NewsArticle-04-12-2008

The Bank of England’s decision to cut interest rates by a further 1% was welcomed by the Board of Homes for Scotland at their meeting today.  However, the representative body of Scotland’s home building industry warned that the UK Government must use its influence with the banks to insist upon immediate cuts in mortgage rates to ensure that the benefit is passed on to consumers without delay.  In addition, Homes for Scotland says that further fundamental action is still needed by both Scottish and UK Governments to kick-start a recovery.

Homes for Scotland’s Chief Executive Jonathan Fair (right) said:

“The past few months have demonstrated how totally dependent the economy is on a thriving housing sector and the Government must now step up to the plate to avoid total economic crisis.

“While the £9 million announced by the Scottish Government last week, aimed at enabling housing associations to purchase complete and part-completed stock from the private sector, was welcome this represents a small proportion of the total funding available.  We are urging Ministers to allocate the balance before Christmas to ensure maximum effectiveness.  Much more investment needs to be brought forward to buy available stock and to 'pump prime' new sites with up-front cash to help builders commence new projects across Scotland as a matter of urgency.

“Finally the UK Government cannot afford to delay until Spring to act on Sir James Crosby’s recommendation to improve the availability of mortgage finance.

“Today's announcement on interest rates must be welcomed, but fast action is required on these fundamental areas if jobs are to be protected, housing supply is to recover and the benefits are to be felt by the wider Scottish economy.”

Ends

Enquiries to:

Jennifer Kennedy/Beth Hocking - Homes for Scotland (0131 455 8350)

Note to Editors:

Homes for Scotland represents the country’s home building industry which:
-  is the largest source of private investment in Scotland
-  is the largest user of the planning system in Scotland
-  last year built 20,000 new homes, contributed £6bn to the economy and directly impacted the employment of 100,000 people