Scotland’s housing crisis deepens as social housing stock shrinks

Scotland’s housing emergency has been decades in the making, according to estate agent DJ Alexander.

Scotland’s largest estate agency has revealed a decline in social housing stock, with the private rented sector increasingly filling the gap.

The news comes as Scottish landlords are having to wait up to a year to regain possession of their properties as housing tribunal delays cause chaos in the rental market.

Far too little social housing

According to the data, between March 2007 and March 2024 the Scottish population increased by 402,700 while the total number of occupied dwellings rose by 286,142.

Of this housing total, there was an increase of 151,131 in the number of owner-occupied dwellings; a 107,242 rise in the private rented sector; and a decline of 20,267 in the social housing sector.

David Alexander, the chief executive officer of DJ Alexander Scotland, said: “These figures highlight that the current housing emergency has not suddenly occurred but has been building up for decades.

“Far too little social housing, coupled with a growing population, many of whom are now living on their own or as couples, with too few homes being delivered to meet the current and future demand.”

“Just 30 years ago there were 668,000 properties in the social housing sector yet now this is over 50% lower at 325,477 despite record waiting lists, the highest ever number of families living in temporary accommodation, and little sign that population growth is slowing.”

Essential role of the PRS

Mr Alexander continued said the role of the private rented sector is essential in Scotland

He said: “It is often said that the percentage of homeowners is falling yet, while this is statistically true in that in 2007 there were 62% of Scots owner-occupiers by 2024 Scotland had 60% owner-occupiers, but the largest number of homeowners ever at 1,645,318, which is almost 100,000 higher than five years before.”

“These figures also highlight the essential role the private rented sector (PRS) has played in meeting demand in the housing sector, with the number of homes increasing by 43.4% in just under 20 years. Without landlords and property investors, there would have been a serious lack of homes for people to live in, which has clearly not been fulfilled by the social sector.”

He added: “What these figures show is that Scotland’s housing emergency began decades ago and needs to be addressed immediately if it is not to go on for another 20 years.

“There needs to be a fully funded, properly coordinated, and multi-faceted approach to build more social housing, encourage greater investment in the private rented sector, and ensure that housebuilders can quickly and effectively increase their capacity. It would be a disgrace if an examination of this data in five-years’ time showed no progress in meeting the current housing demands.”