13% increase in number of new build homes started

There were 19,598 new build homes started across all sectors over the year ending June 2017, an increase of 13%, or 2,188 homes, on the previous year.

Scotland’s Chief Statistician today released the latest Quarterly Housing Statistics for Scotland, which presents the latest quarterly information on new build housing, affordable housing supply, and local authority right to buy sales, along with the latest annual figures on long term empty properties and second homes. An additional summary report is also included on the recently released Scottish Household Survey local authority level housing tables.

The 13% increase in all sector new build starts in the 12 months to end June 2017 included increases in private-led starts (5% or 668 homes) and housing associations starts (63% or 1,942 homes), whilst local authority starts fell by 422 homes (26%). The total number of social sector starts (housing association and local authority starts combined) increased by 1,520 homes (32%).

There were 17,178 all sector new build completions in the 12 months to end June 2017, a decrease of 186 homes (1%) on the 17,364 completions in the previous year. Private-led new builds increased by 59 homes (0.4%) and local authority new builds increased by 94 homes (8%), whilst housing association new builds decreased by 339 homes (12%).

Housing stats graph

Key Points

 New Build Housing – All Sectors

• There were 4,503 new build homes completed between April and June 2017; a 1% increase (49 homes) on the same quarter in 2016. This brings the total for the year to end June 2017 to 17,178, down 1% (186 homes) compared to the 17,364 completed in the previous year.

• There were 4,560 new build homes started between April and June 2017; 10% more than the same quarter in 2016. This brings the total for the year to end June 2017 to 19,598 which is up by 13% (2,188 homes) compared to the 17,410 homes started in the previous year.

New Build Housing – Private-led Housing

• Between April and June 2017, 3,684 private sector led homes were completed; 7% more (232 homes) than the same quarter in 2016. This brings the total for the year to end June 2017 to 13,470, which is 59 homes (0.4%) more than the 13,411 completions in the previous year.
• There were 3,972 private sector led starts between April and June 2017, up 15% on the same quarter in 2016. This brings the total for the year ending June 2017 to 13,364, which is 5% (668 homes) more than the 12,696 starts in the previous year.

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

• There were 819 social housing completions between April and June 2017; 18% less than the same quarter in 2016. This brings the total for the year to end June 2017 to 3,708. This is a 6% decrease on the 3,953 social sector completions in the previous year.
• Meanwhile, 588 social sector homes were started between April and June 2017; 15% less than the same quarter in 2016. This brings the total for the year to end June 2017 to 6,234. This is a 32% increase on the 4,714 social sector starts in the previous year.
• More up-to-date figures show that, between July and September 2017, 725 social sector homes were completed (20% fewer than the 903 completions in the same quarter in 2016), and 935 were started (29% less than the same quarter in the previous year). This brings the total completions for the 12 months to end September 2017 to 3,530 (a 9% decrease on the 3,871 social sector homes completed in the previous year). Total starts over the 12 months to end September 2017 are now at 5,849 (14% more than the 5,142 started in the previous year).

New Build Housing – Housing Association Homes

• There were 462 housing association completions between April and June 2017, 38% less than the 746 completions in the same quarter in 2016. This brings the total for the year to end June 2017 to 2,464, a 12% (339 homes) decrease on the 2,803 completions over the previous year.
• There were 426 housing association approvals between April and June 2017; 21% more than the 351 approvals in the same quarter in the previous year. This brings the total for the year to end June 2017 to 5,020. This is an increase of 63% (1,942 homes) on the 3,078 approvals in the previous year.
• More up-to-date figures show that a total of 386 Housing Association homes were completed between July and September 2017, 43% less completions than in the same period in the previous year (681 homes). This brings the total completions for the 12 months to end September 2017 to 2,169, which is a decrease of 19% on the 2,694 homes completed in the previous year. A total of 540 Housing Association homes were approved between July and September 2017, 34% less than the 817 approvals in the same quarter in 2016. This brings the total approvals for the 12 months to end September 2017 to 4,743, a 33% increase on the 3,563 approvals in the previous year.

