New build housing completions up by 4% on last year

There were 15,991 new build homes completed in the 12 months to June 2016, an increase of 591 homes, or 4%, on the 15,400 homes completed in the previous year.

Scotland’s Chief Statistician today released the latest Quarterly Housing Statistics for Scotland, which presents the latest quarterly information on new builds, affordable housing supply and local authority right to buy applications and sales, as well as annual information on long term empty homes.

There were increases in the number of new build completions over the year to end June 2016 for private-led new builds (up by 537 homes or 5%), housing association new builds (up by 46 homes or 2%), and local authority new builds (up by 8 homes or 1%), when compared to the previous year.

There were a total of 16,450 new build starts over the year to end June 2016, a decrease of 681 homes, or 4%, on the 17,131 starts in the previous year. There were increases in the number of housing association approvals (up by 418 homes or 16%) and local authority starts (up by 334 homes or 26%), whilst private-led new build starts decreased by 1,433 homes (11%), when compared to the previous year.

Key Points

New Build Housing – All Sectors:

• There were 3,973 new build homes completed between April and June 2016; a 4% increase on the same quarter in 2015. This brings the total for the year to end June 2016 to 15,991, up 4% (591 homes) compared to the 15,400 completed in the previous year.
• There were 3,968 new build homes started between April and June 2016; 13% fewer than the same quarter in 2015. This brings the total for the year to end June 2016 to 16,450 which is down by 4% (681 homes) compared to the 17,131 homes started in the previous year.

New Build Housing – Private-led Housing:

• Between April and June 2016, 3,078 private sector led homes were completed; down 7% on the same quarter in 2015. This brings the total for the year to end June 2016 to 12,145, which is 5% (537 homes) higher than the 11,608 completions in the previous year.
• There were 3,348 private sector led starts between April and June 2016, 17% down on the same quarter in 2015. This brings the total for the year ending June 2016 to 11,810, which is 11% (1,433 homes) less than the 13,243 starts in the previous year.

New Build Housing – Social Sector Housing (Housing Association and Local Authority combined):

• There were 895 social housing completions between April and June 2016; 77% more than the same quarter in 2015. This brings the total for the year to end June 2016 to 3,846. This is a 1% increase on the 3,792 social sector completions in the previous year.
• Meanwhile, 620 social sector homes were started between April and June 2016; 20% higher than the same quarter in 2015. This brings the total for the year to end June 2016 to 4,640. This is a 19% increase on the 3,888 social sector starts in the previous year.
• More up-to-date figures show that, in July to September 2016, 832 social sector homes were completed (153 fewer than the 985 completions in the same quarter in 2015), and 1,282 were started (44% more than the same quarter in the previous year). This brings the total completions for the 12 months to end September 2016 to 3,693 (a 9% decrease on the 4,052 social sector homes completed in the previous year). Total starts over the 12 months to end September 2016 are now at 5,030 (23% more than the 4,089 started in the previous year).

New Build Housing – Housing Association Homes:

• There were 639 housing association completions between April and June 2016, which is 143% more than the same quarter in 2015. This brings the total for the year to end June 2016 to 2,696. This is a 2% (46 homes) increase on the 2,650 completions over the previous year.
• There were 277 housing association approvals between April and June 2016; 55% more than the same quarter in the previous year. This brings the total for the year to end June 2016 to 3,004. This is an increase of 16% (418 homes) on the 2,586 approvals in the previous year.
• More up-to-date figures show that a total of 610 Housing Association homes were completed between July and September 2016, 23% fewer completions than in the same period in the previous year (790 homes). This brings the total completions for the 12 months to end September 2016 to 2,516, which is a decrease of 16% on the 3,001 homes completed in the previous year. A total of 803 Housing Association homes were approved between July and September 2016, which is 142% more than the same quarter in 2015. This brings the total approvals for the 12 months to end September 2016 to 3,475, a 33% increase on the 2,618 approvals in the previous year.

