News article 26/02/2013

(Issued 26 February 2013) 
 

Industry body Homes for Scotland, which represents companies building 95% of new homes built for sale, today welcomed the latest figures from the Council of Mortgage Lenders showing that the number of First Time Buyers (FTBs) north of the border in 2012 had risen to its largest annual total since 2008¹.

However, with the statistics also revealing that the level of FTBs in Scotland has fallen by over 60% since 2002 and that those looking to get on to the housing ladder are still having to find an average 20% deposit, Chief Executive Philip Hogg said:

“Following recent research which found that it is over £400 a year cheaper to buy a home rather than rent in Scotland², today’s CML announcement is another welcome boost for FTBs who represent the housing market’s lifeblood.

“But they still have to overcome huge barriers in terms of deposit requirements. Initiatives such as the MI New Home scheme which enable creditworthy buyers to purchase a new build home with as little as a 5% deposit are therefore hugely important in keeping the market moving.

“With part exchange also available within the scheme, thus removing the problem of having to find a buyer, this also applies to those looking to move home as CML actually recorded a fall in lending to this group.”

Ends

Notes to editors:

1. Council of Mortgage Lenders:
http://www.cml.org.uk/cml/media/press/3435

2. Source: Bank of Scotland

http://www.lloydsbankinggroup.com/media/pdfs/bos/2013/1602_rent.pdf