SFHA calls for long-term funding plan as new figures reveal sharp drop in housebuilding

The Scottish Government has been urged to set out a long-term funding plan for housing associations after statistics published this week showed yet another dramatic slump in housebuilding. 

The figures show the number of housing association homes completed in the year ending March 2025 had fallen to 2,792, whilst the number of homes starting to be built was just 1,751. This is compared to the recent peak of over 5,000 building starts just five years ago in the year ending March 2020. 

SFHA said the figures meant the Scottish Government’s chance of meeting its flagship target to deliver 110,000 affordable homes by 2032, 70% of which are for social rent, was "increasingly difficult".

It comes just two weeks after the First Minister placed housing at the heart of his government by announcing Mairi McAllan MSP as Cabinet Secretary for Housing. The post had previously been the remit of a junior minister. 

The Scottish Government has been urged to commit to a long-term funding plan for social housing in the wake of a 10-year funding package for housing in England worth £39billion. 

Earlier this month, the First Minister addressed housing associations at SFHA’s Annual Conference and indicated that long-term funding was something he was confident of replicating. 

On Wednesday, the Cabinet Secretary for Finance, Shona Robison MSP, announced the Scottish Government intended to set out its own Spending Review and provide multi-year funding for key policy areas alongside its Budget in December. 

Whilst the Cabinet Secretary did not specify which areas would be included, SFHA will continue to engage with the Scottish Government to ensure this includes housing.

Responding to the latest housebuilding figures, SFHA Chief Executive Sally Thomas said: “With yet another slowdown in housebuilding, today’s statistics again underline the extent of Scotland’s housing emergency. 

“Unless there is a significant long-term uplift in funding, then not only is the Scottish Government’s housing target going to be increasingly difficult to meet, but tens of thousands of people throughout Scotland will be kept waiting for the warmth, security and affordability of a social home to call their own. 

“The appointment of a Cabinet Secretary for Housing is a really positive step, and we now need to see the Scottish Government seize the opportunity from the Spending Review by investing the resulting Barnett Consequentials in housing with a long-term funding plan. This is essential if we are to see the certainty and consistency housing associations need to invest in building new homes at scale."