New data shows Scotland's housebuilding hitting a decade-low, sparking intense criticism from Conservative politicians who claim the SNP government is failing to address the country's worsening housing crisis. The statistics reveal that just 17,268 new homes were completed in 2025-26, with construction starts at their lowest level since 2012-13.
The data, excluding the pandemic-hit year of 2020-21, indicates a significant downturn across both social and private sectors. In the social housing sector, 3,774 new homes were completed and 3,937 started – an alarming 16% fall in completions compared to the previous financial year.
The decline is not limited to public housing; the private housebuilding sector has also experienced significant reductions, with 13,494 new homes completed and 11,018 started. This represents a drop of 8% in private completions and 12% in starts from 2024-25, highlighting a broad-based slowdown.
Tim Eagle, Scottish Conservative housing spokesman, accused the SNP of mishandling the situation, pointing to rising rent controls, which he claims have led to the highest rent rises in the UK and stalled new developments. He also cited cuts in the housing budget and the imposition of taxes that hinder construction as contributing factors.
The Conservatives propose reforms to planning regulations and abolition of Land and Buildings Transaction Tax (LBTT) – a move they believe will simplify buying a home and boost housebuilding. Critics argue, however, that these changes would disproportionately benefit wealthy homeowners at the expense of ordinary Scots struggling with housing shortages and affordability issues.
The Scottish government's ambitious targets for housing delivery appear increasingly out of reach as new figures suggest a significant shortfall in meeting those objectives. Reduced housebuilding could exacerbate existing problems, leading to increased homelessness and making it even harder for people to find affordable homes.