Misallocating growth?

In its consultation on accelerating home building, the Scottish Government rightly identifies that “we urgently need to see more homes built, at a faster pace, now and in the years ahead”. This is part of its “Housing Emergency Action Plan” and to address the challenges of dwindling housebuilding starts and serving 250,000 individuals on housing waiting lists. Housebuilding has dropped from a recent high of 25,000 starts in 2019 to 16,000 in 2024. 

  

While the consultation focuses on issues with housing delivery, the 2020s has also seen a decline in residential permissions themselves. In the absence of a significant uptick in the number of homes being permitted, the issue of delivery is likely to get significantly worse.

This Insight focuses on the factors contributing to the recent decline in planning consents, and particularly the role of recent changes in worsening the conditions for housebuilding.