Increasing housing supply will ease affordability in Scotland: CML Scotland

CML Scotland today affirmed its support for the Scottish government’s goal of increasing housing supply by 40% by 2015. Lenders believe that increasing housing supply is crucial in addressing the problem of affordability for first-time-buyers. 

While 2008 will be a challenging year, the mortgage industry in Scotland is open for business and competing for consumer demand, according to Crawford McCaughie, chairman of CML Scotland.  

In an address to the CML Scotland annual lunch in Edinburgh today, Mr McCaughie outlined the challenges for both mortgage lenders and the Scottish government in the year ahead.  

“Clearly the liquidity crisis is having an impact on the mortgage industry throughout the UK. However, economic fundamentals such as low interest rates, low unemployment and demand for property, remain sound.   

“The Scottish mortgage market remains a highly competitive one and while 2008 will be a difficult year we anticipate conditions improving as the year progresses. 

“We fully support the desire of the Scottish government to increase the housing supply from 25,000 to 35,000 by 2015. It must, however, not just be about supply but about the right type of property in the right location. 

“Increased supply should assist in reducing house price growth. House price growth at a rate which greatly exceeds wage inflation is in no one’s interest and makes it exceedingly difficult for first-time-buyers to get on the housing ladder. 

“The challenge for lenders will be to meet the demand for mortgages in these testing market conditions. But the mortgage industry is open for business, focused on meeting consumer demand and treating customers fairly.” 

Gerry Rose, Chief Executive of conference sponsors Orchard & Shipman told the conference:

“Orchard & Shipman are delighted to sponsor this CML event. We are proud to be helping to address the housing shortage. Since our arrival in Scotland in 2005, we have procured more than 1,250 properties to assist local authorities meet their housing duties.”