The Scottish Government has been warned that housebuilders will exit the country after it emerged that 15 'affordable' homes cost more than £8million to build.
Ministers were forced to declare the emergency earlier this year as a result of increased pressure on supply and high rates of homelessness. The number of people making a homelessness application has since hit record levels and more than 10,000 children were recorded as living in temporary accommodation last year.
However, an industry source said that the government’s response to the crisis has been “weak and woolly” with a build-up of costs through safety and green legislation turning away developers.
It emerged this week that more than £8 million is being spent building 15 “affordable” homes as councils struggle to meet green planning standards while keeping rents down.
An industry source told the Times: “More money for affordable homes is one thing, but if the sector is facing costs upon rising costs and the threat of an expanded rent controls regime embedded in law then more investors will exit the Scottish market — potentially for good.
“There’s a major cost crunch heading for Scottish housebuilders. Where governments have failed on cladding, developers are supposed to stump up to make buildings safe. On top of that the SNP government is consulting on a whole heap of building levies to pay for stuff it can’t afford.
“The only viable plan to address Scotland’s chronic lack of homes is to build more of them. The Scottish government should keep well out of the way and let developers get on with that job.”
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