NewsArticle-16-04-2009

Ahead of next week’s Budget, the Scottish home building industry has repeated its calls for an immediate moratorium on stamp duty at all thresholds in order to re-energise the housing market.  It has also demanded the reintroduction of mortgage interest tax relief specifically for those First Time Buyers on low or below average incomes.

In a letter to the Chancellor, Andrew Mickel (right), Chairman of Homes for Scotland, the organisation which represents companies building 95% of new homes built for sale in Scotland, said:

“If taken together, we believe these ideas would assist in delivering a strong package of investment as well as positive structural, social and economic consequences - not only for our industry but also our communities at large and Scotland as a whole.”

He added: 

“We aren’t banks or car makers looking for bail-outs.  What we need is decisive action by the Chancellor to tackle the collapse in housing output.  To choose otherwise will not only mean certain failure for more companies and thousands more lost jobs, it will also store up inflationary pressures in the years ahead, preventing many families and individuals from having the choice of home they so desperately need.”

Ends

Enquiries to: 

Jennifer Kennedy, Homes for Scotland – 0131 455 8350

Notes to Editors:

1.  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.

2.  December to February 2009 statistics from NHBC show a 70% decrease in the number of private new homes started in Scotland over this rolling three month period compared with the same timeframe a year ago.