LAR Housing Trust’s impressive redevelopment of a formerly empty building in Niddrie, Edinburgh, into six two-bedroom flats for people with specialist housing needs has been shortlisted in this year’s Finders International 12th Scottish Empty Homes Awards.
The Scottish Empty Homes Partnership announced that the project, which was by LAR in partnership with City of Edinburgh Council and Edinburgh Health and Social Care Partnership, is a finalist for the ‘best retrofit of an empty home’ award.
In its submission, LAR said its development of the building which had been empty for seven years “will make a significant and life-changing impact for its tenants, some of whom have been hospitalised for two decades.”
The awards celebrate the impactful and transformative empty homes work undertaken across Scotland, recent statistics revealed almost 43,000 homes are lying empty and bringing even some of these back into use, can be a cost-effective way to help ease pressure on supply challenges.
Award winners will be announced on Wednesday 1st March 2023 at the 12th Scottish Empty Homes Conference, which will be held at the Engine Shed in Stirling, as well as being streamed online for digital participants.
Shaheena Din, National Project Manager, Scottish Empty Homes Partnership, said: “It has been incredibly difficult for the Advisory Group to choose finalists for this year’s awards as the quality of entries is very high, and we thank all those who took the time to submit nominations.
“The nominations demonstrate how empty homes work often involves creative problem solving and has a real impact on issues related to housing and the strengthening of communities.
“We look forward to showcasing the work of outstanding projects and individuals across the Scottish housing sector at the awards next month. Well done to our finalists and we look forward to announcing the winners in March.”
Public Sector Development Manager for Empty Homes, Muhammad Uddin from Finders International, who are the awards sponsor for the conference, said: “We are really impressed by the calibre of entries and shortlisting the nominations was not an easy task.
“It just demonstrates the level of innovation and initiative in the Scottish empty homes sector and we are proud to be involved in the awards.”
Finalists and winners will be presented with wooden plaques handmade by social enterprise Clydesdale Community Initiatives (CCI) at the conference.
Tickets for the 12th Scottish Empty Homes Conference are available via Eventbrite:
Finders International are the gold sponsor of the conference, with Auction House Scotland, Fraser & Fraser and Brodies LLP as silver sponsors, and Online Property Auctions as bronze sponsor.
East Renfrewshire is the mainland authority with the highest growth at 17.7%
2022 makes history with the largest number of high-value homes sold
Edinburgh one of six areas with values increased by 10% or more
Scott Jack, Regional Development Director at Walker Fraser Steele, comments:“If we step back for a moment and look at 2022 overall, it has been a record year for housing transactions in Scotland – all the more significant if we consider the performance of house prices over the last couple of years which have seemingly inexorably climbed.
“When we consider the rise in prices since the start of lockdowns back in March 2020, the average house price over that period has risen £41,700 (or 22.7 per cent). If we look at consumer prices measured by the CPIH over the same period, house prices have comfortably outperformed price growth elsewhere.
“Our data looks at the entire market which includes the significant volume of cash purchases north of the border and supports the view expressed in the RICS Residential Market Survey for December and January which indicated that prices are generally remaining resilient in Scotland. A frequent observation is that there remains a lack of suitable properties coming on to the market, which creates competition for those that are available, which helps in turn support current price levels.
“If we focus specifically on December, we can see the impact of the rising cost of borrowing. The average house price in Scotland continued to rise during December, although the increase was a modest £63. Average prices have now reached £225,520, which is some £14,800 – or 7.0% – higher than a year earlier. This sets another new record average price for Scotland, the tenth to occur in 2022.”
Table 1. Average House Prices in Scotland for the period December 2021 – December 2022 (The prices are end-month smoothed over a 3 month period) (Link to source Excel)
Commentary: John Tindale, Acadia Senior Housing Analyst:
The December housing market
Average house prices in Scotland continued to rise during December, although the increase was a very modest £63. Average prices have now reached £225,520, which is some £14,800 – or 7.0% – higher than a year earlier. This sets another new record average price for Scotland, the tenth to occur in 2022.
Indeed, if we look at the change in values since the start of the pandemic in March 2020 – when the average house price in Scotland was £183,853 – there has been an increase of some £41,700 or 22.7% to the end of December 2022. This compares favourably with the increase in consumer prices of 15.4%, measured by CPIH, over the same period. Property prices have thus risen in real terms over the last nearly three years.
Looking at the first six months of the monthly rates of change in house prices in Table 1 on page 3, the total amounts to 5.3%, which contrasts with the 1.5% increase in monthly rates during the second half of 2022.
This is a clear demonstration of the cooling in the housing market that has taken place over the last six months. However, what we can also see is that, with the exception of August 2022, the movement in prices has remained positive, which indicates that demand for properties still exists – even if it has softened from the levels seen earlier in the year.
As we show on page 7, sales of high value properties have continued throughout 2022, at a pace which exceeds that of 2021 – which year had itself set new record levels, almost 90% higher than the total number of high-value properties sold in 2019.
The RICS Residential Market Survey for December and January both indicated that prices are generally remaining resilient in Scotland, which contrasts with negative movements to the south in England. A frequent comment among surveyors in Scotland is that there is a lack of properties coming on to the market, which creates competition for those that are available, generally maintaining existing price levels. We wait with considerable interest to see what 2023 has in store.
Annual change
The average house price in Scotland in December 2022 has increased by some £14,800 – or 7.0% – over the last twelve months. This annual rate of growth has marginally decreased from November’s revised 7.1%, but only by the smallest of margins. In fact, prices in December increased by just £63 in the month, but an increase is an increase, and somewhat remarkably this rise established yet another record average house price – £225,520 – for the tenth month this calendar year.
