This is according to new statistics published today by Scotland’s chief statistician.

Housebuilding starts also dropped by 15%, with 3,000 less homes beginning construction in the 2023/24 financial year.

The private sector completed building 14,589 homes and started 12,904 new builds in 2023-24. Completions (-2,270; -13%) and starts (-2,420; -16%) were lower in 2023-24 than the previous financial year. New build completions were the second lowest since 2017-18 (with the lowest point in 2020-21, where Covid-19 restrictions affected housebuilding). Starts were at the lowest point since 2014-15 and lower than when the pandemic affected housebuilding.

The social sector built 5,043 homes and started building 3,500 homes in 2023-24. Completions (-1,876; -27%) and starts (-580; -14%) were lower than the previous financial year. Completions were the lowest since 2020-21 and starts the lowest since 2012-13.

In 2023-24, there were 6,981 approvals, 6,755 starts, and 9,514 completions of affordable homes. This includes affordable homes for social rent, affordable rent, and affordable home ownership. They also include off the shelf purchases and rehabilitations as well as new builds.

There was an increase in affordable housing supply approvals (585, 9%) and there were decreases in starts (-235, -3%), and completions (-952, -9%) in 2023-24 compared with 2022-23.

Affordable housing supply approvals were the second lowest since 2014-15, starts were the lowest since 2014-15 and completions were down from a 15 year peak reached in 2022-23.

These statistics are used to inform progress against Scottish Government affordable housing delivery target to deliver 110,000 affordable homes by 2032, of which at least 70% will be for social rent and 10% will be in rural and island communities.

So far, 21,092 affordable homes have been completed towards the target. These completions consist of 15,964 (76%) homes for social rent, 2,904 (14%) for affordable rent, and 2,224 (11%) for affordable home ownership.

Housing minister Paul McLennan said: “Since 2007, Scotland has delivered more than 131,000 affordable homes, with more than 93,000 of those being for social rent. We will continue to build on that record with almost £600 million of investment in the Affordable Housing Supply programme in 2024-25.

“I recently outlined the Scottish Government’s plan to tackle the housing emergency with three key pillars forming part of our approach: more high quality, permanent homes, the right homes in the right places and a permanent home for everyone.

“While we remain focused on delivering 110,000 affordable homes by 2032, our capital block grant is being reduced by nearly 10%, a loss of more than £1.3 billion by 2027-28. Likewise, our Financial Transactions budget – key to delivering affordable housing – has been cut by 62%.”