Drop in new Scottish housing starts adds to ‘shortfall’

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HOMES for Scotland (HFS) has lamented an overall fall in the number of new housing starts north of the border.

The trade body was responding to the latest Scottish Government housing stats, which revealed the drop in the number of new homes that are being started to be built across all sectors is continuing to grow, with a 12% decrease in the year to end September 2022.

Homes for Scotland said this will add to the ‘shortfall’ of more than 110,000 homes that has accumulated since 2007.

Jane Wood, chief executive of HFS, said, “Whilst there was a much needed 10% increase in the number of new homes completed in the year to end September 2022, this positive news is again offset by the 12% overall fall in the number of starts. Particularly worrying in the context of the Scottish Government’s affordable housing ambitions is the 27% drop recorded in housing association approvals.

“The appointment of the new first minister presents the perfect opportunity to review the regulatory areas and other issues creating blockers to residential development across sectors to ensure that housing in Scotland meets the needs and aspirations of everyone living here. We and our members are committed to achieving this.”

There were 22,905 new build homes completed in Scotland in the year to end September 2022, according to quarterly statistics published by Scotland’s chief statistician.

This is the highest annual figure since 2008. Increases were seen across private-led new build completions (7% or 1,000 homes), local authority new build completions (42% or 840 homes), and housing association new build completions (5% or 183 homes).

However, the number of new build homes started across all sectors decreased by 12% (2,580 homes), with 19,227 starts in the year to end September 2022, down from 21,807 starts in the previous year. Private-led new build starts decreased by 11% (1,774 homes) and housing association new build approvals dropped by 27% (817 homes), whilst local authority new build starts increased by 1% (11 homes).