Affordable housebuilding starts at lowest level in over a decade

The number of affordable houses beginning construction over the past year is at its lowest level in more than a decade, figures show, as the industry continues to retract.

The total number of affordable homebuilding starts in Scotland was 5,925 in the year up to September 2024 – the lowest level since 2013.

The number of starts decreased by 514 (8%) compared to the year before, while the number of completed houses plummeted by 2,373 (22%).

But approvals increased by 9% (524) between 2023 and 2024.

Housebuilding across the entire sector fell over the past year, with starts down 12% and competitions down 10%.

The number of social homes being completed decreased by more than a quarter (26%) while starts stayed broadly the same.

The figures mean social housebuilding starts are at their joint lowest level in 20 years, while completions are at their lowest level since 2017.

The number of private sector houses beginning construction also fell to its lowest level since 2013 – excluding 2020 when Covid impacted housebuilding – while the number being completed was at its lowest since 2017.

The Scottish Government has a target to deliver 110,000 affordable homes by 2032, 70% of which must be for social rent.

As of September, 24,382 of these homes have been built.

Overall, 19,828 homes were built in Scotland in the 12 months up to September, while 14,768 began construction.

The private sector accounted for 15,056 of these homes, while the social sector made up 4,772 of them. Some 11,697 starts were recorded for the private sector and 3,071 for the social sector.

The Scottish Government, along with at least a dozen local authorities, has declared a housing emergency since 2023.

The figures come amid spiralling rents and increasing pressures on local authorities to house homeless people.

Housing Minister Paul McLennan said the statistics showed the Scottish Government’s “strong track record” on delivering affordable housing, 135,000 of which have been built since 2007.

“That is 47% more per head of population than England and 73% more than Wales,” he said.

“We will continue to build on that record by increasing the affordable housing budget by over £200 million next year to £768 million, but the only way to unlock that funding is for parliament to back the budget.

“We are continuing to deliver affordable homes in innovative ways and I have seen the difference our Charitable Bonds programme, which is a type of loan given to registered social landlords, has made to delivering homes in one development in Wallyford.

“Building on the success of the Scottish Empty Homes Partnership that has helped almost 11,000 empty properties become homes since 2010, next year we will invest £2 million into bringing more privately owned, empty homes back into use.

“We are also focused on working with partner organisations to identify how our planning system can help to provide these solutions.

“This decisive and properly targeted action, based on evidence, will provide more homes and better places for people to live in.”