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Help to Buy will help resolve the housing crisis – Cala chief

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  • 07/10/2013
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Help to Buy will help resolve the housing crisis – Cala chief
The house builder Cala plans to double the size of its business by 2017, thanks to improvements in mortgage supply and general economic conditions.

The upmarket house builder increased private completions by 4% to build 694 homes, with an average sales price of £335,000.

Cala chief executive Alan Brown said while the builder was not targeting first-time buyers, it was benefiting from the knock on effects of the government’s Help to Buy and the Funding for Lending Scheme.

He said the mortgage market had developed significantly since the Funding for Lending Scheme was introduced in 2012: “Help to Buy has come along and there has been some improvements generally in the economy. We believe that will continue onwards.”

Although Brown acknowledged house prices were rising slowly in some parts of the country, he dismissed fears of a house price bubble. “Help to Buy will stimulate the market,” he said. “But there is no doubt that this country has a significant housing crisis.

“That is not going to be resolved unless someone finds a solution to do with mortgage supply. The government has a very good strategy in terms of helping mortgage supply and they also have a good strategy on planning.”

Legal & General Group and Patron Capital Partners acquired Cala in March 2013. With the new shareholders in place, Cala plans to expand its presence in the South of England and the affluent Scottish markets of Edinburgh and Aberdeen. It currently has an owned and contracted landbank of 10,016 plots.

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