Improvement In Scottish Housing Market

There has been further improvement in the Scottish housing market according to NHBC, as new homes registrations show a rolling quarter on quarter rise compared with last year.

While new home registrations for the three month period June to August 2009 were marginally lower than the last rolling quarter, the drop in applications compared to the same period last year is becoming less pronounced.

With 1,576 applications received during the three months to the end of August 2009, registrations were 20% lower than the same period of 2008 (1,966), compared to 34% lower than the last rolling quarter of May to July 2009 (1,677).

Although some regional fluctuations have depressed the market, 40% of councils in Scotland experienced a rise in registrations - Argyll & Bute, for example, has witnessed a 400% increase on new home registrations, with NHBC having received 84 more applications than the same period last year.


Both the City of Aberdeen and the City of Edinburgh have shown considerable increase in the past three months, with rises of 94% and 76% on 2008 levels respectively.

Other councils that have shown a considerable rise on the same period last year include the Scottish Borders (90%), West Lothian (63%) and Renfrewshire (46%).

Malcolm MacLeod, NHBC Director for Scotland, said: "Although house building figures in some Scottish councils are still quite low, the overall picture is one of slow, yet steady growth. It is important to remember that this is not a free-flowing market and banks are still anxious when it comes to lending; however, builders are beginning to start activity, albeit with a cautious approach."

NHBC statistics for Scotland during the three months to the end of August also revealed that of the 1,576 applications to start new homes in the combined private and public sectors during the three months to the end of August, 1,332 were related to private sector activity (i.e. excluding housing associations) - 11% lower than the same three-month period last year (1,492)

New build completions in the combined private and public sectors in Scotland totalled 2,484 in the same three months to end of August 2009 - 44% lower than the same period a year ago (4,473).

(GK/KMcA)