New build housing completions up 5% in latest year

There were 17,601 new build homes completed across all sectors over the year ending September 2017, an increase of 5%, or 908 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 5% increase in all sector new build completions in the 12 months to end September 2017 included increases in private-led completions (9% or 1,194 homes) and local authority completions (21% or 239 homes), whilst housing association completions fell by 525 homes (19%). The total number of social sector completions (housing association and local authority completions combined) decreased by 286 homes (7%).

There were 19,440 all sector new build starts in the 12 months to end September 2017, an increase of 1,536 homes (9%) on the 17,904 starts in the previous year. Private-led starts increased by 805 homes (6%) and housing association approvals increased by 1,180 homes (33%), whilst local authority starts decreased by 449 homes (29%).

Annual all sector new build starts and completions, 2007 - 2017

Key Points

New Build Housing – All Sectors

• There were 4,018 new build homes completed between July and September 2017; a 9% increase (316 homes) on the same quarter in 2016. This brings the total for the year to end September 2017 to 17,601, up 5% (908 homes) compared to the 16,693 completed in the previous year.
• There were 4,081 new build homes started between July and September 2017, 18% less (884 homes) than the same quarter in 2016. This brings the total for the year to end September 2017 to 19,440 which is up by 9% (1,536 homes) compared to the 17,904 homes started in the previous year.

New Build Housing – Private-led Housing

• Between July and September 2017, 3,263 private sector led homes were completed; 17% more (464 homes) than the same quarter in 2016. This brings the total for the year to end September 2017 to 14,041 which is 9% more (1,194 homes) than the 12,847 completions in the previous year.
• There were 3,146 private sector led starts between July and September 2017, down 14% (499 homes) on the same quarter in 2016. This brings the total for the year ending September 2017 to 13,591, which is 6% (805 homes) more than the 12,786 starts in the previous year.

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

• There were 755 social housing completions between July and September 2017; 16% less than the same quarter in 2016. This brings the total for the year to end September 2017 to 3,560. This is a 7% decrease on the 3,846 social sector completions in the previous year.
• Meanwhile, 935 social sector homes were started between July and September 2017; 29% less than the same quarter in 2016. This brings the total for the year to end September 2017 to 5,849. This is a 14% increase on the 5,118 social sector starts in the previous year.
• More up-to-date figures show that, between October and December 2017, 788 social sector homes were completed (14% fewer than the 919 completions in the same quarter in 2016), and 1,267 were started (13% more than the same quarter in the previous year). This brings the total completions for the 12 months to end December 2017 to 3,429 (a 12% decrease on the 3,897 social sector homes completed in the previous year). Total starts over the 12 months to end December 2017 are now at 5,996 (17% more than the 5,123 started in the previous year).

New Build Housing – Housing Association Homes

• There were 386 housing association completions between July and September 2017, 43% less than the 681 completions in the same quarter in 2016. This brings the total for the year to end September 2017 to 2,169, a 19% (525 homes) decrease on the 2,694 completions over the previous year.
• There were 540 housing association approvals between July and September 2017; 34% less than the 817 approvals in the same quarter in the previous year. This brings the total for the year to end September 2017 to 4,743. This is an increase of 33% (1,180 homes) on the 3,563 approvals in the previous year.
• More up-to-date figures show that a total of 340 Housing Association homes were completed between October and December 2017, 41% (240 homes) less completions than in the same period in the previous year. This brings the total completions for the 12 months to end December 2017 to 1,929, which is a decrease of 29% on the 2,707 homes completed in the previous year. A total of 718 Housing Association homes were approved between October and December 2017, 17% less than the 860 approvals in the same quarter in 2016. This brings the total approvals for the 12 months to end December 2017 to 4,601, a 26% increase on the 3,638 approvals in the previous year.

New Build Housing – Local Authority Homes

• There were 369 local authority completions between July and September 2017, which is 66% more than the number that were completed in the same quarter in 2016. This brings the total for the year ending September 2017 to 1,391. This is a 21% (239 homes) increase on the 1,152 completions the previous year.
• There were 395 local authority starts between July and September 2017; 21% lower than the number in the same quarter in 2016. This brings the total for year ending September 2017 to 1,106. This is a 29% (449 homes) decrease on the 1,555 starts in the previous year.
• More up-to-date figures show that, between October and December 2017, 448 local authority houses were completed (32% more homes than the same quarter in the previous year), and 549 were started (more than double the 260 homes started in the same quarter in the previous year). This brings the total completions for the year to end December 2017 to 1,500, which is 26% more than the previous year. Total starts for the 12 months to end December 2017 now stands at 1,395 which is a decrease of 6% on the 1,485 local authority homes started in the previous year.

Affordable Housing Supply – up to end December 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 December 2017 show that affordable housing supply completions have totalled 6,647, down 8% (617 homes) on the previous year. This includes an increase in affordable home ownership completions (up by 9% or 156 homes), but with decreases in social rent completions (down by 9% or 409 homes) and affordable rent completions (down by 34% or 364 homes).
• There were 9,552 affordable housing approvals over the year up to end December 2017, up by 7% or 600 homes compared to the previous year. This includes increases in social rent approvals (up by 7% or 422 homes), affordable rent approvals (up by 1% or 17 homes), and affordable home ownership approvals (up by 8% or 161 homes).
• There were 9,422 affordable houses started in the year to end December 2017, up by 12% or 1,036 homes compared to the previous year. This includes increases in social rent starts (up by 17% or 878 homes), affordable rent starts (up by 9% or 102 homes), and affordable home ownership starts (up by 3% or 56 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 have been no Right to Buy applications made during the last year (October 2016 to September 2017). Throughout the final year of the scheme (the year to end September 2016) there were 9,060 applications made, more than double the 3,890 applications that were made in the previous year to end September 2015. This increase is likely to have been because this was the last chance for social housing tenants with an entitlement to exercise their Right to Buy before the scheme closed.
• It can take a period of time for applications to be processed and for sales to be made, and therefore Right to Buy sales are still being recorded. In the latest available quarter, July to September 2017, there were 587 Right to Buy sales, 18% less than the 716 sales in the same quarter in the previous year, and also 25% less than the 787 sales in the previous quarter, April to June 2017. It is expected that sales will continue to fall further in future quarters as the number of applications remaining in the system falls.

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, is available online.

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 is available online.