Planning - the value, incidence and impact of developer contributions: research

Independent research on section 75 planning obligations and other developer contributions mechanisms. The report brings together quantitative and qualitative evidence to inform our wider review.


8. Annex 1: Background information about the Scottish Housing Market

Figure 4 shows the distribution of median earnings across the country. It suggests that areas with the highest pay have earnings almost 50% higher than in the lowest earnings area. It also shows that areas close to the English border are relatively poorly paid while those in the Islands are relatively well paid.

Figure 4: Median gross weekly earnings for full-time employees
Map illustrating median weekly earnings in Scotland, indicating that earnings are generally higher in the central belt.

Figure 5 shows how the housing stock has risen since the turn of the century and the extent to which it has kept pace with the growth in the number of households. The number of dwelling units was 5.6% more than the number of households in 2001 exactly comparable to 2001. However, in 2010 the gap had narrowed to 5.3% - so over the last nine years the numbers of dwelling have risen faster than the number of households.

Figure 5: Households and dwellings in Scotland, 2001-2019
Graph showing that the number of households and dwellings in Scotland has increased steadily over the last 20 years.

Source: Estimates of Households and Dwellings 2019, National Records of Scotland

Figure 6: Housing completions by tenure, Scotland financial years 09/10 - 18/19
Graph indicating annual housing completions by type of developer in Scotland since 2009-10. It shows that private sector completions have jumped in the last five years, whereas output by housing associations has fallen. The proportion delivered by local authorities has remained broadly stable.

Figure 6 shows housing completions by tenure – with private sector dwellings accounting for around three quarters of output in 2017/8 - a considerably higher proportion than in 2010. Housing association output fell significantly from 2010 reaching a low point of just over 2,000 in 2015/6. This rose closer to 20% in 2017/8 with local authorities providing around 7%.

Figure 7 shows how average house prices have risen over the last decade by around 20% - with two periods of stagnation/decline.

Figure 7: Average residential property price, Scotland 2009/10 – 2019/20 (£)
Graph showing rises in average house prices in Scotland since 2009-10

Source: Registers of Scotland

Figure 8: Number of applications subject to planning/legal agreement (S69 or S75), all Scotland, 2012/13 – 2019/20
Graph showing that the number of planning applications subject to a legal agreement in Scotland has risen considerably since 2012-13.

Source: 2019/20 Annual Planning Performance Statistics, Scotland tables, Table 29

Contact

Email: Chief.Planner@gov.scot

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