THE cost of house-building construction is nowadays estimated to be rising nothing like as much as it was just a few years ago - according to a Scottish Government quarterly review of housing.
Says the Scottish Government, here, the cost of building new homes increased by 2.4 per cent during the 12 months up to September last year - when considering all its components, not least materials, labour and profit mark-up.
In the parlance, that is known as the ‘construction output-price index’ and it was as high as 12.2 per cent during the year up to June three years ago.
Meanwhile, the cost of materials alone rose by 1.3 per cent during the year up to November last year, contrasting with the 24 per cent increase up to June three years ago.
Among other findings:
All-sector (primarily private sector and social housing) new-build completions for the year up to September 2024 totalled 19,828, some 2,324 (minus ten per cent) down than the year to September 2023. Over the same period, all-sector new-build starts fell by 1,954 (minus 12 per cent) to 14,768;
There were 8,413 ‘affordable’ homes completed during the 12 months to September last year, down 2,373 (or 22 per cent) on the corresponding period the previous year. Over the same period, ‘affordable’ housing starts fell by eight per cent, but approvals (to build) rose by nine per cent;
There were 27,816 residential property sales registered across Scotland between July and September last year, up 2,035 (or 7.9 per cent) on the same three months the previous year (2023);
House prices in Scotland increased annually by five per cent between July and September last year, to stand at £198,000. This was the highest growth rate since Q3 2022 (an annul increase of 7.4 per cent), and the third consecutive quarter where annual house price growth was positive;
During the year up to September last year, average private sector rent increased at its fastest rate in Lothian (Edinburgh, East Lothian and Midlothian) (14 per cent) and West Lothian (12.2 per cent) and fell by 2.4 per cent in Greater Glasgow (although this followed a 22.3 per cent increase the previous year);
The total number of ‘mortgage products’ increased to 6,508, as at the first of this month, only slightly lower than the 6,658 products that were available on July 1 last year, which was a more-than-15-year high. Meanwhile, the number of ‘Buy-to-let’ products had increased to 3,321, as of January 1 this year, the highest level in two-and-a-half years; and
The average interest rate on new fixed-rate mortgages fell from 4.76 per cent in August last year to 4.43 per cent the following November, while - over the same period - the average new floating rate fell from 5.84 per cent to 5.62 per cent.
Image details: Bonnyrigg, Midlothian; copyright Mike Wilson