Housing market hit as new builds halt

Thursday 31 May 2012

Housing market hit as new builds halt

Stewart Paterson

Political Correspondent

THE number of new homes built in Glasgow has collapsed, with fewer than 150 private homes built in the last year, according to the latest figures.

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By STEWART PATERSON Political Correspondent

The social housing sector saw housing associations in the city build seven times as many homes as private developers.

In the last five years the city has gone form having the highest number of private new build homes completed to one of the lowest.

In 2006, private firms built 4578 homes in Glasgow, but by 2010 that had dropped to just 145.

While the social sector also saw a considerable drop it was still able to build 830 homes for rent, down from 1890 in 2008.

The Scottish Government said the figures showed it met its target for building affordable homes. However, housing campaigners said a reduction in grant levels mean housing associations will not be able to continue building at current levels and new builds will fall even further.

The Government said the 6882 homes built under the affordable supply programme met the target and 82% were for social rent.

Housing Minister Keith Brown, said: "It is very encouraging that we have exceeded our target for affordable homes, helping people across Scotland onto the housing ladder.

"Achieving our target also underlines this Government's commitment to investing in jobs, supporting our construction industry and, as a result, growing the economy.

Housing campaigners warned that there is still a serious shortage of affordable homes and called for funding and action to get more building work started.

Maureen Watson, director of policy at the Scottish Federation of Housing Associations, said: "These figures bear out our contention that the number of new genuinely affordable homes will fall.

"Continuing to build at low grant levels is not financially viable, several of our members have already stopped developing, and more may follow suit."

Private developers have warned of a housing crisis and said action was needed to get people onto the housing ladder.

Philip Hogg, chief executive of the developers' association Homes for Scotland, said: "If this downward trend is not arrested the long-term social consequences could be severe and far-reaching."

stewart.paterson@ eveningtimes.co.uk

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