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by Kate Shannon
25 November 2014
New build completions at their highest level in over three years

New build completions at their highest level in over three years

The number of new homes built in Scotland is at its highest level for over three years, new figures have revealed.

Official statistics released today show across all sectors, 4,583 homes were completed in April to June this year, the highest quarterly figure since 2010, and 29 per cent higher than in the same quarter last year.

Commenting on the latest statistics, Housing Minister Margaret Burgess said: “I welcome the fact that the number of new homes built across all sectors is at its highest level for over three years, and I am particularly pleased that we are nearing our target of delivering 20,000 homes for social rent by March 2016.

“The Scottish Government‘s investment in affordable housing, together with measures to support the industry and help people into home ownership, have undoubtedly helped to stimulate housing supply.

“Making sure everyone in Scotland has access to good quality housing is a vital part of the Scottish Government’s drive to secure economic growth, promote social justice, strengthen communities and tackle inequality.

“As part of this effort we have delivered over 4,500 new council houses since 2009 and have acted to preserve Scotland’s social housing stock by abolishing the Right to Buy from 1 August 2016, which will protect up to 15,500 social houses from sale and safeguard social housing for future generations.

“In addition, the supply of affordable housing continues to be a high priority for us, and we are now three quarters of the way towards our target of 30,000 affordable homes by March 2016. This commitment is underlined by our £1.7 billion investment in affordable housing over the current parliamentary term, which supports an estimated 8,000 jobs each year.”

However, Scotland’s home building industry responded with caution to the statistics.

Philip Hogg, Chief Executive of trade body Homes for Scotland, said: “Whilst any rise in the number of much needed new homes being built is, of course, to be warmly welcomed, what these figures show beyond doubt is the game-changing impact that the Help to Buy (Scotland) shared equity scheme had in the first half of 2014.

“However, funding for the scheme for this financial year ran out in July since which time sales have significantly dropped off.

“With the industry having to adjust production as a result, it is our view that this will be reflected in the statistics for the later part of the year.  We therefore fear that overall activity levels for 2014 will be broadly flat, meaning that Scotland will continue to fall well-behind the number of new homes required to meet the country’s housing need.

“Buyer interest is plain to see after so many years of pent-up demand.  So not only is this situation highly frustrating for would-be home buyers, particularly our young people and growing families, it also places more pressure on an already overburdened rented sector at a time when industry recovery should be being fully nurtured.

“Yet over six weeks from the new £125 million funding for housing supply announced in the Draft Budget, we still await details of how this investment is to be allocated.

“Scotland needs greater commitment and bold action from politicians of all parties and at all levels if is to ensure its people have access to the range of quality housing options they deserve.”

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