Exclusive:Scotland's housing 'polycrisis': The 'radical shift' needed to fix SNP's 'weak delivery'

In a damning assessment of the Scottish Government’s approach, one of the nation’s leading housing economists warned that unless bold action was taken to help younger Scots who are “left behind”, existing inequalities will only widen and political discontent will grow.

Professor Duncan Maclennan, co-author of the new publication alongside researcher Jocelyne Fleming, said the failure to put in place effective policies in a sector that makes up a quarter of household spending also risked holding back Scotland’s prosperity.

The report argues that for too long housing and economic policy have been treated separately, with its authors stressing the two areas are “deeply connected”. Housing impacts not just social outcomes, but economic growth and productivity, climate change, and jobs and wellbeing, they argue.

The report states that while the Scottish Government has devised multiple strategies, their “inspiring words” have been met with “weak evidence and underwhelming delivery”, with the issue of productivity treated as an “afterthought”.

“Housing is still seen mainly as a ‘social policy’ issue - a leftover view from decades ago,” the report explained. “But housing is best understood as critical economic infrastructure with wide social, environmental, economic and financial effects.”

The report also states that despite the nationwide housing emergency declared by the Scottish Government last year, the problems facing the sector had been “building for decades”.

“A better description of the present circumstances is a polycrisis: a deep, long-term set of failures that damage wellbeing, slow progress to net zero, undermine productivity, and widen inequality,” the report said.

“Unless the housing system changes, this polycrisis will worsen. It risks further eroding public trust in politics, especially among young people who find themselves locked out of home ownership, unable to rent because of lack of supply or price of renting, and falling behind their parents’ standard of living.”

The report, commissioned and published by the David Hume Institute, also said housing output targets in Scotland of between 25,000 to 30,000 properties a year were unrealistic without major reform, and pointed to barriers including slow planning processes, inadequate infrastructure, labour shortages, and fragile supply chains.

The reforms advocated in the report include: treating housing as economic infrastructure; aligning housing policy with net zero, economic growth, productivity, and fairness goals; and mobilising non-profits, private sector partners, and regional authorities as delivery agents.

Subscribe today to the Scotsman’s daily newsletter

The report also proposes moving housing policy into a new infrastructure ministry with planning and economic strategy, and creating combined strategic housing authorities at a regional level that are in sync with regional economic partnerships.

“Housing makes up a quarter of household spending and supports up to 15 per cent of jobs,” said Prof Maclennan, emeritus professor in urban economics at the University of Glasgow. “We urgently need bold reforms, because if politics doesn’t change housing, the left behind places and left behind young Scots at the brunt of the housing polycrisis will change politics.”

Susan Murray, director of the David Hume Institute, said: “Scotland has overcome housing crises before through radical shifts. Today demands the same ambition. Business as usual with a few small tweaks will not deliver the change that is needed.

“This report challenges everyone to work together to deliver fundamental change, so the housing system can better support people and the economy.”

The report, ‘Prosperity begins at home: disruptions to improve Scotland’s housing system’, was part funded by the construction and manufacturing firm, CCG (Scotland) Ltd.

Calum Murray, the firm’s director, said: “This report brings much-needed clarity to Scotland’s housing debate. It sets out, with strong evidence, how housing must be understood not just as a social issue, but as critical economic infrastructure.

“By connecting affordability, supply, climate goals and productivity, it offers a practical framework for action. The challenge now is to use these insights to shape policy and delivery so that Scotland can provide the safe, sustainable, and affordable homes needed.”

Scottish Conservative shadow housing secretary Meghan Gallacher said the report should act as an “urgent wake-up call” for ministers.

“While they finally backed our repeated calls to declare a housing emergency last year, warm words simply won’t cut it,” she said. “SNP ministers are still pressing ahead with their reckless plans for permanent rent controls, putting off much needed investment in the sector, and resulting in soaring rent increases.

“If the SNP continue to be wedded to their failed approach, then this emergency will only get worse. It is time for ministers to finally outline a plan to deliver the homes that families and communities across Scotland are crying out for.”

Scottish Labour’s housing spokesperson Mark Griffin said: “Not only has the SNP failed to tackle the housing emergency, it has fanned the flames of the crisis by letting housebuilding plummet.

“We know that the number of new affordable homes approved in 2024/25 was a staggering 63 per cent lower than in 2019/20. Meanwhile, eye-watering rents are piling pressure on families, homelessness is shamefully high, and people are stuck on endless social housing waiting lists.

“Only Scottish Labour can turn the page on SNP failure and tackle the housing emergency once and for all by reforming planning, boosting all-tenure housebuilding and delivering fair funding for local government and affordable housing.”