New home starts falls by 24% to reach lowest level since 2014

The number of new homes started in Scotland over 12 months has fallen by 24% compared to the previous year to reach the lowest annual figure for almost ten years.
Quarterly statistics on housebuilding and affordable housing supply published today by Scotland’s Chief Statistician revealed that there were only 16,274 new build homes started in the year to the end of September 2023, a reduction of 5,260 homes from the 21,534 starts in the previous year, and the lowest annual figure to end September since 2014.
Private-led new build starts decreased by 19% (3,017 homes), housing association new build starts decreased by 34% (1,099 homes) and local authority new build starts decreased by 50% (1,144 homes).
All-sector new build home completions over the same period reached 21,952, a decrease of 6% (1,355 homes) on the 23,307 completions in the previous year.
Decreases were seen in private-led new build completions (3% or 491 homes) and local authority new builds by 44% (or 1,241 homes) whilst housing association new build completions increased (9% or 377 homes).
Separate quarterly statistics on the Affordable Housing Supply programme show there were a total of 2,351 affordable homes completed in the latest quarter July to September 2023. This brings the total number of affordable homes completed in the 12 months to the end of September 2023 to 10,582, an increase of 9% (877 homes) on the 9,705 homes completed in the previous year, and the highest annual year to date completions figure since the start of the series in 2000.
There was a decrease in the number of affordable homes completed for social rent by 2% (196 homes) whilst increases in other affordable rent by 47% (481 homes), and affordable home ownership completions by 80% (592 homes).
Meanwhile, there were 1,153 affordable homes approved in the latest quarter July to September 2023, which brings the total number of affordable homes approved in the 12 months to the end of September 2023 to 6,178, a decrease of 14% (981 homes) on the 7,159 homes approved in the previous year, and the lowest annual figure to end September since 2013. There were decreases in the latest year to the end of September 2023 in the number of approvals for social rent (by 18%, or 985 homes) and for other affordable rent (by 37%, or 320 homes), although approvals for affordable home ownership increased by 46% (324 homes).
There were 1,341 affordable homes started in the latest quarter July to September 2023, which brings the total number of affordable homes started in the 12 months to end September 2023 to 6,302. This was a decrease of 24% (1,996 homes) on the 8,298 started in the previous year, and the lowest annual figure to end September since 2015. There was a decrease in the latest year to the end of September 2023 in the number of starts for social rent (by 29%, or 1,947 homes) and other affordable rent (by 40% or 377 homes), although affordable home ownership increased (by 45% or 328 homes).
According to data from council tax returns, there were 46,217 long-term empty properties as of September 2023, which is an increase of 4% (1,616 properties) from the 44,601 properties in 2022. Across the same time period, the number of second homes has decreased by 1% (226 homes) from 24,287 to 24,061.
Sector body Homes for Scotland (HFS) said the statistics show Scotland’s housing crisis intensifying.
Chief executive Jane Wood said: “The downward trend in housing starts has now been sustained across three years and clearly evidences the growing challenge for those in need of a home that meets their requirements.
“With today’s housing starts representing future completions, the figures starkly illustrate that the housing inequality being experienced across the country will become even more acute.
“If the numbers tell us anything it is that the policy environment that surrounds the delivery of new homes requires urgent evidence-based reassessment. Private investment must be actively encouraged and welcomed with the recognition that this goes hand in hand with Affordable Housing objectives.”
Housing minister Paul Mclennan said: “I am pleased that the number of affordable homes completed in the latest year is the highest annual figure since 2000, supporting just over 10,500 households to have an affordable place to live.
“The combined challenges caused by a hard Brexit and economic mismanagement by the UK Government have triggered various issues including the rising cost of construction supplies and workforce challenges.
“This has undoubtedly impacted on the number of new build homes started over the last year.
“Despite these challenges, the housing sector has done incredible work to deliver homes and we will continue working with partners to mitigate these impacts.
“We are also making £3.5 billion available in this parliamentary term, towards the delivery of more affordable and social homes.
“Despite the challenges facing the housing sector, we have already delivered 15,765 homes towards our next target of 110,000 affordable homes in Scotland by 2032.”