Give housing bid credit it deserves

Published on 30/09/2012 00:00

TALKING about our recently launched MI New Home scheme, which enables those looking to buy a newbuild home with a 5-10 per cent deposit, Jeff Salway writes that “it has failed to secure significant lender backing” (Business, 16 September).

In fact, three of the top five largest lenders (RBS, Nationwide and Halifax/Bank of Scotland) were announced at launch, accounting for over 40 per cent of the UK mortgage market – a very positive start for such a new concept. Other lenders have also expressed interest in joining the scheme.

Salway warns of a danger that MI New Home could ­artificially boost demand and push up house prices. The fact is that only 15,000 new homes were built in Scotland last year – the lowest level since 1946, despite Scotland’s population being at its highest level and the number of new households expected to form each year over the coming period projected at more than 21,000. As recognised by the Scottish Government in 2007 when it announced an annual house- building target of 35,000 by the middle of this decade, house price inflation will only be impacted by increasing supply – one of the areas MI New Home hopes to stimulate.

Philip Hogg, chief executive, 
Homes for Scotland