Year-on-year numbers and quarterly numbers of starts and completitions are down, government statistics reveal
There was a decline housebuilding activity over the past year in Scotland according to the latest quarterly housing statistics published by the Scottish government, reflecting a “nervousness” in the sector.
In the 12 months to March 2025, 19,288 homes were completed across private, social and affordable housing – down 4% drop from the same period to March 2024.
New starts also fell across the sector by 11% year-on-year, down to 15,053.
The private sector dominated the year to Q1 2025, with 14,798 completions and 11,902 starts; while social and affordable accounted for 4,490 completions and 3,151 starts.
The numbers for Q1 2025 also showed a decline on the previous quarter, with project starts down 22% (3,341) compared with Q4 2024 (4,075) to hit the lowest level since the Covid-19 pandemic.
Completions were also significantly down in Q1 2025 (3,790) on the previous quarter, a drop of 42% compared with Q4 2024 (5,390).
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Alan Aitchison, partner and head of real estate and construction in Scotland at RSM UK said: “The housebuilding data for Q1 2025 reflects a subdued housing market in Scotland, with the construction sector still cautious about committing working capital. This nervousness and slowdown in housing developments is being driven by a lack of demand from consumers.”
Aitchison blamed volatility in mortgage rates and removal of affordable products, alongside the closure of the Help to Buy (Scotland) scheme for the reduction in starts and finishes.
He added: “While the Low Cost Initiative for First Time Buyers is still available to support buyers, we know that tenant demand for rental properties continues to outpace supply, which is driving up prices in the rental market and impacting sales of new homes.”
He said housebuilders were strategically timing completions and commencement of phases within their existing sites, to try to match demand.
Aitchison said: “This trend continues despite the government’s pledge to increase housing supply through initiatives including the Affordable Housing Supply Programme. Although reintroducing a scheme similar to Help to Buy could help to stimulate consumer demand, in the long term, it’s likely the Scottish government will need to shift its focus and incentivise housebuilders and attract investment to develop housing for build to rent, to meet changing consumer behaviour.”
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