Increase in new home registrations greeted with caution

CEO of Homes for Scotland, Philip Hogg
Philip Hogg

Homes for Scotland has greeted the 9 per cent increase in new home registrations north of the border with caution.

The figure for July-September, compared with the same period a year ago, was reported yesterday by NHBC. It also noted that UK house building has hit its highest level for seven years.

Philip Hogg chief executive of Homes for Scotland was keen to remind the industry that the increase in new homes followed a sustained period of falls in Scotland.

He said: “Whilst these statistics are encouraging, we believe this increase will be negatively impacted by this year’s funding for the Scottish Government’s Help to Buy (Scotland) shared equity scheme running out in July and that this will be reflected in future figures towards the end of the year and early 2015.

“Given the scheme generated nearly 5000 reservations and sales in just ten months, this funding interruption resulted in significant business uncertainty as the industry awaited the Scottish Government’s next move.

“Even with the recently announced reduced price ceiling of £250,000, we still suspect that the £100 million budget for 2015/16 will be insufficient to last the full year.

“We therefore hope that Help to Buy (Scotland) will benefit from some of the extra £125m housing investment announced in the draft Budget so that builders have the confidence to invest in more much needed housing development.”

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