HOUSE building in Scotland is on a “deeply concerning trajectory”, according to industry leaders, after new statistics were published by the Scottish Government.
The statistics show that all-sector new home completions in the year ending 31 March 2026 were down 10% on the previous year for a total of 17,268, while new house starts were down 4% – a total of 14,995.
Completions are at their lowest level since 2016-17, and starts are at the lowest level since 2012-13.
These figures both discount the 2020-21 Covid year, when housebuilding was impacted by lockdown restrictions on construction.
The private sector represented the bulk of the decline, with starts and completions down 12% and 8%, respectively.
A total of 3,774 new social homes were built, a decline of 16% on the previous year, while starts were up 25% for a total of 3,937. This, combined with an encouraging rise in affordable housing approvals and starts, provided some green shoots for the government.
While charities, housing associations, and industry leaders welcomed the progress in terms of starts and approvals, these bodies have demanded urgency from the government in arresting the decline in housebuilding.
The Scottish Federation of Housing Associations (SFHA), which represents affordable co-operatives and housing associations, highlighted that Scotland is in the third year of a housing emergency.
SFHA Chief Executive, Richard Meade, said: “Despite Scotland last month entering the third year of its housing emergency, today’s statistics show that housing completions continue to falter whilst more families wait in desperate need of a safe, warm and affordable home.
“Whilst it is welcome that the decline in starts and approvals has been halted and we’re seeing some tentative green shoots of recovery, the bigger picture shows that the number of homes being approved is still almost half below pre-pandemic levels.
“We are under no illusion that the systemic issues holding back delivery of social homes can be solved overnight, but we do urgently need the Scottish Government to set out how it will build on this early progress and match it with the pace this emergency demands.
“Put simply, if we are to give any hope to the nearly 10,500 children growing up in temporary accommodation then the Programme for Government this autumn must be a Programme for Housing.
“The scale of this emergency demands urgency, political willingness and a fully-funded plan to deliver the 15,693 social and affordable homes Scotland needs each year of this parliament.
“This Parliament cannot fail housing. The consequences for our economy, health, education and wellbeing would be devastating.”
Homes for Scotland (HFS), which represents a coalition of home builders and strategic land promoters, said that the decline reflected a rapidly diminishing land supply and the decreasing viability of development. They have predicted that housing completions could fall to as low as 5,000 per annum by 2031, based on current models.
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 than the combined local authority forecast of 22,402, adding further pressure on households, communities, public services and the wider economy.”
She added: “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.”
The statistics showed 6,832 affordable homes were completed through the Affordable Housing Supply Programme in 2025-26 — down 8% on the previous year and the lowest level since 2015-16, aside from the Covid-disrupted year of 2020-21.
Despite this, the Scottish Government has maintained that it “remains committed” to the target, and pointed to a drastic improvement in affordable house building starts and completions.
A Scottish Government spokesperson said: “The Scottish Government continues to deliver on affordable housing – with approvals up 42% and starts increasing by 37% compared to last year.
“There has also been a 25% increase in new build starts for social sector housing in the same period. The Scottish Government remains committed to the target of delivering 110,000 homes by 2032.
“Overall, since 2007 we have delivered 146,000 affordable homes. Scotland has delivered 45% more affordable homes than England and 69% more than Wales, per head of population.
“The Scottish Government is delivering on our record investment of up to £4.9 billion over the next four years – which will support delivery of around 36,000 affordable homes, providing a warm, safe home for up to 24,000 children.
“More Homes Scotland will bring simplicity and scale to this work – enhancing delivery and maximising savings.”
“Affordable housing” is a broader category than “social housing”: it spans social rented homes, mid-market rent and low-cost home ownership schemes, while “social housing” refers specifically to homes let by councils and housing associations at below-market rents.
This distinction explains why the figures cited above differ — the 42% and 37% increases relate to affordable housing approvals and starts across all those tenures, while the 25% figure refers specifically to the social rented sector within that total.
Scottish Labour, however, called on the government to “wake up to the crisis” and said the SNP was failing on affordable housing.
Their Housing spokesperson Mark Griffin MSP said: “Scotland’s housing emergency is causing misery for families all over the country and this fall in housebuilding will fan the flames of the crisis.
“We need to build the homes Scots need if we are to tackle the scandal of homelessness and drive down housing costs.
“The SNP is supposed to be boosting housebuilding by 10 per cent a year, but so far things are going in the wrong direction.
“The SNP must wake up to the crisis unfolding on its watch and deliver the action needed to get Scotland building – from reforming our planning system to providing fair funding for local councils.”
Ross Chalmers is a journalist focusing on local Edinburgh news, transport, the environment, the arts, and housing.
He graduated from Edinburgh Napier University with a degree in journalism in Summer 2025 and began working at Deadline News as a reporter in August.
