NewsArticle-27-08-2009

With latest statistics highlighting a 31% decrease in the number of private new homes started throughout Scotland for the year to 31 March 2009, the home building industry has repeated its call to the Scottish Government to introduce a tailored version of a special scheme already available in England to help people on to the property ladder.

“Homebuy Direct” offers an equity loan for part of the purchase price on affordable low cost homes for sale, specifically within private new build developments, co-funded by the Government and the developer.    

According to Homes for Scotland, the organisation which represents companies building 95% of new homes built for sale across the country, the scheme has already proved an effective mechanism to enable First Time Buyers, the industry’s lifeblood, into home ownership.

Chief Executive Jonathan Fair (right) said:  

“At a time when people are showing increasing levels of interest in purchasing new homes, introducing an initiative based on the Homebuy Direct model could encourage many buyers back into the market and help to get the industry, which prior to the credit crunch impacted the employment of 100,000 people and contributed £6bn annually to the economy, back building again.

“Such solutions are crucial if, as companies continue to trade out their existing stocks, we are to have any chance of meeting demand as market conditions improve and avoid the risk of a return to rampant house price inflation brought about by lack of supply.”
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)

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.