NewsArticle-17-06-2009

The home building industry has welcomed the extra £31m which the Scottish Government announced on Monday will be used to increase the supply of affordable housing across the country but reiterated its call for the introduction of a new shared equity scheme which would directly benefit the private sector.

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

“A key focus of this additional funding will be the unblocking and kick-starting of private developments to help deliver more homes for mid-market rent and low cost home ownership. Whilst perhaps only modest in the context of an industry which contributed £6bn to the Scottish economy prior to the start of the credit crunch, when taken together with the ancillary benefits arising from even greater rented homes investment, it nonetheless represents a welcome boost to a sector so vitally important to the country’s social and economic wellbeing.

“However, one way the Scottish Government could directly help our industry would be to use some of these additional funds to introduce a tailored version of the Homebuy Direct scheme, currently available in England.  At a time when buyers may be showing increasing levels of interest in purchasing new homes, the big stumbling block to converting sales remains the availability of mortgage financing.  The Homebuy Direct model offers an equity loan for part of the purchase price on affordable low cost homes for sale specifically within new build private developments, co-funded by the Government and the developer.  This has already proved an effective mechanism to enable First Time Buyers, the industry’s lifeblood, into home ownership.”

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.