Housing statistics quarterly update: March 2017

Affordable Housing Supply up to end December 2016

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 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 December 2016. As a result they have been presented here for the year to end December. This differs from the figures in much of the remainder of this report which cover years to end September.

Changes in the funding programme in 2011 and 2012 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.

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.

Chart 10: Annual Affordable Housing Supply Programme (AHSP) approvals and completions, years to end December, 2006 to 2016

A total of 1,479 affordable homes were completed in the quarter between October and December 2016, a 9% increase, or 117 more homes than the same quarter last year. This brings the total for the year to end December 2016 to 6,741, down 6% on the 7,163 completions in the previous year.

Between October and December 2016 a total of 2,107 affordable homes were approved. This is 54 (3%) more than in the same quarter in the previous year. It brings the total for the year to end December 2016 to 8,840 approvals, up 20% on the previous year.

There were 1,630 affordable homes started in the quarter between October and December 2016, a 17% decrease, or 339 fewer homes than the same quarter last year. This brings the total for the year to end December 2016 to 7,853, up 17% on the 6,705 starts in the previous year.

Chart 11 below shows that total affordable housing supply programme completions decreased by 6% in 2016 (year to end December). In the latest year, social rent completions accounted for 60% of all completions, with affordable rent and affordable home ownership making up 14% and 27% of the total, respectively.

Chart 12 below shows that the total affordable housing supply programme approvals increased by 20% in 2016 (year to end December). In the latest year, social rent approvals accounted for 64% of all approvals, with affordable rent and affordable home ownership making up 14% and 22% of the total, respectively.

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.

Chart 11: AHSP Completions, years to end December, 2006 to 2016

Chart 12: AHSP Approvals, years to end December, 2006 to 2016