6% Rise In Completed New Homes

There was a 6% rise in the number of homes built in the year to the end of September 2014, new figures have revealed.

A total of 15,436 homes were completed over that period, 901 more than in the year to the end of September 2013.

The Scottish Government said the annual increase has been driven by a rise in the number of private sector led new-build completions, which totalled 11,944 in the year to the end of September 2014, an increase of 18% (1,842 homes) on the previous year.

During the same period, 3,492 social sector homes were built, a decrease of 21% on the previous year, according to statistics released today by Scotland's Chief Statistician.

The social sector decrease is due to a 22% (715 homes) fall in the number of housing association new-builds along with a 19% (226 homes) drop in the number of local authority completions, the Scottish Government said.

Meanwhile the number of new-build homes completed between July and September last year dropped by more than 1,000 on the previous quarter.

There were 3,316 new-builds completed in Scotland over that period, down from the 4,620 finished between April and June 2014 - which had been the highest figure since the end of 2009.

Housing Minister Margaret Burgess said: These latest figures are to be welcomed and will provide further encouragement for Scotland's house building industry.

High quality, energy efficient homes form the cornerstone of socially and economically sustainable communities.

Our increased investment in house building has helped stimulate growth in the Scottish economy and led to more starts in the private and social sectors.

We plan to spend over £1.7 billion to deliver our target of 30,000 affordable homes over the lifetime of this Parliament. There is a £200 million increase in the housing budget for 2015-16 compared to the budget for 2014-15.

With almost 24,000 affordable homes delivered, we have already reached 80% of this target.

This comes despite continuing, challenging economic times and Westminster cuts to budgets.''

The 3,316 new-build homes completed between July and September last year included 2,610 private sector homes, 1% below the quarterly average since 2011, and 706 social housing completions, 39% down on the same quarter in 2013.

Meanwhile, 584 social sector homes were started between July and September 2014, 34% up on the same quarter in the previous year.

Susan Torrance, Scottish Federation of Housing Associations (SFHA) policy manager, said: The SFHA notes with concern the dramatic decrease in housing association completions of new homes when comparing the July to September figures for 2014 as opposed to 2013.

This is echoed in the similar decrease in approvals for new homes in the same period. While the total approvals are increasing, this is from the very low level seen in previous years when there were concerns about subsidy levels and viability.

The reasons may well be found in the continuing concerns about the availability of private finance for new projects as well as land banking and pipeline issues where investment in progressing new projects has been difficult. The SFHA is working with the sector and Scottish Government, in relation to our Housing Association Resource for Investment Scheme finance project, to try and overcome these constraints as well as continuing the dialogue with lenders and others to improve terms and conditions.

Whether these figures can be seen as a blip or otherwise, they do emphasis the continuing difficulties of delivering new social rented housing for the people in our communities in greatest need. We must continue, as a sector, to keep building new homes, where these are required, for the people of Scotland.''

In the year to the end of September 2014 the number of social sector homes started rose by 5% to 3,593 compared to 3,417 started in the previous year.

Graeme Brown, director of housing and homelessness charity Shelter Scotland, said: We welcome the increase in the number of new homes for social rent in Scotland. However, the increase to 3,593 new-build starts is still far below the number needed to meet demand.

A lack of investment in social housing over the last three decades and the impact of right-to-buy, with more than half a million social homes sold off, all add up to a major shortage of social housing across Scotland.

With 150,500 households on council waiting lists for a home of their own, we believe at least 10,000 new homes for social rent need to be built each year to meaningfully start to tackle Scotland's housing crisis.''