Why is Scotland's housing shortage getting worse?
Summary
Scotland’s housing shortage is worsening as homelessness and demand for affordable homes rise while housebuilding slows. Councils and builders point to limited social housing, rising construction costs, land shortages, planning delays and regulation as factors affecting supply.Key Facts
- Thirteen Scottish councils have declared housing emergencies.
- More than 19,000 households were in council-funded temporary accommodation, a 10% increase from the previous year.
- Temporary accommodation housed 10,715 children.
- Authorities assessed 35,000 households as homeless or at risk of homelessness in 2025-26.
- Scotland completed 17,640 new homes in 2025-26, the third consecutive annual decline.
- The number of new housing projects started in the past two years was the lowest since 2012-13.
- Social housing stock has risen since 2017 but remained 89,000 homes below its 1999 level in March 2026.
- Housebuilders cite construction costs, shortages of suitable land, planning delays and added regulation as obstacles.
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