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May 13, 2008 Est 1999 Scotland's award-winning independent newspaper
Builders call on banks to do more to help first-time buyers
By Karen Peattie

HOMES FOR Scotland, the organisation that represents the firms building more than 95% of the new homes for sale in Scotland, has called on lenders to do more to address the needs of first-time buyers.

Jonathan Fair, the body's chief executive, was speaking after a Halifax report said Scotland was expected to experience an overall rise in house prices in 2008. "Scotland hasn't escaped the uncertainty raised by economic pressures in other parts of the globe but what the report demonstrates is the fundamental strength of the Scottish housing market.

"Taken together with the government's commitment to dramatically increase the number of new homes built in Scotland to 35,000 by 2015, then it's clear the position in Scotland is much more positive."

The managing director of Crieff-based Braemore Estates, William Frame, welcomed Fair's comments. "The market is behaving differently in Scotland," he said. "Yes, there are pockets where properties are not selling, in Leith, for example, but that's because there are too many flats that are the same."

Fair added that while purchases were taking longer, there were still "high levels of unmet demand", particularly in family housing. "We need to ensure first-time buyers and those without access to large deposits are not excluded from getting on and moving up the property ladder."

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Posted by: Mortgaged to the Hilt, Suburbia on 5:38pm Sun 4 May 08
Surveying the overpriced UK property market, it's easy (and correct) to blame the lenders of 125% mortgages and other disasters-waiting-to
-happen.

But is it at all possible that the UK building industry should also be sharing a large slice of humble pie?

After all, to sustain year-on-year profit growth, the construction giants have to keep jacking up prices and lowering standards (size of rooms, quality of materials etc).

It was their decision, based on marketing data, to build thousands of one-bedroom flats - not much good for young couples wanting to start a family but great for buy-to-let landlords.

The needs of first-time buyers could be best addressed as follows:-

* A concerted programme of council house-building, with the end product ringfenced forever from private speculators, predators and wideboys masquerading as businessmen.

* The UK planning system sometimes restricts the supply of building land and therefore needs overhauling. The public interest should come first. Of course, that would require strong, honest politicians.....

* Let's have a look at housing policy in more progressive economies such as Scandinavia, Germany etc.

* Some first-time buyers have unrealistically high material expectations - they expect designer homes in swish neighbourhoods, without the needs to start small, in a less salubrious locality. All part of the "buy now, pay later" culture.
Posted by: john montgomery on 3:19pm Tue 6 May 08
over 100,000 for one bedroom flats . I think its the pot calling the kettle black.
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