(Image: Getty Images)

A Scottish industry leader has called on Holyrood to take action following the collapse of a string of housebuilders.

It comes following the administration of companies including a firm linked to a landmark Glasgow development this week.

Administrators were appointed to Acre Road (Glasgow) Developments Limited, with a public notice outlining the case.

It comes as Scotland contends with a third year of a national housing emergency.

We have also reported on Salo Property Services Limited, which was based in Dunbar and had a part-complete three-house development being placed into administration, and at that stage expected to be put up for sale.

Marturano Homes Houston Limited, which had land for 22 homes in Greenock, was also placed into and that site has now been sold.

In another case, the completion of homes in Ardrossan was expected after the administration of Bellshill-registered Sparkle Berry Homes Limited. That time, administrators found a mechanism to finance the completion of the outstanding works in Ayrshire.

Number of active housebuilders: Analysis of figures from Registers of Scotland by Homes for Scotland (Image: HFS)

The housebuilding industry has been pressing for a more streamlined planning system and better support for such housebuilders, which have been a key part of the build-to-sell market.

Jane Wood, chief executive of Homes for Scotland, which represents about 200 organisations building the majority of new homes across the country, highlighted issues faced within the industry.

HFS has on its board industry figures including Janice Russell, managing director of McTaggart Construction, and Innes Smith, chief executive of Springfield Properties.

Ms Wood told The Herald: “Scotland's SME home builders are vital to tackling the country’s housing emergency which is now in its third year.

“Not only do they deliver a diverse range of highly energy-efficient, low-carbon homes, particularly in rural areas and on difficult urban brownfield sites, they support local economies and sustain vital jobs and skills. Yet these businesses, many of which have served their communities for generations, face increasingly difficult decisions about their futures.”

Read More:

• Scotland's new build completions fall 11 per cent amid housing emergency
• Warning Scotland in danger of missing affordable homes target as building falls

Research undertaken by HFS shows the number of small to medium-sized enterprise housebuilders at its lowest level in two decades.

It showed 463, almost half of the total 1,004, of all Scotland’s active housebuilders were SMEs in 2007, set against 125, which was still around half, but from a total of 280 in 2024.

Call for action as Scottish housing developer placed into administration (Image: Getty Images)

Ms Wood said: “The net result of this is fewer homes, fewer local jobs and fewer opportunities for young people entering the industry.

“Pressures are considerable and costly. Planning delays tie up scarce capital, development finance remains difficult to access and the regulatory burden continues to grow.

“Evidence from HFS indicates that regulation enacted and proposed since 2021 is adding up to £37,000 on to the cost of building every new home in Scotland, impacting viability for developers and affordability for buyers.”

Read More:

• Housebuilding company collapsed into administration with no homes built
• Scottish housebuilder signals expansion moves after wiping out £100m debt

She continued: “All this is in addition to cost price inflation and the risks attached to Scotland’s planning system for which statistics are hugely concerning.

“Applications for smaller housing developments have fallen for four consecutive years, while average decision times consistently breach the statutory eight-week determination period.

“SMEs are still navigating a system for which the associated time, cost and complexity can be majorly disproportionate to the scale of their developments. Layered on top of this is a rapidly diminishing supply of land which HFS warns could see housing completions fall from the 17,336 delivered in 2025 to as little as 5,000 by 2031.”

Moving forward

What can be done? “Government must act now to accelerate planning decisions, apply proportionate regulatory requirements and unlock innovative development finance. Dedicated support for new build purchasers and SME developers through the First Homes Fund is also needed.

“But short-term interventions will not reverse decades of decline or a fix creaking regulatory environment. Fundamental reform of the planning and consenting systems is required, together with cultural transformation, especially at local government level, so that housing investment is both welcomed and encouraged."

Ms Wood said: “The proposed More Homes Scotland agency offers significant potential, but urgent clarity is needed on its powers and objectives.

“With all-tenure housing completions falling for a third consecutive year, Scotland cannot afford further delay.

“Supporting SMEs is fundamental to growing Scotland's economy, creating skilled employment and helping eradicate child poverty, all central ambitions of the First Minister.

“The Scottish Government needs to match those ambitions with action that makes building homes viable again.”

Read More:

• Scotland's housing emergency: First minister to set up housebuilding agency
• UK construction company with over 50 years' experience enters administration

The More Homes Agency was announced earlier this year and it will "focus on simplicity, scale and speed to enable the delivery of housing of all types, helping to meet housing need across Scotland".

However, this is not expected until 2028.

A Scottish Government spokesperson told this column that “housing is a top priority for this government, and since 2007 we have helped deliver 147,000 affordable homes, 105,000 of these for social rent”.

The spokesperson also said: “We remain focused on our target of delivering 110,000 affordable homes by 2032, with at least 70% for social rent and 10% in rural and island areas. We are providing record investment of up to £4.9 billion over the next four years to support this work.

“Our new More Homes Scotland agency will also remove barriers and accelerate delivery, improving the use of public investment and unlocking private finance.

"We take a continuous improvement approach to planning and recognise there is more work to be done to remove barriers to good development. Following engagement with stakeholders this summer, we are preparing to consult on targeted changes to tackle concerns about efficiency and complexity."