NEW housing statistics have highlighted the ‘urgent’ need for effective intervention to reverse Scotland’s declining housing supply, according to Homes for Scotland (HFS).
The figures show 17,057 new homes were completed across all sectors in the year ended June 2026, down 11% on the previous year. This marks a third successive annual fall and the lowest level of completions since 2015.
HFS said the figures also mean the Scottish Government has fallen short of the first year of its stated ambition to increase all tenure housing delivery by 10% year on year.
Jane Wood, HFS chief executive, said, “These latest statistics provide a stark measure of the challenge facing Scotland. Completions have now fallen for a third consecutive year and, rather than achieving the 10% increase in housing delivery that government itself identified as necessary, we have seen a further fall of 11%. Since Scotland’s national housing emergency was declared in May 2024, all-sector housing completions have now declined for three consecutive reporting years, with delivery falling by an average of around 10% year-on-year.
“The gap between ambition and delivery cannot be ignored. What matters now is the speed and urgency with which the Scottish Government acts to change that trajectory.
“We were encouraged by the first minister’s commitment to a culture of ‘yes, if’ rather than ‘no, because’, alongside the principles of ‘regulate last, regulate simply and regulate flexibly’. The test now is whether those commitments translate into a more enabling approach across national and local government, particularly in planning, infrastructure and regulation, so that more homes can actually be delivered.”
Jane Wood went on to say that the figures reinforce why viability and effective land supply must be at the heart of the response to the housing emergency.
“Scotland does not simply need more sites identified on paper,” she explained. “It needs sites that can actually come forward and homes that are viable to build. Meaningful intervention prior to new local development plans being adopted is required now to give the market confidence to invest.
“The More Homes Scotland agency has significant potential to bring greater simplicity, scale and speed to housing delivery, but there can be no loss of momentum in its development. Commercial insight, all-tenure expertise and a clear focus on overcoming barriers to delivery must be built in from the outset.
“Success in tackling the housing emergency will ultimately be judged by whether Scotland starts and completes more homes. HFS and its members stand ready to work constructively with government and partners to turn ambition into tangible delivery for households and communities across Scotland.”
The housebuilding statistics showed social sector completions are at their lowest level since 2007. In response, the Scottish Federation of Housing Associations (SFHA) warned that the Scottish Government is not on course to reach its affordable housing target.
SFHA chief executive Richard Meade said, “Today’s figures show the lowest number of social homes built in nearly two decades, while a record 10,715 children in Scotland are living in temporary accommodation, double the number a decade ago. Scotland is a long way away from delivering the safe, warm and affordable homes the country needs. Whilst we have seen an annual increase in the number of social and affordable homes being started and approved, which shows longer-term investment does make a difference, social housebuilding starts remain 48% below their 2020 peak.
“The Scottish Government is not on course to reach its target of 110,000 affordable homes by 2032, and at current rates will not reach it until 2036. Not every lever sits with ministers, but the key ones do: long-term funding and investment in Scotland’s capacity to build, especially in rural and island communities.
“Ahead of the Scottish Budget this December, social and affordable housing must be recognised as critical economic infrastructure and one of the strongest prevention investments Scotland can make. Scotland needs 15,693 social and affordable homes a year to meet housing need, and we will measure progress against that number until Scotland’s housing emergency is over.”
