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Seize huge housing opportunities builders urge Scottish Government

As the level of housing completions continues to head in the right direction according to statistics published today, the country’s home building industry urged the Scottish Government to build on this positive news to enable it to deliver more of the homes Scotland’s growing population needs. Nicola Barclay, Chief Executive

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BDC 319 : Aug 2024

nicola barclay

SCOTTISH GOVERNMENT CALLED UPON TO ISSUE CLEAR STATEMENT OF INTENT ON ALL-TENURE HOUSING TARGET AS PART OF HOME BUILDING RECOVERY PLAN

The Scottish home building industry today called on the Scottish Government to issue a clear statement of intent on the need to deliver 25,000 new homes of all tenures each year and to mandate public agencies to work in partnership with developers across sectors to achieve this. According to trade body Homes for Scotland (HFS), this would generate greater investment confidence, helping to boost the wider economy as well as providing much needed homes across the country. The call is part of a package of measures submitted to the Scottish Government to ensure the longer-term sustainability of the home building sector as it strives to recover from the impact of the Coronavirus. HFS Chief Executive Nicola Barclay said: “As the First Minister acknowledged during her Programme for Government announcement, investment in housing will make a crucial contribution to Scotland’s recovery.  “A number of notable steps have already been taken to assist in ongoing housing delivery (such as the lifeline £100m emergency liquidity fund for SME home builders), but further longer-term action is required if we are to ensure we can provide the homes of all tenures that Scotland needs, with all the wide-ranging benefits this brings in terms of employment, social outcomes and economic growth. “Whilst builders may have returned to work, it is far from business as usual.  Regardless of whether the properties being built are for private sale or social rent, required Covid-related measures (such as social distancing and hygiene controls) mean that fewer operatives can be on site at any one time.  This in turn means that the construction of much needed homes of all tenures is taking longer and costing more.  “This compounds the significant upfront expenditure incurred by developers to acquire land and complete construction, with cost recovery very often only achieved when the last properties are occupied. “Our members are doing all they can to meet pent-up demand whilst market conditions remain stable, but this is against a backdrop of never before seen levels of uncertainty for both businesses and individuals.  That is why our calls are set out across the immediate and medium to longer term, encompassing private and social housing.” Barclay added: “Given its fundamental importance and strong multiplier effect, housing can be the springboard for a Scotland-wide recovery.  “With the appropriate Scottish Government support, we can minimise the effects of the Coronavirus on housing delivery, SME builders, jobs and the economy. “As the First Minister herself has said, we now have an opportunity to address many of the deep-seated challenges our country faces. Let’s make getting housing sorted once and for all our top priority.”

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Seize huge housing opportunities builders urge Scottish Government

As the level of housing completions continues to head in the right direction according to statistics published today, the country’s home building industry urged the Scottish Government to build on this positive news to enable it to deliver more of the homes Scotland’s growing population needs. Nicola Barclay, Chief Executive of trade body Homes for Scotland, said: “It’s great to see ongoing growth in the overall number of homes being built, but just under seven hundred extra homes over the last year is not going to solve our housing crisis.  In order to return to the levels of a decade ago, we would need to see ten times this number on an annual basis. “Scotland’s housing market remains amongst the most affordable places to live in the UK, and huge social and economic opportunities exist for the Scottish Government to attract further housing investment from both within Scotland and elsewhere – if it can create and maintain the favourable conditions this requires. “Ways in which this can be achieved include ensuring the Planning Bill currently going through the Scottish Parliament meets the original objective of delivering more homes; encouraging more entrants into the industry; supporting those SMEs who want to develop more homes; preserving a regulatory environment that promotes investment and ensuring policies like Help to Buy are continued until such times that the mortgage market fully supports First Time Buyers. “Ultimately, it needs joined-up thinking across portfolios, therefore we look forward to seeing how tomorrow’s Budget supports sustainable housing growth so builders can contribute even more to Scotland’s social wellbeing and economic success.”

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