Rise In Private Sector Housing Starts

30th August 2012

The number of new private sector houses started in 2011-12 showed a 23 per cent increase over the previous year, official statistics confirmed today.

10,732 new homes were started in the year to 31 March 2012 compared to 8,731
made in the year to 31 March 2011.

This increase follows four years of recorded annual decreases in private sector new build starts.

The rate per 100,000 population of private sector starts in Scotland is 205.5 for the 2011/2012 financial year, compared to 161.4 in England covering the same period.

This figure for private sector new build starts in Scotland as a rate of population for 2012 is the first recorded increase in the rate since 2006-07.

There was a continued increase in the number of council houses across Scotland with 2,216 started in the past two financial years, compared to 1,839 in the previous fourteen years combined.

Housing Minister Keith Brown said:"I am encouraged with the increase in the number of private sector houses started in the last year, although these remain very challenging times for the house building industry.

"It is important to acknowledge that high deposit requirements and reduced mortgage availability are continuing to prove a barrier to recovery in the housing market.

"The Scottish Government is doing all it can to support the industry and boost supply. We plan to deliver at least 30,000 affordable homes during the lifetime of the Parliament, backed by investment of at least £730 million in the next 3 years.

"We have allocated almost £115 million to local authorities across Scotland, which will help deliver a new generation of over 4,400 council homes.

"And we are stimulating growth through the innovative National Housing Trust initiative and our shared equity schemes.

"We are also offering a guarantee to support up to 6,000 new build house purchases through a housing industry-led private sector mortgage indemnity scheme."