News

Affordable housing approvals up 14% to 11,680 in latest year

Published: 12 Jun 2018 09:30
Part of:
Housing

A National Statistics Publication for Scotland.

There were 11,677 affordable homes approved in 2017/18, 14% more than the previous year, and the third consecutive annual increase since 2014/15.

Scotland’s Chief Statistician has today released the latest Quarterly Housing Statistics for Scotland, which presents the latest quarterly information on new build housing, affordable housing supply, and local authority right to buy sales. The affordable housing supply statistics are used to inform the Scottish Government target to deliver 50,000 affordable homes, including 35,000 homes for social rent, over the period 2016/17 to 2020/21.

The Scottish Government Affordable Housing Supply Programme covers a range of types of affordable housing (social rent, affordable rent and affordable home ownership), and relates to off-the-shelf house purchases and rehabilitations as well as new build homes. The number of homes approved represents the number of units of affordable housing in which funding has been granted by the Scottish Government.

The latest statistics for 2017/18 show that affordable housing supply approvals have totalled 11,677 homes, up 14% (1,401 homes) on the previous year. This includes increases in affordable rent approvals (which have more than doubled, up by 1,433 homes), and affordable home ownership approvals (up by 5% or 92 homes), with a decrease in social rent approvals (down by 2% or 124 homes).

Graph 1-3
Graph 1-3

There were 10,569 affordable houses started in 2017/18, up by 14% (1,261 homes) compared to the previous year. This includes increases in social rent starts (up by 9% or 585 homes), affordable rent starts (up by 42% or 530 homes), and affordable home ownership starts (up by 8% or 146 homes).

Affordable housing supply completions have totalled 8,534 in 2017/18, up 16% (1,198 homes) on the previous year. This includes increases in social rent completions (up by 15% or 686 homes), affordable rent completions (up by 27% or 243 homes), and affordable home ownership completions (up by 14% or 269 homes).

Key Points, covering other areas of the publication:

New Build Housing – All Sectors – up to end December 2017

There were 4,344 new build homes completed between October and December 2017; a 7% decrease (313 homes) on the same quarter in 2016. This brings the total for the year to end December 2017 to 17,739, up 5% (806 homes) compared to the 16,933 completed in the previous year.

There were 4,483 new build homes started between October and December 2017, 3% more (151 homes) than the same quarter in 2016. This brings the total for the year to end December 2017 to 19,702 which is up by 8% (1,388 homes) compared to the 18,314 homes started in the previous year.

New Build Housing – Private-led Housing – up to end December 2017

Between October and December 2017, 3,352 private sector led homes were completed; 10% fewer (386 homes) than the same quarter in 2016. This brings the total for the year to end December 2017 to 13,750 which is 5% more (714 homes) than the 13,036 completions in the previous year.

There were 3,247 private sector led starts between October and December 2017, up 1% (35 homes) on the same quarter in 2016. This brings the total for the year ending December 2017 to 13,774, which is 4% (583 homes) more than the 13,191 starts in the previous year.

New Build Housing – Social Sector Housing (Housing Association and Local Authority combined) – up to end December 2017

There were 992 social housing completions between October and December 2017; 8% more than the same quarter in 2016. This brings the total for the year to end December 2017 to 3,989. This is a 2% increase on the 3,897 social sector completions in the previous year.

Meanwhile, 1,236 social sector homes were started between October and December 2017; 10% more than the same quarter in 2016. This brings the total for the year to end December 2017 to 5,928. This is a 16% increase on the 5,123 social sector starts in the previous year.

More up-to-date figures – up to end March 2018

Between January and March 2018, 1,707 social sector homes were completed (60% more than the 1,067 completions in the same quarter in 2017), and 3,314 were started (3% more than the same quarter in the previous year). This brings the total completions for the 12 months to end March 2018 to 4,629 (a 20% increase on the 3,866 social sector homes completed in the previous year). Total starts over the 12 months to end March 2018 are now at 6,036 (4% fewer than the 6,316 started in the previous year).

New Build Housing – Housing Association Homes – up to end December 2017

There were 544 housing association completions between October and December 2017, 6% less than the 580 completions in the same quarter in 2016. This brings the total for the year to end December 2017 to 2,489, an 8% (218 homes) decrease on the 2,707 completions over the previous year.

There were 710 housing association approvals between October and December 2017; 17% less than the 860 approvals in the same quarter in the previous year. This brings the total for the year to end December 2017 to 4,556. This is an increase of 25% (918 homes) on the 3,638 approvals in the previous year.

