NewsArticle-21-10-2009

Senior Scottish home building industry figures today met privately with Mervyn King and outlined current market conditions and the impact of monetary policy in Scotland to the Bank of England Governor.

Interest rates, wholesale funding recovery and rebuilding the strength of the banking system were among the issues covered during discussion at a special roundtable session in Edinburgh.

Jonathan Fair (right), Chief Executive of Homes for Scotland, the organisation which represents companies building 95% of new homes for sale, as well as an increasingly significant proportion of affordable housing output, said:

“We have been fully engaged with the Bank of England directly and via its Scottish agent over the last eighteen months.  Whilst early signs of stability in the housing market may now be appearing, the industry is far from being in recovery mode.  Much new development across the country is still effectively on hold and we are working to find ways of minimising the impact of both housing output having plummeted and half of the industry’s directly employed workforce being effectively lost to the sector.   

“I believe it says much for Mr King that he wishes to meet with us directly, talking frankly and openly about the effects of monetary policy and what is happening on the ground in our industry.” 

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)

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.