WIREDGOV

The latest steps aimed at 'easing the challenges facing Scotland's house building industry' and increasing the supply of affordable housing have been unveiled by the Scottish Government.

Deputy First Minister Nicola Sturgeon announced yesterday that £17 million will be invested to speed up the delivery of affordable housing.

The money is part of the £120 million acceleration in the three-year affordable housing budget being brought forward over this year and next.

This latest phase of accelerated funding will allow housing associations to purchase unsold stock from the private sector as well as land on which future affordable housing can be built. It will also help to get planned projects on site earlier than anticipated.

Announcing the funding today in Cumbernauld, Ms Sturgeon, said:

"The Scottish Government is aware of the serious challenges facing Scotland's house building industry.

"We are determined to help the country's businesses and households deal with the impact of the economic downturn and to provide much needed affordable housing as quickly as possible.

"That is why we have acted swiftly and decisively, within our powers, to help alleviate the pressure of the credit crunch on developers, and speed up the delivery of affordable housing.

"This latest phase of funding will help to kick-start construction work across Scotland helping our hard pressed construction workers weather the economic storm."

Link Group will receive more than £1.7 million from the funding to purchase 24 unsold properties in Cumbernauld from a private developer. The Cabinet Secretary announced this latest round of funding from the site today.

At the launch Chief Executive of Link Group, Craig Sanderson, added:

"We are delighted that the Scottish Government has made this funding available as it will increase the supply of affordable housing in many areas of Scotland - and particularly the provision of much-needed housing for rent here in North Lanarkshire, where we have undertaken this joint initiative with Thomas Mitchell Homes, supported by North Lanarkshire Council."

This funding will support projects across Scotland:

• £3 million will help accelerate site starts/construction in Aberdeenshire, Perth and Kinross, Borders, West Lothian, East Ayrshire, Argyll and Bute and East Dunbartonshire
• £3.7 million will fund land purchase by housing associations for future developments in the Western Isles, Aberdeen, Angus, North Ayrshire, Argyll and Bute, East Dunbartonshire and East Renfrewshire
• £10.1 million to fund the purchase of suitable stock from the private sector in Orkney, Dundee, Clackmannanshire, Stirling, East Lothian, Midlothian, City of Edinburgh, North Lanarkshire and Glasgow

The £1.5 billion Affordable Housing Investment Programme is allocated mainly to RSLs (Registered Social Landlords). Approximately 70 per cent of the programme is spent on helping RSLs to meet demand for new social housing for rent, on average subsidising about 60 per cent of development costs of each new house.

To date £18 million of the accelerated £120 million has been allocated. This latest announcement takes the total to £35 million.

Related Information

http://www.scotland.gov.uk/Publications/2009/01/RCECHousing