Housing completions in Scotland fell 13% in 2025 to 17,336 homes – the second-lowest annual total since 2016 – amid a deepening housing crisis.
New analysis from Savills shows rising construction costs, planning challenges and viability issues are preventing many consented sites from progressing, despite a modest recovery in planning applications.
Savills also says non-allocated sites continue to face significant barriers to securing planning permission under National Planning Framework 4, even in areas with clear housing need.
Faisal Choudhry, head of residential research in Scotland at Savills, said: “Scotland is facing a clear mismatch between housing need and delivery.
“Completions have fallen sharply at a time when demand remains strong and the country is officially in a housing emergency.
“The pipeline is becoming increasingly constrained, and without meaningful intervention, there is a real risk that under-delivery becomes entrenched over the coming years.”
Savills welcomed the Scottish Government’s new £100million First Homes Fund but warned that measures to support buyers will have limited impact unless housing supply increases.
The report also highlights concerns over planning delays and the implementation of National Planning Framework 4, with many Local Development Plans not expected to be in place until 2030.