New homes completed in Scotland fall by 6% in latest figures

The number of new homes being completed in Scotland fell by 6% in the year to the end of June 2025.

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

The private sector built 14,274 homes and the social sector constructed 4,595.

In terms of starts, building work on 12,247 was started by the private sector and 2,955 homes by the social sector.

The Scottish Government has set the target of delivering 110,000 affordable homes by 2032, but a report earlier this year said there is pessimism in the housebuilding sector around this being met.

Ministers highlighted that the number of social homes built in the last 18 years has passed the 100,000 mark.

Housing Secretary Mairi McAllan said “Social housing is a key cornerstone in our efforts to tackle the housing emergency and achieve our goal of eradicating child poverty.

“These numbers show that thousands of families have been provided with a warm, safe and affordable home.

“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.”

She continued: “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 £4.9 billion 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 £808 million we will spend this financial year to deliver around 8,000 affordable homes.

“I am once again calling on everyone in the public and private sector to urgently pull together and work with us to ensure that everyone in Scotland has a place they can call home.”

Responding to the figures, Scottish Conservative housing spokeswoman Meghan Gallacher said: “These damning figures confirm the SNP are still failing miserably to tackle Scotland’s housing emergency.

“Agreeing there is an emergency on their watch was one thing, but the action they have taken since has been utterly pitiful.

“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 on to the housing ladder.”