In December 2022, 29 of the 32 local authority areas in Scotland saw their average prices rise above the levels of twelve months earlier, the same number as in November. The three areas where values fell over the year were, in descending order, Aberdeen City (-5.4%), Scottish Borders (-3.0%) and Stirling (-0.7%).
Aberdeen City has now fallen by nine places over the year to 24th in terms of its ranking of average prices compared to the other 31 local authorities in Scotland. This month in Aberdeen City, flats have experienced the largest fall in value, from an average £120k in December 2021 to £105k one year later.
The area with the highest annual increase in average house prices in December 2022 was the Shetland Islands, where average values have increased by 19.5% over the year. In the Shetland Islands, detached property values have seen the highest rise over the year, from £190k in December 2021 to £240k twelve months later, but this is based on a relatively small number of transactions.
On the mainland, the highest annual increase was in East Renfrewshire, up by 17.7%. This increase has been assisted by the sale of a £2.3 million detached property in Giffnock, some nine miles to the south of Glasgow. The property is the most expensive home to have been sold in East Renfrewshire in the last five years.
On a weight-adjusted basis, which incorporates both the change in prices and the number of transactions involved, there are five local authority areas in December which accounted for 51% of the £14,800 increase in Scotland’s average house price over the year. The five areas in descending order of influence are: – Edinburgh (25%); Glasgow (11%); East Renfrewshire (5%); North Lanarkshire (5%); and South Lanarkshire (5%).
Monthly change
In December 2022, Scotland’s average house price rose in the month by just £63, or 0.0% This follows November’s rise in prices of some £1,100, but it does at least remain positive.
In December 2022, 17 of the 32 Local Authority areas in Scotland experienced rising prices in the month, which is the same number as in November. Of the 17 local authorities with price increases, 8 are in the top 16 areas when ranked by price, with 9 being in the lower half of the market. The distribution of those with price rises is therefore evenly matched between the higher- and lower-priced areas in Scotland.
The area with the largest increase in average prices on the mainland in December was Moray, up by 4.9%. This month, the increase in the average price in Moray was helped by the sale of a six-bedroom detached home, set in eight acres of land, located some 1.5 miles to the west of Elgin. It sold for £1.1 million which is the second most expensive property in Moray in 2022. It had previously been sold in June 2010 for £800k, which works out at an annual compound gain of 2.6%, over the period.
Peak Prices
Each month, in Table 2 above, the local authority areas which have reached a new record in their average house prices are highlighted in light blue. In December, there are 6 such authorities, down from the 8 in November. Scotland itself has also set a new record average house price of £225,520 in the month.
Scotland transactions of £750k or higher
Table 3. The number of transactions by month in Scotland greater than or equal to £750k, January 2015 – December 2022 (Link to source Excel)
Table 3 shows the number of transactions per month in Scotland which are equal to or greater than £750k. The threshold of £750k has been selected as it is the breakpoint at which the highest rate of LBTT becomes payable.
There were 114 such transactions recorded by Ros during the month, with 70 relating to December 2022, 34 to November 2022 and a further 10 from earlier months, increasing the number registered to date in 2022 to 1,198.
This total already exceeds that of 2021, with a further 30 or so properties likely to be added to the total next month. Thus 2022 has proven to be the year with the largest number of high value sales in Scotland’s housing history.
Indeed, on the relatively safe assumption that a further 10 sales will be added to the December 2022 total, we can say that such sales in 2022 exceeded those in each month of 2021, except for March and June.
It may be recalled that March 2021 was the last month in which the LBTT tax-holiday applied in Scotland – which explains the higher number of sales that occurred in that month. Similarly, June 2021 was the last month of the SDLT tax-holiday in England – which wouldn’t have saved money for those buying a property in Scotland, but may have acted as an incentive for those moving to Scotland from England, so as to maximise the value of the home being sold.
Table 4 (next) provides a listing of the local authority areas ranked by the number of sales in excess of or equal to £750,000 for the years from 2018 – 2022.
Transactions analysis
Figure 2 below shows the monthly transaction count for purchases during the period from January 2007 to December 2022, based on Ros (Registers of Scotland) figures for the Date of Entry (December 2022 totals are based on Ros Application dates).
The graph starts in 2007, which was something of an exception, with close to 150,000 domestic property sales in the calendar year. The 2007 sales total is the largest of the last 18 years, although the period from 2004 to 2006 came close, with an average 139,000 sales on an annual basis.
However, during 2008 the banking industry began to suffer its credit crisis, with home loans becoming difficult to obtain, especially for first time buyers. Accordingly, the number of housing transactions fell to approximately 70,000 per year over the period from 2009 to 2012.
Normality was slowly restored from 2013, with sales rising to a yearly average of 87,500 over the period from 2013 to 2015, rising to an average 102,000 sales per annum from 2016 to 2019.
The effect of the Covid pandemic – which started in March 2020 – can be clearly seen on the graph. Housing transactions in April 2020 plummeted with the arrival of the pandemic, to be followed by a slow rise in sales as confidence began to return. Then followed a period when sales exceeded previous levels, from September 2020, as lifestyle changes and the LBTT tax-holiday pushed up demand – especially for properties with space to allow for working from home.
Figure 2. The number of sales per month recorded by Ros based on entry date from 2007 – 2022 (Link to source Excel)
In Figure 2, three peaks can be seen after March 2020: in October 2020 (pent-up demand from the low transaction levels earlier in 2020) and March and June 2021 (LBTT and SDLT tax-holidays encouraging sales in both Scotland and England). In the first eleven months of 2022, transaction levels have averaged 8,563 sales per month, which closely matches the average 8,610 sales per month recorded in the first eleven months of 2019 – the last full year prior to Covid.
