Subscribe to our Construction Newsfeed
Scotland Construction Directory
Search our 13,932 companies....

Construction News

24/06/2024

'Alarming Reduction' In SME's Home Building Sector In Scotland

New independent research findings have unveiled an alarming reduction in the small and medium (SME) home building sector in Scotland.

According to a report published today by representative body Homes for Scotland (HFS), the proportion of new homes sold by those building between 3 and 49 homes per annum has fallen from around 40 per cent in 2017 to 20 per cent in 2023.

In the context of what is now a national housing emergency and at a time when 28 per cent of Scottish households (693,000) are in some form of housing need, HFS Chief Executive Jane Wood said: "This research fills a significant data gap and is essential if we are to develop evidence-based policy to effectively address the housing emergency. Given the vital role which SME home builders have to play in Scotland’s housing ecosystem, it shows alarming reductions in terms of market share and the number of companies which have been dissolved. This clearly has capacity implications for the delivery of much-needed new homes of all tenures.

-- Advertisement --
NorthernAsbestosServicesLtd

"Our research found that SME home builders are key to unlocking the brownfield sites which the Scottish Government has said it wants to prioritise. Our data also reveals their importance in delivering housing in rural and remote areas.

"SME home builders have particular challenges in relation to the viability of their operations, not least in relation to economies of scale, ever increasing regulation and the upfront costs associated with residential development. Above all, however, the planning and consenting systems are having a hugely detrimental impact, especially in relation to the speed of processing and resourcing. This is a hugely frustrating state of affairs."

Recommendations for national and local governments to act upon to support the SME home building sector include:

• The undertaking of an urgent cross-portfolio review to identify, consider and remove SME burdens and challenges

• Proportionate planning practices that actively support SMEs

• New innovative funding streams and partnerships to remediate and unlock sites

• The implementation of an SME home builder impact assessment relating to policy proposals and changes

• The creation of a focused delivery vehicle to unlock more small sites

Wood continued: "This report shows that before the financial crisis, SMEs were delivering 3,000 more new homes each year than they are now. A return to this level could support an additional 13,200 jobs.

"The social and economic imperatives are clear to see. If parties and politicians of all persuasions and local authorities are genuinely serious about addressing the housing emergency, they must now act to introduce the reform that is required to improve to support home building if we are to meet the needs and aspirations of those living across the entirety of the country. HFS and its members are absolutely committed to working with them to achieve this."

Latest Construction News

20/10/2026
Scotland's leading public sector framework provider has opened bidding for a £900 million Refurbishment and Modernisation programme aimed at delivering urgent and planned works across housing and public buildings. The Scottish Procurement Alliance's Refurbishment and Modernisation framework (RM4S)
Read More
20/10/2026
A £1 million grant programme has been launched to help owners return vacant listed buildings across Glasgow to productive use. The Heritage Building Viability Grant Scheme, funded by Glasgow City Council and administered by Glasgow City Heritage Trust, is designed to bring floorspace in some of the
Read More
20/10/2026
Road resurfacing on the A702 at West Linton will take place over six nights from Monday 9 to Friday 13 November, and on Monday 16 November 2026, requiring overnight closures. Transport Scotland's operating company, BEAR Scotland, will deliver the scheme. For safety, the A702 will be closed each ni
Read More
20/10/2026
SP Energy Networks chief executive Nicola Connelly has welcomed the launch of a new industry plan setting out how the biggest grid upgrade in living memory will boost employment and economic growth across the UK. The Electricity Networks Sector Growth Plan – led by the Energy Networks Association (
Read More
20/10/2026
An £8 million scheme is under way to enhance accessibility for passengers at Dalwhinnie and improve performance on the Highland Main Line. The project will install a new crossover so trains can switch between tracks, enabling northbound services to use Platform 1 when step-free access is required.
Read More
20/10/2026
The Scottish Government intends to award Wills Bros Civil Engineering Ltd the contract to dual the A9 between Pitlochry and Killiecrankie, Economy, Tourism and Transport Secretary Stephen Flynn has announced. The move represents the final stage of procurement for the fifth A9 Dualling scheme to rea
Read More
20/10/2026
Residents in Clackmannanshire are already benefiting from a new electric nine-seater minibus provided by Robertson Construction Central East, part of the contractor's social value commitments linked to the Wellbeing Village and Lochies School development in Alloa. During construction, the vehicle i
Read More
20/10/2026
A major new study will examine how climate change could trigger cascading disruption across Scotland's critical infrastructure, giving organisations a clearer view of risks to the services people rely on daily. Commissioned by the Climate Ready Infrastructure Scotland Forum (CRIS) — a partnership o
Read More
20/10/2026
Clark Contracts has secured a place on Pagabo's Major Works Framework, enhancing its ability to support public sector bodies in delivering major construction and refurbishment schemes. The framework, expected to be worth up to £5bn over four years, follows the creation of a 10-year strategic delive
Read More
20/10/2026
North Ayrshire Council has carried out its annual winter dry run this month as it gets ready for the colder months. Roads staff took part in the exercise as part of preparations to keep roads, footways and communities safe and accessible during severe weather. It follows a meeting of Cabinet at wh
Read More
SEEIT3DGrampian Steel Buildings LtdAtlas Winch & Hoist Services LtdB Home DesignCF Concrete PumpingDublcheck Cleaning GlasgowCRGP LimitedKrew-basePro Vent ComplianceKelly Tanks