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New Homes Output Improves in Scotland

NHBC's latest new house-building statistics show the fourth successive rolling quarter-on-quarter rise in the number of applications from builders to start new homes in Scotland, providing further evidence of a mild recovery in house-building production.

1,806 applications were received by NHBC from the combined private and public sectors in the three months to the end of May 2009 - 16 per cent higher compared to the previous rolling quarter February to April 2009 (1,561) and 25% per cent higher than January to March this year (1,446).   

Although NHBC figures show that house-building activity in Scotland was still extremely low during the three months to the end of May, with a 50% reduction in the number of applications received compared to the same period a year ago, the drop in applications is becoming less pronounced.   NHBC figures show that in the three months to the end of March and April 2009, the year-on-year drop in applications in Scotland was 64% and 61% respectively.     
        
Malcolm MacLeod, NHBC's Director for Scotland, said: "NHBC's latest figures point to further improvements in house-building production, albeit from an extremely low base.

"In particular, there was an increase in the number of applications to build public sector homes in the past three months in Scotland. Our latest figures show that applications from this sector rose to 809 in the three months to the end of May, compared to 291 in the same three months a year ago. This was in part boosted by an increase in public sector applications prior to financial year-end and the release of further funding from Scottish Government to support the construction of affordable homes.

"Looking ahead, any recovery of house building output is likely to be fragile in the short term and volumes in the next few months will be key in determining if this recovery is sustainable. These figures suggest however that we may now have passed the lowest point in housing production for the current cycle."

 NHBC statistics for Scotland for the three months to the end of May 2009 also revealed:

  • Of the 1,806 applications to start new homes in the combined private and public sectors during the three months to the end of May, 997 were related to private sector activity (i.e. excluding housing associations) - 70% lower than the same three-month period a year ago (3,291).
  • Public sector figures for the three months to the end of May totalled 809 - 178% higher than the same period a year ago (291).
  • New build completions in the combined private and public sectors in Scotland  totalled 2,413 in the three months to the end of May 2009 - 44% lower than the same period a year ago (4,279).

NHBC publishes a quarterly booklet of its new house-building statistics ¿ to subscribe visit www.nhbc.co.uk

Ends

Note to editors:

(i) Full breakdown of new homes registered in Scotland by Council from March to May 2009:

Council

March to May 2009

March to May 2008

Percentage Increase / (-) Decrease

Aberdeenshire

341

447

-24%

Angus

36

54

-33%

Argyll & Bute

29

42

-31%

City of Aberdeen

44

93

-53%

City of Edinburgh

57

275

-79%

City of Glasgow

114

334

-66%

Clackmannan

0

6

-100%

Dumfries & Galloway

48

43

12%

Dundee City

148

98

51%

East Ayrshire

7

13

-46%

East Dumbartonshire

1

47

-98%

East Lothian

75

48

56%

East Renfrewshire

19

57

-67%

Falkirk

22

89

-75%

Fife

115

385

-70%

Highland

57

179

-68%

Inverclyde

9

6

50%

Midlothian

7

120

-94%

Moray

26

27

-4%

North Ayrshire

15

28

-46%

North Lanarkshire

65

244

-73%

Orkney Islands

13

1

1200%

Perthshire & Kinross

82

56

46%

Renfrewshire

29

136

-79%

Scottish Borders

14

102

-86%

Shetland Islands

3

13

-77%

South Ayrshire

33

72

-54%

South Lanarkshire

58

272

-79%

Stirling

16

77

-79%

West Dumbartonshire

36

47

-23%

Western Isles

12

4

200%

West Lothian

275

168

64%

Totals for Scotland

1,806

3,583

-50%

NHBC is the leading warranty and insurance provider for new homes in the UK. It was established more than 73 years ago as a non-profit distributing company. NHBC's primary purpose is to help raise standards to protect homeowners. NHBC's ten-year 'Buildmark' warranty covers more than 80% of new homes built in the UK and currently protects approximately 1.7 million homes.

News Date: 17/06/09