Scottish Government ‘failing to deliver’ on housebuilding pledge

Scottish ministers are “failing to deliver” on the commitment to build 110,000 affordable homes by 2032, it has been claimed.

Housing charity Shelter Scotland said fresh figures on housebuilding showed the government was “woefully short” of what was needed to tackle growing homelessness.

The government’s own statistics found that in the year ending June 2025, housebuilding completions were down six per cent on the previous year, while starts were down three per cent.

Housing secretary Mairi McAllan accepted that demand for new housing was “outstripping supply” and said she was “committed to turning these figures around”.

The figures come as MSPs prepare to debate the Housing Bill for the final time, legislation which will introduce rent controls, improve tenant protections, and increase support for those at risk of homelessness.

The bill has been criticised for not going far enough in addressing the root causes of the housing crisis – the lack of homes – while some have warned that it could make matters worse as landlords withdraw from the rental market.

The quarterly housing statistics show 18,869 homes were built in the year ending June 2025 – 14,274 for the private sector and 4,595 for the social sector.

This is the lowest number of private sector houses built since 2018 (excluding 2020, where Covid significantly impacted the sector) and the lowest number of completions for the social sector since 2017.

The number of completions under the government’s Affordable Housing Supply Programme was down by 27 per cent compared to the year before, while approvals and starts were also down by a third.

That programme is part of the ambition to deliver 110,000 affordable homes by 2032, of which at least 70 per cent should be for social rent and 10 per cent should be in rural and island communities.

As it stands, just 29,680 affordable homes have been completed towards the target.

Shelter Scotland director Alison Watson said the failure to do more was a consequence of “decades of underfunding and poor political choices”.

She added: “These statistics expose that not enough homes are being built and that Scotland is failing to deliver the homes that were promised, and certainly not the homes that we need. The Scottish Government's promise of 110,000 would need them to more than double the number of homes delivered each quarter – there is no sign that they have a plan to achieve this.

“And we know that even this target is woefully short of the number of homes we need to reduce homelessness. Independent research estimates we need a minimum of 15,693 just to help councils begin to end the housing emergency in their area.

“All of Scotland’s party leaders have the power to deliver social housing. Now is the time to commit to building the homes we know are needed every year throughout the next parliament.”

The Scottish Government declared a national housing emergency in May 2024, after several councils had declared such emergencies within their areas. Then-housing minister Paul McLennan made a statement pledging to increase supply and increase skills and resources for the planning system.

McAllan welcomed the fact that over 100,000 homes for social rent have been completed since her party took office in 2007.

But she added: “Demand is outstripping supply, and these latest quarterly statistics paint a stark picture of the challenges that the cost of living, inflation and Brexit have placed on the housing sector – not least construction inflation having reached an incredible 24 per cent in recent years.

“However, I am committed to turning these figures around. That is why earlier this month I published an ambitious Housing Emergency Action Plan, backed by up to £4.9bn of investment to deliver a major affordable housing programme.

“This will support around 36,000 affordable homes over the next four years, providing homes for up to 24,000 children. This is additional to the £808m we will spend this financial year to deliver around 8,000 affordable homes.”

Scottish Labour has accused ministers of “astonishing incompetence” – particularly as the number of social sector homes started dropped to the lowest since records began.

Housing spokesperson Mark Griffin said: “The SNP is fuelling the housing emergency that is causing misery for countless Scots. More than 10,000 children are in temporary accommodation and Scots face long waits for social housing – but the SNP has let social sector housebuilding fall to a record low.

“The chaos in the government’s flagship affordable homes programme will pile pressure on families struggling with extortionate rents and push the dream of home ownership further out of reach.”

MSPs will vote on the Housing Bill on Tuesday evening, having spent two days last week considering hundreds of amendments. It is expected to pass.

The Scottish Conservatives have warned that it will “drive investment away” from the housebuilding sector.

Housing spokesperson Meghan Gallacher said: “Housebuilding is plummeting under the SNP and Mairi McAllan’s recent plan to say how they will reverse this decline is too little too late.

“Instead, they are doubling down on their disastrous Housing Bill this week that will introduce permanent rent controls. That will only drive investment away from Scotland, increase rents and do nothing to help people onto the housing ladder.

“Their bill says nothing about delivering the homes Scotland needs.”