Housing Statistics for Scotland Quarterly Update: New Housebuilding and Affordable Housing Supply (published 04 October 2022)

1. Main points

Note that the latest private-led and all-sector new housebuilding figures contain some estimates for a small number of authorities. Further details are provided in Section 7.

New Housebuilding

• The number of all-sector new build homes completed in Scotland increased by 40% (5,900 homes) in the latest year to end March 2022 to 20,767 homes, compared to 14,867 homes completed in the previous year to end March 2021, in which activity levels were impacted by COVID-19 lockdown measures. Despite this increase, the latest annual figure is 6% (1,357 homes) below the 22,124 homes completed in the pre-pandemic year to end March 2020.
• In the latest year to end March 2022, increases were seen across private-led new build completions (29% or 3,157 homes), local authority new build completions (87% or 1,256 homes), and housing association new build completions (63% or 1,488 homes).
• The number of all-sector new build homes started increased by a smaller amount, with 18,672 starts in the year to end March 2022, up 5% (914 homes) on the 17,758 starts in the previous year, but 27% (6,819 homes) below the 25,491 homes started in the pre-pandemic year to end March 2020.
• In the latest year to end March 2022, private-led new build starts rose by 3% (430 homes) and local authority new build starts increased by 43% (585 homes), whilst housing association new build approvals dropped by 4% (101 homes).
• Separate figures published as part of the UK House Price Index show a total of 11,850 private new build sales transactions in Scotland in the 12 months to end May 2022. This is an increase of 14% (1,473 transactions) on the 10,382 transactions recorded in the year to end May 2021, and an increase of 10% (1,038 transactions) on the year to end May 2020.
• Latest social sector new housebuilding figures to end June 2022 show an increase of 23% (1,170 homes) to 6,254 completions in the year to end June 2022, which compares to 5,084 completions in the previous year. Starts however fell by 4% (163 homes) to 4,437, down from 4,600 starts in the previous year.

Affordable Housing Supply Programme

• Affordable Housing Supply Programme statistics reflect the broader supply of affordable homes for social rent, affordable rent and affordable home ownership, and include off the shelf purchases and rehabilitations as well as new builds.
• The 1,250 affordable homes completed in the latest quarter April to June 2022 brings the total number of affordable homes completed in the 12 months to end June 2022 to 9,334, an increase of 17% (1,364 homes) on the 7,970 homes completed in the previous year. There were increases in the number of completions for social rent (by 29% or 1,657 homes), however affordable rent completions decreased by 11% or 136 homes), and affordable home ownership completions fell by 14% or 156 homes).
• A total of 1,005 affordable homes were approved in the latest quarter April to June 2022, which brings the total number of affordable homes approved in the 12 months to end June 2022 to 7,775, a decrease of 3% (203 homes) on the 7,978 homes approved in the previous year. Approvals for affordable rent dropped by 10% or 96 homes, and approvals for affordable home ownership fell by 13% or 127 homes, whilst approvals for social rent showed a slight increase of 0.3% or 21 homes.
• Meanwhile the 951 affordable homes started in the latest quarter April to June 2022 brings the total number of affordable homes started in the 12 months to end June 2022 to 7,287, a decrease of 35% (3,881 homes) on the 11,168 started in the previous year. Starts for social rent fell by 31% or 2,598 homes, starts for affordable rent decreased by 61% or 985 homes, whilst starts for affordable home ownership fell by 26% or 298 homes.
• Quarterly affordable housing supply statistics are used to inform progress against Scottish Government affordable housing delivery targets, in which the ambition is to deliver 110,000 affordable homes by 2032, of which at least 70% will be for social rent and 10% will be in remote, rural and island communities.
• There have been a total of 2,362 completions so far against the 110,000 target, across the period 23 March 2022 to 30 June 2022, consisting of 2,068 homes for social rent, 127 for affordable rent, and 167 for affordable home ownership.
• Figures on the remote, rural and island communities element of the target are planned to be reported on as part of future annual affordable housing supply out-turn reports, although we are considering whether it is feasible for these figures to be reported on a quarterly basis in addition to this.