Smaller builders could hold the key to Scotland’s housing crisis by filling the homes deficit of the last decade, says industry body Homes for Scotland.
As latest figures show only a slight increase in new homes built – four per cent, which equates to 635 houses – Homes for Scotland is asking the Government to support smaller builders further.
“The economic crash had a devastating effect on the building industry,” says Homes for Scotland chief executive Nicola Barclay.
“We are trying to encourage more small housebuilders into the market and to help those that have stayed the course to increase the supply.”
Before the economic crisis in 2007/2008, there were 25,000 new homes built in Scotland every year across all tenures.
But the new figures showed there were 18,000 new homes last year, well short of targets set by the Scottish Government to meet the demand for affordable housing.
And despite the slight increase from the year before, it actually masks a three per cent drop in the private sector.
“Given the fact that some 80,000 fewer homes have been built in Scotland since 2008, while the growth in number of households over broadly the same period has more than doubled, it is easy to see why our country is in a housing crisis and why many people struggle to find a home that is affordable and meets their needs and aspirations,” added Nicola.
“A major contributory factor has been a near 40 per cent drop in the amount of companies building less than 50 homes a year and who traditionally focused on smaller sites.
“It’s smaller builders that we need to be able to bridge that gap between the 18,000 built and 25,000 pre-crash.
“With just 635 extra homes compared to the previous year, Scotland is little closer to the level of delivery it achieved before the global financial crisis and that we know is required if household need and demand is to be met.
“While the Scottish Government’s policy and investment focus on social housing has seen a welcome upturn in the delivery of those homes, support is required for all tenures and must be sustained in the longer term.
“Scotland’s policy and decision-makers must look holistically at where the much-needed growth in housing delivery can come from.
“Signs elsewhere suggest real housing delivery increases can be achieved, with year-on-year percentage growth in the number of new homes in England far outstripping that in Scotland.
“Concerted effort is therefore needed, from the Scottish Government and Scotland’s local authorities, to engender positive support for home building of all types in policy, opinion and practice.”
In rural areas, smaller builders can particularly benefit, working on a smaller scale, and local communities can reap the rewards of new development, including improved health and education outcomes.
For example, figures show that every new home built supports four jobs.
Now Homes for Scotland has formed a special project group working closely with the Scottish Government to define the solutions required.
These may include easier access to development finance, the allocation of smaller sites, simplified planning processes and a desire from regulators and enablers to help the industry to thrive once more.
Scottish companies sign up to Five Star Builder initiative
Buyers of new homes in Scotland can now compare builders in terms of customer satisfaction, as the “Five Star Builder” initiative has been extended north of the Border.
The scheme was previously limited to those building across the UK but now companies who only operate in Scotland can also take part and publish their rating results in due course.
Highlighting the importance of the scheme to builders, more than 10 HFS members who are now eligible to participate have already signed up.
HFS chief executive Nicola Barclay said: “We talk a lot about the need to deliver more housing, but we also want to focus on the importance of ensuring the homes are of a consistently high standard.
“Providing a clear benchmark on which customers can assess builders is a vital part of this.
“It is also fundamental in our drive to celebrate success, promote best practice and help raise standards across the home building industry.”
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