In its new report, the Home Builders Federation (HBF) revealed planning permission was granted for 293,127 new homes across Great Britain.
In Scotland, the number of approved residential units increased from 19,300 in 2015 to 20,914 this year.
Overall, the number of units approved across Great Britain during the fourth quarter of last year was up 9% on the third quarter of 2016 and 5% higher than during the same period last year. Year-on-year increases were driven by a 8% rise in the number of private housing units approved, as well as a 15% rise in approved social housing units.
However, while the HBF welcomed local authorities continuing to increase the number of granted permissions, concerns have been raised over an 11% decline in the number of approved sites than compared with 2015, indicating permissions are being granted on larger ‘strategic' sites.
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In addition, the HBF said while housing supply is up 52% in the past three years, not enough is being done to deliver homes to adequately cater for our population, with the planning system remaining one of the major constraints on supply.
Stewart Baseley, Executive Chairman of the HBF, said: "We welcome the fact that local authorities continue to increase the number of planning permissions being granted. The number of permissions being granted is a strong indicator of future housing supply and will feed through into completed new homes in the years to come.
"The drop in the number of sites on which the permissions are being granted on is concerning. As the White Paper indicates, we need to ensure that permissions are being granted on a mix of site sizes and that local authorities are not reliant on one or two large sites. A mix of site sizes will better ensure a flow of housing completions and also enable SME builders to play their part in delivering new homes."
Allan Wilén, Economics Director, Head of Business Market Intelligence at Glenigan said: "The strong level of unit approvals during the final quarter of 2016 takes the number of new homes securing planning approval last year to its highest level in over a decade.
"Growth has been largely driven by private housebuilders and the strong development pipeline demonstrates developers' confidence in the long term prospects for the UK housing market. Encouragingly the fourth quarter also saw a recovery in social housing project securing approval."
To view the HBF's report, visit here.
(LM/MH)
