Erikka Askeland - Scotsman and BBC News - 9th February 2010
Plenty of new build lies empty in Scotland's Cities - but where are the mortgages?
The house building industry says Scotland is facing its worst housing crisis since World War II, and
Industry body Homes for Scotland said it could take up to 10 years for new developments to return to pre-recession levels.
Chief executive Jonathan Fair said a lack of finance and continued difficulties getting mortgages were holding back a recovery.
He said the target of 35,000 homes by 2015 was a "long way away". The number of new homes being built fell from 25,000 a year before the recession, to 15,000 last year.
Mr Fair said: "It's important that target remains, but we have to be realistic about how achievable it is. I think it will be many years before we get to those kind of numbers on a regular basis in Scotland."
In the past few months, some developments have started and others previously mothballed, have been restarted.
The industry sees this as cautious signs of an improvement this year.
Launching the Homes for Scotland manifesto ahead of the general election, Mr Fair said more action was needed.
"We need to see mortgage availability improve significantly, particularly for first time buyers," he said.
"We need to look at fundamental reform of stamp duty and we need to think about encouraging tax incentives for investment in private rented housing."
Private housing is often developed in conjunction with social housing, helping to make it more affordable.
The drop in new build homes has been a major concern for homeless charity Shelter Scotland.
Director Graeme Brown said: "We have 140,000 people on council house waiting lists and we have 40,000 people assessed as homeless. Any downturn in the number of private houses developed, has a serious impact on social housing."
Tim Allan, director of Dundee-based Unicorn Property Group, agreed and warned that the lack of new-build houses threatened to create a "massive shortfall". He said: "We are stoking up a new housing bubble in the UK."
Allan, who said his firm sold more homes in the last quarter of 2009 than for the whole of 2008, confirmed he was keen to start building homes on the back of signs that the market was returning. But he cautioned that the problem facing housebuilders stemmed from the banks' reluctance to fund development.
"We need to see an appetite for development funding," said Allen. "We need the banks to come to market on workable terms."
Last month, Mark Clare, chief executive of housebuilder Barratt, said it would take a further seven years for the market to recover to its 2007 peaks.
See also:
Right to buy laws to be unveiled
SNP: Right to buy 'had its day'
Student accommodation
Taxman to hit thousands of buy-to-let owners
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