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11/06/19 09:34

Number of new build homes completed tops 20,000 for the first time in a decade

Number of new build homes completed tops 20,000 for the first time in a decade: Stats logo-2

A National Statistics Publication for Scotland.

There were 20,255 new build homes completed across all sectors over the year ending December 2018, an increase of 15%, or 2,669 homes, on the previous year, and the highest number of annual completions since 2008.

Scotland’s Chief Statistician today released the latest Quarterly Housing Statistics for Scotland, which presents the latest quarterly information on new build housing and affordable housing supply.

The 15% increase in all sector new build completions in the 12 months to the end of December 2018 included increases in housing association completions (54% or 1,334 homes) and private sector completions (11% or 1,491 homes), whilst local authority completions fell by 156 homes (11%). The total number of social sector completions (housing association and local authority starts combined) increased by 1,178 homes (30%).

There were 22,258 all sector new build starts in the 12 months to the end of December 2018, an increase of 2,621 homes (13%) on the 19,637 starts in the previous year, and the highest annual starts figure since 2007. Private-led starts increased by 1,277 homes (9%), housing association approvals increased by 1,038 homes (23%), and local authority starts increased by 306 homes (22%). The total number of social sector starts (housing association and local authority starts combined) increased by 1,344 homes (23%).

Key Points

New Build Housing – All Sectors

  • There were 5,553 new build homes completed between October and December 2018; a 32% increase (1,361 homes) on the same quarter in 2017. This brings the total for the year to end December 2018 to 20,255, up 15% (2,669 homes) compared to the 17,586 completed in the previous year, and the first time since 2008 that annual completions have totalled over 20,000 homes.
  • There were 6,652 new build homes started between October 2018 and December 2018, 49% more (2,199 homes) than the same quarter in 2017. This brings the total for the year to end December 2018 to 22,258 which is up 13% (2,621 homes) compared to the 19,637 homes started in the previous year, and is the highest annual starts figure since 2007.

New Build Housing – Private-led Housing

  • Between October 2018 and December 2018, 4,551 private sector led homes were completed; 41% more (1,328 homes) than the same quarter in 2017. This brings the total for the year to end December 2018 to 15,152 which is 11% more (1,491 homes) than the 13,661 completions in the previous year, and is the first time in the last decade that annual completions have totalled over 15,000 homes.
  • There were 4,868 private sector led starts between October 2018 and December 2018, 51% more (1,651 homes) than the same quarter in 2017. This brings the total for the year ending December 2018 to 14,997 which is 9% more (1,277 homes) than the 13,720 starts in the previous year.

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

  • There were 1,002 social sector completions between October 2018 and December 2018; 3% (33 homes) more than the same quarter in 2017. This brings the total for the year to end December 2018 to 5,103. This is a 30% increase on the 3,925 social sector completions in the previous year.
  • Meanwhile, 1,784 social sector homes were started between October 2018 and December 2018; 44% (548 homes) more than in the same quarter in 2017. This brings the total for the year to end December 2018 to 7,261. This is a 23% increase on the 5,917 social sector starts in the previous year.
  • More up-to-date figures show that, between January and March 2019, 2,174 social sector homes were completed (28% more than the 1,695 completions in the same quarter in 2018), and 2,837 were started (16% less than the same quarter in the previous year). This brings the total completions for the 12 months to end March 2019 to 5,582 (a 22% increase on the 4,594 social sector homes completed in the previous year). Total starts over the 12 months to end March 2019 are now at 6,727 (11% more than the 6,084 started in the previous year).

New Build Housing – Housing Association Homes

  • There were 769 Housing Association completions between October 2018 and December 2018, 41% (225 homes) more completions than in the same period in the previous year. This brings the total completions for the 12 months to end December 2018 to 3,823, which is an increase of 54% on the 2,489 homes completed in the previous year.
  • There were 1300 housing association approvals between October 2018 and December 2018; 83% (590 homes) more than the 710 approvals in the same quarter in 2017. This brings the total approvals for the 12 months to end December 2018 to 5,592, a 23% increase on the 4,554 approvals in the previous year.
  • More up-to-date figures show that a total of 1,728 Housing Association homes were completed between January and March 2019, 25% (346 homes) more completions than in the same period in the previous year. This brings the total completions for the 12 months to end March 2019 to 4,169, which is an increase of 33% on the 3,130 homes completed in the previous year. A total of 2,319 Housing Association homes were approved between January and March 2019, 25% less homes than the 3,073 approvals in the same quarter in 2017. This brings the total approvals for the 12 months to end March 2019 to 4,838, a 3% increase on the 4,710 approvals in the previous year.

New Build Housing – Local Authority Homes

  • There were 233 local authority completions between October and December 2018, which is 45% (192 homes) less than the number that were completed in the same quarter in 2017. This brings the total for year ending December 2018 to 1,280. This is a 11% (156 homes) decrease on the 1,436 completions in the previous year.
  • There were 484 local authority starts between October and December 2018; 8% less (42 homes) than in the same quarter in the previous year. This brings the total for year ending December 2018 to 1,669. This is a 22% (306 homes) increase on the 1,363 starts in the previous year.
  • More up-to-date figures show that, January and March 2019, 446 local authority houses were completed (42% more than the same quarter in the previous year), and 518 were started (74% more than in the same quarter in the previous year). This brings the total completions for the year to end March 2019 to 1,413, which is 3% less than the previous year. Total starts for the 12 months to end March 2019 now stands at 1,889 which is an increase of 37% on the 1,374 local authority homes started in the previous year.

Affordable Housing Supply – up to end March 2019

  • 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 March 2019 show that affordable housing supply completions have totalled to 9,535, up 12% on the 8,534 completions in the previous year. This includes increases in social rent completions (up by 25% or 1307 homes) and decreases in affordable rent completions (down by 17% or 194 homes) and affordable home ownership completions (down by 5% or 112 homes).
  • There were 11,130 affordable housing approvals over the year up to end March 2019, down 5% or 547 homes compared to the previous year. This includes increases in social rent approvals (up by 12% or 792 homes) and affordable home ownership approvals (up by 9% or 194 homes) and decreases in affordable rent approvals (down by 55% or 1,533 homes) .
  • There were 10,872 affordable houses started in the year to end March 2019, up by 3% or 303 homes compared to the previous year. This includes increases in in social rent starts (up by 3% or 194 homes), and affordable home ownership starts (up by 17% or 346 homes), but a decrease in affordable rent starts (down by 13% or 237 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, and reflect the number of affordable homes delivered that have received some form of government support through loans, grant or guarantees.

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 and the Affordable Housing Supply Programme: http://www.gov.scot/ISBN/9781787818811

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

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.

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