News article 4/06/2013

Issued 4 June 2013) 
 

Official statistics published today show the country’s housing crisis continuing to deepen with the total number of new homes completed falling for the fifth year in a row.

With only 14,877 new homes built across all sectors in 2012, the new figures represent a drop of over 42% on 2007 levels and are the lowest number since 1947¹.

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, said:

“It is estimated that 465,000 new homes are needed in Scotland by 2035 to meet demand². 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 lists³.

“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 responded:

“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 February - April this year⁴.

Notes to Editors:

1. The web tables and further information on Housing and Regeneration statistics in Scotland can be accessed through the Housing Statistics for Scotland home page

http://www.scotland.gov.uk/Topics/Statistics/Browse/Housing-Regeneration/HSfS

2. Scottish Government press release:

http://www.scotland.gov.uk/News/Releases/2013/05/pension-funds

3. Shelter Scotland website

4. NHBC:

http://www.nhbc.co.uk/NewsandComment/Name,51831,en.html?fp