Housebuilding in Scotland remains stagnant, industry warns

Housebuilding in Scotland continues to flatline with just 88 more homes built in 2016 than in the previous year, official figures reveal.

The number of new homes being built in Scotland remains well below the 2007 figure. Picture: PA Wire

The private sector has yet to recover from the financial crash of 2008, with the number of houses started in 2016 down eight per cent on 2015 and down 36 per cent on 2007.

The figures were revealed on the same day as the Scottish Government said it would invest a further £1.75 billion in building affordable housing across Scotland.

But Nicola Barclay, chief executive of industry body Homes for Scotland, said allocating the grant was “very different to actually building homes” and called for improvements to the planning and regulatory system to boost the sector.

She said: “The private sector is the biggest housing contributor overall yet the number of homes being started on site was down eight per cent in 2016, equivalent to over 1000 homes.

“With Scottish economic growth predicted to be half that of the UK in 2017, building the homes our country needs could help fill the void that will be left by large, soon to be completed infrastructure projects such as the Queensferry Crossing.

“And the rewards on offer are much more wide-ranging than simply fiscal. In addition to skills and jobs, new homes can contribute to improved health and education outcomes for residents. With high levels of insulation, they also help address fuel poverty and climate change.”

The Scottish Government commitment means that in 2018-19, £532 million will be shared among Scotland’s 32 local authorities, rising to £591 million in 2019-20 and £630 million in 2020-21.

SNP MP Neil Gray: “The SNP has been consistent in delivering for Scotland and meeting the SNP Government’s ambitious commitment of delivering 50,000 affordable homes by 2021.

“The commitment ensures that Scotland leads the way in building homes that are high-quality, efficient and affordable as well as strengthening Scotland’s house-building sector and the estimated 14,000 jobs that the affordable housing supply programme supports each year.”