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

Sharp Decline in Housebuilding Across Scotland

Figures published by the Scottish government show that in 2025, a total of 17,336 new homes were completed across the private and social housing sectors, with 14,999 new builds started. The private sector accounted for 13,725 completions and 11,929 starts, while the social housing sector delivered 3,611 completions and 3,070 starts.

The data highlights a troubling trend: private sector completions in 2025 were the lowest since 2017, and new starts were at their lowest since 2013. Social housing completions have also hit their lowest point since 2014, with new social housing starts at a record low since records began in 1997.

Political Reactions and Criticism

The Scottish Conservatives have strongly criticised the Scottish National Party (SNP) government for these 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 blamed the decline on “reckless rent controls, endless red tape and anti-growth policies” that have deterred investment and restricted housing supply. She warned that a generation is being locked out of the housing market, with many families and children forced into temporary accommodation.

She called for urgent action, including cutting red tape and scrapping the Land and Buildings Transaction Tax (LBTT) to make housing more affordable for first-time buyers. Gallacher urged voters to support the Scottish Conservatives in the upcoming May elections to prevent an SNP majority and back a “common-sense plan” to address the housing emergency.

Challenges in Meeting Affordable Housing Targets

The Scottish government has committed to building 110,000 affordable homes by 2032. So far, 32,479 homes have been delivered towards this target. However, Shelter Scotland warns that to meet the goal, 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 the urgency ahead of the May elections, urging all political parties to pledge to build more than 15,000 social homes annually. She stated: “Once again, social housebuilding remains too little, too slow, too late for the tens of thousands of people impacted by the housing emergency.”

Watson criticised the lack of credible plans from any party to meet housing needs, warning that failure to act will push more people into homelessness and force local authorities to make further cuts to fund temporary accommodation. She stressed that building 15,693 social homes per year is a political choice essential for Scotland’s future.

What this means for landlords

The decline in housebuilding, particularly in the private sector, combined with legislative pressures highlighted by the Scottish Association of Landlords, signals a challenging environment for landlords. Reduced supply and increased regulation may exacerbate rental market pressures, potentially leading to higher demand and rental costs.

Landlords should be aware of the political and economic factors influencing housing supply and demand, as these will impact investment returns and tenant availability. The ongoing housing crisis underscores the need for balanced policies that encourage development while protecting landlord and tenant interests.

Source: Based on reporting from Property118

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