The number of new houses which saw construction either start or complete fell in 2023, the latest statistics show.
Quarterly housing data shows there were 20,992 new-build home completions and 16,017 starts in Scotland last year.
Compared to 2022, completions decreased by 11% and new starts were down 24%.
Housing minister Paul McLennan said inflation, supply chain issues and labour shortages linked to Brexit led to a “challenging environment”.
At 12,752 homes, private sector starts were at the lowest level since 2020, when pandemic restrictions led to a sharp decline in construction activity.
For affordable homes there were 6,239 approvals (a decrease of 5%), 6,046 starts (down 20%) and 9,680 completions (a decrease of 5%) during 2023.
However 2022 was a record high for affordable home completions.
The Scottish Government has a target to deliver to deliver 110,000 affordable homes by 2032.
Mr McLennan said: “Scotland has delivered more than 128,000 affordable homes since April 2007, over 70% of which were for social rent, in turn helping to create strong, sustainable communities.
“In the year 2022-2023, Scotland delivered by far the most affordable homes per head of the population of any country in the UK – 69% higher than the rate in England – building on our track record of doing more than any other part of the UK to provide and keep social homes.
“There’s no doubt that inflation, supply chain issues and labour shortages linked to Brexit have created a challenging environment, which is reflected in today’s statistics.
“Despite UK Government cuts to the capital budget, the Scottish Government also continues to invest heavily to support housing supply.”
Sally Thomas, chief executive of the Scottish Federation of Housing Associations, said it seems unlikely the 2032 target will be met.
She said: “Scotland desperately needs the homes that housing associations provide: they are safe, warm and affordable homes for rent.
“Today’s figures show that the number of these homes being delivered are in absolute freefall.
“And this is before the Scottish Government’s devastating £196 million cut to affordable housing has even taken effect.
“We know that government is keen to attract more private investment but we’re concerned that this isn’t a solution.
“Social homes need government investment if we’re not to burden housing associations with debt which will force up rents.”
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