Construction data

Housebuilding falls to 11-year low despite emergency

Construction, housebuilding
Housebuilding continues to fall short (pic: DB Media Services)

Construction of new homes across Scotland fell to an 11-year low last year, despite government pledges to tackle the housing emergency.

In the year to the end of June there were just over 17,000 homes built, 11% fewer than the previous 12 months and 15,500 homes were started, 2% below the previous period. Completions were at their lowest level since 2015 and starts since 2013.

The private sector completed nearly 13,600 homes and started around 11,800. Annual completions fell 7% and starts fell 8%, with starts at their lowest level since 2013.

The social sector completed nearly 3,500 homes and started around 3,700. Annual completions fell 25%, while starts rose 26% from a record low base the previous year. Completions were the lowest since 2007.

In the year to June 2026, the AHSP delivered around 6,600 approvals, 7,100 starts and 6,800 completions. 

Annual increases were reported for approvals (42% increase) and starts (34% increase); however, these increases were from a low bases reported the previous year.

As of June 2026, just over 36,500 homes had been delivered towards the 110,000 affordable housing target by 2032 — 77% social rent, 14% affordable rent, and 8% affordable home ownership.

Homes for Scotland chief executive Jane Wood said: “Since Scotland’s national housing emergency was declared in May 2024, all-sector housing completions have now declined for three consecutive reporting years, with delivery falling by an average of around 10 per cent year-on-year.

“The gap between ambition and delivery cannot be ignored. What matters now is the speed and urgency with which the Scottish Government acts to change that trajectory.”

Jane Wood
Jane Wood: speed and urgency matters (pic: DB Media Services)

Labour housing spokesperson Mark Griffin said: “We are almost two and a half years on from declaring a housing emergency and alarmingly little progress has been made.

“The government set ambitions for an increase of 10% in housebuilding – but today’s stats show a fall of 11%. Far from achieving their targets they are missing them by miles.

“With record numbers of children in temporary accommodation we cannot afford to be moving backwards.”

Conservative housing spokesman, James Adams said: “These figures are a devastating indictment of the SNP’s housing record.

“Families across Scotland are desperate for affordable homes, but the SNP are presiding over a total collapse in housebuilding.”

Liberal Democrat housing spokesperson Morven-May MacCallum said: “Far too many Scots have nowhere to live or are paying through the nose in rent. That will never change so long as housebuilding figures are going in the wrong direction.”

Social Justice and Housing Secretary Shirley-Anne Somerville said: “The Scottish Government continues to deliver on affordable housing – with approvals up 42% and starts increasing by 34% compared to last year. Overall since 2007 we have helped deliver 147,000 affordable homes – with 72% for social rent.

“Scotland continues to lead the rest of the UK in relative housebuilding with 35 homes per 10,000 population delivered in 2024–25, the highest rate in the UK. We have also delivered 45% more affordable homes than England and 69% more than Wales, per head of population.

“However, we know there is more to do – that is why we are providing record investment of up to £4.9 billion over the next four years to support delivery of around 36,000 affordable homes – providing a warm, safe home for up to 24,000 children.

“We are determined to help drive improvements in the private sector, including through our work with the Scottish National Investment Bank. Our new agency More Homes Scotland will also bring simplicity, scale and an all-tenure approach to supporting housebuilding – enhancing delivery and maximising savings.”

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