Scottish Government housebuilding on the rise

Housing starts and completions have both increased.

The Scottish Government has released its quarterly update on housing statistics and the results show that new starts were on the rise in the final quarter of last year.

Released yesterday, the Housing Statistics for Scotland Quarterly Update gives trends on new build housing starts and completions, as well local authority house sales and the Affordable Housing Supply Programme.

The figures show that between October and December 2014, 4,159 new homes started, which means that the total number of new build housing started last year was 15% up on the year before, and in terms of the final quarter, the number is 26% better than the corresponding quarter of 2013.

Completion statistics for new homes weren’t quite as buoyant but there was a rise nevertheless. Between October and December 2014, 4,210 new homes were completed, which is 1% higher than 2013’s final quarter, and in the whole year, there was a 4% increase in completions from the year before.

Private-led housing saw 8% and 16% increases in completions during the final quarter and the whole year respectively, in comparison to 2013.

Private sector-led starts were also on the rise, by 34%, with a 19% jump through the whole year.

The report has some figures that go beyond the October-December 2014 threshold. For social sector housing, these show that between January to March 2015, 1,677 social sector homes were completed, which is almost double the level in the first quarter of 2014, while there was a 2% increase in starts during that time.

Housing association new build completions during that time had similar success, with more than double the rate of completion from the same period in 2013. In the 12 months to the end of March 2015, new building housing completions for housing associations were up 5% from the previous 12 months.

Finally, local authority homes show that new build housing completions between January and March 2015 were more than double the figures from the corresponding time in 2014.

For the Affordable Housing Supply Programme, the latest evidence for the financial year 2014/15 says that affordable housing completions are up by 1% on the previous year, while total starts have risen by 11% from the previous year and are now at 6,641.

Significantly, the figures show that the Scottish Government is ahead of the five-year target set out to build 30,000 affordable homes by March next year.

Margaret Burgess, Housing Minister, is delighted with the figures.

She said: “Housing is at the heart of the Scottish Government’s ambitions to create a fairer and more prosperous country and the supply of affordable homes is a key priority. I’m delighted to say we are well on track to meeting our five-year target of 30,000 new homes by 2016.

“The figures for the first quarter to the end of March 2015 are positive and we will work with partners to deliver our target of 30,000 new homes across Scotland by next year.”

Mactaggart & Mickel Group’s Chief Executive, Ed Monaghan, welcomed the figures, adding: “The statistics released by the Scottish Government showing a continued rise in new build completions are welcome news for the industry and can be attributed to the increasing investment from the private sector.

“This boost in consumer confidence can be linked to initiatives that stimulate the market such as Help to Buy (Scotland).

“This rare housing policy success has not only helped those in most need, it has also driven the industry on an upward trajectory. However, now that the Help to Buy scheme has come to an end in Scotland, more needs to be done to ensure the industry continues to prosper.

“It’s important that we continue to encourage growth in the construction industry by offering housebuilder-led assistance initiatives, boosting skilled employment and also through partnership working on innovative programmes in which the public sector has a vital role to play.”

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