Scotland’s housebuilding sector is on a “deeply concerning trajectory”, according to industry figures, following the publication of new statistics by the Scottish Government. The data for the year ending 31 March 2026 indicates a significant downturn in new home construction, further exacerbating the country’s declared housing emergency.
Across all sectors, new home completions totalled 17,268, marking a 10% decrease from the previous year. New house starts also fell by 4% to 14,955. These figures represent the lowest completion levels since 2016-17 and the lowest start levels since 2012-13, excluding the period affected by Covid-19 restrictions in 2020-21.
The private sector accounted for the majority of this decline, with starts and completions dropping by 12% and 8% respectively. In contrast, the social sector saw a 16% reduction in completions to 3,774, though new starts in this segment showed a positive rise of 25%, reaching 3,937.
Industry leaders and housing advocates have expressed grave concerns. Richard Meade, Chief Executive of the Scottish Federation of Housing Associations (SFHA), highlighted the ongoing severity of the situation. He stated: “Despite Scotland last month entering the third year of its housing emergency, today’s statistics show that housing completions continue to falter whilst more families wait in desperate need of a safe, warm and affordable home.”
While acknowledging some “tentative green shoots of recovery” in affordable housing approvals and starts, Meade cautioned that these increases are from a low base, with approvals still almost half of pre-pandemic levels.
He added: “We are under no illusion that the systemic issues holding back delivery of social homes can be solved overnight, but we do urgently need the Scottish Government to set out how it will build on this early progress and match it with the pace this emergency demands.”
Homes for Scotland (HFS), representing home builders and land promoters, attributed the decline primarily to a shrinking land supply and reduced development viability. Jane Wood, Chief Executive of HFS, commented: “These figures are another clear warning that Scotland remains on a deeply concerning housing trajectory.”
HFS’s analysis projects that housing completions could fall to as low as 5,000 per annum by 2031 under current models. Wood also noted that the reported 17,268 completions are “over 20 per cent less than the combined local authority forecast of 22,402”.
The Affordable Housing Supply Programme (AHSP) saw 6,832 homes completed in 2025-26, an 8% decrease on the previous year and the lowest level since 2015-16, excluding the Covid-impacted year. Despite this, the Scottish Government maintains its commitment to delivering 110,000 affordable homes by 2032, with at least 70% designated for social rent.
A Scottish Government spokesperson highlighted positive developments in the AHSP:
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“The Scottish Government continues to deliver on affordable housing – with approvals up 42% and starts increasing by 37% compared to last year.”
They also noted a 25% increase in new build starts for social sector housing. The government reiterated its target of 110,000 homes by 2032 and mentioned investment of up to £4.9 billion over the next four years to support the delivery of around 36,000 affordable homes.
Scottish Labour’s Housing spokesperson, Mark Griffin MSP, urged the government to “wake up to the crisis”. He stated: “The SNP is supposed to be boosting housebuilding by 10 per cent a year, but so far things are going in the wrong direction.”
