On 15 May 2024, the Scottish Government declared a national housing emergency, citing a combination of issues including UK Government austerity, inflation, labour shortages linked to Brexit, and a freeze to local housing allowance rates.

A year later, campaigners are still calling for action in light of the latest housing statistics which reveal the telling truth of Scotland’s progress and setbacks.

Housing Statistics for Scotland 2023 – 2024

The Scottish Government recently published the latest Housing Statistics for Scotland for the year ended December 2024. The data reveals that 19,797 homes were built throughout Scotland, and 15,050 new builds started in the year to end December 2024 – a seven per cent decline on completions from the previous year, and a nine per cent decline on new starts. 

The private sector was lightly affected, experiencing a one per cent drop in completions, while social housing saw a more significant drop of 22%. Positively, there was a four per cent rise in affordable housing supply approvals and starts, although completions fell by 18% compared to the previous year.

Nevertheless, Scotland outperformed the rest of the UK in housing completions per capita. In 2023-24, Scotland recorded 36 completions per 10,000 people, compared to 34 in England, 28 in Northern Ireland and 15 in Wales.

Housing supply for a growing economy

In May 2025, Prosper (formerly the Scottish Council for Development & Industry) published its report ‘Housing Supply for a Growing Economy’. The report warns that Scotland’s economy is being held back by a ‘chronic’ shortage of housing across all tenures and types. Drawing on insights from over 100 stakeholders including people engaged in the housebuilding and construction sectors, academics and policy experts. The report sets out 23 recommendations grouped into these main themes:

• A national ambition of 25,000 new homes per year across all tenures and types;
• A dedicated oversight function to drive delivery and monitor progress;
• Planning and regulatory reform to unlock stalled developments and encourage investment;
• Expanded funding and flexibility for rural housing and affordable homes;
• Greater adoption of off-site construction and investment in modern building methods; and
• Strategic workforce planning and skills development aligned to meet future housing demands.

The report highlights the potential economic benefits that could be brought to the nation by addressing t Scotland’s housing shortage, and that the deep-rooted challenges in Scotland’s housing system need to be collectively tackled through government initiatives, regulatory and planning reform and investment.

Addressing the emergency

The Scottish Government has introduced various measures over the past year to tackle the housing emergency, including:

• Investing £600 million in affordable housing in 2024/25;
• Making an additional £1 million available to registered social landlords and third sector organisations to prevent homelessness and support people to stay in rented accommodation; and
• Boosting various funding models, including the Charitable Bonds programme which provides loans to housing associations in Scotland and has saw investment of £46m in the past year, supporting the delivery of 325 homes.

Full details can be read here.

Despite these efforts, the overwhelming consensus is that there is still much work to be done in order to tackle the housing emergency. A plethora of reports have been published critiquing the Scottish Government’s efforts and in turn proposing a host of recommendations.  

Among the campaigners is businessman Sir Tom Hunter, who has stated that Scotland's housing shortage could be solved "tomorrow” if the Scottish Government were to provide clearer policies. The businessman stated: “I know of hundreds of millions of pounds that are sitting on the sidelines, not coming to Scotland because the investors go, ‘I am not quite sure what the Scottish Government’s policy is’.”

He added: “Sort the policy, sort it tomorrow and hundreds of millions of pounds will flow into Scotland.”

Notably, the Housing (Scotland) Bill is currently making its way through parliament and is set change the law to provide greater protection for tenants, measures to prevent homelessness, and provide clarity on other housing-related matters. The bill is currently at stage two in the parliamentary process and will be subject to further scrutiny and amendment. Recently, the bill has faced increased scrutiny regarding one of its already divisive provisions – the introduction of a permanent rent cap within ‘control areas’ that would limit rent increases up to a maximum of six per cent. Originally, the provision primarily affected private residential tenancies however, recent amendments have sought to include purpose-built student accommodation (PBSA) and university-owned halls. While a cap may provide certainty that will be welcome to some, others have warned that it could further damage investor confidence. 

Overall, it is evident that Scotland’s housing emergency is a complex problem to tackle. Any solution will demand coordinated action across all sectors, including regulatory and planning reform with clear policy direction, targeted investment and a boost to the workforce. Only through a shared effort can a sustainable and effective housing system be obtained. 

If you would like to discuss how the housing emergency and related matters does or may affect your business, please get in touch. 

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