Figures show the total number of homes completed during 2025-26 at their lowest level since Covid nine years ago (2019-20), with comparative starts having fallen by 41 per cent.

The new data follows recent HFS reports highlighting why allocated land doesn’t always deliver more homes (given rising costs, infrastructure requirements, planning obligations, policy expectations and market conditions) and predicting that housing completions could fall to as low as 5,000 per annum by 2031.

Responding to today’s statistics, HFS chief executive Jane Wood said: “These figures are another clear warning that Scotland remains on a deeply concerning housing trajectory. Whilst increases in affordable approvals and starts are welcome, it must be acknowledged these are rising from an extremely low base whilst completions have fallen again across all tenures to 17,268.

“Unfortunately, this is not a surprise to us as it is in line with our own analysis. Worryingly, however, the number is over 20 per cent less the combined local authority forecast of 22,402, adding further pressure on households, communities, public services and the wider economy.”

Wood highlighted a decline of almost 12 per cent in private sector starts on 2024-25  as being of particular concern given the crucial role private delivery plays in supporting social and affordable homes through land, infrastructure, developer contributions and cross subsidy.

She continued: “Scotland’s land supply crisis must be addressed with urgency. Allocating sites is not enough if they are constrained, unviable or unable to come forward at the pace required. We need a planning system that consistently identifies, releases and supports effective land for homes of all tenures.”

“Our development viability research also reinforces a point that can no longer be ignored. Sites that are not viable will not deliver homes, no matter how often they appear in audits or plans.

“Rising costs, policy requirements, infrastructure pressures and delays are making delivery more challenging, particularly in areas where margins are tight and housing need is greatest.”

Ms Wood concluded: “That is why we need a renewed focus on practical delivery. The Scottish Government, local authorities and partners across the public and private sectors must work together to remove barriers, restore confidence and ensure housing policy supports delivery rather than adding further cost or complexity. We have had positive engagement with the Cabinet Secretary for Social Justice and Housing in this regard, with the First Homes Fund a welcome example of government action to support First Time Buyers and stimulate wider investment confidence. The new national housing agency also has great potential to bring simplicity, scale and speed to delivery, but commercial insight and all-tenure expertise must be built into its design from the outset if it is to be effective.

“We look forward to working collaboratively with Ministers and officials to reverse the downward trend in supply to meet housing need, support economic growth, sustain local communities and enable Scotland’s transition to net zero.”