The number of new homes being completed in Scotland fell by 6% in the year to the end of June 2025.
The latest quarterly housebuilding figures also showed a 3% decrease in the number of new homes being started over the same period.
The private sector built 14,274 homes and the social sector constructed 4,595.
In terms of starts, building work on 14,247 was started by the private sector and 2,955 homes by the social sector.
The Scottish Government has set the target of delivering 110,000 affordable homes by 2032, but a report earlier this year said there is pessimism in the housebuilding sector around this being met.
Ministers highlighted that the number of social homes built in the last 18 years has passed the 100,000 mark.
Housing Secretary Mairi McAllan said “Social housing is a key cornerstone in our efforts to tackle the housing emergency and achieve our goal of eradicating child poverty.
“These numbers show that thousands of families have been provided with a warm, safe and affordable home.
“However, demand is outstripping supply, and these latest quarterly statistics paint a stark picture of the challenges that the cost of living, inflation and Brexit have placed on the housing sector – not least construction inflation having reached an incredible 24% in recent years.”
She continued: “However, I am committed to turning these figures around.
“That is why earlier this month I published an ambitious Housing Emergency Action Plan, backed by up to £4.9bn of investment to deliver a major affordable housing programme.
“This will support around 36,000 affordable homes over the next four years, providing homes for up to 24,000 children,“ McAllan continued, adding: “This is additional to the £808, we will spend this financial year to deliver around 8,000 affordable homes.
“I am once again calling on everyone in the public and private sector to urgently pull together and work with us to ensure that everyone in Scotland has a place they can call home.”
Alan Aitchison, partner and head of real estate and construction in Scotland at RSM UK, said that the data indicates a continuation of the sluggishness in Scotland’s housing sector amid market caution and ongoing planning delays.
“The first sign of green shoots we’re all looking for may be present in the increase in private new build starts, however, the social housing sector continues to feel a squeeze, with sharp declines in completions and starts indicative that delivery is being hampered by funding constraints, planning hurdles and labour shortages.
“With house builders having to absorb inflationary cost pressures, there is the added risk that the sector could fall further behind on meeting housing targets, especially in social housing where margins are tighter.
“House builders are therefore facing tough decisions around project viability and timings - pricing for new builds also remains subdued due to weak demand, and developers are increasingly having to scale up incentives for buyers in order to shift stock.”
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