NewsArticle-02-03-2010

Leaders from Scotland’s home building industry met with Housing and Communities Minister Alex Neil  (Tuesday 23 February) to identify the key elements of the strategy that is needed to increase housing production.

The meeting follows soon after industry body Homes for Scotland declared the country’s current housing crisis as the worst since the Second World War, projecting that it could take up to ten years for output to simply return to pre-credit crunch levels of around 25,000 units per annum.

The scale of the problem was further highlighted on Friday (26 February) with the publication of the Scottish Government’s latest statistics showing a 52% decrease in the number of private sector homes completed during Q3 2009 than in the same quarter a year earlier.

Key among the issues discussed were lack of funding (both mortgage and commercial), the impact of planning constraints and developer contributions, availability of land of the right type in the right location and the funding of infrastructure projects.

The twenty industry leaders agreed to joint working with the Minister to tackle these barriers to any meaningful recovery in the housing market.  Homes for Scotland Chief Executive Jonathan Fair (right) said:

“The Minister wished to hear directly from those who face the daily challenge of trying to build the desperately needed new homes our country needs together with maintaining the vital jobs and skills that are required to do so.  The frank discussions were a positive signal that the industry continues to work with the Scottish Government to deliver the new homes Scottish families urgently need.”

Housing and Communities Minister Alex Neil said:

"I am delighted to have had the opportunity to meet with leaders from across Scotland’s house building industry.

“In recognition of the impact of the downturn on housing in Scotland, we have already put in place a range of measures to increase the supply of affordable homes, support jobs and boost activity.  

“Our meeting provided an opportunity to hear the industry’s concerns and to discuss how we can continue to work together to develop the innovative ideas that will accelerate economic recovery, increase supply and support Scotland’s house building industry. I look forward to continuing that dialogue.”

Ends

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)

Half the industry's directly employed jobs have already been lost and Scottish new build housing output has plummeted, presenting far-reaching and long-term social and economic consequences.

Click here to read Homes for Scotland’s “building for their future” appeal to MPs as they prepare to enter the election season.