Why housing should be high on the First Minister’s agenda
David J Alexander says an urgent reset between the SNP government and the sector is required now the election is over
With the Scottish elections now over this is surely the time for a reset between the SNP government and the housing sector. There is an urgent need to address the country’s housing emergency and only by working with all parts of the housing sector can the government effect real change in the lives of thousands of Scots impacted by the shortage of properties to buy or rent.
The latest data on landlords in the private rented sector (PRS), the low volume of housebuilding starts, and the number of new social housing sector properties all indicate that swift action is required. There is an immediate need to encourage investment in the PRS, increase the number of new homes being built, and kickstart building thousands more social housing properties.
The number of private sector landlords in Scotland has fallen from 239,566 in January 2022 to 230,250 in March 2026 which is a fall of 9,316 (-3.88 per cent). However, the rate of decline has accelerated greatly over the last 12 months dropping by 6,228 (-2.6 per cent) between March 2025 and March 2026. Worryingly there are 1,037 fewer landlords in just the last month.
The number of dwellings in the PRS in Scotland peaked in March 2021 when there were 400,492, having more than doubled from the 2001 figure of 172,578 and currently standing at 351,370. This is a 12.3 per cent decline in property numbers in just five years.
The private sector built 13,725 new homes and started 11,929 new builds in 2025. Completions were down 9 per cent (-1,285) and starts down 3 per cent (-362) between 2024 and 2025. The social sector built 3,611 homes new homes and started 3,070 new builds in 2025. Completions were down 25 per cent (-1,224) and starts down 15 per cent (-557) between 2024 and 2025. Completions in the social sector were the lowest since 2014 and starts were the lowest since this series of data began reporting from 1997.
There is an opportunity for the incoming Scottish government to directly address the key issues facing the housing sector in Scotland. A reset with the private rented sector to encourage more investment to provide homes for tenants is essential. If this doesn’t happen and landlords continue to leave the sector, then there will be severe shortages in the near future.
Housebuilders need to have a simpler and more efficient planning system to enable them to build many more homes in the immediate future to address the rising demand the country faces. They need to be helped to build homes where people want them, when they need them, and in greater numbers.
The social housing sector is in desperate need of major investment. With starts in the sector falling to their lowest level since this data began to be collated in 1997 it is clear that there are too few homes being built to meet the current or future needs of social tenants.
Housing must be integral to future policy as it is central to people’s’ lives, with the current emergency addressed immediately. Without tackling these issues there could be more years of inaction. Housing must be high on the First Minister’s agenda as he prepares for five more years of government. If not, then the electorate could be very unforgiving at the next election.
David J Alexander is CEO of DJ Alexander Scotland Ltd
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