Housing starts flat line in Scotland

Scottish Government figures reported a four per cent increase in housebuilding completions in the 12 months to June 2016 compared to a year earlier. However, a worrying 13% drop in private sector starts was recorded over the same period.

There were 3,973 new build homes completed between April and June 2016; a 4% increase on the same quarter in 2015. This brings the total for the year to end June 2016 to 15,991, up 4% (591 homes) compared to the 15,400 completed in the previous year.

There were 3,968 new build homes started between April and June 2016; 13% fewer than the same quarter in 2015. This brings the total for the year to end June 2016 to 16,450 which is down by 4% (681 homes) compared to the 17,131 homes started in the previous year.

“Whilst this increase in completions is welcome, at less than 600 homes, much more obviously needs to be done in order to effectively tackle Scotland’s housing crisis and this will require many thousands of new homes of all tenures,” said Nicola Barclay (right), Chief Executive of trade body Homes for Scotland.

“Over the period from 2010, annual completion levels have effectively flatlined at an average of around 15,000 and we now see a worrying drop in the total number of homes being started, with alarming disparity between public and private sectors.

“The system therefore remains in need of resuscitation to ensure that the pipeline of new homes coming through is not blocked or delayed by bureaucratic processes.

“This is reflected in comments made by some of our members that it has never been harder to open new sites and get homes out of the ground.”

Between April and June 2016, 3,078 private sector led homes were completed; down 7% on the same quarter in 2015. This brings the total for the year to end June 2016 to 12,145, which is 5% (537 homes) higher than the 11,608 completions in the previous year.

There were 3,348 private sector led starts between April and June 2016, 17% down on the same quarter in 2015. This brings the total for the year ending June 2016 to 11,810, which is 11% (1,433 homes) less than the 13,243 starts in the previous year.