The difficulties in obtaining mortgage finance is undermining any recovery in the property market and wider economy, according to Scottish housebuilders.
Homes for Scotland’s members are responsible for building 95% of all new homes built for sale in Scotland, as well as a good proportion of the social housing.
Its chief executive Jonathan fair said that latest official figures on house prices would make it more difficult for first-time buyers to get a foothold on the property ladder and laid the blame with lenders and Westminster over what it believes are crippling mortgage rates.
“Mortgage lending is at a 10-year low. When is Westminster going to take positive action to stem a crisis of confidence that threatens tens of thousands of jobs across Scotland? The social and economic consequences of ignoring the housing crisis will be stark,” he said.