The home building industry has warmly welcomed yesterday's announcement by Royal Bank of Scotland (RBS) that it is to pump £1.7bn of mortgage funding into the Scottish housing market over the course of the coming year.

Jonathan Fair, Chief Executive of Homes for Scotland, the organisation which represents companies building 95% of new homes built for sale in Scotland, said: "This is the sort of news we have all been waiting for following the Government's intervention in the banking sector and confirms our view that the particular demographics and economics of the Scottish context should be taken into account by risk managers.

-- Advertisement --

"Together with RBS' commitment to continue offering loans of 90% to help first-time buyers, who really are the life blood of the housing market, get on to the property ladder and release further funds as demand dictates, this is a welcome shot in the arm for one of Scotland's most vital industries."

Mr Fair said now we need to see additional housing investment for Scotland made available by the Chancellor in the forthcoming Budget as part of a UK-wide reflation programme in order to arrest the dramatic decline in housing supply and avoid the potential for a return to double digit house price inflation as the market recovers.

(GK/JM)