Jonathan Fair, Chief Executive of home building industry body Homes for Scotland, said: “These statistics show a mortgage market still in decline, particularly as far as First Time Buyers, our industry’s lifeblood, are concerned.
“With more than a 50% fall in the number of home purchase loans since 2007, the stark reality is that as many as 146,000 Scots households have been prevented from accessing the home of their choice.
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“Scots aspirations to home ownership have increased over the last three years despite the economic backdrop2 as demonstrated by significant New Year increases in visitor levels to new developments, but how many of these potential buyers will be denied a new home because of tightened lending criteria and lower loan to value ratios resulting from higher capital adequacy requirements?"
“The large deposits that First Time Buyers are having to find (24% according to CML1) are simply way beyond the reach of the majority," he continued.
“Home builders have done all they can to develop a range of innovative products to help people get onto and up the housing ladder but, following on from Grant Shapps’ First Time Buyers’ summit last week, the ball is very much in the UK Government’s court to resolve what remains the biggest stumbling block to recovery in the housing market. If the UK Government fails to address this, it will be tantamount to a betrayal of tens of thousands of Scots families.
"This would be in marked contrast to initiatives taken by the Scottish Parliament earlier this month when it augmented spending programmes to support people entering the housing market for the first time,” he concluded.
(GK)
