All-Sector New Housebuilding

Chart 1 shows that annual all-sector new build starts and completions in the years to end September both fell in the years immediately following the financial crisis in 2008. Starts fell to a low in 2011 and completions reached their lowest point in 2013. Following this, starts and completions then generally increased year on year up to the year ending September 2019. Starts and completions then dropped in the year to end September 2020 due to the impact of COVID-19 lockdown measures in the quarter April to June 2020, before both increasing again in the year to end September 2021. In the most recent year to end September 2023, both starts and completions have fallen.

Chart 1: Annual all-sector new housebuilding starts and completions decreased by 24% and 6% respectively, in the latest year to end September 2023.

In the latest year to end September 2023, completions have decreased by 6% (1,355 homes) to stand at 21,952 homes. Starts decreased by 24% (5,260 homes) to 16,274 homes. Private-led completions fell by 3% (491 homes) and housing association completions increased by 9% (377 homes), whilst local authority completions decreased by 44% (1,241 homes). Private-led starts decreased by 19% (3,017 homes), housing association new build starts decreased by 34% (1,099 homes) and local authority new build starts decreased by 50% (1,144 homes).

Chart 2 below presents the latest quarterly trends in completions to end September 2023, in which there were 5,025 all-sector completions in the latest quarter July to September 2023, a decrease of 22% (1,458 homes) on the 6,483 completions in the same quarter in 2022.

The 3,470 private sector led completions in July to September 2023 is a decrease of 20% (894 homes) on the 4,364 completions in the same quarter in 2022.

The 450 local authority completions in July to September 2023 is a decrease of 44% (360 homes) on the 810 completions in the same quarter in 2022.

The 1,105 housing association completions in July to September 2023 is a decrease of 16% (204 homes) on the 1,309 completions in the same quarter in 2022.

Chart 2: All-sector new housebuilding completions by quarter.

Chart 3 shows the equivalent quarterly trends in starts, in which there were 4,042 all-sector starts in the latest quarter July to September 2023. This is a decrease of 24% (1,302 homes) on the 5,344 starts in the same quarter in 2022.

The 3,118 private sector led starts in July to September 2023 is a decrease of 23% (930 homes) on the 4,048 starts in the same quarter in 2022.

The 190 local authority starts in July to September 2023 is a decrease of 57% (250 homes) on the 440 starts in the same quarter in 2022.

There were 734 housing association starts in July to September 2023, which was a decrease of 14% (122 homes) on the 856 starts in the same quarter in 2022.

Chart 3: All-sector new housebuilding starts by quarter.

Table 1: All-sector new housebuilding to end September 2023

Note in the chart above that new housebuilding starts and completions in April to June 2020 were affected by the impact of the COVID-19 lockdown measures that were in place during that quarter.

Map A below shows that in the year to end September 2023, the highest new build rates were observed in the local authority areas of Argyll & Bute, East Lothian, East Renfrewshire, Midlothian, Na h-Eileanan Siar, Orkney, Perth & Kinross, Renfrewshire and West Lothian which each had rates of more than 48 homes per 10,000 population.

The lowest rates were observed in Clackmannanshire, Dumfries & Galloway, East Dunbartonshire, Falkirk, Glasgow City, North Lanarkshire and Scottish Borders which each had rates of 27 homes or fewer per 10,000 population.

Note that all-sector completion rates calculations contain some estimated figures for Aberdeen City, Dundee City, East Dunbartonshire, Highland, South Ayrshire and Stirling. Further details are in the Data and Methodology section.

Map A: New build housing – All Sector completions: rates per 10,000 population, year to end September 2023.

New housebuilding across UK countries

Chart 4a presents trends in the rates of all-sector new housebuilding completions per 10,000 population across each of the UK countries on a financial year basis (years to end March). Financial years are used to allow comparisons across all UK countries. The most comprehensive measure for England’s housing supply is the financial year ‘net additional dwellings' series, rather than the indicative indicators of activity published in the quarterly new build statistics.

The chart shows that whilst Scotland had a higher rate of completions per 10,000 head of population than England (‘net additional dwellings’ series) over the period 2007/08 to 2013/14, that Scotland and England have since seen broadly similar rates of housebuilding each year across the period 2014/15 to 2021/22, with the exception of 2020/21 in which Scotland saw a sharper fall, possibly due to the stricter COVID-19 lockdown restrictions that were in place for housing building in Scotland.

Available figures for the financial year 2022/23 show that in Scotland the completions rate increased to 43 homes per 10,000, compared to a figure of 39 the previous year.  England’s rate increased from 37 to 38 per 10,000 (net additions figures), the figure for Wales rose from 17 to 18 per 10,000, whilst Northern Ireland’s rate fell from 39 per 10,000 to 34 in 2022/23.

Chart 4a: New housebuilding completions as a rate per 10,000 population (years to end March) - Scotland has a rate of 43 in the latest year to end March 2023, increasing from 39 in the previous year.

Chart 4b presents equivalent trends on a quarterly basis, based on the latest published information available for each country, although quarterly figures for Wales 2020/21 and 2021/22 aren’t available, so the annual figures have been averaged across the four quarters. The England ‘net additional dwelling’ figures for the financial years 2019/20 to 2021/22 are also included as averages across each of the quarters within these years, to help demonstrate the difference in the relative level between this figure and the separate quarterly England building control based figures.

The chart shows the clear impact of COVID-19 lockdown restrictions on construction activity in the quarter April to June 2020, with the rates of new housebuilding per 10,000 population dropping compared to the same quarter in the previous year by 85% in Scotland, 64% in England (building control based figures), and 61% in Northern Ireland, which may reflect stricter lockdown restrictions for Scottish housing building compared to England and Northern Ireland.

Following this, the rates of new housebuilding in each of these countries have subsequently increased back up to higher levels, though since around October to December 2022, quarterly completions have fallen in each country to levels a little below pre-covid levels.

Chart 4b: Quarterly new housebuilding completion rates per 10,000 population for Scotland, Northern Ireland, England and Wales.