More homes are needed to meet demand, according to research

Only 80% of the homes needed to meet demand are being built in Scotland, a new report says.

The Homes for Scotland (HFS) study said about 20,000 homes were built last year. This is around 80% of pre-recession levels.

The report said the lack of new homes, especially in the main cities, has caused “significant affordability issues”, especially for younger people, and has increased “wealth inequalities”.

It has also created difficulties for older people.

The HFS report said housebuilding contributes £570 million annually to government finances and constructing more homes would bring a range of benefits.

HFS chief executive Nicola Barclay said: “Building the homes that Scotland requires is crucial to our country’s wider social well-being and economic success.

“Today’s report highlights the different measures which can be used to assess this value in areas which are often not recognised.

“These include the environment, the regeneration of areas of deprivation and training and apprenticeships.

“What it also shows, however, is that we still aren’t building at the level required to meet housing need and demand and to unlock the broader benefits this would offer.”

The research found the industry views the planning system as a major constraint in building enough units.

John Boyle, director of research and strategy at Rettie & Co, who led the research team, said: homebuilding supports more than 80,000 jobs in Scotland and “has the potential to support 100,000 if levels could be restored to where they were pre-recession”.