The housing sector in Scotland needs to get its act together and work towards boosting the building of new homes to meet demand, it is claimed.
With the number of homes being built across the country each year still less than half the 35,000 the Scottish Government outlined the need for a decade ago, Homes for Scotland told 200 senior figures in the home building industry to address the housing crisis.
The organisation’s chief executive Nicola Barclay told the HFS conference that it is time for all those who want to see housing levels increased, regardless of tenure, to work together and roll up their sleeves to overcome the many barriers to delivery that remain if they are truly serious about achieving this objective.
‘The economic downturn obviously had a massive impact on housing delivery but the cold hard truth is that numbers continue to bump along the bottom, with completion figures for 2016 falling to 16,953 from 17,090 the previous year,’ she said.
‘For the sake of this and future generations, we simply have to get on top of this problem. Politicians from all parties must take the long view as well as recognise the bold action that is required to make a difference, the current planning review being a case in point,’ she added.
Cabinet Secretary for Communities, Social Security and Equalities, Angela Constance, told the even that the Scottish Government has committed to deliver at least 50,000 affordable homes by the end of this Parliament, backed by £3 billion of investment.
‘Since 2007, we have delivered a record 69,000 affordable homes, and our previous five year target of delivering 30,000 affordable homes was exceeded. While our current target is ambitious, I am confident it can be achieved, working closely with all those with a role to play in delivering it, including Homes for Scotland,’ she explained.
There are also calls from Scotland for the tax paid when buying a property to be amended. The latest figures show that the Scottish Government has collected £55 million less than expected in receipts from Land and Buildings Transaction Tax (LBTT).
The home building industry has called for the extension of the current 5% band in order to address the considerable drop in activity at the higher end of the property ladder which has occurred as buyers either can’t afford it or consider the perceived punitive nature of the tax and choose to stay put.
Homes for Scotland believes the tax should enable movement up and down all price levels. Barclay has explained that feedback from members suggests that the present system, which varies considerably from England, is creating significant barriers.
‘Whilst in volume terms this may currently impact only a relatively small number of customers, the concern must be that, if aspirational buyers are unable or indeed choose not to move, this will create blockages lower down and place more pressure on the price of the fewer homes that do come on the market,’ Barclay said.
‘Not only will this distort the market, it will also ultimately exacerbate the housing crisis. Clearly, this is not good news for the three quarters of Scots who wish to own their own home and will also only serve to put further pressure on the social and private rented sectors,’ she pointed out.
‘Crucially, however, LBTT also has a massive impact on the Budget and public finances. If the Scottish Government acts to boost activity at the higher end of the market, we believe it would result in a greater tax take than is being achieved at present,’ she added.
