All-Sector New Housebuilding

Chart 1 shows that annual all-sector new build starts and completions in the years to end June 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 June 2019. Starts and completions then dropped in the year to end June 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 June 2021. In the most recent year to end June 2023, starts have fallen whilst completions have continued to increase.

Chart 1: Annual all-sector new housebuilding completions increased by 7% in the latest year to end June 2023, although starts have dropped by 12%.

In the latest year to end June 2023, completions have increased by 7% to stand at 23,346 homes. Starts decreased by 12% to 17,425 homes. Private-led completions rose by 9% (1,342 homes) and housing association completions rose by 18% (728 homes), whilst local authority completions decreased by 23% (589 homes). Private-led starts decreased by 7% (1,085 homes), housing association new build starts decreased by 21% (599 homes) and local authority new build starts decreased by 32% (656 homes).

Chart 2 below presents the latest quarterly trends in completions to end June 2023, in which there were 4,924 all-sector completions in the latest quarter April to June 2023, a decrease of 8% (422 homes) on the 5,346 completions in the same quarter in 2022.

The 3,982 private sector led completions in April to June 2023 is a decrease of 3% (107 homes) on the 4,089 completions in the same quarter in 2022.

The 334 local authority completions in April to June 2023 is a decrease of 7% (26 homes) on the 360 completions in the same quarter in 2022.

The 608 housing association completions in April to June 2023 is a decrease of 32% (289 homes) on the 897 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 4,268 all-sector starts in the latest quarter April to June 2023. This is a decrease of 26% (1,465 homes) on the 5,733 starts in the same quarter in 2022.

The 3,621 private sector led starts in April to June 2023 is a decrease of 23% (1,104 homes) on the 4,725 starts in the same quarter in 2022.

The 283 local authority starts in April to June 2023 is a decrease of 60% (426 homes) on the 709 starts in the same quarter in 2022.

Meanwhile the 364 housing association starts in April to June 2023 is an increase of 22% (65 homes) on the 299 starts in the same quarter in 2022.

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

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

Note in the table 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 June 2023, the highest new build rates were observed in the local authority areas of East Lothian, East Renfrewshire, Highland, Midlothian, Na h-Eileanan Siar, Perth & Kinross, Renfrewshire, South Lanarkshire and West Lothian, which each had rates of more than 50 homes per 10,000 population.

The lowest rates were observed in Angus, Argyll & Bute, Clackmannanshire, East Dunbartonshire, Falkirk, North Lanarkshire, Scottish Borders, and Stirling, which each had rates of 28 homes or fewer per 10,000 population.

Note that All sector completion rates calculations contain some estimated figures for Aberdeen City, Angus, East Dunbartonshire, Highland, Dundee City, Moray, 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 June 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) to allow for comparisons with both the England financial year ‘net additional dwelling’ statistics and financial year rates derived from each of the quarterly UK series.

The England financial year ‘net additional dwellings' series is considered the primary and most comprehensive measure of housing supply in England. The quarterly new build statistical collection for England based on building control is not currently capturing all new build activity, and so is seen more as a leading indicator of activity throughout the year.

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 (excluding England for which the ‘net additional dwellings’ measure is not yet available) show that in Scotland and Wales the completions rate increased from the previous year, with the rate in Scotland being 43 homes per 10,000 population compared to a rate of 18 in Wales, whilst Northern Ireland’s rate fell from 39 per 10,000 to 34.

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, and trends appear to have been broadly flat following this, except for the quarterly rates in Northern Ireland which have shown a slight downward trend since October to December 2020.

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