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02/12/2015

HfS Describes New Housing Figures As 'Shocking'

Trade body Homes for Scotland (HfS) has described recently released housing figures as "shocking".

The Scottish Government recently surpassed its target of delivering 30,000 'affordable' homes due to a 10% increase in the number of social sector homes completed in the past year.

Official statistics figures show that 3,879 new homes were delivered during the past 12 months, bringing the tally to 30,133.

However, the data also revealed a 22% drop during the same quarter compared to last year, with building now less than half 2007 levels.

Philip Hogg, Chief Executive of HfS, said the figures were both "shocking" and "disappointing".

"Unfortunately, there is little in the way of positives that can be taken," he said.

"Not only do we see a fall in the latest yearly figures, the last two consecutive quarters have also shown a drop.  There has also been a 22 per cent decrease on Q2 levels compared to last year but it is when you look at the position in 2007, prior to the economic downturn, that you see the true magnitude of the problem with completions down more than half.

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"The stop/start nature of Help to Buy funding, which, for the main scheme, this year ran out in May, is causing both home buyers and builders uncertainty, making it very difficult for the industry to forward plan and maintain any growth momentum.

"If we are really serious about tackling the housing crisis, we must recognise two fundamental things.

"The first is that any ambition to increase levels of 'affordable' housing is welcome but is only a minority part of the picture.  Affordable housing delivery is inextricably linked to the building of homes in the private sector, the engine of housing delivery, through the direct contribution the industry makes through planning policy – so if we want to build more affordable housing, we must encourage and facilitate more private sector development.

"The second is that the majority of Scots, as research firmly shows, aspire to own their own home.

"Having an effective and accessible Help to Buy (Scotland) scheme without funding gaps is crucial on both of these counts, as is a balanced housing policy approach which places equal emphasis on having enough homes of all tenures in the right places to meet the diverse housing needs and aspirations of all those living in Scotland."

(LM/CD)

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