Demands for UK Government To Intervene On Mortgages
6th November 2012
Home builders demand UK Government intervenes on mortgages and boosts confidence to stop housing crisis deepening.
Scottish home building industry leaders today demanded urgent intervention by the UK Government to increase the availability of mortgages and help boost confidence to stop the housing crisis from deepening even further.
The call resulted from a meeting of trade body Homes for Scotland's Board (which includes senior representatives from Barratt, Persimmon and Stewart Milne among many others) and comes on the back of the news that house sales for July - September had dropped to their lowest level since Registers of Scotland records began.
It also follows the release of recent Bank of Scotland research in which some 60% of respondents cited raising a deposit as the main barrier to buying a home, 54% concerns about job security and 35% general mortgage availability.
The organisation's Chairman Andy Pearson (right) said:"There are around 160,000 people on housing waiting lists in Scotland yet only 15,000 new homes were built last year - the lowest level since the Second World War. With every new home built supporting four jobs and every nine one apprenticeship, the wider social, economic and environmental benefits of increasing housing production are well recognised.
"The Scottish Government has supported us in helping buyers overcome the difficulties caused by large deposit requirements through the MI New Home scheme, which celebrated its first sale this week.
"Whilst it is vital that the Scottish Government continues to maximise investment in housing and remove barriers to development in Scotland, this week's reports demonstrate the UK Government needs to take more urgent action to stimulate the wider economy and boost consumer confidence.
"This is particularly important in relation to increasing the general flow of mortgage finance and removing constraints on corporate lending, both of which continue to hamper recovery in our sector."