Heat Map
The heat map below shows the rate of house price growth for the 12 months ending December 2022. As reported above, 29 of the 32 local authority areas in Scotland have seen a rise in their average property values over the last year, the three exceptions being Aberdeen City, the Scottish Borders and Stirling. The highest increase on the mainland over the twelve months to December 2022 was in East Renfrewshire at 17.7%. 6 of the 32 local authority areas had price growth of 10.0% or higher – four fewer than in November 2022.
Maximalism, eye-catching colours and unbridled joy are key themes adorning the inside of David Wilson Homes’ newly launched show home at Cammo Meadows in the north-west of Edinburgh.
As the region’s only three-storey show home, the three-bedroom Ashworth from the five-star housebuilder showcases multifunctional rooms fit for modern family living, designed by leading interior specialists Show Business.
A palette of bold, energetic colours has been used throughout the home, invoking feelings of cheerfulness and happiness – acknowledging a key interior trend for joyful, uplifting and mood boosting spaces recently identified by Wunderman Thompson in its annual trend report.
And with various paint brands proclaiming shades of red as their 2023 “colour of the year”, including Pantone’s Viva Magenta, a deep rose shade was selected for the ground-floor family dining room, working as both a grounding neutral and a touch of drama, complemented by a calming teal shade on the opposite wall. Relaxed textures create a laid-back feel to the room, including wood, soft accessories and fur throws.
Interior showhome photography of The Ashworth at David Wilson Homes Cammo Meadows development in Edinburgh
Alix Riding, creative account manager at Show Business said:“Personality is key when it comes to styling a three-storey home, due to the vast amount of space.
“In this particular home we injected some fun and humour into the rooms with styling pieces such as artwork featuring jumping dogs and children’s artwork, as well as canvasses covered with splashes of paint to add a playful element.
“Pulling colours from wallpapers is a good guide when choosing cushion colours, and don’t be afraid to mix and match different patterns as this adds to the theme of fun and playful.”
Interior showhome photography of The Ashworth at David Wilson Homes Cammo Meadows development in Edinburgh
Upstairs, subtle touches of maximalist wallpaper make a statement, including animal print in the family bathroom and striped wallpaper on the stairwell. To demonstrate the flexible nature of a three-storey house, the first-floor lounge with Juliet balcony takes an escapist “getaway” style to invoke a sense of calm above the hustle and bustle of family life downstairs.
On the top storey of the house is the main bedroom with en-suite, which features smooth velvets and panelled walls to create a well curated, smart feel with a wow factor.
Interior showhome photography of The Ashworth at David Wilson Homes Cammo Meadows development in Edinburgh
Anne Ross, sales director at David Wilson Homes East Scotland, part of Barratt Developments Scotland, said:“We’re really excited to reveal the east of Scotland’s first ever three-storey show home at Cammo Meadows, featuring three uniquely designed floors created for modern family living and with the latest design trends in mind.
“The house sits within a lovely community in the north-west of Edinburgh, less than ten minutes to the beach and just six miles to the city centre.”
House hunters are welcome to tour the show home at Cammo Meadows to get a feel for the property first-hand, as well as discover the surrounding area. A mix of three and four-bedroom homes are available, with David Wilson Homes offering incentives including up to £30,000 towards a mortgage, deposit or moving and running costs.
Modern building methods and materials also mean owners of new build homes can enjoy savings of up to £2,600 per year on energy bills, according to the HBF “Watt a Save” report published October 2022.
A new report by the Scottish Housing Regulator highlights that some councils are finding it increasingly difficult to fully meet their statutory duties on homelessness, particularly providing temporary accommodation to people experiencing homelessness.
The report highlights that councils are making considerable efforts in very challenging circumstances to deliver effective services and some have had success in moving toward an approach with rapid rehousing at its centre.
The Regulator also found that there is an emerging risk of systemic failure in their homelessness services.
The report sets out three main strategic challenges facing councils in providing services to people experiencing homelessness: dealing with the number of people in temporary accommodation; maintaining an adequate supply of temporary accommodation; and ensuring homeless people have sufficient access to permanent housing.
John Jellema, Assistant Director Of Regulation, said: “Some councils are finding it increasingly difficult to meet these challenges, and so to fully meet their statutory duties. This includes difficulties in ensuring that people with particular equality characteristics – such as single women and children – have temporary accommodation options that meet their needs.
“There are actions councils can and should take to respond to these challenges, and there are other improvements to services they can make. All councils should continue best efforts to meet their statutory obligations.
“The Scottish Government has put in place a wide range of policy actions aimed at achieving the goal of ending homelessness in Scotland. Having said that, the Scottish Government may need to consider what further urgent measures it can take to support councils to respond to the immediate challenges they face in delivering services for people who are homeless.”
Shelter Scotland has responded to yesterday’s report by the Scottish Housing Regulator, outlining the emerging risk of systematic failure within local authority homelessness services, particularly in securing temporary and permanent accommodation.
The report supports Shelter Scotland’s continued messaging that Scotland is in a housing emergency, and that the supply of more social homes must be prioritised by the Scottish Government.
It shows that councils are making considerable efforts in very challenging circumstances to provide homelessness services, however, are finding it increasingly difficult to meet their statutory duties in the provision of temporary and permanent accommodation.
The report highlights three major strategic challenges councils are facing: dealing with the significant numbers of people currently in temporary accommodation; maintaining a sufficient supply of appropriate temporary accommodation; and ensuring access to the number of permanent homes that are needed.
The report calls on the Scottish Government to consider what further urgent measures it can take to support councils to respond to the challenges they face in delivering services for people who are homeless.
It also notes that some households do not always receive a service that meets their specific needs, further demonstrating that the system is broken and biased.