New Build Housing – Local Authority Homes:

• There were 256 local authority completions between April and June 2016, which is 5% more than the number that were completed in the same quarter in 2015. This brings the total for the year ending June 2016 to 1,150. This is a 1% (8 homes) increase on the 1,142 completions the previous year.
• There were 343 local authority starts between April and June 2016; 1% higher than the number in the same quarter in 2015. This brings the total for year ending June 2016 to 1,636. This is a 26% (334 homes) increase on the 1,302 starts in the previous year.
• More up-to-date figures show that, between July and September 2016, 222 local authority houses were completed (27 more homes than the same quarter in the previous year), and 479 were started (81 fewer homes than the same quarter in the previous year). This brings the total completions for the year to end September 2016 to 1,177, which is 12% higher than the previous year. Total starts for the 12 months to end September 2016 now stands at 1,555 which is an increase of 6% on the 1,471 local authority homes completed in the previous year.

Affordable Housing Supply – up to end September 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 latest quarterly statistics for the year to end September 2016 show that affordable housing supply completions have totalled 6,624, down 7% on the previous year. This includes decreases in social rent completions (down by 10% or 433 homes) and affordable rent completions (down by 14% or 142 homes), along with an increase in affordable home ownership completions (up by 5% or 91 homes).
• There were 8,786 affordable housing approvals over the year up to end September 2016, up by 34% or 2,250 homes compared to the previous year. This includes increases in social rent approvals (up by 29% or 1,279 homes), affordable rent approvals (up by 38% or 349 homes), and affordable home ownership approvals (up 48% or 622 homes).
• There were 8,192 new affordable houses started in the year to end September 2016, up by 35% or 2,110 homes compared to the previous year. This includes increases in social rent starts (up by 40% or 1,543 homes) and affordable home ownership starts (up by 46% or 605 homes), and a decrease in affordable rent starts (down by 4% or 38 homes).
• 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.

Local Authority Right to Buy Applications and Sales:

• The Right to Buy scheme closed to all new applicants on 31 July 2016. The most recent figures available for applications and sales are for April to June 2016. During this period there were 2,961 Right to Buy applications (more than double the 1,099 applications in the same quarter in the previous year) and 505 sales (58% higher than in the same quarter in the previous year).

Long term empty homes

• The total number of long term empty properties and second homes has decreased by 1,871 properties (3%) from 63,736 in September 2015 to 61,865 in September 2016.

Background

Note that the new build starts figures quoted in this Statistical News Release contain information on approvals rather than starts for housing associations. This is because the data held on approvals for housing association new builds is considered to be a more robust measure than the data held on starts. An approval is the point in time at which Scottish Government funding is granted through the Affordable Housing Supply Programme. Further information on this is available in the explanatory document providing background information on the quarterly statistics.

The Affordable Housing Supply Programme statistics include off-the-shelf purchases and rehabilitations as well as new build.

• 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.

The publication, containing details of new house building the Affordable Housing Supply Programme and sales of social sector housing, can be found at this address: http://www.gov.scot/stats/bulletins/01254

The web tables associated with this publication can be found as follows:

New build and AHSP tables: http://www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/HSfS/NewBuild/AHSPtables

Local Authority house sales: http://www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/HSfS/Sales

The new build, AHSP and sales tables are updated each quarter. A range of other statistics are updated annually and are available on the Housing Statistics for Scotland website:

http://www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/HSfS.

Housing Association and most Local Authority led new build activity is funded through Scottish Government funding programmes. Several changes to these funding programmes in recent years have affected both the trends and seasonal quarterly pattern of new build approvals, so care should be taken when making comparisons over time. These same changes will also impact on the Affordable Housing Supply Programme.

The supply statistics break down new build construction activity into private-led and social sector starts and completions, with the social sector further broken down between local authority and registered social landlord (housing association). The figures are as recorded by Local Authority administrative systems and the Scottish Government Affordable Housing Supply Programme (AHSP) system. Private sector construction activity includes not only homes built for private sale but also some homes which are used in the affordable housing sector and self-build activity by local builders.

Official statistics are produced by professionally independent statistical staff – more information on the standards of official statistics in Scotland can be accessed at: http://www.gov.scot/Topics/Statistics/About.