Number of new homes built falls amid Scotland’s housing emergency

The number of new homes built in Scotland slumped to less than 20,000 last year – with completions by the social sector down by almost a quarter, figures show.

While the Scottish Government declared a housing emergency last year, figures for 2024 show the number of homes that were built fell by 7% to 19,797.

The number of properties started dropped further, falling 9% from the 2023 total to 15,050.

Private housebuilders completed 15,066 new builds and started construction work on 11,617 homes – with this 12% down from 2023.

That meant 2024 had the lowest number of new homes started by private builders than any year since 2013 – with the exception of 2020, when the Covid pandemic impacted building works.

Meanwhile, social housing providers – such as councils and housing associations – built 4,731 homes in 2024 and started work on 3,433 properties.

While the number of properties started was up by 2% from 2023 the number of completions was down by 22%, and was the lowest since 2017.

The Scottish Government has set the target of delivering 110,000 homes for affordable rent or purchase by 2032, and the data shows that in 2024 there were 6,440 properties approved as part of this, with work starting on 6,501 homes and 8,180 builds completed.

The number of affordable homes approved was 48% lower than the peak of 12,478 recorded in 2019.

Meanwhile the number of properties started was 41% lower than the peak of 11,027 in 2019, while completions last year were 20% lower than the peak of 10,177 recorded in 2022.

According to the data, by the end of December 2024, 26,039 homes had been completed towards the target – meaning 83,961 homes will have to be built by 2032 if the Government is to achieve its affordable housing target.

Jane Wood, chief executive of the industry body Homes for Scotland (HFS), said: “It will soon be a year since the Scottish Parliament declared a national housing emergency.

“Starts and completions are the clearest form of data for tracking the effectiveness of the political response to this.

“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.”

Ms Wood said: “Every year that new housing starts and completions continue to decline simply adds to the length of time it will take for Scotland to address the shortfall of over 100,000 homes that has now accumulated since 2008.”

While she added “progress” had been made in some areas, she added that this was “not having the immediate impact that is required” and that “emergency action” is needed.

Labour housing spokesperson Mark Griffin said: “These damning figures show the SNP’s reckless incompetence is at the root of Scotland’s housing emergency.

“For years now it has been clear that things are at crisis point in our housing system – with homelessness at high levels, rents soaring, and home ownership becoming a distant dream for many.”

He added: “At the root of this crisis is a lack of housing, but the SNP has let the number of new homes are being built fall and its affordable homes pledge is nowhere near being met.”

And Scottish Conservative housing spokesperson Meghan Gallacher said: “These shocking statistics confirm SNP ministers have been asleep at the wheel while Scotland remains in the grip of a housing emergency.

“They delivered savage cuts of nearly £200 million to the housing budget which unsurprisingly has had a devastating effect on the number of homes being built.”

But housing minister Paul McLennan said the Scottish Government has a “strong track record in delivering affordable housing in Scotland”.

Mr McLennan said that from 2007 – the year the SNP came to power – to 2024, more than 136,000 affordable homes had been delivered, including 97,000 for social rent.

The minister said: “Up to March 2024, that is 47% more affordable homes per head of population than England and 73% more than Wales.”

He added the number of affordable homes approved and started in 2024 had increased in the last year – describing this as “encouraging”.

Mr McLennan pledged: “We will continue to work with partners to increase these levels even further through our £768 million investment in 2025-26, which is an increase of £200 million when compared to this financial year.”

He added that since 2010, the Scottish Empty Homes Partnership has “helped almost 11,000 empty properties become home”, with £2 million to be invested in this next year, “bringing more privately owned empty homes back into use”.

Mr McLennan added that ministers are also “working with partner organisations, through our Housing Planning Hub, to identify how our planning system can help to provide solutions”, saying this “decisive and properly targeted action” could help to “provide more homes and better places for people to live in”.