At LSL’s Scottish New Homes Forum, representatives of the Scottish Government stated that due to a substantial decrease in consequential funding from the UK Government it was challenging to continue to operate first time buyer schemes, and encouraged joint innovation with the sector to support shared objectives. This follows a cut by the Scottish Government of c£200m to its Affordable Housing Supply Programme, announced in February.
Craig Hall, director of strategic partnerships at LSL Financial Services, said: “There is a general consensus that we have ‘reached the bottom’ but 2025 is likely to turn out marginally better numbers and 2026 should see a turning of the page, with the Scottish Election set for 7 May 2026.”
Homes for Scotland (HFS) are also challenging the Governments current position re the green agenda and the need to meet Passivhaus standards due to financial impact of the regulatory burden.
It recognises the need to transition to work towards the Scottish Government’s net zero target of 2045. The public consultation is due to close on 23 October.
Hall continued, “lending policy for the new homes sector continues to improve, with a number of lenders increasing LTV’s, LTI’s and reviewing their affordability assessment calculations all in order to support the affordability challenges facing the end consumer and their home buying aspirations.
“We have seen two lenders already factor in the reduced running costs of a new build home with their affordability assessments - we now need more lenders to follow suit!”
