Scotland’s Housing Market: 2024 Overview and Policy Developments

The Scottish Government’s latest quarterly housing statistics, covering the year ending December 2024, reveal notable trends in housing completions, new build starts, and affordable housing supply.

Key Findings:

  • Total Housing Completions: 19,797 homes were completed, marking a 7% decrease (1,441 fewer homes) compared to the previous year.
  • New Build Starts: 15,050 new homes commenced construction, reflecting a 9% decline from the prior year.
  • Affordable Housing Supply: The Affordable Housing Supply Programme reported 6,440 approvals, 6,501 starts, and 8,180 completions within the year.

Sector-Specific Insights:

  • Private Sector: Accounted for 15,066 completions and 11,617 starts, experiencing a 3% decrease in completions and a 5% drop in starts year-over-year.
  • Social Sector: Noted 4,731 completions – a significant 22% reduction (1,322 fewer homes) compared to the previous year.

Reinstatement of Housing Funding:

In response to these trends, the Scottish Government has reinstated funding for affordable housing to £768 million for the 2025-26 fiscal year. This investment aims to deliver at least 8,000 homes for social rent, mid-market rent, and low-cost homeownership, contributing towards the target of 110,000 affordable homes by 2032. This move largely reverses the previous year’s near £200 million cut to the affordable housing budget, which had raised concerns about potential impacts on social housing supply and homelessness support. 

Housing (Scotland) Bill – Stage 2 Progress:

Concurrently, the Housing (Scotland) Bill is progressing through Stage 2 in the Scottish Parliament. The Bill proposes changes to housing law, including enhanced tenant protections, measures to prevent homelessness, and other housing-related matters. While these initiatives are commendable, stakeholders emphasize the need for the legislation to prioritise the delivery of more good-quality, safe, and affordable homes to effectively address Scotland’s housing challenges. 

Looking Ahead:

The reinstatement of housing funding and the progression of the Housing (Scotland) Bill represent positive steps towards addressing Scotland’s housing needs. However, continuous monitoring, strategic interventions, and a long-term commitment are essential to ensure that all Scots have access to safe, quality, and affordable homes.

For a detailed analysis, refer to the full report:

https://www.gov.scot/news/quarterly-housing-statistics-in-the-year-to-end-of-december-2024

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