In its Scottish Housing Emergency Action Plan last year, Shelter Scotland outlined three key priorities as the most critical to tackle the housing emergency: buy and build 38,500 social homes by 2026, fully fund local authority homelessness services and guarantee the right to a permanent home for every household.
Shelter Scotland Director, Alison Watson, said: “The Scottish Government know how to fix homelessness and the wider housing emergency in Scotland.
“As indicated in this report, an adequate supply of permanent, affordable housing provided by councils and RSLs is vital in ending homelessness.
“Over the years they have been presented with endless evidence and testimony that investing in social housing ends homelessness, tackles child poverty and is crucial in fighting the housing emergency. Yet, they are choosing to look the other way as thousands of families continue to struggle.
“If ever there was a clearer message from the sector that the time to act is now, this is it. The Scottish Government must recognise that its choices to ignore the housing emergency will have devasting consequences for the fight against homelessness.”
A major milestone has been reached on a flagship, net zero carbon housing development in Edinburgh as the first homes are now under construction.
Located on Waterfront Avenue in Granton, ‘Plot D1’ will comprise over 70 one, two, and three-bedroom apartments alongside several commercial units. The apartments will be rented as social housing owned and managed by The City of Edinburgh Council or to households on low to middle incomes at a ‘mid-market’ rate that is lower than private rental rates.
The development will form a significant part of the ongoing £1.3bn regeneration of Granton’s waterfront and will set a roadmap for the future of net zero carbon housing delivery in Scotland.
This is the first of three confirmed pilot projects being delivered by The Edinburgh Home Demonstrator (EHD) – a programme providing an innovative approach to building affordable net zero carbon homes at scale.
The Scottish Government-backed programme has engaged a community of research and development experts to show how affordable net zero carbon homes can be created at scale across the six local authorities within the Edinburgh and Southeast City Deal Region.
Glasgow-based contractor and manufacturer CCG (Scotland) is leading construction of the ’Plot D1’ site on behalf of The City of Edinburgh Council alongside a design team of architects, engineers, and energy consultants.
The firm is leveraging the Modern Methods of Construction (MMC) concept of offsite manufacturing on the pilot project. Standardised panels have been manufactured in CCG’s factory, transported to site, and positioned with the use of two cranes. This has resulted in a much quicker and efficient build, with one storey a week being completed on the Granton site.
This innovative combination of techniques will be evaluated by the EHD programme and will inform the development of a blueprint for procurement, quality standards, and cost that can be used across the sector to create affordable net zero communities.
The homes are designed to reach as close to net zero carbon as possible, with the aim of lowering energy demands, eliminating carbon emissions, and improving the living environment for residents. Renewable technologies such as a communal Air Source Heat Pump System and the use of solar PV panels will combine with the home’s enhanced building fabric to achieve the net zero standard of performance.
City of Edinburgh Council Leader, Cammy Day, said: “The future of housebuilding is happening here in Edinburgh, where we are proud to lead the biggest and most innovative net zero carbon development in the country.
“The pilot itself is helping to create and support jobs in green industries like offsite sustainable manufacturing. This is exciting to see and something our wider regeneration of Granton will build on.
“What we are doing with our partners at the Granton Waterfront is truly trailblazing and will see the community become a test bed for future innovation, skills development and much needed employment opportunities – all while pioneering 75 new net zero carbon affordable homes.”
Calum Murray, CCG (Scotland) Director and EHD Board Member, said:“CCG are pioneers for offsite manufacturing in Scotland. We operate from one of the UK’s most advanced facilities and use technological procedures to create homes in a controlled setting that are inherently designed to deliver an enhanced quality standard and minimise heat loss.
“For Granton D1, we will then integrate our entirely renewable energy system onsite. This uses several measures developed in partnership with Carbon Futures that combine with this improved standard of build to achieve our net zero target.
“The EHD programme is key to helping us to reach that target and this milestone at Granton D1 will be one of many along the way. It will be an exciting journey and one in which we are delighted to be playing our part alongside the Council and our trusted partners.”
Ainslie McLaughlin, Chair of the Edinburgh Home Demonstrator Programme Project Board, said:“The homes are quickly taking shape thanks to the offsite manufacture of key components.
“The productivity gains and speed of construction delivered by offsite MMC make it an important solution in the delivery of net zero carbon homes, especially to meet the demand for affordable housing. Scotland has both the capability and resources to scale this up, there is real opportunity here.”
The programme is delivered by multiple stakeholders including partners from The City of Edinburgh Council, Offsite Solutions Scotland, Edinburgh Napier University, the University of Edinburgh, Scottish Futures Trust, and Built Environment – Smarter Transformation (BE-ST) and is funded by the Scottish Government’s Affordable Housing Supply Programme and The City of Edinburgh Council.
“I’m not giving my house to an African”: – Scottish Parliament Roundtable exposes the harsh reality of the student housing crisis in Edinburgh and the Lothians.
Responding after hosting a Student Housing and Cost-of-living roundtable in the Scottish Parliament yesterday (25th January 2023), Foysol Choudhury MSP said: “Our students are at breaking point.
“Today in the roundtable I hosted at the Scottish Parliament, we heard again and again, from students all across the packed room, about issues such as a lack of housing, unsafe conditions, unscrupulous landlords, sofa surfing and extortionate prices.
“In Edinburgh and the Lothians, we heard about how this student housing crisis has been impacted even more by Edinburgh’s crisis-hit housing market.
“For students facing these problems, it can cause significant mental health difficulties during what is already a very stressful time.
“For international students, this stress can be compounded as landlords are taking advantage of newcomers to the city, charging extortionate rents and asking for unreasonable deposits.
“A student talked about the anxiety felt by Ukrainian students trying to find a safe home in Scotland.
“Another student told of how a landlord told them “I’m not giving my house to an African”.
