Scotland’s housebuilding plummets following rent controls

Housebuilding in Scotland has taken a significant hit since rent controls were introduced.

According to Scottish government figures, only 16,404 new homes were started in 2023/24, which is 3,000 fewer than the previous year.

In the private sector, the number of new homes started fell to 12,904, down 16% and the lowest number since 2014/15. This number is even lower than during the pandemic.

Social homes built at lowest levels since 2020

The number of social homes completed has dropped by 27%, hitting its lowest level since 2020-21.

The number of new social homes being started is the lowest since 2015-16.

Shelter Scotland said the continued decline in social housing delivery was an inevitable consequence of repeated cuts to the affordable housing supply programme at Holyrood.

Shelter Scotland director, Alison Watson, said: “The continued decline in the number of social homes being delivered is the inevitable, and entirely foreseeable, consequence of repeated cuts to the housing budget.

“Investing in social housing means investing in people’s health and in our communities. Delivering more social housing is the only way to provide permanent homes for the 10,000 children in Scotland who are trapped in temporary accommodation. So, ultimately, investing in social homes is also investing in Scotland’s future.”

Scotland is facing a housing emergency

Miles Briggs, the Scottish Tories’ shadow housing secretary, told the Daily Telegraph that many people in Scotland are suffering due to the housing crisis.

He said: “After 17 years of SNP inaction, Scotland is facing a housing emergency, yet the SNP have totally failed to address this crisis, leaving thousands of Scots stuck in temporary accommodation.

He added: “Despite rent control schemes not working anywhere else in the world, the disastrous SNP-Green coalition – backed yet again by Scottish Labour – ploughed ahead with the flawed policy anyway.”

Paul McLennan, the SNP’s housing minister, blamed Westminster for cuts to the housing budget.

He told the Daily Telegraph: “I recently outlined the Scottish Government’s plan to tackle the housing emergency with three key pillars forming part of our approach: more high quality, permanent homes, the right homes in the right places and a permanent home for everyone.”