New Build Housing – Local Authority Homes

• There were 357 local authority completions between April and June 2017, which is 39% more than the number that were completed in the same quarter in 2016. This brings the total for the year ending June 2017 to 1,244. This is a 8% (94 homes) increase on the 1,150 completions the previous year.
• There were 162 local authority starts between April and June 2017; 53% lower than the number in the same quarter in 2016. This brings the total for year ending June 2017 to 1,214. This is a 26% (422 homes) decrease on the 1,636 starts in the previous year.
• More up-to-date figures show that, between July and September 2017, 339 local authority houses were completed (53% more homes than the same quarter in the previous year), and 395 were started (21% fewer homes than the same quarter in the previous year). This brings the total completions for the year to end September 2017 to 1,361, which is 16% more than the previous year. Total starts for the 12 months to end September 2017 now stands at 1,106 which is a decrease of 30% on the 1,579 local authority homes started in the previous year.

Affordable Housing Supply – up to end September 2017

• 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 statistics for the year to end September 2017 show that affordable housing supply completions have totalled 6,795, down 1% (82 homes) on the previous year. This includes an increase in affordable rent completions (up by 7% or 59 homes), but decreases in social rent completions (down by 2% or 91 homes) and affordable home ownership completions (down by 3% or 50 homes).
• There were 9,928 affordable housing approvals over the year up to end September 2017, up by 12% or 1,031 homes compared to the previous year. This includes increases in social rent approvals (up by 15% or 831 homes), affordable rent approvals (up by 19% or 242 homes), with a decrease in affordable home ownership approvals (down by 2% or 42 homes).
• There were 9,287 affordable houses started in the year to end September 2017, up by 8% or 726 homes compared to the previous year. This includes increases in social rent starts (up by 5% or 304 homes), and affordable rent starts (up by 71% or 626 homes), with a decrease in affordable home ownership starts (down 10% or 204 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, therefore there were no Right to Buy applications made during the latest quarter April to June 2017.
• It can take a period of time for applications to be processed and for sales to be made, and therefore Right to Buy sales are still being recorded. In the latest available quarter, April to June 2017, there were 787 Right to Buy sales, 56% more than the 506 sales in the same quarter in the previous year, however this was 19% less than the 971 sales in the previous quarter January to March 2017. This drop in sales compared to the previous quarter suggests that the recent increase in sales may have now peaked, and may begin to fall further in future quarters as the number of applications remaining in the system falls.

Long Term Empty Properties and Second Homes

• The total number of long term empty properties and second homes has increased in the latest year by 930 properties (2%) from 61,865 in September 2016 to 62,795 in September 2017. However the figure as at September 2017 is 3,258 homes (5%) lower than the 66,053 properties recorded as at September 2012.

The summary report on the recently released Scottish Household Survey local authority level housing tables for the year 2016 includes the following key points:

• Housing tenure in 2016 varied by local authority area, with owner occupation rates ranging from 44% in Dundee and 47% in Glasgow, up to 81% in East Dunbartonshire and 82% in East Renfrewshire.
• City authorities generally had higher rates of private rented sector properties, where this type of property accounted for 19% of households in Glasgow, 20% in Aberdeen City, 22% in Dundee City, and 26% in City of Edinburgh.
• Around 81% of households across Scotland would most like to live in the owner occupier sector in 2016, and this varied from 94% in East Renfrewshire and 92% in Na h-Eileanan Siar, East Renfrewshire and East Lothian, to 67% in Glasgow City and Dundee City.
• Around 19% of households in Glasgow City would most like to live in a housing association property, whilst 16% of households in North Ayrshire and South Ayrshire would most like to live in council rented properties.

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 online.

Background information including Excel tables and an explanatory note on the Quarterly Housing Statistics can be found in the Housing Statistics webpages.

The Summary Report on the Scottish Household Survey local authority level housing tables is available online.

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 online.