News article 19/3/2014

(Issued 19 March 2014)

Homes for Scotland today commended the Chancellor on a Budget which recognised the continuing importance of home building to economic recovery.

The organisation highlighted the creation of a special £500 million Builders Finance Fund to provide loans to SME developers to unlock homes stalled due to difficulty in accessing finance and the £6 billion extension of the Help to Buy shared equity scheme in England as being of particular significance.

Chief Executive Philip Hogg (right) said:

“As well as providing measures to improve business productivity and increase apprenticeships, the Chancellor has clearly listened to the concerns we raised in our pre-Budget representations over the problems smaller home builders, who are a key component of our industry and its ability to deliver the many thousands of homes required across the country, face in accessing development finance.  We now need to get the detail of this funding allocation to see if it applies north of the border.

“If not, we look forward to early confirmation from the Scottish Government, with whom we have already tabled this matter as a priority issue, that comparable support will be provided for smaller home builders here.

“This also applies to the consequential funding which will be received as a result of the £6 billion Help to Buy extension. Given the six months it took to develop the Scottish Government’s hugely successful equivalent, we cannot afford any pause or interruption.

"Our industry therefore needs an early signal that home builders and home buyers in Scotland will not be disadvantaged. This is especially important in light of the fact this is the last UK Budget before the referendum.”