THE Scottish Government has been told to “show its teeth” to ensure local authorities are allocating the land required to meet the demand for new housing.
That call was made by Persimmon Homes, one of the biggest housebuilders in the country.
As the group revealed an eight per cent increase in completions for the six months to June 30
and a 12 per cent sales uplift, its
Scottish chairman said numbers north of the Border were flat, but a second half boost meant full-year results would “at least” match
last year.
John Cassie also said developments critical to Scotland’s new housing targets were being delayed because a lack of infrastructure spend meant the group has had to stop building on a number of its developments.
And Mr Cassie warned that the Government should not be complacent about the impact on the market if its Help to Buy scheme is not extended.
In response Angela Constance, Communities Secretary, said the Government would make a
decision on the future of Help to Buy early next year.
Separately, as it was announced Scotland had recorded economic growth of 0.8 per cent in the first quarter of 2017, figures also showed construction output fell for the fifth consecutive quarter.
David Ogilvie, interim director of policy at Homes for Scotland, said: “It is particularly frustrating knowing that if a more supportive policy framework to encourage housing investment was in place, home building could make even more of a contribution to boosting Scotland’s economic growth.”
He said returning to pre-recession levels of 25,000 new homes per year could generate an extra £1.9 billion in gross value added. Audit Scotland has estimated a minimum of 20,000 new houses per year are required until 2025 just to keep pace with demand.
Mr Cassie also claimed the
Government’s commitment to reaching its affordable housing target could be in jeopardy if it does not address planning issues among local authorities.
Each local authority is obliged to allocate sufficient land to ensure a five-year supply of housing land is maintained at all times.
“We think the Scottish Government is allowing local authorities to ignore adherence to their own plans,” said Mr Cassie. “We’d like to see some teeth in terms of taking action against local authorities that do not deliver or allocate sufficient numbers for their own requirements.”
Ms Constance said the Government was determined to increase and accelerate housing supply, and is investing £3bn in achieving its target of delivering 50,000 affordable homes over the next five years.
“It is for local authorities to determine the appropriate numbers of new houses required in their areas.
“We are currently considering a number of sites for the Housing Infrastructure Fund which are being actively assessed to
determine if we can provide
assistance,” she said.
Mr Cassie also called on the Government to underwrite any funds local authorities have to find to move forward infrastructure projects required as a result of new houses. He cited Persimmon developments at Calderwood, West Lothian, and Cupar, Fife, as being held up because of delays in infrastructure projects.
And while Mr Cassie said the company was entirely acceptant that it had to
pay its share of additional infrastructure resources, he said lack of funds at a local authority level meant the Government had to take on some risk.
“The lack of supply should give them confidence it will be recouped,” he said.
“They desperately need the housing and investment in these areas to attract people, hence why they have made such big allocations, but the education requirement hasn’t been resolved and that is fundamental.”
Mr Cassie said Persimmon’s reservations were ahead of last year, and eight new outlets would deliver in the second half.
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