Housing crisis will only get worse unless we act now

It’s just over a year since the Scottish Government declared a housing emergency. At the time – May 2024 – Social Justice Secretary Shirley-Anne Somerville declared that she would use all the powers at her disposal to try to address the housing situation which she described as “one of the defining issues of a generation.”

Move forward one year to the publication of the latest Scottish quarterly housing statistics. The figures highlight the continuing failure of the Scottish Government to address the country’s current housing emergency.

All sector newbuild starts are down by 11.2 per cent between financial year 23/24 to 24/25; private sector newbuild starts down 11.5 per cent; social sector newbuild starts down 10.1 per cent; and affordable housing supply starts down 21.3 per cent.

At every level in housebuilding there is retreat, says David J Alexander

At every level in housebuilding there is retreat. There is only contraction and not growth and yet we are expected to believe that “one of the defining issues of a generation” is being tackled by this inaction, indifference, lack of engagement and an inability to focus funds, energy and commitment on an area which is central to the lives of all Scottish people.

There needs to be a sense of real urgency in this to deliver more money, more financial and strategic encouragement to private housing, to social housing, and to affordable housing if this emergency is not to drag on for the next five to ten years.

It is true that more finance has been provided for affordable housing and the overall budgets are higher, but this is barely touching the sides.

There needs to be much greater assistance for the private homebuilding sector, much more movement to generate more social housing and an approach which sets serious targets for the next five years.

SNP Minister Shirley-Anne Somerville hoped to sort housing emergency (Picture: Jeff J Mitchell/Getty Images)

When there are hundreds of thousands of people on social housing waiting lists; when the private rented sector is experiencing unprecedented demand; and when house prices are soaring because the number of newbuilds is declining, then action is required immediately on all fronts.

These latest statistics show all newbuild housing starts to be back at their lowest level since 2013, we need to see a return to the housebuilding peaks of the recent past. Just four years ago in 2020-21 there were 20,902 all sector newbuild starts while six years ago that figure was at 25,324.

We need a return to those levels of housebuilding immediately if we are going to address the enormous housing needs which Scotland currently faces. This is a decision not for next year or the year after but for today and it needs coordination between the private and social sector, the housebuilders, the landlords and property investors, the agents and the tenants to create a housing market that is fit for purpose.

This current situation cannot be allowed to go on. With fewer and fewer houses being started each year, we are creating a greater and greater emergency in the years to come. Without immediate action house prices will continue to rise; rents will continue to increase; waiting lists will continue to grow; and individuals and families will continue to be unable to find a suitable home in Scotland now or in the future.

David J Alexander is CEO of DJ Alexander Scotland Ltd