Housebuilding starts plunge to lowest level since 2012
Housebuilding across Scotland has continued to plunge as figures reveal new projects are at their lowest level since 2012.
The number of housebuilding starts in 2024-25 decreased by 11% compared to the year before – a fall of 1,906 homes.
The number of houses being completed decreased by 4%, a reduction of 746.
In the social housing sector, starts – excluding 2020-21 – were down by 10% to reach their lowest levels since 2012, while the number of completions fell by 15% – their lowest level since 2016.
Private housebuilding starts were also at their lowest level since 2012, excluding the pandemic, falling by 11.5%.
Completions remained at similar levels to last year.
The private sector built 14,798 homes and started 11,902 builds over the last year. The social sector built 4,490 homes and started 3,151.
The Scottish Government’s flagship Affordable Housing Supply Programme also suffered significant falls, with the number of approvals decreasing by 31% – equivalent to 2,167 homes – from between 2023-24 and 2024-25.
The number of completions were down by 22%, or 2,070 homes, compared to the year before, while the number of starts fell by 21%, or 1,471 homes.
In 2024-25, there were 4,775 approvals, 5,424 starts, and 7,444 completions of affordable homes.
The fall follows on from similar figures released in May which found housebuilding in Scotland had plunged by 16.4% in 2023-24, or 3,984 homes.
The fall comes despite the Scottish Government calling a national housing emergency in 2024, while at least a dozen councils have also called their own emergencies.
Not only has the SNP failed to tackle the housing emergency, it has fanned the flames of the crisis by letting housebuilding plummet.
Scottish Labour accused the Scottish Government of making the crisis worse.
Mark Griffin, the party’s housing spokesperson at Holyrood, said: “These shameful figures show the SNP did not lift a finger after declaring a housing emergency.
“Eye-watering rents are piling pressure on families, homelessness is shamefully high, people are stuck on endless social housing lists, and the dream of home ownership is slipping out of reach for a generation because of a lack of homes in this country.
“Not only has the SNP failed to tackle the housing emergency, it has fanned the flames of the crisis by letting housebuilding plummet.”
Meghan Gallacher, housing spokesperson for the Scottish Tories, added: “These shocking statistics expose the continued failure of the SNP to tackle Scotland’s housing emergency.
“Their policies including reckless plans for permanent rent controls are creating a hostile environment for investors which has led to this disastrous collapse in housebuilding.
“With the SNP already overseeing record highs in the number of people homelessness and the level of children in temporary accommodation, the need to act could not be greater.
“Their new Housing Secretary Mairi McAllan made an inauspicious start last week when she failed to answer basic questions, and she needs to get on top of her brief urgently.”
Ms McAllan, who took on the new role of Housing Secretary earlier this month, said the Scottish Government had a “strong record” delivering affordable housing, but admitted “we must step up our efforts” amid high demand.
“These statistics demonstrate the challenge we face,” she said, “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 £768 million 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 £2 million this year to help councils unlock barriers and to target empty homes.”