Number of new homes built in Scotland falls by 6%

The number of new homes being built in Scotland has fallen by 6% in a year, figures show.

The latest quarterly housebuilding figures also show a 3% decrease in the number of new homes being started over the same period.

The latest Government statistics, released on Tuesday, show that the private sector built 14,274 homes between June 2024 and June 2025. The social sector built 4,595.

In the year ending June 2025, social sector starts were at their lowest point since records began in 1997.

The decrease in new builds has come during an ongoing national housing emergency, which the Scottish Government has stated it is working to address.

Scottish Labour has accused the SNP of “astonishing incompetence” and of “fuelling the housing emergency”.

However, the housing secretary Màiri McAllan said that the Scottish Government has helped deliver 140,346 affordable homes since 2007, with 100,064 of those for social rent.

“Social homes passing 100,000 is a demonstration of our strong commitment to supporting affordable housing across Scotland,” she said.

McAllan said social housing is the “key cornerstone” of the Government’s efforts to tackle the housing emergency and eradicate child poverty.

She added: “However, 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% in recent years.

McAllan said she is “committed to turning the figures around” with £4.9m of investment planned to deliver a major affordable housing programme.

The investment will support around 36,000 affordable homes over the next four years.

‘Not enough homes are being built’

Shelter Scotland director Alison Watson criticised the SNP’s “poor” political choices in housing, and urged MSPs to commit to building more homes.

“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,” she said.

The Scottish Tories also criticised the “damning figures”, which they said “confirm the SNP are still failing miserably to tackle Scotland’s housing emergency”.

“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,” shadow housing secretary Meghan Gallacher said.

“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 and appears to be an attempt to appease the extremist Greens.

“The SNP must finally admit their approach has failed and back our calls to reverse this decline and restore the confidence that is desperately needed in Scotland’s housebuilding industry.”

Scottish Labour Housing spokesperson Mark Griffin said: “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.”