Savills calls for looser NPF4 requirements as annual completions in Scotland plunge to second lowest total since 2016

Housing completions in Scotland fell to the second lowest annual total since 2016, new research by Savills has revealed.

Based on government statistics, a new report by the real estate services firm showed that year-on-year completions dipped by 13% to 17,336 homes in 2025.

Savills said this is a result of planning constraints, rising costs and viability pressures, with developers operating in “the most challenging conditions in decades.”

Ben Brough, head of development at Savills Scotland, said: “We are increasingly seeing consented sites stall because the numbers simply don’t stack up.

“The combination of build cost inflation, abnormal costs and fixed policy requirements is creating a viability gap that is too large to bridge. Without flexibility, fewer sites will come forward, and those that do will take longer to deliver - which only adds to the supply challenge.”

Savills highlighted that under Scotland’s National Planning Framework 4 (NPF4), non-allocated sites face “significant barriers to secure planning permission – even in areas with clear and urgent housing need.”

It said that requirements linked to design, infrastructure, climate mitigation and the ‘Town Centre First’ principle are “increasing complexity, while decision-making times remain slow.”

Savills called for “a more proactive and flexible approach from both the public and private sectors” to accelerate housebuilding, including greater flexibility on affordable housing requirements and developer contributions where viability is constrained.

Brough added: “This isn’t about lowering standards - it’s about making sure homes actually get built.”

NPF4 requires new developments to provide at least 25% affordable housing, with flexibility for local circumstances and viability considerations.