Scots release extra funding for council homes
The Scottish Government has committed £45 million to the building of affordable homes in the country.
Housing and communities minister Alex Neil announced the extra funding today, which the government believes will fund at least 800 new low cost homes.
This comes days after Mr Neil unveiled a £120 million funding plan for round three of the Scottish Government’s investment into council house building.
The £45 million includes £31 million from the UK Budget consequentials - a formula which works out the money given to the devolved administrations from Westminster.
Glasgow Housing Association has also agreed to spread some of the grant funding it is due from the affordable housing investment programme over a longer period of time, freeing up £14 million.
Mr Neil said: ‘This funding will be targeted at accelerating construction starts and will enable at least 800 new homes to go on site earlier than planned this year.
‘Despite swingeing budget cuts from the UK Government, over the three years [2008 – 2011] we aim to approve 21,500 affordable homes across the country.’
Graeme Brown, director of housing charity Shelter Scotland, said: ‘This is good news for the near 155,000 households stuck on housing waiting lists across Scotland.
‘With up to 40 per cent cuts in public spending on the way, the challenge remains how we get more homes from less cash next year and in the future.’
The £120 million for council house building is expected to create 1,000 new homes and support around 1,200 existing housing sector jobs.
The Scottish Government will put in £30 million to encourage a further £90 million of investment by local authorities.
Making the announcement of the £120 million investment last week, Scotland’s first minister Alex Salmond said: ‘The Scottish Government’s financial commitment to this scheme, now totalling £80 million, represents the first central government funding of new council houses in three decades and will leverage more than £300 million investment by local authorities.’
Jonathan Fair, chief executive of house building body Homes for Scotland, said: ‘The recent emergency UK Budget heralded a sustained period of downward pressure on direct public expenditure, and with it also containing little if any measures to stimulate the Scottish house building economy, this announcement is welcome news indeed.’
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Readers' comments (1)
Sidney Webb | 05/07/2010 5:05 pm
Now do the same for the other regions of Britain, as a step to restoring at least pre-Blair building levels, or even better pre-Thatcher, as a route to overcoming the dire social-housing shortage, and force the Mayor of London to ensure social homes are built.
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