Affordable Housing Supply up to end September 2016
Affordable Housing Supply Programme ( AHSP) statistics reflect the broader supply of affordable homes (i.e. for social rent, affordable rent and affordable home ownership) and include off the shelf purchases and rehabilitations as well as new builds. The social rent new build element of this covers largely the same houses referred to in the social sector new build section of this report. Statistics for the AHSP are available up to the end of September 2016. As a result they have been presented here for the year to end September. This differs from the figures in much of the remainder of this report which cover years to end June.
Changes in the funding programme in 2011 and 2012 impacted on the timing of affordable housing activity as well as the level of activity and this should be borne in mind when making comparisons over time.
Approvals, starts and completions are all measured for the AHSP. Approval is the point at which funding is granted and, along with completion, is a significant part of the administration process meaning that the data should be of good quality. Starts meanwhile can be recorded at any point in the development, for example when site clearance begins or any point up to the beginning of ground works for foundations. As a result approvals are generally deemed a better measure than starts for AHSP data.
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.
Chart 10: Annual Affordable Housing Supply Programme (AHSP) approvals and completions, years to end September, 2006 to 2016
A total of 1,583 affordable homes were completed in the quarter between July and September 2016, a 12% decrease, or 226 less homes than the same quarter last year. This brings the total for the year to end September 2016 to 6,624, down 7% on the 7,106 completions in the previous year.
Between July and September 2016 a total of 1,979 affordable homes were approved. This is 719 (57%) more than in the same quarter in the previous year. It brings the total for the year to end September 2016 to 8,786 approvals, up 34% on the previous year.
There were 1,906 affordable homes started in the quarter between July and September 2016, a 18% increase, or 294 more homes than the same quarter last year. This brings the total for the year to end September 2016 to 8,192, up 35% on the 6,082 starts in the previous year.
Chart 11 below shows that total affordable housing supply programme completions have varied slightly over the years 2014 to 2016 (years to end September). The percentage breakdown of the different categories has remained fairly stable though. In the latest year, social rent completions have accounted for 59% of all completions, with affordable rent and affordable home ownership making up 14% and 27% of the total, respectively.
Chart 12 below shows that the total affordable housing supply programme approvals have increased in 2016 (year to end September). The percentage breakdown has remained fairly stable over the last three years. In the latest year, social rent approvals have accounted for 64% of all approvals, with affordable rent and affordable home ownership making up 14% and 22% of the total, respectively.
Quarterly 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.
Chart 11: AHSP Completions, years to end September, 2006 to 2016
Chart 12: AHSP Approvals, years to end September, 2006 to 2016