Builders have warmly welcomed today's news from the Council of Mortgage Lenders that house purchase lending in Scotland rose by more than the UK as a whole in the second quarter of 2011.

This relates both to the number and volume of mortgages north of the border at 36% and 42% respectively, compared to 25% and 26% at national level.

Jonathan Fair, Chief Executive of industry body Homes for Scotland, said: "Despite the difficult economic backdrop, people still need to get on with their lives so this is great news for Scots looking to buy or move to a new home – whether out of necessity or desire, it clearly can be done.


"At a time when rents are at their highest levels in years, these figures are a welcome boost, particularly with regards the 30% increase in the volume of loans for first time buyers. They also follow on from a Centre for Economic and Business Research forecast which predicts house prices could rise by 14% from 2011 to 2015.

"Lower house prices have improved affordability across the board but those looking to buy new build homes in particular benefit from a range of assistance measures, such as tailored mortgage solutions, that are simply not available in the secondhand market.

"Top this off with continuing low interest rates, record customer satisfaction levels, a ten year warranty and the protection of a Consumer Code, and there's actually never been a better time to buy a new home," he said.

(GK/BMcC)