Scottish housing chief fears extra companies will crumple

A leading figure in Scottish housebuilding has urged ministers north of the border to “take motion” amid fears of further enterprise failures in the wake of Stewart Milne Team coming into administration.

On Monday (8 January), the Aberdeen-headquartered agency announced it would stay trading after failing to assemble a purchaser – with extra than 200 folk made redundant.

Jane Wood, chief executive of lobbying organisation Homes for Scotland, acknowledged she was shy extra companies in the sphere could well agree to swimsuit.

“Total I’m vastly saddened for these impacted without extend [by the Stewart Milne administration] and additionally the wider sector and our country as a complete,” she knowledgeable BBC Radio Scotland.

“It further evidences the broad-ranging challenges going through housebuilders for the time being, from the planning gadget to the cumulative impact of assorted policy choices. It is a ways a difficult market. Housebuilding is a complex sector with an intensive provide chain, all of whom will likely be affected.

“We’re barely enthusiastic we’re going to look extra of this.”

Pointing to the housing emergencies declared by councillors at Metropolis of Edinburgh final November, and Argyll and Bute final June, Wood acknowledged Scotland was extra than 100,000 homes wanting the volume it mandatory.

“It is a ways a huge scare. It is no longer compatible about non-public housing, it is all tenures. It is a ways a difficult market with mortgages and curiosity charges so market forces agree with made it difficult, however increasingly securing planning to invent homes is difficult, whereas SME housebuilders fight with finance because of it is an upfront price.

“Our ask will likely be that the Scottish Executive needs to point it recognises the sphere’s issues and takes urgent motion to construct particular provision of unique homes of all tenures for all people in Scotland is prioritised.”

Closing week Scottish housebuilder Cruden acknowledged it deliberate to carve its contracting work after suffering an £11.7m loss attributable to “unsustainable risk transfer” in the sphere. Closing year one other Scottish housebuilder, Springfield Properties, acknowledged it would quit taking on affordable housing contracts as a consequence of “invent-price inflation”.