Many areas of the UK are desperately in need of new homes but with no hope of fulfilling current demand, existing homes will have to last for 1200 years, according to a recent government report. Scotland however, will soon have a surplus if new builds are completed as expected.

Wales too, looks to have a surplus of 14,000 new builds by 2021, according to figures presented in the Halifax regional forecasts released today.

The sources for the figures are the Housing Statistics Annual Volume 2002 and the Housing & Construction Statistics 1980-1990 Great Britain.

The Halifax said new build is expected to keep pace with the projected growth in new households in Scotland and based on current projections there is likely to be an actual surplus of new properties being built.

The table above shows that the greatest new build programme is currently being experienced in Scotland with over 23,000 new properties being built during 2001/02.

The region with the smallest new build programme is currently the North East of England 6,400 properties being built in 2001/02. However it is in the southern regions of England and in particular in London and the South East where the average numbers of new homes being built each year are well below the rate of new household formation.

Halifax Quarterly Scottish House Price Index
Fourth Quarter 2003

The housing market in Scotland remains strong with house prices increasing by 2.2% during the final quarter of 2003 and are now 17.1% higher than a year ago.

The majority of towns across Scotland have recorded strong increases over the past 12 months with Dumbarton (50%), Helensburgh (49%) and Cupar (48%) seeing the largest increases over the year.

House prices in Scotland have now increased by nearly 40% during the last three years, underlining the strength of the Scottish housing market.

Despite the recent very rapid increases in house prices, Scotland has still got the most affordable housing in the UK. The average house price in Scotland now stands at 3.3 times average earnings, compared to 5 for the UK as a whole. The average price of a house in Scotland in the fourth quarter of 2003 was £84,086, compared to the UK average of £139,716.

Over the past year, 12 towns in Scotland have broken the £100,000 average house price barrier for the first time, taking the total number of towns in Scotland with average prices above this figure to 17. As a result, if this trend continues, an increasing number of first time buyers will find it more difficult to gain a foothold on the housing ladder.

House prices remain highest in Edinburgh with an average property price of £164,891 (20% higher than a year ago), well ahead of the UK average of £139,716.