1st April 2026
There were 17,336 new homes built and 14,999 new builds started across the social and private sector in 2025.
An annual decrease was reported for all-sector starts (6% decrease) and completions (13% decrease) between 2024 and 2025.
The private sector built 13,725 homes and the social sector built 3,611 homes. In terms of starts, building work on 11,929 was started by the private sector and 3,070 homes by the social sector.
Leaving out 2020, when Covid‑19 affected building activity, the private sector completed fewer homes in 2025 than in any year since 2017 and started fewer homes than in any year since 2013. For social housing, completions were the lowest since 2014 and starts were the lowest recorded since this data series began in 1997.
Affordable Housing Supply Programme
In 2025 the Affordable Housing Supply Programme delivered 6,289 affordable completed homes, approved 5,833 homes, and started 5,856 homes.
Annual decreases were reported for approvals (9% decrease), starts (15% decrease), and completions (25% decrease) of homes provided via the Affordable Housing Supply Programme between 2024 and 2025. However, in the last 6 months of 2025, increases in approvals (58% increase, 1,153 homes) and starts (21% increase, 543 homes) compared with the same period in 2024 were seen.
As of December 2025, 32,479 homes have been delivered towards the 110,000 affordable housing target by 2032 — 77% social rent (25,016), 15% affordable rent (4,750), and 8% affordable home ownership (2,713).
In 2025, Scotland saw the completion of 17,336 new homes, alongside 14,999 new housing starts across both the social and private sectors. At first glance, these figures suggest meaningful progress in addressing the country's well-documented housing shortage. However, a closer examination reveals that while these developments are a step in the right direction, they fall significantly short of what is required to resolve the crisis or substantially reduce waiting lists for rented housing.
Are Scotland's New Homes Enough to Solve the Housing Crisis? - No
A key issue lies in the sheer scale of demand. Housing waiting lists in Scotland remain extensive, with hundreds of thousands of people seeking suitable accommodation. Even if every one of the 17,336 newly completed homes were allocated to those on waiting lists—which is not the case—they would only address a small fraction of existing need. This highlights a fundamental imbalance: supply is increasing, but not at a rate that matches or exceeds demand.
The type of housing being built further limits the impact of these figures. Of the total completions in 2025, only a relatively small proportion consisted of social housing, which is the category most relevant to those on waiting lists. The majority of new builds were delivered by the private sector. While private housing can indirectly ease pressure on the overall market, it does little to directly support individuals and families in urgent need of affordable rented homes. As a result, the benefits of new construction are unevenly distributed.
Compounding the issue is the recent trend in construction activity. Rather than accelerating to meet growing demand, both housing completions and starts have declined compared to previous years. This slowdown is particularly concerning in the social housing sector, where output has dropped significantly. In effect, Scotland is not only failing to close the housing gap—it risks falling further behind as demand continues to rise.
Demand itself is being driven by several long-term factors. Demographic changes, such as an increase in single-person households and longer life expectancy, are placing additional pressure on housing supply. At the same time, affordability challenges in the private rental market are pushing more people towards social housing. Rising levels of homelessness and the growing number of households in temporary accommodation further intensify the strain on the system. Together, these factors mean that even steady levels of construction may not be enough to reduce the backlog.
Government targets underscore the scale of the challenge. Plans to deliver tens of thousands of affordable homes over the coming years imply the need for a much higher annual output than is currently being achieved. Yet, current delivery—particularly in the social housing sector—remains well below these targets. Without a significant increase in both the volume and the proportion of affordable homes being built, meaningful progress will remain elusive.
In conclusion, while the construction of over 17,000 homes in 2025 represents a positive contribution, it is far from sufficient to solve Scotland's housing shortage or significantly reduce waiting lists. The gap between supply and demand remains substantial, and current trends suggest it may continue to widen. Addressing the crisis will require not only more homes, but a sharper focus on delivering the types of housing that are most urgently needed. Until then, the housing shortage is likely to remain a persistent and pressing issue.
Around 250,000 people are on housing waiting lists in Scotland
Tens of thousands of households are also homeless or in temporary accommodation
Now compare that with:
17,336 homes completed in 2025
Even if every new home went to someone on a waiting list (which it doesn’t), that would only address a small fraction (~7%) of demand in a single year.