4% rise in number of new build homes completed

There were 18,750 new build homes completed across all sectors over the year ending September 2018, an increase of 4%, or 635 homes, on the previous year.

Scotland’s Chief Statistician today released the latest Quarterly Housing Statistics for Scotland, which present the latest quarterly information on new build housing and affordable housing supply.

The 4% increase in all sector new build completions in the 12 months ending September 2018 included increases in housing association completions (35% or 887 homes) and local authority completions (8% or 116 homes), whilst private-led completions fell by 368 homes (3%). The total number of social sector completions (housing association and local authority starts combined) increased by 1,003 homes (26%).

There were 19,900 all sector new build starts in the 12 months ending September 2018, a figure which is 1,150 homes (6%) higher than the number of completions in the same period, and which is an increase of 407 homes (2%) on the 19,493 starts in the previous year. Private-led starts fell by 397 homes (3%) whereas housing association approvals increased by 120 homes (3%), and local authority starts increased by 684 homes (62%). The total number of social sector starts (housing association and local authority starts combined) increased by 804 homes (14%).

Key Points

New Build Housing – All Sectors

·     There were 4,894 new build homes completed between July and September 2018; a 13% increase (551 homes) on the same quarter in 2017. This brings the total for the year to end September 2018 to 18,750, up 4% (635 homes) compared to the 18,115 completed in the previous year.

·     There were 4,425 new build homes started between July 2018 and September 2018, 11% more (454 homes) than the same quarter in 2017. This brings the total for the year to end September 2018 to 19,900 which is up 2% (407 homes) compared to the 19,493 homes started in the previous year.

      New Build Housing – Private-led Housing

·     Between July and September 2018, 3,608 private sector led homes were completed; 10% more (320 homes) than the same quarter in 2017. This brings the total for the year to end September 2018 to 13,831 which is 3% less (368 homes) than the 14,199 completions in the previous year.

·     There were 3,583 private sector led starts between July and September 2018, 15% more than (480 homes) than the same quarter in 2017. This brings the total for the year ending September 2018 to 13,293 which is 3% less (397 homes) than the 13,680 starts in the previous year.

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

·     There were 1,286 social sector completions between July and September 2018; 22% more than the same quarter in 2017. This brings the total for the year to end September 2018 to 4,919. This is a 26% increase on the 3,916 social sector completions in the previous year.

·     Meanwhile, 842 social sector homes were started between July and September 2018; 26 less than in the same quarter in 2017. This brings the total for the year to end September 2018 to 6,607. This is a 14% increase on the 5,803 social sector starts in the previous year.

·      More up-to-date figures show that, between October and December 2018, 925 social sector homes were completed (7% less than the 992 completions in the same quarter in 2017), and 1,717 were started (39% more than the same quarter in the previous year). This brings the total completions for the 12 months to end December 2018 to 4,852 (a 22% increase on the 3,989 social sector homes completed in the previous year). Total starts over the 12 months to end December 2018 are now at 7,088 (20% more than the 5,919 started in the previous year).

New Build Housing – Housing Association Homes

·      There were 960 housing association completions between July and September 2018, 40% more than the 686 completions in the same quarter in 2017. This brings the total for the year to end September 2018 to 3,412, a 35% (887 homes) increase on the 2,525 completions over the previous year.

·      There were 478 housing association approvals between July and September 2018; 2 homes less than the 480 approvals in the same quarter in the previous year. This brings the total for the year to end September 2018 to 4,824. This is a 3% (120 homes) increase on the 4,704 approvals in the previous year.

·      More up-to-date figures show that a total of 692 Housing Association homes were completed between October and December 2018, 27% (148 homes) more completions than in the same period in the previous year. This brings the total completions for the 12 months to end December 2018 to 3,560, which is an increase of 43% on the 2,489 homes completed in the previous year. A total of 1,233 Housing Association homes were approved between October and December 2018, 74% more homes than the 710 approvals in the same quarter in 2017. This brings the total approvals for the 12 months to end December 2018 to 5,347, a 17% increase on the 4,554 approvals in the previous year.

New Build Housing – Local Authority Homes

·      There were 326 local authority completions between July and September 2018, which is 12% (43 homes) less than the number that were completed in the same quarter in 2017. This brings the total for year ending September 2018 to 1,507. This is a 8% (116 homes) increase on the 1,391 completions in the previous year.

·      There were 364 local authority starts between July and September 2018; 6% less (24 homes) than in the same quarter in the previous year. This brings the total for year ending September 2018 to 1,783. This is a 62% (684 homes) increase on the 1,099 starts in the previous year.

·      More up-to-date figures show that, between October and December 2018, 233 local authority houses were completed (48% less than the same quarter in the previous year), and 484 were started (8% less than in the same quarter in the previous year). This brings the total completions for the year to end December  2018 to 1,292, which is 14% less than the previous year. Total starts for the 12 months to end December 2018 now stands at 1,741 which is an increase of 28% on the 1,365 local authority homes started in the previous year.

Affordable Housing Supply – up to end December 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 December 2018 show that affordable housing supply completions have totalled 8,867 homes, up 20% on the 7,415 completions in the previous year. This includes increases in social rent completions (up by 23% or 1050 homes), affordable rent completions (up by 11% or 218 homes) and affordable home ownership completions (up by 25% or 184 homes).

·      There were 12,570 affordable housing approvals over the year up to end December 2018, up by 22% or 2,289 homes compared to the previous year. This includes increases in social rent approvals (up by 31% or 1,889 homes), affordable rent approvals (up by 9% or 188 homes) and affordable home ownership approvals (up by 10% or 212 homes).

·      There were 9,659 affordable houses started in the year to end December 2018, down by 13% or 1,409 homes compared to the previous year. This includes decreases in in affordable rent starts (down by 39% or 708 homes), and social rent starts (down by 11% or 763 homes), but an increase in affordable home ownership starts (up by 3% or 62 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.

Background

Note that the new build start 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:

http://www.gov.scot/ISBN/9781787816244

Background information including Excel tables and an explanatory note on the Quarterly Housing Statistics 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