Scotland is facing a deepening housing crisis as the number of new homes being built continues to decline. According to the latest statistics, there was a 9% decrease in all sector housebuilding starts and a 7% reduction in completions between 2023 and 2024. This trend is particularly concerning given the Scottish Government’s ambitious target to deliver 110,000 affordable homes by 2032. With only 26,039 affordable homes completed by December 2024, nearly 84,000 more homes need to be built to meet this goal.
Jane Wood, Chief Executive of Homes for Scotland, highlighted the urgency of the situation, stating: “With these now falling for the third year in a row, there is nothing to assure either our members or the 693,000 Scottish households living in some form of housing need, that the situation is being tackled with the necessary resource and level of urgency that is so clearly warranted.”
Wood emphasised the need for emergency action, including addressing regulatory burdens and planning issues.
David Alexander, CEO of DJ Alexander Scotland, also expressed concern, noting: “These figures are deeply concerning at a time when a housing emergency has been declared and when demand from homebuyers and renters has never been greater.”
Alexander pointed out that low volumes of housebuilding have contributed to substantial house price rises and that continued subdued supply will exacerbate this issue.
Despite these challenges, Housing Minister Paul McLennan remains optimistic about the government’s track record on affordable housing, stating: “We have a strong track record in delivering affordable housing in Scotland… It is encouraging that affordable housing starts and approvals have increased in the last year to date.” However, the sector faces significant challenges, including rising construction costs and labor shortages.
To address these issues, the Scottish Government has announced an increased investment of £768 million in affordable housing for 2025-26. However, experts argue that more needs to be done to reset social home-building and address the underlying supply issues.
As the housing crisis continues, critics argue that the Scottish Government’s focus on rent controls in the Housing (Scotland) Bill does not adequately address the core problem of insufficient housing supply.
Fraser Paterson, Head of Public Affairs at BIG Partnership, noted: “The central issue is the lack of supply, not rent gouging by landlords. Rent levels are high because there simply aren’t enough homes to meet demand.”
