New affordable completions in Scotland rise 12% as approvals fall more than a fifth

However, only 643 affordable homes were approved from April to June 2023. This brings the total number of affordable homes approved in the 12 months to end June 2023 to 6,042, a decrease of 22% (1,724 homes) on  the previous year, and the lowest annual figure to June since 2013.

There were decreases in the last year to June in the number of approvals for social rent (by 24%, or 1,449 homes) and for other affordable rent (by 39%, or 349 homes), while approvals for affordable homeownership increased by 9%, or 74 homes.

There were 1,118 affordable homes started in April to June 2023, which brings the total number of affordable homes started in the 12 months to June 2023 to 7,124.

This represents a decrease of 2% (180 homes) on the 7,304 started in the previous year, and the lowest annual figure to the end of June since 2015.

There was also a decrease in the latest year to the end of June in the number of starts for social rent (by 8%, or 463 homes), while there were increases in starts for affordable home ownership (by 14%, or 113 homes) and for other affordable rent (by 26%, or 170 homes).

Meanwhile, separate data from Scotland’s chief statistician showed that across all tenures, 23,346 new build homes were completed in Scotland in the year to June 2023, an increase of 7% on the 21,865 completions in the previous year.

Overall, housing association new build completions rose by 18% (728 homes), while local authority new build completions dropped by 23% (589 homes).

However, the number of new build homes started across all tenures fell by 12%, with 17,425 starts in the year to June 2023, down from 19,765 starts in the previous year, and the lowest annual figure to end June since 2016.

Housing association new build starts dropped by 21% (599 homes) and local authority new build starts fell by 32% (656 homes).

The Scottish government aims to deliver 110,000 affordable homes by 2032, of which at least 70% will be for social rent.

Housing Minister Paul McLennan said: “I am pleased that the number of affordable homes completed in the latest year is the highest annual figure since 2000, supporting almost 11,000 households to have an affordable place to live.

“The combined challenges caused by a hard Brexit and economic mismanagement by the UK government have triggered various issues including the rising cost of construction supplies and workforce challenges. The housing sector has done incredible work to deliver homes in these circumstances and we will continue working with partners to mitigate these impacts. We are also making £3.5bn available in this parliamentary term, towards the delivery of more affordable and social homes."

Sally Thomas, chief executive at the Scottish Federation of Housing Associations, said: “Today’s figures show that the number of social homes that were built this quarter are at the lowest level since mid-2020, during the height of the pandemic.

“That fact must be a wake-up call to the Scottish government. Last week’s Programme for Government was described by the first minister as ‘unashamedly anti-poverty and pro-growth’.

"Yet when we know that delivering social homes is absolutely fundamental to both tackling poverty and economic growth, the rhetoric simply isn’t being met with action. It is now vital – more clearly than ever – that we see significant support for building Scotland’s homes now.”