NewsArticle-27-05-2010

Responding to the latest housing statistics published today by the Scottish Government which show a 35% reduction in the number of private sector homes completed in 2009 compared to 2008 and a 20% drop overall, Jonathan Fair (right), Chief Executive of home building industry body Homes for Scotland, said:

"Today's figures are further proof, if it was needed, of the extent of the housing crisis Scotland currently faces.  We believe total housing output will struggle to exceed 12,000 units this year - less than half pre-credit crunch levels and less than half of what is required to simply stand still in response to the 18,000 new households that are formed and the 11,000 homes that are demolished in Scotland each year.

"With a report from CML today also showing a drop of 33% in house purchase lending in Scotland in the first quarter of the year, the new UK Government must address the mortgage issue once and for all and maintain investment in housing otherwise the social and economic consequences will be severe."

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” manifesto.