last few years.

“Finding a new use that gives these buildings a new lease of life is the most practical way forward,”

he added.

Kelly continued:

“As much as people want to see modern, all-singing, all-dancing buildings, they want to see the heritage protected. They want to see old buildings and the character of the city, they don’t want that to disappear”.

How Is VAT Blocking Heritage Restoration in Glasgow?

One avenue being explored is the equalisation of VAT. Developers are currently charged 20% VAT on the construction and repair of commercial buildings.

However, converting commercial properties to homes incurs just a 5% rate. If residential property is built on vacant land, no VAT is paid at all.

Council chiefs have written to the Chancellor of the Exchequer asking if something can be done to even out those rates.

They are also advocating for empty premises to be converted from retail to residential in an attempt to encourage people back into a city centre vacated by two Covid lockdowns.

Kelly said:

“We have written to both governments and had responses from both. Whilst we haven’t sorted anything yet, the door wasn’t closed in our face”.

“They were open to discussions to see how we can all work together to protect heritage in Glasgow and get development going”.

“If Glasgow is to be a pilot city in the way this could work, we are more than happy to blaze a trail and show the way for other cities as well, all we need is that agreement from the UK and Scottish Governments”.

What Is the Scottish Government’s Position on VAT and Heritage?

The Scottish Government’s housing strategy, Housing to 2040, notes that reductions in VAT on household repairs would encourage home renovation and improve existing housing stock.

A Scottish Government spokesperson said:

“The Scottish Government has pressed the UK Government – which is responsible for VAT – to tackle the challenge of decarbonising and retrofitting existing buildings. This would help to reduce emissions, preserve our architectural heritage and regenerate communities”.

“The imbalance needs to be addressed to encourage projects which retain existing buildings, instead of demolition and rebuild”.

What Recent Funding Has Glasgow City Council Approved for Heritage?

Glasgow City Council has awarded £290,000 in funding to the Glasgow Building Preservation Trust (GBPT) and the Glasgow City Heritage Trust (GCHT) for the next year. The approval of council funding for the 2025/26 financial year means the GBPT will receive £50,000 core funding, with £240,000 – £50,000 core funding and £190,000 grant funding – given to the GCHT.

Councillor Ruairi Kelly, Convener for Built Heritage and Development at Glasgow City Council, said:

“These Trusts are key partners for the council and the city in the work done to protect and develop Glasgow’s built heritage. The funding now approved for the next year will allow them to continue the very valuable work that they do in what can be a challenging environment for heritage buildings – work that is important economically and culturally and in terms of preserving our unique built heritage and identity”.

What Is the Built Heritage Commission’s Role?

Kelly leads the Built Heritage Commission, established last year specifically to manage and restore the city’s vacant and dilapidated properties.

In addition to immediate measures—such as eradicating buddleia, a major contributor to damage on heritage buildings—the commission will advocate for funding and legislative changes from the UK and Scottish governments.

Background: Glasgow’s Architectural Heritage and the Growing Crisis

Glasgow, a city renowned for its rich architectural legacy, is struggling with the costs of maintaining and restoring its historic buildings. Home to some of the finest examples of architecture by figures such as Alexander “Greek” Thomson and Charles Rennie Mackintosh, the city’s streets are filled with works that tell the story of its industrial and cultural past.

The city’s built heritage includes over 76,000 tenements remaining dating back to the pre-1920 period. Of them, the Built Environment Forum Scotland estimate that 60% are in need of urgent repairs worth an estimated £3 billion, storing-up a time sensitive maintenance crisis.

Last year Historic Environment Scotland added another 43 buildings to its list of those at risk, bringing the total to 143. Numerous such structures contribute to the visibly deteriorating Victorian heritage of what was once the City of Design.

Despite the post-war ravages of mass demolitions, Glasgow still retains significant Victorian and Georgian architecture that now faces financial constraints and the difficulty of preservation. Many buildings now face an uncertain future due to financial constraints and the difficulty of preserving buildings that are often in urgent need of repair.

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What Will This £1 Billion Heritage Deficit Mean for Glasgow Residents and Businesses?

The £1 billion heritage deficit will have significant consequences for Glasgow residents, businesses, and the city’s cultural identity.

For Glasgow residents, the crisis means that iconic buildings that form part of the city’s character and identity may be lost or severely deteriorated.

For local businesses, particularly those in the city centre that vacated during two Covid lockdowns, the inability to preserve and convert empty premises could slow regeneration efforts.

The 20% VAT on commercial building repair makes restoration economically challenging for developers and business owners.

The tourism and cultural sector will face reduced attraction as historic buildings like St Vincent Street Church, considered one of Thomson’s great works, face potential demolition. Norry Wilson warned that losing such heritage sites would mean future generations “wouldn’t be very kind to us”.

Community groups relying on the Glasgow Building Preservation Trust and Glasgow City Heritage Trust will face limited resources, as the £290,000 annual funding allocated represents only a fraction of the £1 billion needed.

The housing sector will also be affected, as the current VAT imbalance discourages conversion of commercial properties to residential use, despite the Scottish Government’s Housing to 2040 strategy noting that VAT reductions would encourage home renovation. This could limit housing options in Glasgow’s historic buildings and contribute to continued city centre emptiness.