Housing statistics quarterly update: March 2022

5. Social sector new housebuilding

Social sector housing consists of local authority and housing association housing, and has accounted for 26% of all new build homes completed over the 12 months to the end of June 2021.

Chart 8a shows the number of local authority and housing association homes started and completed each year to end June. Between 2008 and 2009 the number of housing association completions increased from around 3,800 to over 5,400, after which the number of homes completed dropped until reaching a low of around 2,500 in 2017. Following this, housing association completions increased to just over 4,000 in 2019. Housing association completions have dropped in the two subsequent years, falling to below 3,100 in the year to end June 2021.

Housing association new build approvals fell each year between 2008 and 2013, to a low of around 2,100, before rising year on year to around 5,000 in 2017. After two years of decreases, approvals rose once again in 2020 to the highest level since 2008, at almost 5,800. The latest year, the 12 months ending June 2021, has however seen a sharp fall to the lowest number of approvals since 2015, to under 2,700.

The number of local authority homes built gradually increased from under 30 homes in 2008 up to just over 1,200 in 2012 (years to end June). Completions flucuated around the 1,100 mark until 2018, where they reached over 1,400, with a similar number again in 2019. COVID-19 restrictions saw completions fall to under 1,100 in 2020, with completions rising again to over 1,900 in the year ending June 2021 after restrictions were lifted. Local authority new build starts have followed a generally similar pattern to that of completions, starting at 400 in 2008, and reaching over 1,900 in 2021, the highest annual number of starts since 2008. Local authority starts fluctuated less during the COVID-19 restrictions, with the number of starts dropping by only 4% in 2020 compared with 2019.

A total of 1,246 social sector new build homes were completed between April to June 2021, an increase of 1,212 homes on the same quarter in 2020 which was affected by COVID-19 lockdown restrictions. This brings the total completions for the 12 months to end June 2021 to 4,987, an increase of 5% (256 homes) on the 4,731 social sector new build homes completed in the previous year.

Meanwhile, 912 social sector new build homes were started between April to June 2021. This is more than double (495 homes) the 417 homes started in the same quarter the previous year. This brings the total for the 12 months to end June 2021 to 4,594, a decrease of 39% (2,924 homes) on the 7,518 social sector homes started in the same period in 2020.

Maps C and D show the rates of housing association and local authority new build completions in each local authority for the year to end June 2021 per 10,000 of the population. The housing stock of 6 local authorities (Argyll & Bute, Dumfries & Galloway, Glasgow, Inverclyde, Na h-Eileanan Siar and Scottish Borders) has been transferred to housing associations and so these areas do not build new local authority houses.

In the year to end June 2021 local authority new build rates were highest in Moray and West Dunbartonshire, with rates over 23 homes per 10,000 households. As well as the 6 stock transfer authorities mentioned above, Aberdeen City, Aberdeenshire, Clackmannanshire, Dundee City, Shetland Islands, Stirling and West Lothian built no new local authority homes in the year ending June 2021.

Meanwhile rates of housing association new build completions were highest in Na h-Eileanan Siar and Glasgow, with rates of over 12 homes per 10,000 households, and West Dunbartonshire with a rate of over 22 homes per 10,000 households. There were no completions in Inverclyde, Moray and Orkney Islands.

Charts 9 and 10 along with Table 5 show the latest quarterly figures for housing associations and local authorities to end September 2021.

A total of 1,584 social sector new build homes were completed between July to September 2021, an increase of 63% (611 homes) on the 973 completions in the same quarter in 2020. This brings the total completions for the 12 months to end September 2021 to 5,598, an increase of 27% (1,194 homes) on the 4,404 social sector new build homes completed in the previous year.

Meanwhile, 1,071 social sector new build homes were started between July to September 2021. This is an increase of 47% (341 homes) compared to the same quarter in the previous year. This brings the total for the 12 months to end September 2021 to 4,935, a decrease of 29% (2,014 homes) on the 6,949 social sector homes started in the same period in 2020.

In the year to end September 2021, housing association new build completions are up by 10% (329 homes), local authority new build completions are up by 79% (865 homes) and local authority new build starts are up by 30% (430 homes). Housing association new build approvals have however fallen by 44% (2,444 homes).