“Shocking” new figures reveal 22% drop on same quarter a year ago as building now less than half 2007 levels

Scotland’s home building industry today declared that there is no end in sight to the country’s housing crisis following publication of new statistics which show a five per cent drop in the number of homes being built in the year to end June 2015.  Quarterly figures also reveal a fall of more than 50 per cent when compared to the same period in 2007, prior to the economic downturn.

Philip Hogg, Chief Executive of trade body Homes for Scotland (right), said:

“Today’s figures are not only disappointing, they are truly shocking and demonstrate the size of the challenge.  Unfortunately, there is little in the way of positives that can be taken.

“Not only do we see a fall in the latest yearly figures, the last two consecutive quarters have also shown a drop.  There has also been a 22 per cent decrease on Q2 levels compared to last year but it is when you look at the position in 2007, prior to the economic downturn, that you see the true magnitude of the problem with completions down more than half.

“The stop/start nature of Help to Buy funding, which, for the main scheme, this year ran out in May, is causing both home buyers and builders uncertainty, making it very difficult for the industry to forward plan and maintain any growth momentum.  With this situation in marked contrast to the position south of the border, the consequences are reflected not just in today’s statistics but also our own more up-to-date data.  

“The unfortunate truth of the matter is that today’s statistics show that the housing pressures facing Scots show no sign of abating.  If we are really serious about tackling the housing crisis, we must recognise two fundamental things.  

“The first is that any ambition to increase levels of ‘affordable’ housing is welcome but is only a minority part of the picture.  Affordable housing delivery is inextricably linked to the building of homes in the private sector, the engine of housing delivery, through the direct contribution the industry makes through planning policy – so if we want to build more affordable housing, we must encourage and facilitate more private sector development. 

“The second is that the majority of Scots, as research firmly shows, aspire to own their own home.  

“Having an effective and accessible Help to Buy (Scotland) scheme without funding gaps is crucial on both of these counts, as is a balanced housing policy approach which places equal emphasis on having enough homes of all tenures in the right places to meet the diverse housing needs and aspirations of all those living in Scotland.”