A bid to add 'tax' to the cost of newly constructed homes has been slammed.

Home building industry body, Homes for Scotland, whose membership provides 95% of all homes built for sale in Scotland as well as an increasingly significant proportion of affordable housing, today rejected Liberal Democrat proposals to add VAT to new build homes if elected to Government.

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On the day that Tavish Scott launched the party's manifesto in Scotland, the organisation’s Chief Executive Jonathan Fair said: "Somehow, the Liberal Democrats seem to be unaware that Scotland, not to mention the UK as a whole, is facing its worst housing crisis since the Second World War.

"Not only has our industry lost up to half its workforce, development is touching an all-time low and vital First Time Buyers are struggling to find deposits of up to 25%.

"Any measure increasing the cost of new homes, whether in the public or private sector, is sheer madness and will simply exacerbate the problems we as a country already face."

(GK/BMcC)