Scottish Housebuilding Falls 11% as Affordable Housing Activity Begins to Recover
Scotland’s housebuilding sector has recorded a further slowdown, with new home completions falling to their lowest level since 2015, although rising affordable housing approvals and starts offer signs of recovery.
New figures for the year ending June 2026 show that 17,057 new build homes were completed across Scotland, while construction started on 15,543 properties.
Overall Scottish housebuilding completions fell by 11%, equivalent to 2,123 fewer homes than the previous year. Housing starts also declined by 2%, reaching their lowest level since 2013.
The private sector remained responsible for the majority of new housing supply, completing 13,574 homes and starting 11,842. However, private sector completions fell by 7% year-on-year, while starts dropped by 8%.
The social housing sector experienced an even sharper decline in completions. A total of 3,483 homes were completed, representing a 25% annual fall and the lowest level recorded since 2007.
There were, however, signs of improvement further down the development pipeline. Social housing starts increased by 26% to 3,701 homes, although this follows particularly low activity during the previous year.
Affordable housing pipeline strengthens
Scotland’s Affordable Housing Supply Programme (AHSP) also recorded stronger activity, delivering 6,649 approvals, 7,143 starts and 6,772 completions during the year.
Affordable housing approvals increased by 42% year-on-year, while starts rose by 34%. However, these increases follow historically low figures in the previous reporting period.
Of the homes completed through the programme, 76% were new builds, while around 25% came through purchases of existing properties.
Progress is also continuing towards the Scottish Government’s target of delivering 110,000 affordable homes by 2032, with at least 70% intended for social rent.
By the end of June 2026, 36,518 homes had been delivered towards the target. Of these, 28,286 — around 77% — were for social rent, alongside 5,248 affordable rent homes and 2,984 affordable home ownership properties.
Despite improving affordable housing activity, the latest figures underline the scale of the challenge facing Scotland’s housing supply, particularly as the government seeks to increase new housebuilding by 10% annually over a three-year period.
