A housebuilding industry insider has warned Holyrood housing law changes will add £30,000 to the cost of each new home.

The senior figure said key elements in tackling the housing crisis are within the Scottish Government’s power to change and that these threaten to hike up prices more now than “Brexit and inflation”, which the SNP has cited.

It comes as Paul McLennan, Scottish housing minister, was described as being “out of touch” by Conservative MSP and housing spokesman Miles Briggs after announcing a £22 million investment in 150 homes, in the wake of a £200m housing budget cut.

Mr Briggs said the funding “is not new and is a drop in the ocean”.

Mr McLennan said: “Government understands the urgency of this crisis and we are using all our powers to address it.

"But it should be acknowledged Westminster's policies have left us grappling with an emergency that requires systemic change and investment at UK-wide level.

"I once again call on the Labour UK Government to use its upcoming budget to scrap the bedroom tax, reverse the 9% capital cut to Scotland's budget and permanently uplift the local housing allowance."

Paul McLennan in the main chamber of the Scottish Parliament on WednesdayPaul McLennan in the main chamber of the Scottish Parliament on Wednesday (Image: Jane Barlow/PA) Fionna Kell, director of policy at sector body Homes for Scotland, which represents organisations “together delivering the majority of new homes of all tenures”, said: “We of course acknowledge the financial pressures facing the Scottish Government and are encouraged by a recent change of tone and more positive engagement but it is time to stop pointing to Brexit, inflation and Westminster as the root causes of the housing emergency, with policy failures stemming over decades.

“These issues have clearly been important, but they are nowhere near as pressing as the challenges posed by an underfunded and under-resourced planning system which takes over 62 weeks to process a major housing application or the overall policy and regulatory environment which currently serves to hamper the delivery of new homes rather than promote them.”

She said that “these two areas are completely within the control of the Scottish Government which could act immediately to make the change”.


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Ms Kell said: “Speak to any home builder and they will tell you that the planning and consenting processes are the biggest inhibitors to all-tenure housing delivery. Add to this the cumulative impact of new and proposed regulation which is now estimated to be adding c£30k in additional costs to the construction of a new home and it’s clear to see the challenges involved in housing delivery.”

In reference to a perceived lack of urgency around the housing emergency, she added: “We’re still waiting on the blue lights to be turned on.”

Also this week, the lead story in our Business HQ Monthly supplement was deputy business editor Scott Wright’s exclusive which explored ways of reinvigorating city life.

“Two of the best-known figures on the Scottish commercial property scene have signalled hope that a brighter future can be secured for Glasgow’s ageing office stock, as debate continues to rage over how best to reverse the declining fortunes of the city centre,” he writes.

“Andy Cunningham and Colin Mackenzie, former rivals who linked up to launch Glasgow agency MC2 earlier this year, say moves to transform post-war office blocks into smaller, flexible spaces with interior designs more akin to hotels and homes are breathing new life into older buildings in the city.”