Kudos to housebuilders

Jan 30 2009 by Les Stewart, Deputy Editor

FULL marks to local housebuilders A&J Stephen and GS Brown Construction who have unveiled innovative plans to kick-start the flagging housing market and give first-time buyers a foot on the property ladder .

In partnership with the Perthshire Solicitors’ Property Centre (PSPC), they have launched a pilot “Chainmaker Equity” project.

The initiative will see the housebuilders take a percentage share – up to 15 per cent. – in the equity of a property to be marketed through the PSPC, rather than the new-build Stephen’s or Brown’s home which the prospective buyer has in their sights.

Effectively, it adds up to an interest-free loan. That will cut the price of the house a person is after, making it more likely it will fall within their price range.

Already the scheme has received the backing from Homes for Scotland, with their director of planning and communications Alan Lundmark stating: “The public response to the pilot project will be monitored closely.

“It could provide a blueprint for getting the housing market moving again in Scotland.”

Of course, if the scheme is a success it will be in the interests of both A&J Stephen and GS Brown as they try to ride out a deepening crisis in the construction industry.

But it should also benefit prospective buyers – and the wider economy as well – in these hard times.

But the banks must also play their part in making mortgages more readily available.

Can someone please tell me what has happened to the billions of pounds we, as taxpayers, have pumped into these institutions?