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Capital crash

September 10 2008

A 76% fall in the volume of home completions in Edinburgh for the second quarter of this year has been reported by the National House-Building Council (NHBC).  These showed a mere 161 new build homes entering the market.

NHBC Scotland Chairman, Dr David Smith, said: “There was a feeling in the early days of the credit crunch that Edinburgh was somewhat immune to trends but that is not the case.

"There is no problem with supply as there are plenty of properties on the market. The problem is getting a mortgage.

"If companies can't sell what they're building they will have serious cash flow problems. The cash is not coming in so they can't build new phases of developments so everything grinds to a halt. It has ground to a halt very quickly."

There are fears that the current housing downturn could extend over the next 18 month period.

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