Latest Scottish Government figures blame ‘global issues affecting construction’ for the drop.
The latest housebuilding figures have showed 20% fewer new homes were started in Scotland than pre-pandemic levels.
Scottish Government figures showed construction began on 19,060 homes in the year to the end of June 2022 – with this total 13% less than the previous year and 20% less the end year to the end of June 2019.
It stated that there were “global issues affecting construction which are impacting housing delivery”.
But with the figures also showing a drop of almost a fifth in the number of affordable new homes where work was started, ministers were challenged to spend more cash on social housing.
According to the data, a total of 9,449 affordable homes were completed in the 12 months to the end of September 2022 – an increase of just 2% on the previous year.
In comparison there were 8,256 starts on affordable homes in the 12 months up to September, with this down by 19% on the previous year, meaning 1,877 fewer affordable homes were started.
New starts on properties for social rent – either by a council or housing association – were down by 11%, according to the figures.
Meanwhile, the number of properties started for affordable dropped by 37% on the previous year, with starts for affordable home ownership 42% lower.
Looking across all sectors, a total of 21,825 homes were built in the 12 months to the end of June 2022 – 9% more than the previous year and a 1% higher than the total pre-pandemic for the year to the end of June 2019.
Alison Watson, director of the housing charity Shelter Scotland, said: “Scotland’s supply of social housing is going in the wrong direction.
“Today’s figures show that the Scottish Government is choosing to accept more homelessness, more child poverty, and more misery for thousands of people across Scotland.”
Jane Wood, chief executive of sector body Homes for Scotland, said: “Given we have a critical shortage of homes, the 1,806 increase in the number completed in the year end to June 2022 is welcome.
“Disappointingly, however, this is more than offset by the 2,765 drop in the number of new homes started and will further add to the shortfall of more than 110,000 that has accumulated since 2007.
“Figures also show that the number of social sector starts in the year end September 2022 fell by 16%, reflecting the significant concerns we first raised with Scottish Government officials last April regarding the viability of contracts in light of massively increased costs – reported at +22% in the latest Scottish Social Housing Tender Price Index – and which we believe contributes to this drop. “
Wood added: “This has serious implications for the Scottish Government’s target of 110,000 homes by 2032.
“In light of the interdependencies between social and private housing delivery, it is vital that the Scottish Government looks to take a pragmatic all-tenure approach to addressing the many barriers that exist, and that it recognises the additional impact that regulatory change can have on its housing ambitions.”
A Scottish Government spokesperson said: “Affordable housing and new housebuilding continue to recover with annual completions having risen in the latest figures released today.
“Scotland has led the way in the delivery of affordable housing across the UK with 115,558 affordable homes delivered since 2007, with 81,307 of these for social rent.
“However, we are aware of the global issues affecting construction which are impacting housing delivery.
“We are working closely with the construction industry and housing partners to mitigate this where possible, and continue to collaborate with all our partners to achieve our shared goal of delivering more affordable homes for Scotland.”
The spokesperson added: “We are committed to delivering on our target of 110,000 affordable homes by 2032, with at least 70% of these available for social rent, and are making available more than £3.5bn this Parliament to support the delivery of social and affordable housing across Scotland.”
Source: Insider.co.uk
