The first report in a new research series, ‘Prosperity begins at home: Scottish housing policies for faster, fairer economic growth‘ argues that Scotland’s housing system is underperforming and undermining the country’s economic potential.

The report provides a comprehensive analysis of how Scotland’s housing policies must adapt to meet 21st-century challenges. It also presents evidence that inadequate housing supply, poor affordability and weak spatial planning are holding back productivity, increasing inequality and exacerbating regional disparities.

Key findings include:

• Poor housing outcomes are limiting workforce mobility and productivity growth.
• Housing costs are a growing source of income and wealth inequality, and financial stress for households.
• Scotland needs a long-term housing strategy aligned with economic development and climate goals.
• Investment in housing is a powerful driver of inclusive and sustainable growth.

One of the UK’s leading housing economists, Professor Duncan Maclennan is emeritus professor of urban economics at the University of Glasgow and professor of housing economics at the McMaster University, Ontario and has advised governments across the UK, Canada, and Australia.

Professor Maclennan emphasised the economic imperative of reform: “Scotland has for too long treated housing as a social issue disconnected from economic policy. But housing systems shape economic outcomes. If we are serious about reducing inequality and achieving sustained and sustainable growth, then we must place housing at the heart of our economic strategy.”

Susan Murray, director of the David Hume Institute, added: “This is the first report in an in-depth series that set out policy recommendations, including reforms to land and planning systems, and the integration of housing goals into Scotland’s economic frameworks. Business as usual with just a few tweaks around the edges will not deliver the homes people and the economy need. This report explains the what, why and how we need to deliver.”