NewsArticle-11-03-2009

The home building industry has warmly welcomed today’s announcement by Royal Bank of Scotland that it is to pump £1.7bn of mortgage funding into the Scottish housing market over the course of the coming 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:

“This is the sort of news we have all been waiting for following the Government’s intervention in the banking sector and confirms our view that the particular demographics and economics of the Scottish context should be taken into account by risk managers. Together with RBS’ commitment to continue offering loans of 90% to help first-time buyers, who really are the life blood of the housing market, get on to the property ladder and release further funds as demand dictates, this is a welcome shot in the arm for one of Scotland’s most vital industries.

“What we now need to see is additional housing investment for Scotland made available by the Chancellor in the forthcoming Budget as part of a UK-wide reflation programme if we are to arrest the dramatic decline in housing supply and avoid the potential for a return to double digit house price inflation as the market recovers.” 

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.  For further market commentary and information on the action and support Homes for Scotland is calling on from both the UK and Scottish Governments, browse this website.