NewsArticle-27-05-2009

Responding to a report by the Council of Mortgage Lenders showing that house purchase lending in Scotland continued to fall in the first quarter of 2009, home building industry body Homes for Scotland called on the key Scottish lenders to continue to act to deal with the base issue of mortgage availability if the increased consumer interest being seen on the ground by many of its member companies is to have any chance of developing into a meaningful recovery in the housing market.

Chief Executive Jonathan Fair (right) said:

"The fact of the matter is we are now seeing sustained increases in enquiries and visitor numbers so it is clear consumer confidence appears to be improving as people contemplate the bottom of the market. However, the biggest challenge remains converting this interest into sales. Quite simply, whilst people do still want to buy in response to improving affordability and the industry is doing all that it can to assist them, many are being refused credit for often unfathomable reasons.

“Yes lending must be sensible, but it must also be sustainable and predictable. We are hearing of too many examples of constantly changing or overtly strict criteria being applied to legitimate mortgage applications. Home building is key to stimulating an economic recovery. If we are really serious about getting the country out of recession then we must act immediately with colleagues to address this issue within the retail banking sector.”

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.