The Housing Statistics for Scotland Quarterly Update yesterday declared that starts (14,768) and completions (19,828) across all sectors fell by 12% and 10% respectively in the 12 months ending September 2024 compared to the previous year.

The figures outline that the number of social homes starting to be built has stayed at the lowest level for 20 years. There were no social homes built at all in four local authority areas - Clackmannanshire, East Dunbartonshire, Inverclyde and North Ayrshire – although none of these local authorities have yet declared a housing emergency.  

The Scottish Federation of Housing Associations (SFHA) said this underlines the “desperate” state the social housing sector now faces, following the hammer-blow cut to the budget last year and longer-term challenges. The cost of construction has risen sharply in recent years, with labour shortages exacerbating the slow-down in building.  

To achieve the Scottish Government’s target of delivering 110,000 affordable homes by 2032 nearly 11,000 homes need to be built per year, compared to just over 8,000 delivered this year.  

Sally Thomas, CEO of SFHA, said: “It’s hugely welcome that the Scottish Government listened to our concerns and plans to reverse last year’s budget cut. However, we know that real damage has been done and the sector faces a desperate situation, not least the steadily rising costs of building homes while keeping rents truly affordable for existing tenants.

“If we are to deliver the social homes that our communities urgently need, then there’s a need to reset and give confidence back to the sector. One of the ways this can happen is with a commitment to long-term funding, which we need to see following the UK spending review next year. It’s only with certainty that we can begin to get back on track and tackle our housing emergency.”

Callum Chomczuk, national director at CIH Scotland, said: “The figures are unfortunately not a surprise and show the impact of the rising costs of construction and an underfunding of Scotland’s affordable housing supply programme; with affordable housing starts at their lowest since the year to end of September 2013 and completions at the lowest since 2017 (excluding 2020).

“The recent budget from the Scottish Government was an important step in the right direction with £768 million earmarked for next year to deliver the social and affordable homes Scotland needs. This was welcome but still means that next year we are spending less in real terms on affordable housing than we were in 23/24. These figures make it clear that addressing the housing emergency must be a long-term priority and can’t be addressed in one year. This must be the start of a long-term and cross-party consensus on funding and building social and affordable housing, so everyone has a safe affordable home to live in.”

Alison Watson, director of Shelter Scotland, added: “The Scottish Government will need to increase social house building by 40% every month if they are to deliver on their promise to build 77,000 homes for social rent by 2032.

“Building more social homes is the only way to end the housing emergency, and the government knows this.

“We welcomed Shona Robison’s decision in the latest Scottish budget to reverse last year’s devastating 24% cut to the social housing budget. Today’s numbers show the impact that has had with a 22% drop in the number of new affordable homes completed in the year to the end of September 2024.

“That is why the money must be matched with action. Action to make better use of existing homes, to buy homes for rent and action to speed up planning and construction in the areas most impacted by the housing emergency.”

Ms Watson said: “Despite declaring a national housing emergency earlier this year, the Scottish Government has failed to get to grips with a deepening crisis that is harming people and families in every community in Scotland.

“More than 10,000 children will wake up facing the trauma of homelessness this Christmas - the highest number on record and more than double the figure from a decade ago. Their only wish is for a warm, safe and secure place to call home.”

Homes for Scotland said the figures evidence the “devastating impact” that last year’s cut to the Affordable Housing Supply Programme is continuing to have on Scotland’s growing housing emergency. 

Chief executive Jane Wood said: “Whilst the recently announced restoration of the Affordable Housing Supply Programme funding in next year’s Scottish Budget is welcomed, today’s figures stand as a stark reminder of the ongoing damage caused by last year’s cut to the Housing Budget, and the longer term impacts of the ‘stop and start’ nature of funding for affordable housing as the home building sector strives to increase capacity and new housing delivery to meet the challenges of the ongoing and sustained national housing emergency.

“Looking ahead to next year, it is crucial that the Scottish Government matches the commitment it is making financially to new housing delivery in the Budget with an urgent review of the regulatory frameworks and policies that have been evidenced to consistently stifle the delivery of new high-quality, affordable and energy efficient homes across all tenures, as well as suppressing the growth of our sector, especially that of SME home builders.

“The Scottish Government must progress its Planning and Housing Emergency Delivery Plan at the pace necessitated by a national housing emergency, with urgent clarity required on how the newly proposed Housing Planning Hub will get the c.7,000 new homes across all tenures (as reported by our members) which have been stalled during 2024 moving again. The sector also requires equal clarity on the outcome of key national consultations (such as the Building Safety Levy and Accessible Homes Standard) which have the potential to considerably increase the cost of new homes.

“As ever, HFS and its members stand ready to play their part in increasing the supply of high-quality, energy efficient and affordable homes across all tenures to tackle the housing emergency and provide their crucial expertise on how Scotland’s regulatory framework can deliver rather than block the new homes so desperately needed by Scotland’s people.”

The quarterly statistics also showed a total of 43,538 homes in Scotland have been empty for more than six months, with 73% of those having been empty for more than twelve months.

Of the 1,875 properties recorded as brought back into use by empty homes officers across Scotland in 2023/24, almost two thirds were empty for more than a year, with 16% having been empty for more than five years.

In response, the Scottish Empty Homes Partnership (SEHP) claimed that work to bring empty homes back into use is more important than ever.

The organisation said that these homes could play a significant role in tackling Scotland’s housing emergency but added that continued effort and investment is needed to realise that potential. 

Scottish Empty Homes Partnership national manager, Tahmina Nizam, said: “In local authorities across the country, empty homes officers are doing fantastic work to bring empty homes back into use. Today’s figures underline just how vital those efforts are. 

“These homes weren’t built to sit empty. Individually each empty home has the potential to transform someone’s life, collectively they have the potential to make a huge impact on Scotland’s housing emergency. 

“Since the Scottish Empty Homes Partnership started in 2010 more than 10,800 homes have been brought back into use. Everyone involved, from local and national government, across the housing sector and here at SEHP should be proud of their efforts to date. 

“But today is a reminder that fully realising the potential of Scotland’s empty homes requires continued investment and a strategic focus on targeting resources to bring homes back into use to meet local needs.” 

Responding to the figures yesterday, housing minister Paul McLennan said: “The Scottish Government has a strong track record in delivering affordable homes, with today’s latest quarterly housing statistics showing more than 135,000 affordable homes have been delivered since 2007, with more than 95,500 of those being for social rent. That is 47% more per head of population than England and 73% more than Wales.

“We will continue to build on that record by increasing the affordable housing budget by over £200m next year to £768m, but the only way to unlock that funding is for parliament to back the budget.

“We are continuing to deliver affordable homes in innovative ways and I have seen the difference our Charitable Bonds programme, which is a type of loan given to registered social landlords, has made to delivering homes in one development in Wallyford.

“Building on the success of the Scottish Empty Homes Partnership that has helped almost 11,000 empty properties become homes since 2010, next year we will invest £2 million into bringing more privately owned empty homes back into use.

“We are also focused on working with partner organisations to identify how our planning system can help to provide these solutions. This decisive and properly targeted action, based on evidence, will provide more homes and better places for people to live in.”