Home builders respond to GDP figures showing 5th consecutive quarter of contraction in construction
05 July 2017
Whilst today’s Scottish GDP figures show the economy growing by 0.8%, they also reveal a fifth consecutive quarter of contraction in construction.
Responding on behalf of its home builder members, David Ogilvie, Interim Director of Policy at trade body Homes for Scotland, said:
“The ongoing decline in construction is extremely concerning and reflects the view of our members that it has never been harder to open new sites and get much needed homes out of the ground.
“It is particularly frustrating for us knowing that, if a more supportive policy framework to encourage housing investment was in place, home building could make even more of a contribution to boosting Scotland’s economic growth. For example, research shows that a return to building pre-recession levels of 25,000 homes per annum could generate an extra £1.9bn in Gross Value Added each year.
“Crucially, this would help to fill the economic void that will be left by large, soon-to-be-completed infrastructure projects as well as support thousands of extra jobs and training opportunities. It also offers significant wider social benefits such as improved health and education outcomes.”
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