The Scottish Federation of Housing Associations (SFHA) has called for “urgent action” as new figures reveal a large drop in the number of social homes built at the same time as homelessness has surged to record levels.

The latest statistics show that the number of open homelessness cases reached a record level of 31,870, with councils facing over 100 applications a day.

The number of children living in temporary accommodation, which includes hotels and B&Bs, has also surpassed 10,000.

Meanwhile, the number of social homes built in the last year until June 2024 dropped by a quarter, as the SFHA warned that housing associations had been hamstrung by “repeated hammer-blow cuts” to the affordable housing budget.

Scotland’s affordable housing budget was cut by £196 million in last year’s Scottish budget and has been slashed by 37% in the last two years.

SFHA Chief Executive Sally Thomas said: “Today’s housing and homelessness figures underline that the collapse in housebuilding has devastating consequences.

“Repeated Scottish government cuts to the affordable housing budget have made it ever more difficult for housing associations to deliver the safe, warm, affordable homes that everyone deserves as a basic human right.

“We’ve seen some recognition from Scottish government that this is an emergency, so ahead of the Scottish budget we need to see radical action to match that and to invest in our social homes. This is a dire situation, but there is time to turn things around if we act with purpose.”