Housebuilding in Scotland has fallen to record lows, raising serious concerns about the country’s ability to meet its affordable housing targets. Recent government data reveals a significant decline in both private and social housing completions and starts during 2025, intensifying the ongoing housing crisis.

Sharp Decline in Housebuilding Across Scotland

According to figures published by the Scottish government, only 17,336 new homes were completed across both private and social sectors in 2025, with 14,999 new builds started. The private sector was responsible for 13,725 completions and 11,929 starts, while the social housing sector completed 3,611 homes and started 3,070.

The government acknowledges that social housing completions in 2025 were the lowest since 2014, and new social housing starts hit a record low since data collection began in 1997. This decline is particularly alarming given the Scottish government’s commitment to deliver 110,000 affordable homes by 2032.

Political Reactions and Criticism

The Scottish Conservatives have strongly criticised the Scottish National Party (SNP) for the poor housing figures. Meghan Gallacher, the Scottish Conservative housing spokesperson, described the situation as “a damning indictment of the SNP’s failure to deliver the homes Scotland needs.”

Gallacher highlighted that housebuilding has “collapsed across Scotland,” attributing the crisis to the SNP’s policies, including rent controls, regulatory burdens, and anti-growth measures. She warned these factors have deterred investment and restricted housing supply, leaving many families unable to buy homes and trapped in temporary accommodation.

She urged voters to support the Scottish Conservatives in the upcoming May elections, promising to cut red tape and abolish the Land and Buildings Transaction Tax (LBTT) to stimulate housebuilding and improve affordability for first-time buyers.

Challenges in Meeting Affordable Housing Targets

Despite the government’s pledge to build 110,000 affordable homes by 2032, only 32,479 have been delivered so far. Shelter Scotland warns that to meet this target, 41,521 homes would need to be built in the final two years, a figure that appears increasingly unrealistic given current trends.

Alison Watson, Director of Shelter Scotland, emphasised that social housebuilding remains “too little, too slow, too late” for those affected by the housing emergency. She stressed that 70% of the promised affordable homes should be for social rent, but the current trajectory suggests the government will fail to honour this commitment.

Watson called on all political parties to pledge to build more than 15,000 social homes annually to address the crisis. She warned that without credible plans and increased investment, homelessness will rise and local authorities will face greater financial pressure to provide temporary housing.

What this means for landlords

The ongoing decline in housebuilding, combined with anti-landlord legislation highlighted by the Scottish Association of Landlords, is reshaping the private rented sector. Reduced supply of new homes and increased regulatory burdens risk pushing landlords out of the market, further tightening housing availability.

For landlords, this environment presents challenges but also opportunities to engage with policymakers advocating for sensible reforms. Addressing the supply shortage and ensuring a stable rental market will require collaboration between government, landlords, and housing organisations.

Source: Based on reporting from Property118

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