News article 28/11/2012

(Issued 28 November 2012) 
 

Latest Scottish Government housing statistics indicating a significant rise in private sector activity risk painting a confusing and misleading picture as to the true state of the market.

This is the warning from home building industry body Homes for Scotland (HFS) as it emerged that the figures do not solely relate to homes for built for sale in the open market but also include those being built by private companies for other sectors. This has resulted in the inclusion of other tenure homes (such as RSL shared equity developments) within the private home statistics.

The organisation’s reaction to today’s figures follows the caution it expressed after statistics published in August significantly jarred with the feedback it was receiving from its member companies, who together build 95% of new homes built for sale as well as a significant proportion of affordable housing.

HFS Chief Executive Philip Hogg said:

“Any improvement in production is of course to be warmly welcomed and highlights the importance of investment in affordable housing in relation to jobs and overall activity. However, the statistics as currently being collated are not, as one might otherwise assume, providing a true picture in relation to the private sector and homes being built for sale. We will therefore continue to work closely with the Scottish Government on how the figures can be further refined to ensure a more accurate reflection of the market.

“Ultimately, however, completions remain the ultimate measure of the health of the broader home building sector and on this the latest figures show that total output across all sectors is continuing to fall significantly.

“As well as highlighting that Scotland, like the rest of the UK, remains in the midst of a severe housing crisis, this clearly demonstrates the need for further government intervention at all levels. We are now five years into the downturn and the situation is critical. If the downward trend is not arrested, the long-term social and economic consequences will be severe and far-reaching.”