Industry body Homes for Scotland (HfS) has raised concerns over the level of overall housing output in Scotland.
New figures have revealed a 29% increase in funding approvals for affordable housing.
However, only 88 more homes (1%) were built in 2016 compared with the previous year, while there was a 279-home fall in the number of houses being started in the same period.
Nicola Barclay, Chief Executive of HfS, said despite a rise in affordable funding approvals, "allocating grant is very different to actually building homes".
"More concerning for the population of Scotland is the big picture in relation to total figures across all tenures for which completions are still over 36 per cent down on 2007 levels and still less than what was built in 2010," she said.
"The private sector is the biggest housing contributor overall yet the number of homes being started on site was down eight per cent in 2016, equivalent to over 1000 homes. With Scottish economic growth predicted to be half that of the UK in 2017, building the homes our country needs could help fill the void that will be left by large, soon to be completed infrastructure projects such as the Queensferry Crossing."
Ms Barclay added that building more homes can help boost skills and jobs, as well as contribute to improved health and education outcomes for residents.
"With high levels of insulation, they also help address fuel poverty and climate change," she continued. "To reap such benefits, however, we need a supportive policy framework, particularly in relation to the planning and regulatory system, which should encourage housing investment and development."
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