Scotland faces housing shortage
Monday, 7 February 2011 2:30 PM
Ministers have warned that Scotland is on the verge of a housing crisis, thanks to its expanding population and the continued struggle of its construction industry.
Their report predicted a net increase of 200,000 households across Scotland in the run up to 2020, with around 20,000 extra homes needed each year just to meet demand.
However, this does not account for the impact of Scots moving from one area to another, demolishing their existing properties or a backlog of families already on waiting lists for housing, the Daily Telegraph reported.
The blueprint suggested that first-time buyers' difficulty getting a mortgage after the recession had brought a severe knock-on effect, with private-sector house-building now "at very low levels", compounded by widespread construction job cuts.
Under new proposals, local authorities could be allowed to raise council tax on Scotland's 25,000 long-term unoccupied homes, generating as much as £130 million to build low-cost houses in an effort to address the problems.
Scottish housing minister Alex Neil commented: "Scotland needs many more new houses and to significantly enhance the quality and sustainability of our existing housing stock."
He added: "These proposals are firmly rooted in financial reality and framed against the major challenges stemming from the credit crunch and the savage cuts inflicted by the UK Government."
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