New Build Housing – Private-led Housing
The private sector is the biggest contributor to overall house building, accounting for four-fifths (80%) of all homes completed in the 12 months to end September 2017.
Chart 5: Annual private sector led new build starts and completions, years to end September, 2007 to 2017
Chart 6: Quarterly new build starts and completions (private-led), since 2006
Trends over the last ten years
In 2007 and 2008 (years to end September) the number of private sector homes started per year were around 18,500 to 20,000, while completions were just under 20,000 to 21,500 per year. Private sector led new build housing was hit particularly hard by the recession. The number of homes completed dropped steeply over the period between 2008 and 2009 then continued to decrease more gradually to under 10,000 in 2012. Since then, the number of homes completed has increased each year, except in 2016, bringing completions in the latest year to just over 14,000 in the year to end September 2017.
In September 2013 the Scottish Government introduced the Help to Buy (Scotland) scheme which has aimed to support buyers purchasing a new build home and to stimulate the house building industry. Following this, the Help to Buy (Scotland) Affordable New Build and Help to Buy (Scotland) Smaller Developers schemes were launched on 21 January 2016. Further information on the schemes, along with monitoring information setting out numbers of sales, is available at http://www.gov.scot/Topics/Built-Environment/Housing/BuyingSelling/help-to-buy.
Trends to end September 2017
Between July and September 2017, 3,263 private sector led homes were completed; 17% (464 homes) more than the same quarter in 2016 (see Chart 6). This brings the total for the year to end September 2017 to 14,041, which is 9% (1,194 homes) more than the 12,847 completions in the previous year.
Meanwhile there were 3,146 private sector led starts between July and September 2017, down 14% on the same quarter in 2016. This brings the total for the year ending September 2017 to 13,591, which is 6% (805 homes) more than the 12,786 starts in the previous year.
Sub-national figures for the year to end September 2017
Map B shows the rates per 10,000 head of population (based on the latest mid-2016 population estimates) of private sector led new build completions in each local authority for the year to end September 2017.
The highest completion rates have been in Midlothian, East Lothian, Fife, the City of Edinburgh. The lowest rates meanwhile, have been in West Dunbartonshire, Argyll & Bute, Inverclyde, and Dundee City.
Map B: New build housing – private sector completions: rates per 10,000 population, year to end September 2017