Demand could soon far outstrip supply in the Scottish housing market as figures show the number of new homes being built is significantly lower than Scottish Government targets.
According to a report by property consultancy JLL, the country is facing an "enormous challenge" due to a failure to build enough properties to meet the demands of a growing population.
The report shows that just 15,260 homes were built in the year to the end of June 2015 - almost 8000 short of the government's target of 23,000 properties.
The figure is also well below the five year average to 2007/08 of 21,170 homes a year.
JLL claim that, with the number of households set to rise by around 74,000 in the next five years, demand could soon "far outstrip the supply of additional housing".
Jason Hogg, director of JLL's residential team in Scotland, said: "2016 will be a year of challenging questions rather than unbridled forward momentum. And there are several questions on a variety of residential issues which need addressing.
"The greatest challenge is how the housebuilding industry and the Scottish Government will move towards building the greater volume of homes the country needs.
"Development activity is better than three to four years ago but still nowhere near the 23,000 homes a year target. The Scottish Government is allocating funds to assist, but we believe closer collaboration with the industry, more innovative and more directly beneficial initiatives, as well as higher funding, need to be considered if the housing shortfall is to be addressed."
JLL claim that, even with £195 million in funding from the Scottish Government, property developments are "plateauing at best".
They predict building activity will see a modest rise over the next few years, but will still fall short of recommended targets.
The Chartered Institute of Housing in Scotland (CIHS) said the figures demonstrate the need for further investment in housing.
CIHS director Annie Mauger said: "This new report underlines once again the huge challenges Scotland faces to deliver sufficient homes to meet demand.
"With more than 28,000 households assessed as homeless last year and around 160,000 households on local authority waiting lists for social housing, the demand for all tenures of housing in Scotland far outstrips supply.
"To create a fully functioning housing system, we need to provide people with a range of housing options at a range of prices to meet different needs. This includes supporting development in the intermediate and private sectors as well as increasing the supply of social housing."
She added that political commitments to increase affordable housing were welcome, but "for those targets to be achieved, overall investment in affordable housing needs to increase".
Trade body Homes for Scotland, who have called for at least 25,000 homes a year to be built by the end of the next Scottish Parliament, added there is a need for a "significant programme of all-tenure home building set at the highest level in government".
The Scottish Government said an independent review of housing is currently underway and expected to report in Spring.
A spokesman added: "We have a strong record on housing, having already exceeded our target of delivering 30,000 affordable homes in this Parliamentary term.
"Our new bold, credible and affordable commitment to delivering 50,000 affordable homes by 2021 represents a 67% increase on our current target. This new target is being backed up with investment of over £3 billion - £690 million of which will be invested in 2016-17.
"We are also easing housing pressures by working with partners to develop innovative funding approaches. We are working closely with all sectors to promote the construction of new homes, support jobs in the construction industry and inclusive growth in the wider economy."
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