NewsArticle-03-03-2009

The Scottish home building industry has welcomed Nicola Sturgeon’s (right)call to the UK Government to take “radical steps” and deliver at least £500m of new funding housing investment in Scotland in the 2009 Budget.

Jonathan Fair, Chief Executive of Homes for Scotland, the organisation which represents companies building 95% of the country’s new homes, commented.

“This welcome demand for new money demonstrates the importance the Scottish Government is placing on housing.  However, in the context of an industry which prior to the onset of the credit crunch was the largest source of private investment in Scotland, it is imperative that our focus broadens further than simply affordable housing alone.

“Whilst the private sector has been at the forefront of calls for both accelerated and increased funding in affordable housing provision in recognition of the benefits this offers in terms of maintaining skills and long-term capacity; the Scottish Government has a number of additional levers at its disposal which would be of direct and immediate assistance to our members, their employees and the communities within which they operate.

“Having recently met with new Housing and Communities Minister Alex Neil, I look forward to working closely with him to develop an effective way forward on concepts such as the introduction of a Scottish 'Homebuy Direct' model to encourage private development here in our own communities”

Ends

Enquiries to: 

Jennifer Kennedy, Homes for Scotland – 0131 455 8350 

Notes to editors:

1.   Detailed analysis of recovery scenarios undertaken by Homes for Scotland shows that, without a concerted UK-wide economic re-inflation programme of public investment during 2009, it could take many years for supply levels to reach the Scottish Government’s goal of at least 35,000 units per annum – significantly behind schedule.

2.   While the Scottish Government has made a number of announcements with the aim of easing the effects of the economic downturn, Homes for Scotland believes it must now:

-         implement the four key recommendations identified by the Housing Supply Task Force without delay

-         consider the creation and use of a Scottish “Homebuy Direct” financial model to support private new build activity 

-        leverage out the maximum benefit from its already pre-funded reskilling and retraining programmes

-        expand its wider public infrastructure spending and get on with delivering such projects 

-        commit very significant sums of new public investment into housing provision 

-         massively accelerate the approval timescales for projects within its existing pre-funded “Affordable Housing Investment Programme” to bring forward the early delivery of new homes in 2009/2010 

-        in conjunction with CoSLA, impress upon Local Authorities the need for new thinking and processes to support development in the new economic reality 

3.  Homes for Scotland represents the country’s home building industry which, prior to the onset of the credit crunch,:

-           was the largest source of private investment in Scotland and the largest user of the planning system

-           built 20,000 new homes, contributed £6bn to the economy and directly impacted the employment of 100,000 people (2007 figures)

But with 26,000 jobs already lost and much new development across the country now effectively on hold, Scottish new build housing output has plummeted.  This will have far-reaching and long-term social and economic consequences.   Browse this website for further market commentary and information on the action and support Homes for Scotland is calling on from both the UK and Scottish Governments.