“Another told of how “my friend was living in a five bedroom flat sharing with 10 other students”
“These few examples are totally unacceptable and they are sadly a reflection of wider issues being felt by students across Edinburgh and Scotland.
“What was clear from the roundtable is that students feel the urgent need for a Student Housing Strategy, more regulation of purpose-built student accommodation and more rights afforded to those who are tenants in these accommodations.
“Students are also calling out for more funding for support with transport, mental health, damp and the cost-of-living.
“We need an urgent solution, now.
“I was glad to see many MSPs in attendance to listen to students’ concerns, as well as representatives from local universities and organisations such as the Edinburgh Student Housing Co-operative, Living Rent and NUS.
“It is important that moving forward, students, universities, local authorities, the private sector, the Scottish Parliament and the Scottish Government all work in partnership.
“I will be raising a motion in the Scottish Parliament and asking for a Member’s debate. Now is the time for action, not just words”
There were 21,825 all-sector new build homes completed in Scotland in the year to end June 2022, according to quarterly statistics on housebuilding and affordable housing supply published today by Scotland’s Chief Statistician.
This is an increase of 9% (1,806 homes) on the 20,019 completions in the previous year. Increases were seen across private-led new build completions (4% or 615 homes), local authority new build completions (27% or 540 homes), and housing association new build completions (21% or 651 homes).
Meanwhile the number of new build homes started across all sectors decreased by 13% (2,765 homes), with 19,060 starts in the year to end June 2022, down from 21,825 starts in the previous year. Private-led new build starts decreased by 15% (2,611 homes) and local authority new build starts dropped by 12% (234 homes), whilst housing association new build approvals increased by 3% (80 homes).
Separate figures published as part of the UK House Price Index show a total of 12,013 private new build sales transactions in Scotland in the year to end August 2022, up 4% (508 transactions) on the 11,505 transactions recorded in the year to end August 2021.
Latest social sector new housebuilding figures for the year to end September 2022 show an increase of 17% (982 homes) to 6,704 completions, with local authority completions rising by 40% (799 homes) to 2,792 and housing association completions up by 5% (183 homes) to 3,912.
However social sector starts fell by 16% (797 homes) to 4,161, with local authority starts increasing slightly by 1% (11 homes) to 1,910 and housing association approvals decreasing by 26% (808 homes) to 2,251.
Affordable Housing Supply Programme
Separate quarterly statistics on the Affordable Housing Supply programme show there were a total of 2,565 affordable homes completed in the latest quarter July to September 2022. This brings the total number of affordable homes completed in the 12 months to end September 2022 to 9,449, an increase of 2% (219 homes) on the 9,230 homes completed in the previous year. There were increases in the number of completions for social rent by 17% (1,127 homes), however affordable rent completions decreased by 28% (387 homes), and affordable home ownership completions fell by 42% (521 homes).
Meanwhile there were 1,028 affordable homes approved in the latest quarter July to September 2022, which brings the total number of affordable homes approved in the 12 months to end June 2022 to 7,160, a decrease of 16% (1,414 homes) on the 8,574 homes approved in the previous year. There were decreases in the number of approvals for social rent (by 13%, or 813 homes), affordable rent (by 18%, or 195 homes), and affordable home ownership (by 37%, or 406 homes).
There were 2,172 affordable homes started in the latest quarter July to September 2022, which brings the total number of affordable homes started in the 12 months to end September 2022 to 8,256, a decrease of 19% (1,877 homes) on the 10,133 started in the previous year. There were decreases in the number of starts for social rent (by 11%, or 804 homes), affordable rent (by 37%, or 548 homes), and affordable home ownership (by 42%, or 525 homes).
Quarterly affordable housing supply statistics are used to inform progress against Scottish Government affordable housing delivery targets, in which the ambition is to deliver 110,000 affordable homes by 2032, of which at least 70% will be for social rent and 10% will be in remote, rural and island communities.
There have been a total of 4,927 completions so far against the 110,000 target, across the period 23 March 2022 to 30 September 2022, consisting of 4,188 (85%) homes for social rent, 418 (8%) for affordable rent, and 321 (7%) for affordable home ownership
Figures on the remote, rural and island communities element of the target are planned to be reported on as part of future annual affordable housing supply out-turn reports, although we are considering whether it is feasible for these figures to be reported on a quarterly basis in addition to this.
Latest annual figures on long term empty and second homes
The 42,865 long-term empty properties as at September 2022 is a decrease of 2% (901 properties) from the 43,766 properties in 2021. Across the same time period the number of second homes has increased by 2% (397 homes) from 23,890 to 24,287.
Range of house types with quick move-in provide “something for everyone”
SEVEN properties are now available to families looking for a quick move-in date at a popular development located just outside Livingston.
Uphall Station Village by Dundas features a range of three, four and five bedroom semi-detached or stand-alone homes which are available at varying price points suitable for first-time buyers, to growing families looking to upsize.
The seven available homes – which range from £248,995 to £436,495 – mark a new record-high for the developer, which is eager to satisfy the demand for family homes in the commuter paradise parish.
Craig Fairfoull, Head of Sales and Marketing at Dundas, said: “At our Uphall Station Village development, there really is something for everyone – a range of house types at various price points that suit individual family needs and circumstances.
“For those looking to kick-start their new property journey as soon as possible, buyers are able to move into the available four-bedroom Crawford house type at the development as early as Spring this year.
“The three-bedroom Elliot house type – which is at the lower end of the price range – is a great option for first-time buyers, whereas the semi-detached Gilroy is perfect for growing families.”
Uphall Station Village is the perfect location for busy, working families and its location provides the ideal mix of idyllic, peaceful living with the hustle and bustle of urban city life approximately 15-minutes away.
