NewsArticle-09-07-2009

The representative body for the Scottish home building industry has welcomed the Bank of England’s decision to keep interest rates on hold but warned that it is the availability of mortgage financing which remains key to recovery in the housing market.

Jonathan Fair (right), Chief Executive of Homes for Scotland, the organisation which represents companies building 95% of new homes built for sale in Scotland, said:

“Continuing record low interest rates are no doubt an aid to stabilising the general economy at a time when consumer confidence appears to be returning.  

“However, despite increasing levels of interest in buying new homes, the stumbling block to converting this into sales remains the difficulties many people have in trying to secure a mortgage.  

“Constantly changing lending criteria, disparity between new build and second hand home valuations and reducing loan to value ratios are making a mockery of the Government’s desire to get credit flowing again.  Whilst appreciating the conflicting demands facing lenders, we must act jointly to resolve such uncertainties immediately.”

Ends

Enquiries to:  

Jennifer Kennedy, Homes for Scotland – 0131 455 8350 

Notes to Editors:

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.