THE Scottish Government has announced a 17% decrease in all sector housebuilding starts and completions between 2023 and 2024.
The latest quarterly housing statistics revealed that, in the 12 months ending June 2024, there were 19,293 homes built and 15,296 new builds started. The private sector built 14,240 homes and the social sector built 5,053 homes. In terms of starts, building work on 11,795 was started by the private sector and 3,501 homes by the social sector.
Excluding 2020, when the pandemic impacted housebuilding, completions were the lowest since the year to end of June 2018 and starts the lowest since the year to end of June 2013 in both the social and private sector.
In terms of the Affordable Housing Supply Programme, in the year to the end of June 2024, there were 6,966 approvals, 6,422 starts, and 9,295 completions of affordable homes. The number of completions and starts were down by 14% and 10% respectively compared to the year to end June 2023. However, approvals increased by 15%.
The stats are used to inform progress against Scottish Government affordable housing delivery target to deliver 110,000 affordable homes by 2032, of which at least 70% will be for social rent and 10% will be in rural and island communities. By June 2024, 22,743 affordable homes have been completed towards the target. These completions consist of 17,289 (76%) homes for social rent, 3,219 (14%) for affordable rent, and 2,235 (10%) for affordable home ownership.
An annual update was also provided on homelessness statistics in Scotland. Findings revealed there were 40,685 homelessness applications – an increase of 4% compared to 2022-23, and the highest since 2011-12.
Housing minister Paul McLennan said, “These figures are deeply concerning and I know the lack of a settled home seriously affects people’s health and life chances. They demonstrate the scale of the challenge we face in tackling the housing emergency and I am determined to work with partners to reverse this trend.
“Working with representatives from across the housing sector is crucial. We have made record funding of more than £14 billion available to councils in 2024-25 to deliver a range of services, including in homelessness services, and we will continue to support councils to tackle the crisis. However, we must stop homelessness from happening in the first place and ensure affordable homes are available when people need them, we are taking action on both fronts.
“We have a strong track record in supporting the delivery of affordable homes with more than 133,000 homes completed since 2007, including more than 94,000 social rented homes. We will continue to build on that record with a total investment of almost £600 million in affordable housing this year.
“We have boosted the Affordable Housing Supply budget by £80 million over the next two years to further increase the supply of social and affordable homes. Plus, we have committed an additional £2 million this year to councils with the greatest and sustained pressures on temporary accommodation to make use of existing housing stock.
“We are also looking for innovative ways to boost investment in housebuilding and as part of this year’s Programme for Government we announced a £100 million investment in mid-market rent homes, which will be grown alongside private investment to £500 million.
“Our Housing Bill will further strengthen tenants’ rights and introduce rent controls. The Bill will also place a stronger emphasis on the prevention of homelessness based on better coordination across systems, including relevant bodies working together to provide all-round support earlier. This will help people avoid the crisis of homelessness and the longer term harms associated with it.”
Homes for Scotland said the housing stats are evidence that Scotland’s housing emergency is growing and further emphasise the need for ‘urgent action’ by the Scottish Government to address what is now becoming an ‘all too familiar picture of continuous decline’ in the housing supply.
Jane Wood, chief executive of the sector body, said, “It has now been four months since the Scottish Government conceded that the country was facing a national housing emergency, and 16 months on since Argyll and Bute Council declared the first local housing emergency. We now find ourselves in the quite incredible position that over half the Scottish population are living in local authority areas with a housing emergency, when the number of children and households in temporary accommodation have reached new record highs.
“Less than a week ago, we heard from the deputy first minister at the Homes for Scotland Annual Conference who spoke of the need for policy certainty and positive rhetoric, as well as ‘identifying affordable actions that deliver the biggest impact’. Today’s housing statistics illustrate how urgently these are required if we are to stop the haemorrhaging of inward investment into the sector and the loss of any further home builders in Scotland.
“The Scottish Government often highlights the ongoing challenges of Brexit, cost price inflation and Westminster as the main drivers of the housing crisis, but we have seen in recent months that positive action can be taken with real leadership, such as the proposal to create a National Outcome on Housing for the first time, or recognition of housing as a key pillar within the National Strategy on Economic Transformation.
“Whilst there remain obvious budgetary restraints within the Scottish Government, now is the time, as the deputy first minister said, to find the affordable actions that can have the biggest impact. We have been encouraged by the recent change of tone we have heard coming from ministers and officials and are working closely with them to co-create solutions but are urging them to get to grips with the planning system and review the cumulative impact of new and proposed regulation as top priorities.”
