Social housebuilding in Scotland hits lowest levels in 10 years

Gordon MacRae, assistant director communications and advocacy at Shelter Scotland, said:  “The continued decline in the number of social homes being delivered is the inevitable, and entirely foreseeable, consequence of repeated changes to the housing budget and lack of urgent action from the Scottish government.   

“If ministers fail to deliver the 110,000 new affordable homes by 2032, they will turn their backs on the thousands of people in Scotland who are being harmed by temporary accommodation while waiting for their forever home.”

He said homelessness is rising across the country, and “this is the opportunity for our new cabinet secretary for housing to lead in tackling the housing emergency and do things differently”. 

“We need homes for people experiencing homelessness and to get those 10,360 children out of temporary accommodation. This must start with sustained investment for more social homes,” Mr MacRae added.  

The statistics showed that the number of housing association homes completed in the year ending March 2025 had fallen to 2,792 from 3,372 the year before, while the number of homes started was 1,751, down from 2,208.

This is compared to the recent peak of over 5,000 starts five years ago in the year ending March 2020. 

The Scottish Federation of Housing Associations (SFHA) said the figures meant the Scottish government’s chance of meeting its target to deliver 110,000 affordable homes by 2032 – 70% of which are for social rent – was “increasingly difficult”.

The SFHA urged the Scottish government to commit to a long-term funding plan for social housing in the wake of a 10-year funding package for housing in England worth £39bn. 

Sally Thomas, its chief executive, said: “With yet another slowdown in housebuilding, today’s statistics again underline the extent of Scotland’s housing emergency. 

“Unless there is a significant long-term uplift in funding, then not only is the Scottish government’s housing target going to be increasingly difficult to meet, but tens of thousands of people throughout Scotland will be kept waiting for the warmth, security and affordability of a social home to call their own.”

She said: “We now need to see the Scottish government seize the opportunity from the Spending Review by investing the resulting Barnett consequentials in housing with a long-term funding plan.”

Màiri McAllan, cabinet secretary for housing, said: “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.

“These statistics demonstrate the challenges 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. 

“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. 

“I will re-double efforts now by investing £768m this financial year in affordable housing and give tenants stronger protection against damp and mould through Awaab’s Law. 

“We’ll also invest a further £2m this year to help councils unlock barriers and to target empty homes.”

A recent survey found that the number of small and medium-sized (SME) house builders in Scotland is at a 20-year low.