New data from the Scottish government reveals a significant decline in housebuilding activity, with starts down 5% and completions falling 8% between the years ending September 2024 and September 2025. This downturn occurs despite government commitments to deliver 110,000 affordable homes by 2032, raising concerns for landlords and agents about future housing supply and market stability.

Sharp decline in housebuilding activity across Scotland

According to the latest Scottish government figures, housebuilding in Scotland is experiencing a marked downturn. In the year ending September 2025, there were 18,347 home completions and 14,846 new build starts. The private sector accounted for 14,225 completions and 11,815 starts, while the social sector contributed 4,122 completions and 3,031 starts.

These figures represent a concerning trend: private sector completions are at their lowest since 2018, with starts at their lowest level since 2013. The social housing sector is also facing historic lows, with completions at their lowest since 2017 and starts at their lowest since records began in 1997.

For landlords and letting agents, this reduction in new housing supply could exacerbate existing pressures on the rental market, potentially increasing demand for existing rental properties and influencing rental values.

Affordable housing targets remain unmet

The Scottish government has pledged to deliver 110,000 affordable homes by 2032, with 70% designated for social rent. However, only 31,064 affordable homes have been completed so far, with 78% of these for social rent. In the current financial year, the government aimed to complete 8,000 affordable homes but had only achieved 2,528 by the halfway point, representing a 25% decrease compared to the same period in 2024.

Approvals, starts, and completions for affordable housing stand at 5,222, 5,494, and 6,582 respectively, but overall delivery is slowing. Shelter Scotland director Alison Watson emphasises the need for increased investment and accelerated delivery to meet housing demand and reduce homelessness.

For landlords, the slow pace of affordable housing development may mean continued pressure on the private rental sector to accommodate those unable to access social housing, impacting tenant demand and turnover rates.

Political response and implications for landlords

Scottish Conservative shadow housing secretary Meghan Gallacher MSP criticised the Scottish National Party’s (SNP) housing strategy, stating it has failed to address the housing emergency. She highlighted that the SNP’s plans for permanent rent controls could deter investment and fail to assist families in accessing homeownership.

Gallacher called for urgent action to encourage investment, reduce regulatory burdens, and increase housebuilding to alleviate the crisis. For landlords, potential rent controls represent a significant policy consideration, as they may affect rental income and investment decisions.

What this means for landlords and agents

The decline in housebuilding and affordable housing delivery suggests a tightening housing market in Scotland. Landlords may experience increased demand for rental properties, but also face potential regulatory changes such as rent controls. Agents should prepare for these dynamics by advising landlords on market trends and policy developments.

Understanding the balance between supply constraints and policy interventions will be crucial for managing rental portfolios effectively in the coming years.

Looking ahead: support for landlords

In response to evolving market challenges, the Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This initiative will feature verified and approved service providers to support landlords, tenants, and property management businesses. Service providers in legal, trades, insurance, financial, mortgage, tenant screening, and other sectors are invited to register their interest here.