29% increase in affordable housing approvals

There were 10,276 approvals for affordable housing over the year ending March 2017, an increase of 29%, or 2,331 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, affordable housing supply and local authority right to buy sales. The 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.

Annual affordable housing supply programme approvals and completions

Affordable housing approvals are where Scottish Government funding is granted through the Affordable Housing Supply Programme. The programme covers a range of types of affordable housing (social rent, affordable rent and affordable home ownership), and relates to off-the-shelf house purchases and rehabilitations as well as new build homes. The 10,276 homes approved in the year to March 2017 is the highest annual approvals figure recorded since the start of this statistical series in 2000-01.

Affordable housing starts totalled 9,308 in the year to March 2017, an increase of 21%, or 1,626 homes, on the previous year. Meanwhile affordable housing completions totalled 7,336 in the year ending March 2017, an increase of 13%, or 818 homes, on the previous year.

Key Points

New Build Housing – All Sectors

• There were 4,465 new build homes completed between October and December 2016; a 1% increase on the same quarter in 2015. This brings the total for the year to end December 2016 to 16,498, up 1% (88 homes) compared to the 16,410 completed in the previous year.
• There were 3,768 new build homes started between October and December 2016; 4% more than the same quarter in 2015. This brings the total for the year to end December 2016 to 17,043 which is down by 2% (279 homes) compared to the 17,322 homes started in the previous year.

New Build Housing – Private-led Housing

• Between October and December 2016, 3,546 private sector led homes were completed; 15 homes less (0% change) on the same quarter in 2015. This brings the total for the year to end December 2016 to 12,576, which is 2% (203 homes) more than the 12,373 completions in the previous year.
• There were 2,648 private sector led starts between October and December 2016, up 5% on the same quarter in 2015. This brings the total for the year ending December 2016 to 11,896, which is 8% (1,070 homes) less than the 12,966 starts in the previous year.

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

• There were 919 social housing completions between October and December 2016; 6% more than the same quarter in 2015. This brings the total for the year to end December 2016 to 3,922. This is a 3% decrease on the 4,037 social sector completions in the previous year.
• Meanwhile, 1,120 social sector homes were started between October and December 2016; no change from the same quarter in 2015. This brings the total for the year to end December 2016 to 5,147. This is a 18% increase on the 4,356 social sector starts in the previous year.
• More up-to-date figures show that, between January and March 2017, 1,009 social sector homes were completed (8% fewer than the 1,098 completions in the same quarter in 2016), and 3,198 were started (59% more than the same quarter in the previous year). This brings the total completions for the 12 months to end March 2017 to 3,833 (an 11% increase on the 3,458 social sector homes completed in the previous year). Total starts over the 12 months to end March 2017 are now at 6,332 (40% more than the 4,358 started in the previous year).

New Build Housing – Housing Association Homes

• There were 580 housing association completions between October and December 2016, 2% more than the 567 completions in the same quarter in 2015. This brings the total for the year to end December 2016 to 2,707, an 8% (247 homes) decrease on the 2,954 completions over the previous year.
• There were 860 housing association approvals between October and December; 10% more than the 785 approvals in the same quarter in the previous year. This brings the total for the year to end December 2016 to 3,638. This is an increase of 26% (745 homes) on the 2,893 approvals in the previous year.
• More up-to-date figures show that a total of 741 Housing Association homes were completed between January and March 2017, 6% more completions than in the same period in the previous year (700 homes). This brings the total completions for the 12 months to end March 2017 to 2,748, which is an increase of 18% on the 2,320 homes completed in the previous year. A total of 2,917 Housing Association homes were approved between January and March 2017, 81% more than the 1,610 approvals in the same quarter in 2016. This brings the total approvals for the 12 months to end March 2017 to 4,945, a 70% increase on the 2,906 approvals in the previous year.

New Build Housing – Local Authority Homes

• There were 339 local authority completions between October and December 2016, which is 13% more than the number that were completed in the same quarter in 2015. This brings the total for the year ending December 2016 to 1,215. This is a 12% (132 homes) increase on the 1,083 completions the previous year.
• There were 260 local authority starts between October and December 2016; 21% lower than the number in the same quarter in 2015. This brings the total for year ending December 2016 to 1,509. This is a 3% (46 homes) increase on the 1,463 starts in the previous year.
• More up-to-date figures show that, between January and March 2017, 268 local authority houses were completed (33% fewer homes than the same quarter in the previous year), and 281 were started (30% fewer homes than the same quarter in the previous year). This brings the total completions for the year to end March 2017 to 1,085, which is 5% less than the previous year. Total starts for the 12 months to end March 2017 now stands at 1,387 which is a decrease of 15% on the 1,632 local authority homes completed in the previous year.

Affordable Housing Supply – up to end March 2017

• 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 March 2017 show that affordable housing supply completions have totalled 7,336, up 13% (818 homes) on the previous year. This includes increases in social rent completions (up by 19% or 727 homes) and affordable home ownership completions (up by 11% or 191 homes), with a decrease in affordable rent completions (down by 10% or 100 homes).
• There were 10,276 affordable housing approvals over the year up to end March 2017, up by 29% or 2,331 homes compared to the previous year. This includes increases in social rent approvals (up by 34% or 1,770 homes), affordable rent approvals (up by 45% or 428 homes), and affordable home ownership approvals (up 7% or 133 homes).
• There were 9,308 affordable houses started in the year to end March 2017, up by 21% or 1,626 homes compared to the previous year. This includes increases in social rent starts (up by 25% or 1,251 homes), affordable rent starts (up by 40% or 360 homes), and affordable home ownership starts (up 1% or 15 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.

Local Authority Right to Buy Applications and Sales

• The Right to Buy scheme closed to all new applicants on 31 July 2016, therefore there were no Right to Buy applications made during the latest quarter October to December 2016.
• Right to Buy sales can occur in a period later than that in which the application was made. In the latest quarter, October to December 2016, there were 796 Right to Buy sales, 69% more than the 471 sales in the same quarter in the previous year. Throughout the year to end December 2016 there were 2,524 sales, 57% more than the 1,605 sales in the year to end December 2015.

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.

As with the previous quarterly publication, figures on private sector new build completions for Edinburgh have been estimated from 2015 Quarter 4 onwards due to quality concerns of data derived from building completion certificates. Estimates for Edinburgh  have instead been based on private new build house sales data from Registers of Scotland, with further assumptions on self-builds and private sector led section 75 completions which are not captured within this data source. The estimates for Edinburgh are being investigated further and are subject to change in future publications.

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 the Affordable Housing Supply Programme and sales of social sector housing, can be found at this address: http://www.gov.scot/stats/bulletins/01280.

The web tables associated with this publication can be found as follows:

New build and AHSP tables: http://www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/HSfS/NewBuild/AHSPtables

Local Authority house sales: http://www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/HSfS/Sales

An explanatory document providing background information on the statistics is also available.

The new build, AHSP and sales tables are updated each quarter. A range of other statistics are updated annually and are available on the Housing Statistics for Scotland website:

http://www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/HSfS.

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.