The National House-Building Council's latest statistics show that the number of applications from builders to start new homes in Scotland remained low but stable in the three months to the end of June 2009.

A total of 1,735 applications were received by NHBC to start new homes in the combined private and public sectors during the three months to the end of June 2009, although slightly lower (4%) than the previous rolling quarter from March to May 2009 (1,806). Applications were 11% per cent higher compared to rolling quarters February to April this year (1,561) and 20% higher than January to March this year (1,446).

Malcolm MacLeod, NHBC Director for Scotland, said: "Although applications for the three months to the end of June are still much lower (43%) than the same period a year ago, house-building production in Scotland appears to be showing signs of stabilisation, particularly in the private sector.

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"Our latest statistics for the three months to the end of June this year revealed the fourth successive rolling quarter-on-quarter rise in applications from private sector house builders.

"While these figures are encouraging in the short-term, house-building output is still greatly reduced compared to previous years. Improving liquidity in the mortgage market and, in particular, the relaxation of strict lending terms that are currently applied to many would-be buyers, is a key step to attracting buyers back into the market and ensuring a sustainable recovery."

NHBC statistics for Scotland for the three months to the end of June 2009 also revealed of the 1,735 applications to start new homes in the combined private and public sectors during the three months to the end of June, 1,271 were related to private sector activity (i.e. excluding housing associations) - 51% lower than the same three-month period a year ago (2,611).

Public sector figures for the three months to the end of June totalled 464 - 7% higher than the same period a year ago (432).

New build completions in the combined private and public sectors in Scotland totaled 2,704 in the three months to the end of June 2009 - 42% lower than the same period a year ago (4,664).

(GK/KMcA)