More up-to-date figures – up to end March 2018

A total of 1,382 Housing Association homes were completed between January and March 2018, 87% (641 homes) more completions than in the same period in the previous year. This brings the total completions for the 12 months to end March 2018 to 3,130, which is an increase of 14% on the 2,748 homes completed in the previous year. A total of 3,073 Housing Association homes were approved between January and March 2018, 5% more than the 2,917 approvals in the same quarter in 2017. This brings the total approvals for the 12 months to end March 2018 to 4,712, a 5% decrease on the 4,945 approvals in the previous year.

New Build Housing – Local Authority Homes – up to end December 2017

There were 448 local authority completions between October and December 2017, which is 32% more than the number that were completed in the same quarter in 2016. This brings the total for the year ending December 2017 to 1,500. This is a 26% (310 homes) increase on the 1,190 completions the previous year.

There were 526 local authority starts between October and December 2017; more than double the 260 homes started in the same quarter in 2016. This brings the total for year ending December 2017 to 1,372. This is an 8% (113 homes) decrease on the 1,485 starts in the previous year.

More up-to-date figures – up to end March 2018

Between January and March 2018, 325 local authority houses were completed (1 home less than the same quarter in the previous year), and 241 were started (17% fewer than in the same quarter in the previous year). This brings the total completions for the year to end March 2018 to 1,499, which is 34% more than the previous year. Total starts for the 12 months to end March 2018 now stands at 1,324 which is a decrease of 3% on the 1,371 local authority homes started in the previous year.

Local Authority Right to Buy Sales – up to end December 2017

The Right to Buy scheme closed to all new applicants on 31 July 2016, therefore there have been no Right to Buy applications made during the last 15 months (October 2016 to December 2017). Throughout the final year of the scheme (the year to end September 2016) there were 9,060 applications made, more than double the 3,890 applications that were made in the previous year to end September 2015. This increase is likely to have been because this was the last chance for social housing tenants with an entitlement to exercise their Right to Buy before the scheme closed.

It can take a period of time for applications to be processed and for sales to be made, and therefore Right to Buy sales are still being recorded. In the latest available quarter, October to December 2017, there were 266 Right to Buy sales, 67% less than the 801 sales in the same quarter in the previous year, and also 55% less than the 587 sales in the previous quarter, July to September 2017. It is expected that sales will continue to fall further in future quarters as the number of applications remaining in the system falls.

Background

Note that the new build starts figures quoted in this Statistical News Release contain information on approvals rather than starts for housing associations. This is because the data held on approvals for housing association new builds is considered to be a more robust measure than the data held on starts. An approval is the point in time at which Scottish Government funding is granted through the Affordable Housing Supply Programme. Further information on this is available in the explanatory document providing background information on the quarterly statistics.

 The Affordable Housing Supply Programme statistics include off-the-shelf purchases and rehabilitations as well as new build.

  • Social Rent includes Housing Association Rent, Council House Rent as well as Home Owner Support Fund Rent
  • Affordable Rent includes Mid-Market Rent (MMR), National Housing Trust (NHT) Rent as well as other programmes such as the Empty Homes Loan Fund (EHLF) and Rural Homes for Rent (RHfR)
  • Affordable Home Ownership includes Open Market Shared Equity (OMSE), New Supply Shared Equity (NSSE), Shared Ownership (LCHO) as well as other programmes such as Home Owner Support Fund Shared Equity.

The publication, containing details of new house building, the Affordable Housing Supply Programme and sales of social sector housing.

Background information including Excel tables and an explanatory note on the Quarterly Housing Statistics can be found in the Housing Statistics webpages.

Housing Association and most Local Authority led new build activity is funded through Scottish Government funding programmes. Several changes to these funding programmes in recent years have affected both the trends and seasonal quarterly pattern of new build approvals, so care should be taken when making comparisons over time. These same changes will also impact on the Affordable Housing Supply Programme.

The supply statistics break down new build construction activity into private-led and social sector starts and completions, with the social sector further broken down between local authority and registered social landlord (housing association). The figures are as recorded by Local Authority administrative systems and the Scottish Government Affordable Housing Supply Programme (AHSP) system. Private sector construction activity includes not only homes built for private sale but also some homes which are used in the affordable housing sector and self-build activity by local builders.

Official statistics are produced by professionally independent statistical staff – more information on the standards of official statistics in Scotland.