Scottish Government launches consultation on housing delivery incentives and penalties
The Scottish Government has launched a consultation seeking views on measures to accelerate the build-out of homes on sites already identified for housing development, in response to falling housing starts and completions despite a substantial pipeline of consented land. The consultation supports the Housing Emergency Action Plan and related planning commitments, and examines whether incentives, penalties or other interventions could increase delivery rates, including for small and medium-sized housebuilders, within a plan-led, infrastructure-first framework under National Planning Framework 4. It is informed by evidence that slow delivery is driven primarily by post-consent factors such as market absorption rates, viability constraints, infrastructure costs, public sector risk exposure and limited developer capacity or commitment, rather than by the planning permission process itself. Drawing on previous reviews and research by bodies including the Competition and Markets Authority and the Scottish Land Commission, the consultation outlines potential approaches such as land assembly, public sector-led development, reform of compulsory purchase and sales powers, and policy tools to influence build-out rates, and notes that any future action may require legislative change in the next parliamentary session and would be subject to appropriate impact assessment. The consultation closes on 30 April 2026.