HOUSEBUILDERS north of the Border are sharing land and building sites in an effort to kick-start the beleaguered sector.
Homes for Scotland, the lobby group that represents the nation’s private housebuilders, said the move is aimed reducing costs..
Jonathan Fair, the organisation’s chief executive, also said yesterday that the sector was now beginning to see signs of recovery, albeit from a very low base in the wake of the global meltdown in the financial markets that permeated through to housebuilders and purchasers alike.
“Many builders are now sharing sites as a strategy to get through the downturn and it’s an example of how the housebuilding sector is helping itself,” Mr Fair said.
“Personally, I see it as the way forward.
“Sharing land is a way to lower overheads and reduce costs as a way to cope with the trading environment.
“The building groups involved all share the infrastructure costs of a site, which can make a considerable difference.
“Most of the major housebuilders in Scotland are doing this now – Barratt, Taylor Wimpey, Persimmon – in places like Kirkliston, near Edinburgh, Hamilton and Bathgate.” He said four housebuilders were currently sharing one development site in Kirkliston.
“I think this is also good for house buyers, because it brings variety – both in terms of home styles and prices – to a single development site, which is very appealing,” he said.
Home sales in Scotland are down by around half of the 2007 figure and total bank lending over the same period has also halved as banks have continued to choke off credit.
Even though mortgage approvals for purchase surged by 6.7% in June across the UK , it was only because lenders had rushed to meet half-year lending targets.
At the same time, the biggest rises were seen in London, reaffirming the north-south divide.
The latest statistics also revealed a picture of continuing weakness, and a mortgage market growing ever-tougher for first-time buyers.
Those getting their first foot on the housing ladder accounted for just 22% of mortgage approvals last month, a fall from 23% in May – and significantly down from early 2008 when they accounted for 30% of all mortgage approvals.
The credit crisis not only bludgeoned house prices and crunched the availability of funding for potential buyers, but it also led to a dramatic slump in the number of new homes built and sold, and many development sites across Scotland were simply mothballed.
Nonetheless, Homes for Scotland remained sanguine.
Mr Fair said: “There is no doubt about it, we have come through an extremely challenging period – but I think we are now beginning to see the start of the recovery.
“The number of homes being built now is about half of where we were at before the downturn in 2007 and we have been bumping along the bottom for a while now.
Mr Fair also noted that the recent acquisition by Elgin-based Springfield Properties of Redrow’s Scottish operation was a positive sign that “housebuilders are planning for the future”.
“But this year we will be about 10% up, so something positive is happening.”
He added: “The market is still fragile, but at least it has stabilised.”
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