4% increase in number of new build homes completed

There were 18,182 new build homes completed across all sectors over the year ending June 2018, an increase of 4%, or 695 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, along with the latest annual figures on long term empty properties and second homes.

The 4% increase in all sector new build completions in the 12 months to end June 2018 included increases in housing association completions (25% or 618 homes) and local authority completions (25% or 306 homes), whilst private-led completions fell by 229 homes (2%). The total number of social sector completions (housing association and local authority starts combined) increased by 924 homes (25%).

There were 19,903 all sector new build starts in the 12 months to end June 2018, a figure which is 1,121 homes (6%) higher than the number of completions in the same period, but which is a decrease of 1,231 homes (6%) on the 20,534 starts in the previous year. Private-led starts fell by 1,593 homes (11%) and housing association approvals decreased by 215 homes (4%), whilst local authority starts increased by 577 homes (48%). The total number of social sector starts (housing association and local authority starts combined) increased by 362 homes (6%).

Statistical News Release Chart

 Key Points

New Build Housing – All Sectors

• There were 5,079 new build homes completed between April and June 2018; a 9% increase (416 homes) on the same quarter in 2017. This brings the total for the year to end June 2018 to 18,182, up 4% (695 homes) compared to the 17,487 completed in the previous year.
• There were 4,697 new build homes started between April 2018 and June 2018, 6% less (306 homes) than the same quarter in 2017. This brings the total for the year to end June 2018 to 19,303 which is down by 6% (1,231 homes) compared to the 20,534 homes started in the previous year

New Build Housing – Private-led Housing

• Between April and June 2018, 4,145 private sector led homes were completed; 9% more (357 homes) than the same quarter in 2017. This brings the total for the year to end June 2018 to 13,494 which is 2% less (229 homes) than the 13,723 completions in the previous year.
• There were 3,539 private sector led starts between April and June 2018, 19% less than (855 homes) than the same quarter in 2017. This brings the total for the year ending June 2018 to 12,686 which is 11% less (1,593 homes) than the 14,279 starts in the previous year. 

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

• There were 934 social sector completions between April and June 2018; 7% more than the same quarter in 2017. This brings the total for the year to end June 2018 to 4,688. This is a 25% increase on the 3,764 social sector completions in the previous year.
• Meanwhile, 1,158 social sector homes were started between April and June 2018; almost double the number compared with the same quarter in 2017. This brings the total for the year to end June 2018 to 6,617. This is a 6% increase on the 6,255 social sector starts in the previous year.
• More up-to-date figures show that, between July and September 2018, 1,286 social sector homes were completed (22% more than the 1,055 completions in the same quarter in 2017), and 842 were started (4% less than the same quarter in the previous year). This brings the total completions for the 12 months to end September 2018 to 4,919 (a 26% increase on the 3,916 social sector homes completed in the previous year). Total starts over the 12 months to end September 2018 are now at 6,584 (13% more than the 5,810 started in the previous year). 

New Build Housing – Housing Association Homes

• There were 526 housing association completions between April and June 2018, 2% more than the 518 completions in the same quarter in 2017. This brings the total for the year to end June 2018 to 3,138, a 25% (618 homes) increase on the 2,520 completions over the previous year.
• There were 563 housing association approvals between April and June 2018; 26% more than the 447 approvals in the same quarter in the previous year. This brings the total for the year to end June 2018 to 4,826. This is a 4% (215 homes) decrease on the 5,041 approvals in the previous year.
• More up-to-date figures show that a total of 960 Housing Association homes were completed between July and September 2018, 40% (274 homes) more completions than in the same period in the previous year. This brings the total completions for the 12 months to end September 2018 to 3,412, which is an increase of 35% on the 2,525 homes completed in the previous year. A total of 478 Housing Association homes were approved between July and September 2018, 2 homes less than the 480 approvals in the same quarter in 2017. This brings the total approvals for the 12 months to end September 2018 to 4,824, a 3% increase on the 5,704 approvals in the previous year.

New Build Housing – Local Authority Homes

• There were 408 local authority completions between April and June 2018, which is 14% (51 homes) more than the number that were completed in the same quarter in 2017. This brings the total for year ending June 2018 to 1,550. This is a 25% (306 homes) increase on the 1,244 completions in the previous year.
• There were 595 local authority starts between April and June 2018; over three times more (433 homes) than in the same quarter in the previous year. This brings the total for year ending June 2018 to 1,791. This is a 48% (577 homes) increase on the 1,214 starts in the previous year.
• More up-to-date figures show that, between July and September 2018, 326 local authority houses were completed (12% less than the same quarter in the previous year), and 364 were started (8% more than in the same quarter in the previous year). This brings the total completions for the year to end September 2018 to 1,507, which is 8% more than the previous year. Total starts for the 12 months to end September 2018 now stands at 1,760 which is an increase of 59% on the 1,106 local authority homes started in the previous year.

Affordable Housing Supply – up to end September 2018

• 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 2018 show that affordable housing supply completions have totalled to 8,767, up 21% on the 7,271 completions in the previous year. This includes increases in social rent completions (up by 19% or 864 homes) and affordable home ownership completions (up by 36% or 635 homes), with a small decrease seen in affordable rent completions (down by 3 homes).
• There were 11,565 affordable housing approvals over the year up to end September 2018, up by 9% or 909 homes compared to the previous year. This includes increases in social rent approvals (up by 10% or 684 homes), and affordable home ownership approvals (up by 34% or 641 homes), with a decrease in affordable rent approvals (down by 19% or 416 homes). 
• There were 10,198 affordable houses started in the year to end September 2018, up by 2% or 206 homes compared to the previous year. This includes increases in affordable rent starts (up by 4% or 57 homes), and affordable home ownership starts (up by 27% or 485 homes), but a decrease in social rent starts (down 5% or 336 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 1,222 properties (2%) from 62,795 in September 2017 to 64,017. However the figure as at September 2018 is 2,036 homes (3%) 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, the Affordable Housing Supply Programme and sales of social sector housing, can be found at this address: http://www.gov.scot/ISBN/9781787814417

Background information including Excel tables and an explanatory note on the Quarterly Housing Statistics can be found in the Housing Statistics webpages.

The Summary Report on the Scottish Household Survey local authority level housing tables is available at: http://www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/SHSLA.

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.