Scottish new-build starts fall to lowest level since 2012-13
DJ Alexander said Scottish new-build starts fell by 4.4% in 2025-26 to 14,955, with private sector starts down 11.9% to the lowest annual level since 2013-14.
The number of new-build starts in Scotland fell by 4.4% last year, according to analysis by DJ Alexander.
The lettings and estate agency said the latest Scottish Government housing statistics quarterly update showed all-sector new-build starts fell by 693, from 15,648 to 14,955, in the financial year 2025-26.
DJ Alexander said this was the lowest 12-month figure since 2012-13.
Private sector new-build starts fell by 1,483, or 11.9%, from 12,501 to 11,018, which DJ Alexander said was the lowest annual figure since 2013-14.
Social housing starts rose by 25.1%, increasing by 790 from 3,147 to 3,937. DJ Alexander said this was the highest annual figure since 2022-23, although still the third lowest in the past 11 years.
The firm said there was also a wide disparity in new-build activity across Scotland. Edinburgh had the highest number of all-sector new-build starts at 1,850, accounting for 12.4% of the Scottish total.
Glasgow City recorded 831 new-build starts, representing 5.6% of the total. DJ Alexander said that 20 years ago Glasgow had the highest number of all-sector new-build starts, with 5,531 in one 12-month period, representing 19.1% of the total.
The combined new-build starts for Edinburgh, West Lothian, East Lothian, Midlothian and Fife reached 5,769 in the latest financial year, accounting for 38.6% of the Scottish total.
David Alexander, chief executive officer of DJ Alexander Scotland, said: “Over two years after the Scottish Government declared a housing emergency, we continue to see little being done to address this issue. Indeed, this further reduction in new build starts indicates the situation is likely to get worse before it gets better.”
Alexander added: “The continued and growing decline in private sector housebuilding numbers is a clear sign that this market is slowing down and, at 11.9% lower, this is a serious issue if housing shortages are to be met.
“That the figures for 2025-26 are substantially lower than the numbers during the COVID years is a terrible indictment of a sector that badly needs greater support but is struggling to find it.
“While the improving social housing numbers are positive this is still the third lowest annual figure in over a decade and is coming from such a low base that the only way is up.
“Just under two thirds of these builds come from housing associations rather than local authority investment which is fine but does indicate that the building of social housing has all but disappeared from the agendas of most councils.
“North Lanarkshire alone accounts for 20% of the total number of social housing starts.”
He continued: “Equally with so much of newbuilds concentrated in and around Edinburgh we are at risk of creating a two-tier housing market. The capital and its surrounds will benefit with other areas left with low growth.”
Alexander said: “Low newbuild volumes contribute to much higher price rises as the market struggles to produce enough homes for Scotland’s current and future population.
“The private rented sector (PRS) has undergone a prolonged period of high demand but, while there are signs that this is being addressed, a lack of new properties will limit the ability of the market to grow to meet current and future demand.
“With the volume of social housing already unable to meet the existing demand for homes, and hundreds of thousands on waiting lists, and tens of thousands homeless and in temporary accommodation, these latest figures highlight just how much worse an already difficult market is going to get if more homes aren’t built immediately.”
Alexander concluded: “At a time when more homes than ever are needed to meet growing demand in Scotland across all tenures it is essential that everybody engaged in the housing market is consulted and their views acted upon to increase the volume of newbuilds in the country.
“The views and voices of builders, investors, landlords, agents, governments, trade bodies, and official housing organisations must be listened to if we are to develop a quick, effective, and functioning solution to this rapidly growing problem. Scotland needs more homes, and it needs them now.”
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