NewsArticle-09-12-2009

Failure to include any further measures to help stimulate the fragile housing market in today’s Pre-Budget Report was described as inexcusable by Scotland’s home building industry.

Jonathan Fair (right), Chief Executive of Homes for Scotland, whose membership provides 95% of new homes built for sale as well as an increasingly significant of affordable housing output, said:

“At a time when the number of new homes being built in Scotland is at an all-time low, it is simply baffling why the Chancellor did not take firm action to ensure early signs of stabilization were maintained in a sector which is so vital not only to the economy but also our social wellbeing.

“Refusing to extend the temporary easing of the stamp duty threshold to £175,000 will put further pressure on Scottish First Time Buyers who are already facing significantly tightened lending criteria and reduced loan to value ratios.  This vital group represents the industry’s lifeblood, with every such sale resulting in an estimated further six transactions up the ladder.  

“Despite UK Government rhetoric on getting banks to increase lending levels in the mortgage markets, there is precious little evidence of this being translated into tangible results.  Now it appears the Chancellor simply prefers to gamble on the future health of the home building industry.  Does he really think the social consequences of failing to provide enough homes for the people of Scotland a risk worth taking?”

Ends

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)

With half the industry's directly employed jobs already lost and much new development across the country still effectively on hold, Scottish new build housing output has now plummeted.  This is having 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.