Housebuilding slows amid rising demand and financial pressures
Scotland saw a notable decline in new housebuilding activity over the past year, with both starts and completions falling across all sectors, according to the latest Quarterly Housing Statistics published by the Scottish Government.
The statistics, covering the financial year ending March 2025, reveal the growing pressures on Scotland’s housing sector and the scale of the challenge ahead in meeting national housing targets.
In the year to the end of March 2025, 19,288 homes were completed across all sectors, a 4% drop from the previous year, while new starts fell even more sharply by 11%, down to 15,053. Of these, the private sector delivered 14,798 completions and began work on 11,902 homes. The social sector accounted for 4,490 completions and just 3,151 starts.
Excluding the pandemic-affected year of 2020-21, private sector starts are now at their lowest level since 2012-13, while social sector completions and starts are also at their lowest levels since 2016-17 and 2012-13, respectively.
The statistics also show a significant downturn in the Affordable Housing Supply Programme (AHSP). In 2024-25, there were 7,444 completions of affordable homes, 22% fewer than the previous year. Approvals and starts were also down, by 31% and 21% respectively. The AHSP is central to the Scottish Government’s target of delivering 110,000 affordable homes by 2032, of which at least 70% must be for social rent and 10% in rural or island communities.
To date, 28,537 affordable homes have been delivered toward that goal, including 21,937 for social rent (77%), 4,087 for affordable rent (14%), and 2,513 for affordable home ownership (9%).
Responding to the figures, cabinet secretary for housing Màiri McAllan acknowledged the scale of the problem and reaffirmed her commitment to tackling it.
“Having a safe, warm and affordable place to call home is critical to a life of dignity and opportunity. The Scottish Government has a strong record in supporting the delivery of affordable homes but demand is high and we must step up our efforts,” said Ms McAllan.
“These statistics demonstrate the challenge we face, but it will be my top priority to ensure everyone in Scotland, and in particular our children, have the opportunity to thrive, and I am focused on delivering that real change.”
Ms McAllan also pointed to wider fiscal challenges, noting: “These challenges, which are not unique to Scotland, are made harder to tackle due to an incredibly difficult financial settlement from the UK Government. However, we have consistently invested and have delivered more than 139,000 affordable homes from 2007 to March 2025. 99,000 of these have been made available for social rent. That’s 47% more per head of population than England and 73% more than Wales as of March 2024.”
Looking ahead, the Scottish Government plans to invest £768 million this financial year in affordable housing and introduce stronger tenant protections through the implementation of Awaab’s Law. An additional £2m will be used to help councils unlock barriers to development and tackle the issue of empty homes.