Government urged to arrest housebuilding ‘collapse’ after record low in social housing starts

According to statistics published by the Scottish Government, work had started on just 3,031 social homes to the year ending September 2025, which is the lowest since records began in 1997. The number of homes completed in the social sector was also just 4,122 - which represents an 8-year low since 2017. 

In terms of the Affordable Housing Supply Programme, in the year to the end of September 2025, there were 5,222 approvals, 5,494 starts, and 6,582 completions of affordable homes. The number of completions was down by 23% (-1,931 homes) compared to the previous year. Approvals and starts also decreased by 22% (-1,460 homes) and 13% (-853 homes) between 2024 and 2025 (year ending September).

It comes just months after SFHA announced research in partnership with CIH Scotland and Shelter Scotland showing Scotland needed to build over 15,000 social and affordable homes per year across the next parliament to meet housing need.

SFHA chief executive Richard Meade said: “These statistics show the lowest number of social homes started since records began nearly 30 years ago and underline the sheer scale of Scotland’s housing emergency. 

“If the Scottish Government, or indeed anyone who aspires to be the next Scottish Government, has any hope of ending the housing emergency, reducing child poverty, or growing our economy, then they must arrest this collapse in housebuilding urgently. 

“Our research shows that we must build over 15,000 affordable homes a year – and today’s statistics show we’re not even close to half of that amount. The cost of inaction is intolerable given how integral warm, secure and affordable homes are to our health, wellbeing and prosperity.” 

While acknowledging the positive increases, Shelter Scotland said affordable homes delivery remains “too slow” and “too late for the thousands of children” spending Christmas living in temporary accommodation.

Director Alison Watson said: “Affordable housing delivery across Scotland remains too slow, too little and too late for the thousands of children spending Christmas without a home.

“In their last Programme for Government, Scottish Ministers promised to deliver 8,000 affordable homes this financial year. Today’s statistics show that at the halfway mark they have achieved 2,528 - 25% fewer than the same period in 2024. 

“Against their long-term commitment to deliver 110,000 affordable homes by 2032 - including 70% for social rent they have achieved 31,064, 78% of which were for social rent. 

“If they are to achieve the remaining 79,000 on time they will need to move more quickly, invest more money and look at other ways of delivering the homes we need. 

“With 10,180 children spending Christmas in temporary accommodation we cannot afford any more delay.”

All sector new builds

In the 12 months ending September 2025, there were 18,347 all sector homes built and 14,846 all sector new builds started.

There was a 5% decrease in all sector housebuilding starts and an 8% decrease in completions between the year to the end of September 2024 and the year to the end of September 2025.

In the 12 months ending September 2025, there were 18,347 homes built and 14,846 new builds started.

The private sector built 14,225 homes and the social sector built 4,122 homes. In terms of starts, building work on 11,815 was started by the private sector and 3,031 homes by the social sector.

Looking at years to the end of September and excluding 2020 (where Covid-19 impacted housebuilding), private sector completions were the lowest since the year to the end of September 2018 and starts were the lowest since the year to the end of September 2013. In the social sector, completions were the lowest since the year to the end of 2017 and starts were the lowest since the beginning of this data collection from year to the end of September 1997.

For Scotland’s home builders, the latest figures highlight the desperate need for urgent and co-ordination action.

Chief executive of sector body Homes for Scotland (HFS) Jane Wood said: “These statistics confirm what communities across Scotland are already experiencing first hand. Fewer homes of all tenures are being built year after year while the level of homelessness, social housing waiting lists and the number of children living in temporary accommodation remains unacceptable. This is the stark reality of Scotland’s housing emergency.

“It is deeply concerning that both private and social sector home building are now at or near historic lows. Without a significant uplift in overall supply there is no credible route to addressing the housing needs of this and future generations, tackling affordability pressures and supporting economic.

“As we enter a critical election period, all parties must urgently come forward with policies which deliver the homes Scotland needs. We urge all parties to meet our calls to action so that Scotland can reap the wide-ranging social and economic benefits that are available by increasing the supply of sustainable energy-efficient homes across all tenures.

“Despite repeated warnings from our members across the year that the situation would continue to deteriorate without urgent co-ordinated action, these figures clearly show that both the Scottish Government’s affordable housing targets and the cabinet secretary for housing’s recently stated ambition to increase all-tenure housing delivery by 10 percent year-on-year are slipping further out of reach.

“We now desperately need to see new deliverable housing sites expedited, infrastructure delivery support for SME home builders and a pause on further regulatory burdens that add cost and delay to new delivery.

“With the Scottish Budget fast approaching next month, it is essential that any increased capital consequential funding coming to Scotland is used to confirm multi-year funding commitments to the Affordable Housing Supply Programme which has seen approvals fall significantly as a result of previous budget cuts made in the 2023-2024 Scottish Budget.

“Support for first time buyers and increases to the planning budget are also required to ensure resource and capacity is increased. HFS and its members stand ready to work with the Scottish Government and local authorities to reverse this decline and deliver the high-quality energy efficient all-tenure homes that Scotland urgently needs.”

Cabinet secretary for housing Màiri McAllan said: “I strongly welcome that these statistics show a 61% increase in approvals, and an 18% increase in starts of affordable homes.

“The increase in approvals is the highest level for the time period since 2021 and shows our work to instil confidence and investment is working after years of headwinds due to Covid, Brexit and inflation.

“This builds on the Scottish Government’s strong track record, having helped deliver more than 141,000 affordable homes since 2007, with over 101,000 for the most affordable, social rent.

“Despite these successes, there is still much to do and I am determined that we now step up our efforts. That’s why my Housing Emergency Action Plan launched earlier this year paved the way for a major affordable homes delivery programme, backed by up to £4.9 billion. This will support the delivery of 36,000 affordable homes over the next four years, providing homes for up to 24,000 children.”