NewsArticle-10-03-2009

The home building industry has described today’s announcement by the Scottish Government that it will invest £644m in homes for rent or low cost ownership over the next twelve months as “helpful reconfirmation” of spending totals in the coming financial year.

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:

“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. So today’s reconfirmation by the Scottish Government on the money available should be helpful in enabling RSLs to assign projects as early as possible.

“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 focus broadens further than simply affordable housing for rent.

“Homes across all tenures are needed in order to address the dramatic decline in overall housing supply resulting from the credit crunch.  However, the scale of this challenge requires new money to be allocated from Westminster in the forthcoming Budget as part of a UK-wide investment programme.”

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.