Government accused of ‘dereliction of duty’ as number of homes built falls 17%

Ministers have been accused of a “complete dereliction of duty” as figures showed the number of new homes built in Scotland plunged 17% last year.

The data shows that by the end of June this year, 22,473 homes had been built towards the Scottish Government’s target of delivering 110,000 affordable homes by 2032.

According to official figures, 19,293 new homes were completed in the 12 months to the end of June 2024.

Homes built by the private sector fell by 14% over the year to 14,240, with the number of properties built by councils and housing associations down by a quarter (25%) to 5,053.

Excluding 2020, when house-building was impacted by the Covid pandemic, the number of new homes that were built was the lowest since the year ending June 2018.

From the start of July 2023 to the end of June 2024, there were 6,966 affordable new homes approved, 6,422 such properties started and 9,295 affordable homes were completed.

The data on these homes – which cover properties for social rent, affordable rent and affordable home ownership – showed while approvals were up 15% on the year, there was a 10% drop in starts and a 14% dip in completions.

The Scottish Government report also notes that approvals for affordable housing were 44% lower than the peak, in 12 months to the end of June 2020.

In addition, the number of affordable homes that were started was the lowest since the year to the end of June 2015.

That comes after the Government cut £200 million from the affordable housing supply programme in the 2024-25 Budget.

A Scottish Government spokesperson insisted ministers “remain focused” on the 2032 target.

“We are doing everything we can to deliver more affordable homes,” they said.

But Scottish Conservative housing spokesman Miles Briggs said: “These stats lay bare why Scotland is facing a housing emergency on the SNP’s watch.”

Hitting out at the Government, he added: “Their savage cuts of nearly £200 million to the housing budget mean fewer and fewer homes are being built across all sectors.

“With homelessness levels at their highest levels in a decade, that is a complete dereliction of duty by SNP ministers.

“SNP ministers must reverse their cuts to the housing budget, drop any plans to extend rent controls, and finally give councils a fair funding deal that they need to meet the demand for housing across Scotland.”

The Scottish Federation of Housing Associations said “radical action” is needed from the Government.

Its chief executive Sally Thomas said the housebuilding figures, together with separate statistics showing a rise in homelessness, “underline that the collapse in housebuilding has devastating consequences”.

She added: “Repeated Scottish Government cuts to the affordable housing budget have made it ever more difficult for housing associations to deliver the safe, warm, affordable homes that everyone deserves as a basic human right.

“We’ve seen some recognition from Scottish Government that this is an emergency, so ahead of the Scottish budget we need to see radical action to match that and to invest in our social homes.

“This is a dire situation, but there is time to turn things around if we act with purpose.”

Housing minister Paul McLennan said the Government has a “strong track record in supporting the delivery of affordable homes”.

He added: “We will continue to build on that record with a total investment of almost £600 million in affordable housing this year.

“We have boosted the affordable housing supply budget by £80 million over the next two years to further increase the supply of social and affordable homes.

“Plus, we have committed an additional £2 million this year to councils with the greatest and sustained pressures on temporary accommodation to make use of existing housing stock.

“We are also looking for innovative ways to boost investment in housebuilding, and as part of this year’s Programme for Government we announced a £100 million investment in mid-market rent homes, which will be grown alongside private investment to £500 million.”