Housing Statistics for Scotland, Quarterly Update - November 2014

Affordable Housing

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 build. The social rent new build element of this covers largely the same houses referred to in the social sector new build section of this report. Statistics for the AHSP are available up to the end of September 2014. As a result they have been presented here for the year to end September. This differs from the figures in much of the remainder of this report which cover years to end June.

Changes in the funding programme in 2011 and 2012 have impacted on the timing of affordable housing activity as well as the level of activity and this should be borne in mind when making comparisons over time.

Approvals, starts and completions are all measured for the AHSP. Approval is the point at which funding is granted and, along with completion, is a significant part of the administration process meaning that the data should be of good quality. Starts meanwhile can be recorded at any point in the development, for example when site clearance begins or any point up to the beginning of ground works for foundations. As a result approvals are generally deemed a better measure than starts for AHSP data.

Chart 10: Annual Affordable Housing Supply Programme (AHSP) approvals and completions, year to end September, 2005 - 2014

Chart 11: Quarterly Affordable Housing Supply Programme approvals and completions, 2004-2014

Between July and September 2014 1,440 affordable homes were completed. This is 524 (27%) fewer than in the same quarter the previous year. It brings the total for the 12 months up to the end of September 2014 to 6,326 - down 9% on the previous 12 months.

As chart 12, below, shows in the last year social rent completions have reduced (by 804 homes or 18%), affordable home ownership completions have remained steady and affordable rent (such as mid-market rent) completions have continued to grow (by 131 homes or 17%).

Chart 12: AHSP Completions, year to end September, 2005 to 2014

Meanwhile there were 1,002 affordable home approvals between July and September 2014. This is 40 (4%) more than in the same quarter the previous year. It brings the total number of affordable home approvals in the 12 months to end September 2014 to be 7,107, a total of 784 (12%) more homes than in the equivalent 12 months in the previous year.

The increases in the numbers of approvals can be attributed in part to the increase in subsidy rates introduced during 2013-14 which meant that councils and housing associations received an extra £16,000 per home.