Housing completions in Scotland fell by 13% in 2025 to just 17,336 homes – the second lowest annual total since 2016, according to new analysis from Savills.
The slowdown in delivery came despite a slight recovery in planning applications. The report identifies viability as the single biggest barrier to delivery, with rising build costs, infrastructure requirements and inflexible planning obligations undermining development across both greenfield and urban sites.
In many cases, even sites with planning permission are no longer progressing because they cannot generate sufficient value to move forward.
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.”
Ben Brough, head of development at Savills Scotland, added: “We are increasingly seeing consented sites stall because the numbers simply don’t stack up. The combination of build cost inflation, abnormal costs and fixed policy requirements is creating a viability gap that is too large to bridge. Without flexibility, fewer sites will come forward, and those that do will take longer to deliver – which only adds to the supply challenge.”
