News article 30/05/2012

(Issued 30 May 2012) 

The scale of Scotland’s housing crisis was laid bare today as latest Scottish Government statistics reported a total of only 15,150 new homes completed across all tenures in 2011 – a 41% decrease since the credit crunch and the lowest level since 1931 when you exclude the Second World War.

Alarmingly, the impact on the private sector was even starker as the figures revealed only 9,893 such homes were completed last year. This is a staggering 54% decrease on 2007 levels and the first time private sector production has fallen below 10,000 since 1970.

Philip Hogg, Chief Executive of trade body Homes for Scotland, said:

“Completions are the ultimate measure of housing production so these figures and their wider implications should be a wake-up call to everyone. Whilst we are working hard to launch our MI New Home mortgage indemnity scheme to try and assist those locked out of the market, we desperately need further Scottish Government intervention to ensure that the planning system operates effectively and efficiently. We also need it to consider adopting innovative ways to deliver the low carbon agenda without impacting on housing costs and output.”

“If this downward trend is not arrested the long-term social consequences could be severe and far-reaching.”