NewsArticle-22-04-2009

Measures announced today by the Chancellor aimed at stimulating the housing market were described as insufficient by the Scottish home building industry.

Jonathan Fair (right), Chief Executive of representative body Homes for Scotland, said:

“We have never asked for bail-outs but what we do need is the necessary support in order to invest in Scotland’s communities, skills and economy at a time when the case to do so has never been more compelling. 

“Improving the overall availability of mortgage finance still remains key to solving the problems facing our sector so in that sense we are very pleased to hear that the Chancellor is to finally implement the key Crosby recommendation of introducing a trading and guarantee scheme for new mortgage backed securities.”

However, having previously called for an immediate moratorium on stamp duty at all thresholds and the reintroduction of mortgage interest tax relief specifically for those First Time Buyers on low or below average incomes, Fair added:

“Whilst the six month extension on stamp duty relief for properties less than £175,000 is encouraging, we are disappointed that the Chancellor did not take the opportunity to, at the very least, initiate a fundamental review of the whole outdated system, especially in the context of residential investment opportunities.

“Furthermore, with First Time Buyers the lifeblood of our industry, this Budget has done nothing to encourage them back into the market.”

The Chancellor also made a variety of other announcements aimed at increasing housing supply in England and Wales.  Fair called on the Scottish Government to do the same, particularly in relation to new build shared equity schemes, and urged it to resist cutting critical investment in housing in response to pressures arising from public spending “efficiency savings”.

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.