18% rise in number of new build homes completed

There were 21,403 new build homes completed across all sectors over the year ending June 2019, an increase of 18%, or 3,210 homes, on the previous year.

Scotland’s Chief Statistician today released the latest Quarterly Housing Statistics for Scotland, which presents the latest quarterly information on new build housing and affordable housing supply, as well as the latest annual figures on the number of long term empty properties and second homes.

The 18% increase in all sector new build completions in the 12 months to end June 2019 included increases in private sector completions (19% or 2,610 homes) and housing association completions (20% or 664 homes), whilst local authority completions fell by 64 homes (4%). The total number of social sector completions (housing association and local authority starts combined) increased by 600 homes (13%).

There were 23,700 all sector new build starts in the 12 months to end June 2019, an increase of 4,340 homes (22%) on the starts in the previous year. Private-led starts increased by 4,175 homes (33%), housing association approvals increased by 56 homes (1%), and local authority starts increased by 109 homes (6%). The total number of social sector starts (housing association and local authority starts combined) increased by 165 homes (2%).

Key Points

New Build Housing – All Sectors

• there were 5,342 new build homes completed between April and June 2019; a 2% increase (111 homes) on the same quarter in 2018. This brings the total for the year to end June 2019 to 21,403, up 18% (3,210 homes) compared to the 18,193 completed in the previous year
• there were 5,620 new build homes started between April and June 2019, 18% more (857 homes) than the same quarter in 2018. This brings the total for the year to end June 2019 to 23,700 which is up 22% (4,340 homes) compared to the 19,360 homes started in the previous year, and is the highest annual starts figure since 2008
   
  New Build Housing – Private-led Housing
• between April and June 2019, 4,486 private sector led homes were completed; 8% more (315 homes) than the same quarter in 2018. This brings the total for the year to end June 2019 to 16,025 which is 19% more (2,610 homes) than the 13,415 completions in the previous year
• there were 4,427 private sector led starts between April and June 2019, 22% more (800 homes) than the same quarter in 2018. This brings the total for the year ending June 2019 to 16,924 which is 33% more (4,175 homes) than the 12,749 starts in the previous year

New Build Housing – Social Sector Housing (Housing Association and Local Authority combined)

• there were 856 social sector completions between April and June 2019, 19% (204 homes) less than the same quarter in 2018. This brings the total for the year to end June 2019 to 5,378. This is a 13% increase on the 4,778 social sector completions in the previous year
• meanwhile, 1,193 social sector homes were started between April and June 2019; 5% (57 homes) more than in the same quarter in 2018. This brings the total for the year to end June 2019 to 6,776. This is a 2% increase on the 6,611 social sector starts in the previous year
• more up-to-date figures show that, between July and September 2019, 1,317 social sector homes were completed (2% less than the 1,346 completions in the same quarter in 2018), and 1,342 were started (39% more than the same quarter in the previous year). This brings the total completions for the 12 months to end September 2019 to 5,349 (a 6% increase on the 5,070 social sector homes completed in the previous year). Total starts over the 12 months to end September 2019 are now at 7,154 (7% more than the 6,707 started in the previous year)

New Build Housing – Housing Association Homes

• there were 410 Housing Association completions between April and June 2019, 37% (242 homes) less completions than in the same period in the previous year. This brings the total completions for the 12 months to end June 2019 to 3,927, which is an increase of 20% on the 3,263 homes completed in the previous year
• there were 707 housing association approvals between April 2019 and June 2019; 15% (94 homes) more than the 613 approvals in the same quarter in 2018. This brings the total approvals for the 12 months to end June 2019 to 4,932, a 1% increase on the 4,876 approvals in the previous year
• more up-to-date figures show that a total of 896 Housing Association homes were completed between July 2019 and September 2019, 12% (124 homes) fewer completions than in the same period in the previous year. This brings the total completions for the 12 months to end September 2019 to 3,803, which is an increase of 6% on the 3,598 homes completed in the previous year. A total of 746 Housing Association homes were approved between July and September 2019, 23% more homes than the 606 approvals in the same quarter in 2018. This brings the total approvals for the 12 months to end September 2019 to 5,072, a 1% increase on the 5,002 approvals in the previous year

