NewsArticle-28-01-2009

Responding to a report in the Edinburgh Evening News (26 January)  in which Councillor Gordon Mackenzie says the planning requirements for the Shawfair site will have to be revisited given the “significant planning burdens which make it more difficult to develop", Homes for Scotland’s Chief Executive Jonathan Fair(right) said:

“With much new development across the whole of Scotland now effectively on hold, this is exactly what every Council in the country should be doing in order to unlock sites to ensure desperately needed new homes are still delivered.

“Land release policies contained in the most up-to-date development plans were formulated during a period of economic growth, rising house prices and increasing land values - all with an expectation that the home building industry would provide ever-increasing contributions for road improvements, public transport, drainage systems, affordable housing and schools.  

“In the new economic reality, this is simply no longer viable because of insufficient liquidity in the system for the private sector to meet expenditure requirements, especially in relation to large-scale development proposals.  

“If commitments on affordable housing, community regeneration and homelessness are to be met, the current approach to the procurement of investment in housing must be fundamentally re-assessed.”  

Ends

Enquiries to:

Jennifer Kennedy, Homes for Scotland – 0131 455 8350 

Notes to Editors:

1.  Click here to read the Evening News article.

2.  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.