Commenting on Thursday’s publication of the latest housing statistics for Scotland, Scottish Building Federation Chief Executive Michael Levack has said he is ‘deeply worried’ by the implications for the wider construction sector of a slump in private house-building last year.

The statistics show that from a rate of 21,686 new builds at the market’s peak in 2007, private house-building slumped to 11,447 units in 2009.

Commenting on the new figures, Michael Levack said: “These figures show the full extent of the impact of the downturn on the Scottish house-building industry. Whilst I welcome the Scottish Government’s accelerated spending on public sector housing over that period, this is now coming to an end and significant cuts in public funding are beginning to feed through.

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“I’m deeply worried that private house-building appears to be in such a weak condition. With public budgets being cut, this suggests that the immediate prospects for Scotland’s building industry remain extremely challenging."

Mr Levack said Scotland simply cannot afford to let more jobs and capacity go from the construction sector.

"That will stoke up price inflation and a future major skills shortage that will stymie the Scottish Government’s ambition of long-term sustainable economic growth," he added.“We need more action to breathe life back into private sector construction and to sustain public capital investment in infrastructure, schools, hospitals and affordable housing. Building a long-term economic recovery in Scotland relies on a healthy construction sector.”

(GK)