Scotland is in the grip of a worsening housing crisis that demands radical change rather than the patchwork policies currently on offer, according to a new report from leading economist Professor Duncan Maclennan.
In a sharply worded opinion piece, Maclennan — an adviser to governments across the UK, Canada, and Australia — warns that the country’s outdated approach to housing is now actively undermining national prosperity, productivity, and wellbeing.
The report, Prosperity Begins at Home, commissioned by the David Hume Institute, argues that housing should no longer be seen solely as a social issue or shelter concern, but instead as core economic infrastructure.
“Poor affordability, inadequate supply and an unresponsive system are now active drags on national productivity and wellbeing,” Maclennan writes.
Ageing Population and Climate Pressure Add Urgency
Scotland’s housing crisis is not new, but Maclennan says the risks are escalating fast. He points to an ageing population, persistent regional inequality, and increasing climate pressures as key factors that will deepen the crisis unless systemic reforms are made.
The report urges a fundamental rethink of housing policy, integrating it directly into Scotland’s wider economic and environmental strategies — something successive administrations have failed to do.
Fragmented, Short-Term Policy is Failing
Maclennan criticises the “piecemeal” nature of current approaches, which he argues do not address the scale or complexity of the crisis. He contends that Scotland needs a long-term housing strategy that spans multiple election cycles and government departments.
He also calls for more sophisticated economic modelling and forecasting to inform decision-making — a notable gap in the current system.
“Business-as-usual approaches will only deepen social and economic divides,” the report warns.
Call for Disruptive, Long-Term Reform
Among the recommendations are:
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Treating housing as economic infrastructure on par with transport and energy
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Greater coordination across central and local government
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Investing in green, affordable housing that meets future demographic needs
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Addressing market failures in land and development planning
The report comes amid growing concern about housing shortages across Scotland, particularly in rural and island communities, where affordability and availability are worsening.