New Build Housing – Local Authority Homes

• there were 446 local authority completions between June and April 2019, which is 9% (38 homes) more than the number that were completed in the same quarter in 2018. This brings the total for year ending June 2019 to 1,451. This is a 4% (64 homes) decrease on the 1,515 completions in the previous year
• there were 486 local authority starts between April and June 2019; 7% less (37 homes) than in the same quarter in the previous year. This brings the total for year ending June 2019 to 1,844. This is a 6% (109 homes) increase on the 1,735 starts in the previous year
• more up-to-date figures show that, between July and September 2019, 421 local authority houses were completed (29% more than the same quarter in the previous year), and 596 were started (66% more than in the same quarter in the previous year). This brings the total completions for the year to end September 2019 to 1,546, which is 5% more than the previous year. Total starts for the 12 months to end March 2019 now stands at 2,082 which is an increase of 22% on the 1,705 local authority homes started in the previous year

Affordable Housing Supply – up to end September 2019

• affordable Housing Supply Programme (AHSP) statistics reflect the broader supply of affordable homes (i.e. for social rent, affordable rent and affordable home ownership) and include off-the-shelf purchases and rehabilitations as well as new builds
• the latest statistics for the year to end September 2019 show that affordable housing supply completions have totalled to 8,976, down 1% on the 9,034 completions in the previous year. This includes increases in social rent completions (up by 20% or 1,086 homes) but decreases in affordable rent completions (down by 21% or 218 homes) and affordable home ownership completions (down by 38% or 926 homes)
• there were 11,398 affordable housing approvals over the year up to end September 2019, down 2% or 177 homes compared to the previous year. This includes increases in social rent approvals (up by 16% or 1167 homes) but decreases in affordable rent approvals (down by 26% or 463 homes) and affordable home ownership approvals (down by 35% or 881 homes)
• there were 10,855 affordable houses started in the year to end September 2019, up by 1% or 128 homes compared to the previous year. This includes increases in in social rent starts (up by 17% or 1,098 homes), but decreases in affordable rent starts (down by 29% or 530 homes) and affordable home ownership starts (down by 19% or 440 homes)
  quarterly affordable housing supply statistics are used to inform the Scottish Government target to deliver 50,000 affordable homes, including 35,000 homes for social rent, over the period 2016/17 to 2020/21, and reflect the number of affordable homes delivered that have received some form of government support through loans, grant or guarantees

Long Term Empty Properties and Second Homes

• the total number of long term empty properties and second homes has increased in the latest year by 1,260 properties (2%) from 64,017 in September 2018 to 65,277, the third consecutive annual increase. However the figure as at September 2019 is 776 homes (1%) lower than the 66,053 properties recorded as at September 2012

Background

Note that the new build starts figures quoted in this Statistical News Release contain information on approvals rather than starts for housing associations. This is because the data held on approvals for housing association new builds is considered to be a more robust measure than the data held on starts. An approval is the point in time at which Scottish Government funding is granted through the Affordable Housing Supply Programme. Further information on this is available in the explanatory document providing background information on the quarterly statistics.

 The Affordable Housing Supply Programme statistics include off-the-shelf purchases and rehabilitations as well as new build.

• social Rent includes Housing Association Rent, Council House Rent as well as Home Owner Support Fund Rent
• affordable Rent includes Mid-Market Rent (MMR), National Housing Trust (NHT) Rent as well as other programmes such as the Empty Homes Loan Fund (EHLF) and Rural Homes for Rent (RHfR)
• affordable Home Ownership includes Open Market Shared Equity (OMSE), New Supply Shared Equity (NSSE), Shared Ownership (LCHO) as well as other programmes such as Home Owner Support Fund Shared Equity.

The publication, containing details of new house building and the Affordable Housing Supply Programme

Background information including Excel tables and an explanatory information on data sources and quality can be found in the Housing Statistics webpages.

Housing Association and most Local Authority led new build activity is funded through Scottish Government funding programmes. Several changes to these funding programmes in recent years have affected both the trends and seasonal quarterly pattern of new build approvals, so care should be taken when making comparisons over time. These same changes will also impact on the Affordable Housing Supply Programme.

The supply statistics break down new build construction activity into private-led and social sector starts and completions, with the social sector further broken down between local authority and registered social landlord (housing association). The figures are as recorded by Local Authority administrative systems and the Scottish Government Affordable Housing Supply Programme (AHSP) system. Private sector construction activity includes not only homes built for private sale but also some homes which are used in the affordable housing sector and self-build activity by local builders.

Official statistics are produced by professionally independent statistical staff – more information on the standards of official statistics in Scotland can be accessed at: http://www.gov.scot/Topics/Statistics/About.