Drawing on insights from over 100 stakeholders from across the housebuilding and construction sectors, local government, Registered Social Landlords, investors, academics and policy experts, Housing Supply for a Growing Economy reveals the current backlog of homes – estimated at over 100,000 since 2008 – risks derailing planned investment opportunities across Scotland.

According to the report, a reset of Scotland’s housing strategy is required to recognise the role that all tenures and types of housing will play in meeting the need for new homes. It focuses on five themes that will ensure housing can drive growth, with recommendations including:

• A national ambition of 25,000 new homes per year across all tenures and types.
• A dedicated oversight function to drive delivery and monitor progress.
• Planning and regulatory reform to unlock stalled developments and encourage investment.
• Expanded funding and flexibility for rural housing and affordable homes.
• Greater adoption of off-site construction and investment in modern building methods.
• Strategic workforce planning and skills development aligned to meet future housing demands.

The economic prize for Scotland’s towns, cities and rural places is substantial if more housing can be built. For example, the report highlights the planned wave of investment in clean power and associated infrastructure investment expected in the north of Scotland. To avoid pricing out residents, to create opportunities for workers to stay in their communities and for new residents to relocate, new housing needs to be built at a faster pace.

Inconsistent and uncertain planning processes, a challenging regulatory environment and an undersupply of skills and supply chain firms are believed to be key barriers, with rural areas facing additional supply chain, workforce and cost challenges. The report also cites a perceived lack of national and local ambition to prioritise housing as a key driver of economic growth.

Sara Thiam, chief executive of Prosper, said: “Scotland risks losing out on the growth opportunities from the energy transition and our industrial strategy unless housing is placed at the heart of our national economic strategy. Our members have been clear - without more appropriate and affordable homes, businesses will continue to struggle to recruit, communities can’t thrive, and investment will stall.”

The report was developed in partnership with Brodies LLP, Homes for Scotland, Scottish National Investment Bank and Wheatley Group. 

Elaine Farquharson-Black, Partner, Brodies LLP, said: “Increasing the supply of new homes across all types and tenures is vital to address Scotland’s national housing emergency and enable Scotland’s growth objectives. We have been very pleased to partner with Prosper on this important piece of work which presents clear recommendations on what is needed to reboot Scotland’s housing strategy.”

Stephen Good, CEO, Built Environment – Smarter Transformation (BE-ST), said: “Good quality housing is central to a fairer, sustainable and thriving Scottish economy and society. As we face the intersecting climate, housing, and cost of living crises, we have a generational opportunity to redefine how we plan, fund and deliver homes. Now is the time to seize this opportunity, to make decisions and to act to ensure every citizen has access to a safe, sustainable and affordable home that meets their needs and supports our shared ambitions for the future of Scotland.”

Jane Wood, chief executive at Homes for Scotland, added: “We wholeheartedly welcome the addition of Prosper’s voice to the debate on how we deliver the homes of all tenures and types required to ensure the social wellbeing of Scotland’s people and support economic growth. This further underpins the importance of home building to the achievement of wider government policy objectives and strengthens our call for bold intervention so that everyone has access to a home that meets their needs and that they can afford.”

Susan Campbell, director - market creation (place), Scottish National Investment Bank, said: “At the Scottish National Investment Bank, we’re focused on increasing the pace and scale of delivery of homes across all tenures, across the country. We recognise that good housing is an essential element in unlocking economic growth. This report offers great insight for our work across public, private and third sectors to help find solutions and develop new commercial investment models to solve the housing shortage.”