Homes for Scotland, the representative body for the home building industry in Scotland, has elected John Low, Managing Director of Stewart Milne Homes North, as Chairman for the year 2009/10.

Addressing nearly 500 senior industry representatives and guests at the organisation's recent annual lunch, he acknowledged the fundamental changes which have taken place within the home building sector over the last 12 months as a result of the credit crunch and identified the future funding of new infrastructure investment and rapidly changing policy environment surrounding public and private investment in housing supply as the two biggest issues currently facing the sector.

Home building has a recognised ability to drive wider economic recovery but, as levels of customer interest continue to increase and companies trade out existing stock, Low warned of the need to avoid future "boom and bust" cycles with lack of supply fuelling conditions for a potential return to double-digit house price inflation.

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Mr Low said: "The fundamental demand for new homes has simply not evaporated. Whilst there may be a wider debate in relation to the future tenure mix of housing supply in Scotland, the fact is that the majority of Scots will still continue to own, or aspire to own, their own home. This needs to be recognised and supported by politicians, planners and lenders alike as we contemplate recovery."

According to Mr Low much change has been made to the planning system in terms of primary legislation and national frameworks but so far on the ground, in many instances, this is still not enabling, encouraging and promoting development in the kind of ways we had hoped for.

He said: "If industry activity is to be sustained and grow in due course, we require concerted efforts from both the Scottish Government and Local Authorities to increase land supply and open up new opportunities for development on a wholly different economic basis."

As the move towards a low carbon economy continues, Low also highlighted that the industry has already reduced the carbon emissions of the average Scottish house by well over 60% from 1990 levels.

(GK/JM)