Slump in planning approvals for new Scottish homes

The study indicated approval was given for nearly 5,500 new Scottish homes in the first half of 2011

The number of new homes being granted planning permission in Scotland has slumped at a faster rate than any other part of the UK this year, according to new data.

The Home Builders Federation (HBF) said approval was given for 5,478 Scottish homes in the first half of the year.

That compares with almost 9,500 residential units granted permission during the same period in 2010.

Two years ago, Scotland accounted for 18% of the number of UK approvals.

According to HBF, the figure now stands at just 9%.

The federation said the flow of residential approvals during the second quarter of 2011 "resumed its negative trend" in the UK as a whole, after a brief pick-up at the beginning of the year.

It added that the number of new homes being approved by local authorities was the lowest seen for two years, with "little hope of a return to anything near pre-recession levels".

The UK-wide figures, which were compiled by construction research body Glenigan, indicated a total of 29,100 residential units were approved during the second quarter of 2011.

That was a 23% drop on the previous three months, and 26% below a year ago.

Scottish home building industry body Homes for Scotland said production had declined despite indications for the need to increase supply.

Director of planning Allan Lundmark said housing completions had effectively halved since 2007 and were now at their lowest levels since 1931.

He urged planning authorities to release more land capable of supporting immediate development.

"Across Scotland, we have an over-reliance on large strategic land releases but these are simply undevelopable because of the huge infrastructure costs associated with opening them up, " he said.