By The number of all sector newbuild starts in Scotland is now at a worryingly low level according to analysis of the latest data by a leading property firm.
DJ Alexander Ltd, the largest estate and letting agents in Scotland, said that the number of newbuild starts was at its lowest since 2015-16 and the figure for 2022-23 is actually lower than that of 2020-21 during the pandemic.
Just 18,890 all sector newbuild starts began during the financial year 2022-23 which is lower even than the pandemic year of 2020-21 when there were 19,344 starts.
Figures for 2018-19 and 2019-20 were at their highest for a decade at 23,119 and 24,612 but the preceding ten years from 2008-09 to 2017-18 were consistently lower than the period from 1996-97 to 2007-08.
Prior to 2008-09 all sector newbuild starts were consistently over 20,000 a year with a peak of 28,400 in 2006-07.
Since 2008-09 the figures have never exceeded 20,000 until 2018 reaching a low of 13,496 in 2010-11.
David Alexander, chief executive of DJ Alexander Ltd, comments:
“These figures are a very real concern for future housing supply and clearly indicate a sector on hold.
The 2022-23 financial year starts are 23.2% lower than just three years ago and, more worryingly, are even lower than the starts which occurred in the pandemic period.”
This is a problem which has been growing for some time as the ten-year period from 2008-09 to 2017-18 showed a sector massively underperforming compared to previous decades.
Between 08-09 and 17-18 there were 164,827 all sector newbuilding starts. In the decade before that, between 98-99 and 07-08 there were 245,981 starts which is a decline of 32.9%.
We can see from this substantial fall in newbuild starts that there has been a long term drop in the number of houses being built.
Part of this must be attributable to a fall after the housing crash of 2008 but clearly for many years afterwards Scotland’s housing sector has been producing much fewer properties than was historically the case.
Given that we have an enormous shortage of housing in Scotland, in all sectors from social housing to the private rented sector, it is incumbent on Government to ensure that we lift the volume of house starts substantially in the coming years.
We must have a strong, steady flow of building to meet demand and ensure that Scots are provided with enough homes in the coming decade.
Given that the Scottish population grew by 141,000 over the last decade and has now reached its highest ever figure it is more essential than ever that we increase the number of houses being built each year.”
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