At the same time, Scottish housing output was down by almost 14% on an annual basis in 4Q 2024.

Dr David Crosthwaite, chief economist at BCIS, said: “After two consecutive quarters of growth in the first half of the year, 2024 concluded with back-to-back quarterly declines in tender prices for Scottish social housing.

“According to the Scottish Social Housing Tender Price Index (SSHTPI), tender prices declined by 4.9% in the final quarter of 2024 compared to 3Q 2024, while registering a 2.1% increase over the year from 4Q 2023.

“Scottish housing output has followed a persistent downward trajectory since 3Q 2023. On an annual basis, output contracted by 13.7% compared to 4Q 2023, while quarterly output fell by 0.8 per cent relative to 3Q 2024.”

Underlying construction costs, including labour, materials and plant, as measured by the BCIS General Building Cost Index, remained unchanged quarter-on-quarter in 4Q 2024, but rose by 2.9% compared to the same period in the previous year. Over the year to 4Q 2024, inflation, as measured by the Consumer Prices Index (CPI), increased by 2.4%.

Dr Crosthwaite added: “While Scottish housing output declined on both a quarterly and an annual basis in 4Q 2024, housing output in Great Britain as a whole rose by 1.1% over the quarter. However, on an annual basis, the broader market also experienced a downturn, with output decreasing by 4.2% since 4Q 2023.”