Home builders

Homebuilders welcome rise in completions, but express concern over affordable housing approvals

The latest statistics showing a 26% increase in the total number of new homes completed during the year to the end of September 2021 compared to the previous 12 months (in which activity was impacted by Covid) was hailed as a step in the right direction by the sector body Homes for Scotland.

Statistics on the supply of affordable housing, published yesterday, show that 9,757 affordable housing units were delivered in the 12 months to the end of March 2022, an increase of 51% (3,279 units) compared to the 6,478 units completed the previous year, and the full year figure highest recorded since the start of the series in 2000-01. The increase was spurred by the completion of 3,346 affordable housing units in the last quarter of January to March 2022.

With completions reaching 20,056, the Scottish Government was able to meet its target of 50,000 affordable homes for this Parliament in March.



Homes for Scotland chief executive Jane Wood said: “Ensuring we have the homes that everyone living in Scotland needs to meet housing needs and aspirations is essential to social wellbeing. and the economic success of our country, so the increase in completions across all tenures that was announced today is clearly welcome. However, there is still a very long way to go.

“The numbers are still significantly down from pre-Covid activity levels and 20% below what we think is needed each year, so there is no room for complacency – especially given the very difficult circumstances currently facing homebuilders in terms of labor and material shortages and the resulting significant cost pressures affecting both the public and private sectors.

Ms Wood highlighted the 44 per cent decline in housing association approvals, adding: ‘Unfortunately, this aligns with member feedback and demonstrates the importance of having effective and timely data to support policy-making and the economy. wider Scotland. Urgent action must be taken to halt this decline, or we will see ever fewer affordable homes coming into the pipeline.

Meanwhile, there were 3,232 affordable housing units approved in the last quarter of January to March 2022, bringing the total number of affordable housing units approved in the 12 months to the end of March 2022 to 7,821, a slight decrease. of 1% (63 units) out of the 7,884 houses approved the previous year. The number of affordable rent approvals (by 6% or 56 units) and affordable homeownership (by 19% or 164 units) increased, while social rent approvals decreased by 5% or 283 units .



There were 3,160 affordable housing units started in the last quarter of January to March 2022, bringing the total number of affordable housing units started in the 12 months ending March 2022 to 8,253, a decrease of 19% ( 1,897 dwellings) out of the 10,150 dwellings approved last year. There was a 16% increase (144 housing units) in the number of affordable housing starts, while social rent housing starts fell by 17%, i.e. 1,342 housing units, and affordable rental housing starts fell by 49%, i.e. 699 accommodations.

The latest quarterly figures show that the target of 50,000 affordable homes was met in March 2022, with a total of 51,119 homes completed between April 2016 and the end of March 2022.

Of the 50,000 affordable housing units completed between April 1, 2016 and March 23, 2022, 34,405 units (69%) were social rent, 6,245 (12%) affordable and 9,350 (19%) home ownership. to affordable home ownership.

Now that the target of 50,000 affordable homes has been reached, Ms Robison said the longer-term ambition is to provide 110,000 affordable homes by 2032, of which at least 70% will be for social rent and 10 % in remote, rural and island communities. .



The latest statistics show that between March 24, 2022 and March 31, 2022, a total of 1,119 affordable housing units (1,057 social rental housing, 16 affordable housing and 46 affordable housing) were completed compared to the new target of 110,000.

Housing Secretary Shona Robison said: “The pandemic has shown the value of a good quality home, but it has also posed significant challenges to all those involved in providing affordable housing over the past two last years. I am very happy that despite this we have reached our target of 50,000 and that since 2007 we have delivered 111,750 affordable housing units, including more than 78,000 for social rent.

“I want to thank all of our partners for helping us bring so much affordable housing to Scots.

“We have now started making progress towards our next target of delivering 110,000 affordable homes by 2032, of which 70% will be for social rent and 10% in remote, rural and island communities, as part of our ambition to guarantee everyone a warm, safe and affordable place to call home.



“Scotland has led the way across the UK with the delivery of affordable housing, but that is only part of our mission to provide a fairer housing sector. Our Housing to 2040 roadmap is central to this mission, with priorities including actions to tackle high rents in the private sector, improve standards and make homes easier to heat.

Quarterly Housing Statistics figures for June 2022 also revealed that there were 20,056 new builds across all sectors completed in Scotland in the year to the end of September 2021, an increase of 26% (4,174 dwellings) compared to the 15,882 completions of the previous one. year, during which activity levels were impacted by containment measures.

Increases were seen in completions led by the private sector (25% or 2,894 units), completions by local authorities (77% or 865 units) and completions by housing associations (13% or 415 units) .

The number of new housing constructions started in all sectors also increased in the year to the end of September 2021, with 21,666 housing starts, up 13% (2,476 units) from 19,190. housing starts from the previous year. Housing starts for individuals increased by 37% (4,478 housing units) and housing starts for communities by 31% (450 housing units), while authorizations for OLMs fell by 44% (2,452 housing units).



More recent figures released as part of the UK House Price Index show a total of 11,663 private new build sales transactions in Scotland in the 12 months to the end of January 2022. This is a 38% increase (3,202 transactions) on the 8,461 transactions recorded the previous year at the end of January 2021.

Increases were seen in completions led by the private sector (25% or 2,894 units), completions by local authorities (77% or 865 units) and completions by housing associations (13% or 415 units) .

The number of new home construction starts across all sectors also increased in the year to the end of September 2021, with 21,666 housing starts, up 13% (2,476 homes) from 19,190. housing starts from the previous year. Housing starts for individuals increased by 37% (4,478 housing units) and housing starts for communities by 31% (450 housing units), while authorizations for OLMs fell by 44% (2,452 housing units).

More recent figures released as part of the UK House Price Index show a total of 11,663 private new build sales transactions in Scotland in the 12 months to January 2022. This is a 38% increase (3,202 transactions) on the 8,461 transactions recorded the previous year at the end of January 2021.