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9th June 2008

Credit Crunch Masks Need For Affordable Homes

North East Tory MSP Alex Johnstone has suggested that statistics issued by the Council of Mortgage Lenders (CML) stating that the credit crunch is having less of an impact in Scotland than the rest of the UK is masking the true situation.  Figures show that although loans for house purchase in Scotland are down by 20% on the same period last year, in the UK as a whole, they are down by double this figure at 40%.

Mr Johnstone said "The Council of Mortgage Lenders state that homes in Scotland 'remain relatively affordable', but I know many local people who simply cannot get on the property ladder at all.  Even if the initial price was affordable, then often enough the high stamp duty can take a home out of their reach."

"Worse still, these general statements about the affordability of housing in Scotland completely fail to recognise the dire housing crisis which has been developing on Deeside and Strathdon for years and has come to a head as a result of the current problems, making it almost impossible for young people, born and brought up in this community, to find homes in their own home towns and villages."

"Statistics such as this from organisations like the CML, comprehensively mask the dire affordable housing situation in we face.  There is a desperate need for mixed tenure affordable homes in Strathdon and Deeside  and whilst the Scottish Government churns out self congratulatory press releases about investment in affordable homes and issues glossy consultation documents on the subject, they are in fact proposing to cut no less than £91 million from the Affordable Housing Investment Plan, a cut of 15.5%. A fact that they seem particularly reticent to publish."

"Instead of grandstanding on how best to achieve independence, the SNP should spend more time on living up to their manifesto promises on housing, education and student debt."