Development Loans News:- Scotland built 22,273 new homes in the last financial year – the sixth consecutive increase and the highest figure in a decade.
Private-led new builds increased by 2,679 homes, 21 percent, while local authority ones declined by 51 homes, 3 percent. Although, housing association new builds rose by 1,041 homes, 33 percent.
Refurbishments decreased by 642 homes, 67 percent, and net conversions decreased by 74 homes, 10 percent.
Housing minister, Kevin Stewart, said this was the first time since 1980 when local authority stock had also increased.
“We want to ensure everyone has a warm affordable home and these figures show we are on target to reach delivering 50,000 affordable homes by 2021.”
He added 3000 more homes were built in 2018-19 than the previous year.
The UK housing minister, Esther McVey, told delegates at the residential property convention earlier this month that 222,000 additional homes were built in England in 2017-18.
She said the figure was one of the highest in the last 31 years bringing the government closer to its target of 300,000 new homes a year by the mid-2020s.
The number of planning applications drops
However, National Office of Statistics figures released today showed the number of planning applications in England for the second quarter was 4 percent down on the previous year. Granted residential applications showed an 8 percent year-on-year decline of 10,900 – 1,400 for major developments and 9,500 for minor ones.
Development Loans by HZA
Brokers Hank Zarihs Associates said lenders wanted to see the planning process improved so that decisions on granting construction loans and development and refurbishment finance could be speeded up.
Mr Stewart warned a no-deal Brexit could stymie Scotland’s progress.
“Private house builders are particularly vulnerable to the implications of Brexit. Construction material imports to the UK from EU member states accounted for more than 60 percent of the total value of construction material imports to the United Kingdom in 2018.”
He pointed out that the Scottish construction sector employed 7,000 EU nationals in 2017 and that a ‘no deal’ exit would pose significant risks to builders’ supply chains.