Partners Sophie Bell and Lewis Alexander, who recently purchased their first home at Dundas’ Uphall Station Village development, were drawn to the spacious three-bedroom Gilroy house-type – of which there is still one remaining – and purchased the property late last year.
Sophie, 25, said: “Having grown up in the area and currently working in South Gyle, I was keen to live in Uphall Station.
“When we first went to view the development, we really liked the size of the Gilroy house. It was perfect for two people and would give us plenty of room to host friends and family. As Lewis works from home, it also meant that we were able to turn the third bedroom into an office space.
“Although we only moved into Uphall Station Village a few months ago, we are already loving our Gilroy house-type. There is so much space, which means there is lots that we can customise.”
All homes benefit from high-efficiency gas central heating with high-spec thermal insulation, integrated solar panels and high-performance double glazing.
The development’s recently refurbished show home showcases its versatility, with buyers having the space to design their home in a unique way that is ideal for individual needs.
Craig continued: “We have never had so many properties available at one site before at the same time – and so it is the perfect opportunity to build a happy, thriving and tight-knit community at the development.
“We are keen to encourage as many people as possible to come and visit the site so they can witness the benefits of its location and the array of house types which cater to individual preferences.”
Uphall Station Village is close to a wide range of shops and schools including Uphall Primary School, as well as Pumpherston and Uphall Station Community Primary School. Uphall train station is less than 10 minutes away from the development.
Dundas has a mission to create homes that make people feel great. Headquartered in Livingston and proudly Scottish, it has a track record of building well-designed homes that are higher spec than a vast majority of competitor properties.
The independently-owned developer is focused on building welcoming, integrated communities and making the journey of buying a home more straightforward, inspiring and fun.
To find out more about Uphall Station Village, visit:
East Lothian becomes authority with highest average values
Sales of high-value homes in 2022 continue to exceed those in 2021
Transaction levels in 2022 match those of 2019
Monthly house price change up 0.2%, 6.7% up annually
Average Scottish house price now at £224, 644
Table 1. Average House Prices in Scotland for the period November 2021 – November 2022
Note: The Walker Fraser Steele Acadata House Price Index (Scotland) provides the “average of all prices paid for houses”, including those made with cash.
Scott Jack, Regional Development Director at Walker Fraser Steele, comments:“Our data this month may, at first glance, look at odds with other published indices issued by lenders but it is important to understand our higher rate of growth for the period includes all property transactions.
“This is particularly crucial in Scotland as a third of these transactions are made in cash. It is also important because it means this third is not as constrained by the cost of mortgage finance.
“Our data is also drawn from the latest available provided by Registers of Scotland so it uses actual completion prices for November, which may have been agreed earlier in the year, as opposed to precompletion valuations or estimates.
“Scotland is not alone in seeing tentative price growth increases, but our analysis makes a clear point of the value of looking beyond mortgage borrowing for a real understanding of what is going on.
“Property across the UK since the start of the pandemic has consistently out-performed inflation – the average house price in November reached £224,644 – an increase of £40,800 since March 2020, which reflects a comparative growth for the period of 22% compared to consumer prices which have grown by 14.9%.
“On a monthly basis, November’s average price grew by £400 or 0.2%, which though slight in the scheme of things, still means the average house price is at a record high for a ninth time in 2022.”
Commentary: John Tindale, Acadata Senior Housing Analyst
The November housing market
Average house prices in Scotland continued to rise during November, although the increase was a modest £400, or 0.2%. Average prices have now reached £224,644, which is some £14,100, or 6.7%, higher than a year earlier. This sets another new record average price for Scotland, the ninth to date in 2022.
Indeed, if we look at the change in values since the start of the pandemic in March 2020 – when the average house price in Scotland was £183,853 – there has been an increase of some £40,800, or 22%, in the average house price to the end of November 2022. This compares favourably with the increase in consumer prices of 14.9%, measured by CPIH, over the same period. Property prices have hence risen in real terms over the last nearly three years.
With the UK-wide annual November headline rates of the Halifax and Nationwide indices at 4.7% and 4.4% respectively, it may be surprising to see Scotland at a higher rate of 6.7%. However, it should be recognized that the lender indices only relate to properties purchased with a mortgage, while 33% of Scotland’s properties are typically acquired with cash. One third of purchases will therefore not necessarily have been influenced by the recent rise in interest rates.
Also of relevance is the fact that the North West and North East regions of England have annual price increases of 12.9% and 13.4% respectively, so Scotland is not alone in seeing rates above those announced by the lenders.
Figure 1. The annual rate of house price growth in Scotland over the period March 2020 to November 2022
The RICS Residential Market Survey for November indicates that activity in the home sales market has continued to weaken, with higher interest rates and a difficult macro-economic outlook taking their toll on buyer sentiment, and indicators on new instructions and agreed sales remaining negative.
The survey did, however, advise that respondents report that, for now, prices continue to edge higher in Scotland – although the pace of growth is significantly softer than earlier in the year. This is in line with our own findings, derived from the price data supplied by RoS, which includes all domestic transactions based on both cash and mortgage sales.
Local Authority Analysis
Table 2 above shows the average house price and percentage change (over the last month and year) by Local Authority Area for November 2021, as well as for October and November 2022, calculated on a seasonal- and mix-adjusted basis. The ranking in Table 2 is based on the local authority area’s average house price for November 2022. Local Authority areas shaded in blue experienced record average house prices in November 2022.
Annual change
The average house price in Scotland in November 2022 has increased by some £14,100 – or 6.7% – over the last twelve months. Although the annual rate of growth has increased marginally in November, up 0.2% on October’s revised 6.5%, the rate of growth has reduced from June’s 10.4%, which now looks as though it will represent the high point of 2022. However, prices continued to climb in November, albeit at a reduced rate compared to June, with Scotland setting another record average house price, of £224,644 in the month, for the ninth time this calendar year.
