Scotland’s housing crisis deepens as housebuilding plummets

Housebuilding in Scotland has reached record lows, with the Scottish government off target on its promise to build 110,000 affordable homes by 2032, according to new figures.

Data published by the Scottish government reveals that the private sector completed fewer homes in 2025 than in any year since 2017 and started fewer homes than in any year since 2013.

The news comes as the Scottish Association of Landlords (SAL) has warned that anti-landlord legislation is pushing landlords out of the private rented sector.

Housebuilding has collapsed across Scotland

According to the figures, 17,336 new homes were built across both the private and social housing sectors in 2025, while 14,999 new builds were started.

Of these, the private sector built 13,725 homes and started 11,929, while the social housing sector completed 3,611 homes and started 3,070.

The Scottish government admits that social housing completions in 2025 were the lowest since 2014, and that new social housing starts were the lowest on record since this data series began in 1997.

The Scottish Conservatives slammed the SNP over the latest housing figures.

Scottish Conservative housing spokesperson Meghan Gallacher told Property118: “These atrocious figures are a damning indictment of the SNP’s failure to deliver the homes Scotland needs.

“Housebuilding has collapsed across Scotland and there is a spiralling housing emergency on the SNP’s watch.

“John Swinney and Mairi McAllan have decimated the industry and have no plan to fix this emergency. Their reckless rent controls, endless red tape and anti-growth policies have driven away investment and are choking off housing supply.

“The result is a generation locked out of the housing market. They cannot afford to buy and record numbers of families and children are shamefully stuck in temporary accommodation.

“The Scottish Conservatives would get Scotland building again by cutting red tape as well as making housing affordable for first-time buyers by scrapping LBTT.

“On May 7th, Scots should use their peach ballot paper to vote for the Scottish Conservatives to stop an SNP majority and back a common-sense plan to tackle Scotland’s housing emergency.”

Tackle Scotland’s housing crisis

The Scottish government previously promised to build 110,000 affordable homes by 2032, with figures showing that so far 32,479 homes have been delivered toward that target.

However, Shelter Scotland says that 41,521 homes would need to be delivered in the final two years to meet the target.

Shelter Scotland Director Alison Watson said the Scottish elections coming up in May political parties should pledge to build more than 15,000 social homes every year to tackle Scotland’s housing crisis.

She said: “Once again, social housebuilding remains too little, too slow, too late for the tens of thousands of people impacted by the housing emergency. The Scottish government pledged 110,000 affordable homes by 2032, 70 per cent of which should be for social rent. Our new analysis shows they are on course to break that promise, which means housing need will continue to grow.

“No party has put forward a credible plan to deliver the homes Scotland needs, meaning politicians of all parties are planning for more people to be pushed into homelessness. We need new money and a new approach. Failing to act will cost families and taxpayers more, with local authorities forced to make more cuts to fund temporary housing.

“The equation is simple, whoever forms the next government must commit to building the 15,693 social homes every year that Scotland needs. It is a political choice. We can’t afford not to invest in Scotland’s future.”