A new report is calling for the SNP Government to commit to a new national target of building 25,000 new homes per year.
Scotland’s economic growth is being held back by a chronic shortage of housing, a new report has warned.
More than 100 experts from local government, universities, housebuilders and construction companies gave their views in the new Housing Supply for a Growing Economy publication.
The report has called for the SNP Government to commit to a new national target of building 25,000 new homes per year to help tackle the severe shortage in some parts of the country.
Its publication comes one day after official figures found housebuilding in Scotland has plummeted in the last year, with nearly 4,000 fewer homes in supply in 2023-24 compared to the year before.
In 2022-23 the new housing supply was 24,348 – but by last year the figure had plummeted to 20,364.
It comes at a time rising numbers of Scots are declaring themselves homeless, while reports of rough sleeping in Edinburgh and Glasgow are increasing.
More than 10,000 children are living in temporary accommodation with their families across the country due to a chronic lack of affordable housing, particularly around the biggest cities.
READ MORE: Scotland’s housing emergency blamed on SNP ‘incompetence’ as number of new builds drops againREAD MORE: Former Scottish Labour MP accuses party of ‘losing its soul’ after Keir Starmer pledges immigration crack down
The new report calling for action was compiled by Prosper, which was previously known as Scottish Council for Development and Industry.
Sara Thiam, Prosper chief executive, said: “Scotland risks losing out on the growth opportunities from the energy transition and our industrial strategy unless housing is placed at the heart of our national economic strategy.
“Our members have been clear – without more appropriate and affordable homes, businesses will continue to struggle to recruit, communities can’t thrive, and investment will stall.”
Jane Wood, chief executive of Homes for Scotland, said: “We wholeheartedly welcome the addition of Prosper’s voice to the debate on how we deliver the homes of all tenures and types required to ensure the social wellbeing of Scotland’s people and support economic growth.
“This further underpins the importance of home building to the achievement of wider government policy objectives and strengthens our call for bold intervention so that everyone has access to a home that meets their needs and that they can afford.”
Paul McLennan, the Housing Minister, said he recognised “these are exceptionally challenging times”.
He added: “It is encouraging that affordable housing starts and approvals have increased in the year to December 2024, and we will continue to work with partners to increase these levels even further through our £768 million investment this year, an increase of £200 million when compared to last financial year.
“Providing everyone in Scotland with the right to a warm, safe and affordable home is essential to our key priority of eradicating child poverty.”
To sign up to the Daily Record Politics newsletter, click here