In November 2022, 29 of the 32 local authority areas in Scotland saw their average prices rise above the levels of twelve months earlier, the same number as in October. The three areas where values fell over the year were, in descending order, Aberdeen City (-8.1%), Scottish Borders (-2.1%) and Inverclyde (0.0%), although in Inverclyde average prices were just £9 lower than they were twelve months previously.
In Aberdeen City, which has fallen seven places over the year to 25th in terms of its ranking of average prices compared to the other 31 local authorities in Scotland, it is detached homes that have experienced the largest fall, from an average £390k in November 2021 to £350k one year later.
The area with the highest annual increase in average house prices in November 2022 was East Lothian, where values have risen by 14.7% over the year. This takes East Lothian to the top of Table 2 in terms of average values, ahead of the City of Edinburgh.
The rise in prices in East Lothian has been assisted by the sale of The Balfour, a 9,000 sq. ft 4-bedroom apartment, being the ground floor of Whittingehame House, Haddington, for £2.4 million.
Technically, The Balfour is classified as a flat, since it shares a common entrance with other apartments to the main building, so this sale becomes the most expensive ‘flat’ to be sold in East Lothian for at least the last five years.
On a weight-adjusted basis, which incorporates both the change in prices and the number of transactions involved, there are six local authority areas in November which accounted for 51% of the £14,100 increase in Scotland’s average house price over the year.
The six areas in descending order of influence are: – Edinburgh (19%); Glasgow (10%); East Lothian (7%); North Lanarkshire (5%); West Lothian (5%); and Fife (5%).
Monthly change
In November 2022, Scotland’s average house price in the month rose by some £400, or 0.2%. This follows October’s rise in prices of £630, but August and September’s decreases of -£290 and -£320 respectively. These two months were the first falls in Scotland’s average house price since June 2021.
In November 2022, 17 of the 32 Local Authority areas in Scotland experienced rising prices in the month, which is one less than the 18 in October. Of the 17 local authorities with price rises in the month, 8 are in the top 16 areas when ranked by price, with 9 being in the lower half of the market.
The distribution of those with price rises is therefore evenly matched between the higher- and lower priced areas in Scotland.
However, if we look only at the areas with price falls, then the top half of the areas by value saw an average fall of -1.1% in the month, while the average for the bottom half by value amounted to -2.5%. So those areas with the highest falls in the month tended to have the lowest average values.
The largest increase in average prices on the mainland in November was, for the second month running, Clackmannanshire, up by 5.6%. This month the increase in the average price was helped by the sale of a four-bedroom detached home, with stables and a paddock, just to the east of Dollar, which is evenly located between Glasgow (36 miles) and Edinburgh (37 miles).
It was put on the market for offers over £1 million – it sold for £1.21 million – becoming the second-highest priced sale in Clackmannanshire since August 2019.
Peak Prices
Each month, in Table 2 above, the local authority areas which have reached a new record in their average house prices are highlighted in light blue. In November, there are 8 such authorities, down from the 12 in October. Scotland itself has also set a new record average house price of £224,644 in the month.
Scotland transactions of £750k or higher
Table 3. The number of transactions by month in Scotland greater than or equal to £750k, January 2015 – November 2022
Table 3 shows the number of transactions per month in Scotland which are equal to or greater than £750k. The threshold of £750k has been selected as it is the breakpoint at which the highest rate of LBTT becomes payable.
There were 123 such transactions recorded by RoS during the month, with 78 relating to November 2022 and 45 to October 2022, increasing the number recorded to date in 2022 to 1,084. The total recorded in 2021 to the end of November amounted to 1,020, so it is looking extremely likely that 2022 will be establishing a new high for such sales in a year – there are already eight months in which the 2022 totals are either higher than or equal to one year earlier.
As reported last month, these statistics suggest that the “lifestyle changes” associated with the pandemic, of “working from home” and the “race for space”, continue to be important features of the current housing market, even if the prominence of the Covid restrictions are beginning to wane. This “race for space” continues to result in strong competition for high-value homes, which are in relatively short supply, causing prices to continue to creep upwards at the top-end of the market.
The six authorities with the largest number of the 1,084 high-value sales that have been recorded to date in 2022 are: Edinburgh (530); Glasgow City (70); East Lothian (65); Fife (56); East Renfrewshire (42); and finally Perth and Kinross (41). From these figures it can be seen that in 2022, the City of Edinburgh accounts for just under half of this sector of the housing market.
Transactions analysis
Figure 2 below shows the monthly transaction count for purchases during the period from January 2007 to November 2022, based on RoS (Registers of Scotland) figures for the Date of Entry (November 2022 totals are based on RoS Application dates).
The graph starts in 2007, which was something of an exception, with close to 150,000 domestic property sales in the calendar year. The 2007 sales total is the largest seen during the last 18 years, although the period from 2004 to 2006 came close, with an average 139,000 sales on an annual basis.
However, during 2008 the banking industry began to suffer its credit crisis, with home loans becoming difficult to obtain, especially for first time buyers. Accordingly, the number of housing transactions fell to approximately 70,000 per year over the period from 2009 to 2012.
Normality was slowly restored from 2013, with sales rising to a yearly average of 87,500 over the period from 2013 to 2015, rising to an average 102,000 sales per annum from 2016 to 2019.
The effect of the Covid pandemic – which started in March 2020 – can be clearly seen on the graph. Housing transactions in April 2020 plummeted with the arrival of the pandemic, to be followed by a slow rise in sales as confidence began to return. Then followed a period when sales exceeded previous levels, from September 2020, as lifestyle changes and the LBTT tax-holiday pushed up demand – especially for properties with space to allow for working from home.
