Official statistics published on June 4th show Scotland's housing crisis continues as the total number of new homes completed fell for the fifth year in a row. With only 14,877 new homes built across all sectors in 2012, the new Scottish Government figures represent a drop of over 42% on 2007 levels and are the lowest number since 1947 according to Scottish Government statistics.
While the figures showed private sector-led home completions totalled 9,862 in 2012, a one per cent drop on the previous year, they also suggest housing association-led new build starts totalled 1,143 in the first quarter of 2013, taking the total number of starts for 2012/13 to 1,620. This figure is down 38 per cent on the previous year.
Philip Hogg, Chief Executive of trade body Homes for Scotland, which represents companies providing 95% of new homes built for sale as well as a significant proportion of affordable housing, says: "It is estimated that 465,000 new homes are needed in Scotland by 2035 to meet demand. However, the build rates highlighted today point to a potential shortfall in the region of 140,000 by this time when there are currently already significantly more people than that on housing waiting lists.
"Clearly this would only exacerbate Scotland's housing crisis and highlights the need for further intervention by the Scottish Government to help reverse this downward trend.
"Whilst the MI New Home mortgage indemnity scheme is making a positive impact in helping people step onto and up the property ladder as well as relieving pressure elsewhere in the system, today's figures are a stark reminder that, and as the Housing Minister herself notes, operating conditions remain very challenging for house builders.
"They also illustrate the need for the Scottish Government to bring its equivalent Help to Buy shared equity scheme to market as soon as possible and to refrain from proposals to increase regulation and cost which we believe will only further depress housing supply."
Commenting on figures highlighting an increase in the number of new home starts, Hogg says:
"Whilst such news is encouraging, it is the number of new homes being completed and available for occupation that remain the ultimate measure of production. Indeed, more current statistics compiled by the National House Building Council highlight a 6% fall in the number of new home registrations in Scotland - one of only two of the 14 regions in the UK recording decreases in the first quarter of this year4.