CML: Ministerial statement on the future of housing in Scotland

The Council of Mortgage Lenders welcomes the statement by Nicola Sturgeon, Health and Wellbeing Secretary, on the future of housing in Scotland and supports increased housing supply.

CML continues to urge the government to choose a quiet time in the housing market for implementation of the Single Survey, in order to minimise any impact on supply. This is even more important given that the housing market is now cooling down.

CML Policy Consultant Scotland, Kennedy Foster, commented: "Lenders have already responded to increasing affordability constraints by developing a number of products to assist first-time buyers into home ownership. But, while we support efforts to assist first-time buyers into ownership, we have serious doubts whether a grant for first-time buyers will improve affordability. In 2006 there were 38,900 first-time buyers in Scotland, and the proposed grants would have cost of £78m. This money could be better spent in expanding the Homestake scheme or in building more homes for low-cost ownership.

"We are delighted that independent regulation of housing associations is to be maintained and will move to become independent of Ministers. However, the statement signals the burden of regulation will be reduced, and efforts will concentrate on assessing the outcomes for tenants. Governance and management of housing associations are extremely important for lenders, as well as tenants, and should not be diluted in the current market. Otherwise the confidence of lenders in supporting increased new social housing could be affected.

"We look forward to further dialogue on the best ways to deliver housing improvements."