Figure 2. The number of sales per month recorded by RoS based on entry date from 2007 – 2022
In Figure 2, three peaks can be seen after March 2020: in October 2020 (pent-up demand from the low transaction levels in 2020) and March and June 2021 (LBTT tax-holidays encouraging sales). In the first eleven months of 2022, transaction levels have averaged 8,635 sales per month, which closely matches the average 8,610 sales per month recorded in the first eleven months of 2019 – the last full year prior to Covid.
Heat Map
The heat map below shows the rate of house price growth for the 12 months ending November 2022. As reported above, 29 of the 32 local authority areas in Scotland have seen a rise in their average property values over the last year, the three exceptions being Aberdeen City, the Scottish Borders and Inverclyde. The highest increase on the mainland over the twelve months to November 2022 was in East Lothian at 14.7%. 10 of the 32 local authority areas had price growth of 10.0% or higher – three more than in October 2022.
Comparisons with Scotland
Figure 3. Scotland house prices, compared with England and Wales, North East and North West for the period January 2005-November 2022
Figure 4. A comparison of the annual change in house prices in Scotland, England and Wales, North East and North West for the period January 2020–November 2022
Scotland’s Eight Cities
Figure 5. Average house prices for Scotland’s eight cities from September 2021–November 2022
Figure 6. Average house prices for Scotland’s eight cities November 2022
THE WILLOW NO MORE – another local boozer bites the dust
A planning application by Alumno Group for high-quality purpose-built student accommodation, including ground floor commercial space at Jock’s Lodge, has been submitted to City of Edinburgh Council.
The proposals by the specialist student accommodation provider are located on the corner of Restalrig Road South and London Road.
The development will include 191 student rooms and the constrained nature of the site on a busy main arterial route means that it is well suited to student accommodation. This will serve to address rapidly increased demand and provide a much-needed boost for local businesses through delivering increased footfall.
Existing local businesses on the site all agreed to its sale and are committed to the redevelopment of the site, as current facilities are no longer commercially viable.
Development will comprise a mix of single bedrooms with shared kitchens and larger studio style bedrooms. Facilities provided will include a ground floor lounge, study, gym and social spaces, with generous cycle storage provision, laundry and storage.
External amenity provision includes a rear landscaped courtyard and external terraces at roof level. Largely car-free, the development will have two parking spaces included, one of which will be an accessible/disabled parking space.
Following an extensive pre-application and public engagement process, a series of design changes and developments have been realised:
The overall massing was reduced from 8 to 7 storeys, while revised floor-to-floor heights and a shortening of the parapet has significantly reduced the building height further.
The commercial area offering has been increased, with additional provision for an outdoor terraced area. The proposed commercial space will include a new community local food and drink use, replacing the neighbouring Limelite pub, but under the same local ownership.
Let by Heineken UK, the Willow pub, which currently operates on the site, has been relocated to Musselburgh and is now trading as Willow on High Street following an agreement with Heineken. It will operate both at this new location and it is hoped at Jock’s Lodge until the latter is redeveloped.
Prior to taking on a temporary management agreement for The Willow at Jock’s Lodge, the operators were advised of the planned sale of the site by Heineken, who identified it for disposal due to a chequered trading history.
They were offered it on a limited tenure and opted to take it on that basis while the negotiations to redevelop the site were finalised. The operators currently operate on a very minimum rent/utility-free basis.
Alumno has a strong reputation for commissioning new artworks for its developments and is working with arts consultant, Matthew Jarratt, to deliver a series of sculpture and other artwork commissions which will be integrated into the new building and public realm by Edinburgh-based artist, Kenny Hunter.
Local artists and students/recent graduates from Edinburgh College of Art will also be engaged in design projects and given the opportunity to showcase their works at the site.
Having assessed the number of existing and proposed purpose-built student accommodation developments in the area, along with analysing the existing concentration of students, it is clear there is not a significant number of new purpose-built student accommodation overall in this area when set against an Edinburgh context.
Even if the development is delivered, the concentration of students will remain within an acceptable threshold. If approved, the eight developments that are within a mile radius of the site (including Jock’s Lodge), will amount to 1,666 bedrooms, giving a student population of 4.3 per cent in terms of purpose-built accommodation in that location. Combined with other students i.e. those not living in purpose-built accommodation, this results in a total of 3,523 students or 8.9 per cent of the population.
In addition, if approved, the number of full-time students living in the Craigentinny/ Duddingston ward (in which the Jocks Lodge site sits) will only rise to 10.1 per cent of the resident population if all the accommodation that is currently in use, has been approved, or is at application stage, is delivered.
This level would still be significantly lower than the proportions of full-time students living in the Southside/Newington, City Centre, Meadows/Morningside and Fountainbridge/Craiglockhart wards.
It is anticipated that spending in the local area by the students living at the Jock’s Lodge development is estimated to be more than £900,000 per year, and at its peak during the construction phase it is estimated that the site will employ a workforce of up to 40.
David Campbell, founder of Alumno said: “This exciting mixed-use scheme will serve to ease the acute housing pressures by providing greater options whilst addressing the increasing and well documented student housing demand by providing modern, high quality and well managed accommodation.
“We have listened to the responses of the local community through our thorough consultation process and have reduced the height of the building to accommodate this feedback.
“Employment and investment will be generated both during construction and once complete, increasing footfall to local shops and also serving to provide a new sustainable food/drink outlet for the community, including outdoor space. We are committed to being a good neighbour and believe our plans will make the best and most positive impact on what is a highly constrained and challenging urban site.”
Established in 2006, Alumno is part of Places for People, a property management, development and regeneration company based in the UK.
Alumno specialises in the design and development of high-quality, modern accommodation for students.
