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NewsArticle-03-09-2010

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Industry ready to tackle challenges to recovery head on

Speaking at a gathering of over a hundred and thirty key figures involved in residential development and its supply chain, the Chief Executive of industry body Homes for Scotland warned that the “jury is still out” on the impact of three important issues which are fundamental to the sector’s recovery.

Addressing the organisation’s Associate Members’ Lunch in Edinburgh, Jonathan Fair (right) said:

“Whilst we look forward to the journey to recovery, the ‘jury is still out’ on the impact of three fundamentally important issues – delivering on Planning Reform nationally, ensuring effective land supply is increased locally, and significantly ramping up available commercial finance to allow our member companies to commit to new projects. The industry is ready to tackle these issues head on.

“It’s now one year on from the implementation of the reformed Planning Act. Sadly, with only a few notable exceptions, it’s impossible to identify discernable improvements in either the service quality, timeliness of decision-making or the much championed “enabling and promotional” role for the Planning discipline that Scottish Government set out to achieve.

“Now of all times we must pump new effective land into the supply system, via Structure and Local development plans, as this is the feed stock of the industry. Worryingly, however, we see exactly the opposite effects being applied in many cases across the country by Local Authorities or Scottish Government-appointed appeal reporters. The current limitations on industry capacity do not mean that the fundamentals of local housing market area need and demand have changed nor can they be legitimately ignored.

“Unfortunately commercial funding has suffered extreme reductions in availability together with huge changes in rate structures and loan to value ratios, matching the profile of retail mortgage finance. This means an ever greater focus on the euphemistic ‘small sites in prime locations’. Yet, if these are to be the only types of development that are possible in the short to medium term, what about delivering regeneration? What about meeting pressing housing need?  And, even more importantly, what about providing consumer choice? None of these can be met by continuing such trends.”

Fair’s speech immediately followed on from the latest Homes for Scotland Board meeting where senior industry leaders reflected on recent market conditions and jointly considered the challenges to future recovery within the private new homes market in Scotland.

Ends

Enquiries to:
Jennifer Kennedy, Homes for Scotland – 0131 455 8350 / 07763 240694

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 private homes each year, contributed £6bn to the economy and supported the employment of 100,000 people (2007 figures)

As a result of the economic downturn, housing supply is now touching all time lows.  This is having far-reaching and long-term social and economic consequences for Scotland's population.

Follow us on Twitter at http://twitter.com/H_F_S.

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