THE Scottish Government has been urged to use the first Programme for Government (PFG) of the new parliamentary session to lay the foundations for sustained growth in housing delivery to end a ‘deepening’ national emergency.
Homes for Scotland (HFS) made the call after provisional Scottish Budget outturn figures detailed a housing underspend of nearly £100 million in the last financial year as the number of homes being built continues to fall. Less than 17,500 homes were delivered in 2025, compared with the 25,000 minimum figure the sector body believes is required each year and compounding the shortfall of more than 100,000 homes that has accumulated since 2008.
HFS says the 2026-27 PFG must look forward to longer-term structural reform. The organisation wants to see the More Homes Scotland agency move from design to delivery, drawing on commercial expertise from the private sector, establishing transparent governance and launching early pilots focused on strategic sites, infrastructure and investment. Homes for Scotland is also urging an increase in housing delivery over the next year by releasing deliverable land, strengthening planning and consenting capacity.
Fionna Kell, director of policy at HFS, said, “Scotland cannot solve the housing emergency by continuing to do more of the same. We need a step change in delivery and a housing system designed to sustain it. The first minister has set out an ambition to transform Scotland and its prospects. That will only be realised through urgent action and bold thinking.
“The Programme for Government presents a crucial opportunity to get the More Homes Scotland agency operational more quickly, unlock land and investment, improve planning and consenting capacity, and address the viability challenges that are preventing homes from being built. But this cannot be a short-term response. We need a five-year programme of reform that creates the conditions for sustained growth across every tenure.
“We also need to make sure that every pound of investment counts so an underspend of £100m in 2025-26 is disappointing. £21m of this funding could have been rapidly deployed to support much-needed lending to SME home builders, the number of which is now at a 20-year low.
“So our message is clear: Scotland needs more homes, and it needs the system to deliver them. The Programme for Government must support both.”
