5. Social sector new housebuilding

Social sector housing consists of local authority and housing association housing, and has accounted for around a third (30%) of all new build homes completed over the 12 months to the end of March 2023.

Chart 8 shows the number of local authority and housing association homes started and completed each year to end March. In 2010, the number of housing association completions was almost 5,600, and fell each year except 2015 to 2,300 in 2016, before increasing to over 4,200 in 2020. Housing association completions then dropped to around 2,400 in 2021, with completions in this year being affected by COVID-19 lockdown measures, before increasing to over 5,000 in the year to end March 2023.

Meanwhile housing association new build approvals fell between 2009 and 2013 to around 1,600, before trending up to over 6,000 in 2020. Approvals then fell to around 2,800 in 2021, before dropping to under 2,400 in 2023.

The number of local authority homes built generally rose from around 300 homes in 2009 up to almost 1,500 in 2020. This remained steady until 2021, before rising to 2,700 in 2022, then falling to around 1,900 in the latest year to end March 2023. Local authority new build starts have followed a broadly similar pattern to that of completions, but with some annual differences.

Chart 8: Latest annual social sector new build completions figures to end March 2023 show increases on the previous year for housing association completions, with housing association approvals and local authority starts and completions decreasing from the previous year.

A total of 1,940 social sector new build homes were completed between January to March 2023, a decrease of 2% (45 homes) on the same quarter in 2022. This brings the total completions for the 12 months to end March 2023 to 6,963, an increase of 6% (406 homes) on the 6,557 social sector new build homes completed in the previous year.

Meanwhile, 1,566 social sector new build homes were started between January to March 2023. This is 3% (55 homes) lower than the same quarter the previous year. This brings the total for the 12 months to end March 2023 to 4,187, a decrease of 9% (410 homes) on the 4,597 social sector homes started in the same period in 2022.

Maps C and D show the rates of housing association and local authority new build completions in each local authority area for the year to end March 2023 per 10,000 of the population. Note that 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 March 2023 local authority sector new build rates were highest in Aberdeen City, Midlothian, Highland, North Ayrshire, East Lothian, East Renfrewshire, and East Ayrshire with all having rates of over 5 homes per 10,000 households.

As well as the 6 stock transfer authorities mentioned above, Clackmannanshire,  Moray, Orkney Islands, Shetland Islands, and West Dunbartonshire built no new local authority sector homes in the year ending March 2023. Falkirk, Aberdeenshire, Dundee City, and Perth & Kinross all had a rate of less than 2 homes built per 10,000 households.

Meanwhile rates of housing association new build completions were highest in Inverclyde, Na h-Eileanan Siar, West Dunbartonshire, Dumfries & Galloway, Renfrewshire, South Ayrshire, West Lothian, and North Lanarkshire, all having rates of over 12 homes per 10,000 households.

Midlothian, East Renfrewshire, East Lothian, Aberdeen City, East Ayrshire, and Orkney Islands all had a rate less than 3 housing association homes per 10,000 households.

Charts 9 and 10 along with Table 5 show the latest quarterly figures for housing associations and local authorities to end March 2023.

Chart 9: Housing association new housebuilding approvals and completions are higher in the latest quarter January to March 2023 than in the same quarter in 2022.

Chart 10: In the latest quarter January to March 2023, local authority new housebuilding starts and completions are both below the levels seen in the same quarter in 2022, although some caution is needed in interpreting these changes given the level of volatility in the quarterly figures over this period.