Scottish social housing tender prices rise 4.2%

Tender prices for social housing in Scotland, as measured by the Scottish government’s Scottish Social Housing Tender Price Index (SSHTPI), rose 1% in 3Q2019 and 4.2% compared with 3Q2018. They have been rising steadily over the past year.

Tender prices are driven as much by demand as by resource costs. Total new work output in Scotland grew strongly in recent quarters: new work output in 3Q2019 was up 3% on the previous quarter and 15% on 3Q2018.

The SSHTPI has reflected the trend in demand from the Scottish housing sector. Output was down slightly (2%) in the latest quarter but has risen 11% in the last year (3Q2018 to 3Q2019) and is at an historically high level.

A total of 23,700 dwellings were started in the year to 2Q2019 (according to the latest figures available), of which 6,776 (29%) were for the social sector. The total is up 22% on the previous 12 months, while social sector starts are up 2.5%.

Scottish Social Housing Tender Prices and Scottish Housing Output
((1985 =100), Scottish new work housing output, £m constant 2016 prices)