Scottish building firms facing trouble as Help to Buy funds run out

Fri, 22 Aug 2014

Scottish building firms facing trouble as Help to Buy funds run out
Builders in Scotland are becoming hemmed in by the economy as Help to Buy has run out of funds north of the Scottish border.

The problem they face is that while the scheme was functioning, there was a boost in business as people, especially first time buyers, could afford to buy properties and move onto the property ladder.

However, the boosted building trade will no longer be sustainable for the remainder of the year, builders have claimed. This is because without the extra stimulation of the housing market due to the scheme, the builders, who are working at a boosted rate, will now be working faster than the homes are sold off.

This could create a vacuum in the trade and cause building firms to crash, again.

Having seen low levels of productivity during the financial crash that hadn't been seen since 1947, it is good to see that the building firms in Scotland managed to pick up again so strongly, driven by the private sector coupled with the Help to Buy Equity Loan.

"The figures show that the increase in supply was driven by the private sector and this clearly demonstrates the huge impact made by the very successful Help to Buy (Scotland) scheme, which has generated over 4,300 sales and reservations since launch less than a year ago," said Philip Hogg, chief executive of the trade body Homes for Scotland.

The success the builders have seen is under threat of collapsing beneath them again as the well of funds for Help to Buy has dried up and is no longer available for the Scots.
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