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| Version 1 | Version 2 |
|---|---|
| House firms face 'deep recession' | House firms face 'deep recession' |
| (about 5 hours later) | |
| Scottish house builders are heading for one of the sector's deepest recessions, it has been claimed. | Scottish house builders are heading for one of the sector's deepest recessions, it has been claimed. |
| The number of new houses may have fallen by more than half over the past three months, industry body Homes for Scotland said. | The number of new houses may have fallen by more than half over the past three months, industry body Homes for Scotland said. |
| With sales of new-build homes also falling, the figure is likely to drop even further. | With sales of new-build homes also falling, the figure is likely to drop even further. |
| Several house builders had committed to developments they could not finance, after being hit by the credit crunch. | Several house builders had committed to developments they could not finance, after being hit by the credit crunch. |
| Allan Lundmark, of Homes for Scotland, said: "My fear is that we are going to impact on whole infrastructure of the industry and its ability to deliver. | Allan Lundmark, of Homes for Scotland, said: "My fear is that we are going to impact on whole infrastructure of the industry and its ability to deliver. |
| "You could call it a correction, but it is so severe a correction that the housing market might never operate in the same way again." | "You could call it a correction, but it is so severe a correction that the housing market might never operate in the same way again." |
| This will take a long time to bottom out and, if we don't act now, we will take a long time to recover Allan LundmarkHomes for Scotland | This will take a long time to bottom out and, if we don't act now, we will take a long time to recover Allan LundmarkHomes for Scotland |
| Mr Lundmark said many of his members believed it could be the worst housing slump for several decades. | Mr Lundmark said many of his members believed it could be the worst housing slump for several decades. |
| "The industry has come through two similar periods, in the 1980s and the 1990s, but this is deeper, far deeper," he added. | "The industry has come through two similar periods, in the 1980s and the 1990s, but this is deeper, far deeper," he added. |
| "In fact, it has been characterised by some of my senior members as similar to, if not worse than, the downturn in the 1970s. | "In fact, it has been characterised by some of my senior members as similar to, if not worse than, the downturn in the 1970s. |
| "That threatened the industry in a very fundamental way. This will take a long time to bottom out and, if we don't act now, we will take a long time to recover." | "That threatened the industry in a very fundamental way. This will take a long time to bottom out and, if we don't act now, we will take a long time to recover." |
| Homes for Scotland has been collecting figures from its members for the past three months. | Homes for Scotland has been collecting figures from its members for the past three months. |
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| Housebuilder on the industry downturn | |
| The organisation said it believed the number of houses built in that time was likely to have dropped by 50%, which would make it impossible to meet government targets to build an extra 5% a year. | The organisation said it believed the number of houses built in that time was likely to have dropped by 50%, which would make it impossible to meet government targets to build an extra 5% a year. |
| It would also be impossible for housing associations to meet their target of building 30,000 new affordable homes for the rented sector. | It would also be impossible for housing associations to meet their target of building 30,000 new affordable homes for the rented sector. |
| Some associations have been in talks with house builders about buying unsold stock. | Some associations have been in talks with house builders about buying unsold stock. |
| Brian Gegan, chairman of the Scottish Federation of Housing Associations, said a solution had to be found in the next few months, before conditions in the housing market became worse. | Brian Gegan, chairman of the Scottish Federation of Housing Associations, said a solution had to be found in the next few months, before conditions in the housing market became worse. |
| The body, along with Homes for Scotland, is to meet Scottish ministers to discuss the way forward. | The body, along with Homes for Scotland, is to meet Scottish ministers to discuss the way forward. |