The Scottish construction sector has received a welcome dose of good news today as statistics show a rise in new homes started by private sector builders.

Scotland’s Chief Statistician has produced a report which shows the number of new homes started by private sector builders in the year to June 2012 was the highest recorded since the banking crisis started in 2008.

The figures show 10,827 news homes were begun during that period, indicating a 24% increase on the previous year.

This will be welcome news for those affected, as it follows three years of recorded annual decreases in private sector new build starts.

The stats include new starts by house builders building for private sale and other house building activity such as for RSL shared equity developments and self build.

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The report also showed a continued increase in council houses across Scotland, with local authorities completing 1,206 new homes in the year to September 2012, the highest number since 1990.

14,032 houses were started to June 2012 across all sectors, indicating an increase of 4% compared to the same period last year.

Housing Minister Margaret Burgess said: "Scotland’s construction sector has faced the full force of the economic downturn.

"Times are still very tough, with high deposit requirements and reduced mortgage availability continuing to prove a barrier to recovery in the housing market.

"The Scottish Government is doing all it can to support the industry and boost supply. We plan to deliver at least 30,000 affordable homes during the lifetime of the Parliament, backed by investment of at least £760m in the next three years.

"We have allocated almost £115m to local authorities across Scotland, which is helping deliver over 4,400 council homes.

"And we are stimulating growth through the innovative National Housing Trust initiative and our shared equity schemes.

"We have also offered a guarantee to support up to 6,000 new build house purchases through a housing industry-led Mortgage Indemnity Scheme, to help address the banks’ requirements for high deposits."

(IT)