Home building industry body Homes for Scotland has rebuffed “recommendations” from the Institute for Public Policy Research (IPPR) that mortgages should be capped at 90 per cent of property values and at a maximum of three-and-a-half times household income.

The organisation’s Chief Executive Jonathan Fair said: “Clearly, home ownership should be viewed as a sustainable, long-term commitment by those looking to get onto and progress up the property ladder so the debate on how to effectively stabilise the housing market is welcome.

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“However, the issue of appropriate loan to value ratios and real affordability are wholly dependent on the particular circumstances of the individual concerned and should be assessed accordingly. Blunt instruments and arbitrary caps as the IPPR seem to want to recommend will not provided a balanced long-term solution.”

(GK/KMcA)