march 2010
Decline in new build completions
New government statistics reveal that there were 41% fewer houses completed in Scotland in the latest quarter (2009 Q3) than in the same quarter last year. Taking the last four quarters together, there was a 26% reduction in completions compared with the same period the previous year.
The updated Housing Statistics show that overall, 11% more houses were started in the latest quarter (2009 Q3) than in the same quarter last year. However, over the past four quarters there were 34% fewer starts than in the same quarters the previous year.
According to the Scottish Government, this reduction in new house building has been driven by a decline in private sector building. In the social sector there has actually been a large increase in the number of new homes built.
Looking at the private sector, the statistics show that there were 52% fewer private sector homes completed in the latest quarter (2009 Q3) than in the same quarter last year. Looking at the latest four quarters together there was a 39% reduction in private sector completions compared with the same quarters the previous year.
Furthermore, there were 18% fewer private sector starts in the latest quarter (2009 Q3) than in the same quarter last year. The latest four quarters together show a 50% reduction in private sector starts compared with the same quarters in the previous year.
Completions of local authority homes, on the other hand, more than doubled in 2009 (411) when compared to those completed in 2008 (195). There were also 408 new local authority homes started in the 2009 calendar year - over triple the number started in 2008.
New builds under the Affordable Housing Investment Programme (AHIP) also increased, with 21% more AHIP completions in the latest quarter (2009 Q4) compared with the same quarter last year. There was a 33% increase in completions in the 2009 calendar year, compared with 2008.
The number of AHIP approvals/starts in the latest quarter (2009 Q4) was 71% higher than in the same quarter last year, with around 1,700 approvals in the latest quarter. The 2009 calendar year figure showed a 33% increase on 2008.
According to Housing and Communities Minister Alex Neil, investment in affordable housing has not only speeded up the supply of affordable housing for families throughout Scotland but it has also supported jobs, the construction industry and the country's' economy.
"It is, however, disappointing that the level of private new build starts has continued to fall sharply in comparison with previous years," he said.