New build housing - Social sector
Social sector housing consists of local authority and housing association housing, and has accounted for 25% of all new build homes completed over the 12 months to end June 2014. Social sector figures are collected a quarter ahead of those for the private sector meaning that figures are available up to the end of September 2014. However, to enable easier understanding of how each sector contributes to the all sector totals described above, figures are mainly presented for the same time period to end June (although quarterly charts include the latest quarter's data).
The more up-to-date figures for the social sector and are presented later in this report.
Chart 7 shows the number of local authority and housing association homes started and completed each year (to end June) since 2005 whilst charts 8 and 9 show quarterly figures for housing associations and local authorities respectively.
Social sector house building has not followed the same pattern over time as the private sector, in that the number of homes being built did not suddenly drop following the recession. Between 2005 and 2012 the number of housing association completions generally fluctuated between 3,500 and 5,500 each year. More recently this has fallen to around 3,000 per year. The number of approvals meanwhile fluctuated between 4,500 and 6,000 from 2005 to 2010 before falling to between 2,000 and 3,000. The peaks in approvals in quarter 1 (January to March) each year shown in Chart 8 have been caused by large numbers of housing association approvals being granted near the end of the financial year.
Almost no local authority homes were built between 2005 and 2007. From that point on there has been an increase in the number being built. Over 1,000 local authority homes have been completed in each of the last 3 years (to end June). In the 12 months to end June 2014, Local Authority housing has accounted for 7% of the total new build homes completed across all sectors.
Quarter 2: April - June 2014
907 social sector homes were completed between April and June 2014 (659 housing association and 248 local authority). This is 10% fewer than the 1,013 completed in the same period the previous year. This brings the total for the 12 months to end June 2014 to 3,945 which is 4% fewer than the 4,100 completed in the previous year. This decline is due to fewer housing association completions (2,864 homes which is 203 (7%) fewer than were completed in the previous year) despite slightly more local authority completions (1,081 homes which is 48 (5%) more than in the previous year).
Meanwhile 466 social sector homes were started between April and June 2014 (197 housing association and 269 local authority). This is down by 47% (408 homes) compared to the same quarter in the previous year. This brings the total for the 12 months to end June 2014 to 3,435 which is 5% more than the 3,282 started in the previous year. The increase is down to more housing association homes being started (2,525 homes which is 460 (22%) more than in the previous year) despite fewer local authority starts (910 homes which is 307 (25%) fewer than in the previous year).
Maps C and D show the rates of housing association and local authority new build completions in each local authority for the year to end June 2014. The housing stock of 6 local authorities (Argyll & Bute, Dumfries & Galloway, Eilean Siar, Glasgow City, Inverclyde and Scottish Borders) has been transferred to housing associations and so these local authorities do not build new houses.
During this period rates of housing association new build were highest in Dumfries & Galloway, Orkney and Inverclyde whilst no new housing association houses were built in Clackmannanshire, East Ayrshire, Falkirk and Moray.
Meanwhile local authority new build rates were highest in the Lothians, Orkney and Moray. Beside the 6 stock transfer authorities a further 6 local authorities built no new houses during the year.
Latest data: July - September 2014
A total of 680 social sector homes were completed between July and September 2014. This is 41% fewer than the 1,159 completed in the same period the previous year. This brings the total for the 12 months to end September 2014 to 3,466 which is 22% fewer than the 4,433 completed in the previous year. This decline is due to fewer housing association completions (715 fewer houses were built which equates to a 22% reduction) and fewer local authority completions (252 fewer homes which also equates to a 21% reduction).
Meanwhile 568 social sector homes were started between July and September 2014. This is up by 30% (132 homes) compared to the same quarter in the previous year. This brings the total for the 12 months to end September 2014 to 3,567 which is 4% more than the 3,417 completed in the previous year. The increase is down to more housing association homes being started (168 more homes which equates to a 7% increase) despite slightly fewer local authority starts (18 fewer, a 2% decrease).
Email: Andrew White