Scottish agency could rent out unsold homes
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The Scottish Government is considering setting up an agency with millions of pounds to buy unsold homes for council housing, reports suggest.
The Sunday Herald has reported the government is looking at setting up a body called the National Housing Trust, which would rent homes to people on low or middle incomes who do not qualify for housing association support.
The trust could buy 2,000 new unsold homes in Scotland using a ‘cautious estimate’ of £200 million borrowed by local government. There would be no direct government funding.
The information came from a leaked paper sent to the Convention of Scottish Local Authorities and said homes would be leased on short assured tenancies. This is reported to have recieved expressions of interest from 18 of Scotland’s 32 councils.
A Scottish government spokesperson said: ‘Framed against a backdrop of continuing economic uncertainty we are saddled with a restrictive settlement from Westminster.
‘The Scottish Government faces financial challenges as it strives to increase the supply of more affordable homes.
‘We are open to innovative ways of increasing supply and improving the quality of our housing. We also want to ensure that any investment provides the best value for taxpayers’ money.
‘We have discussed a range of options with local authorities but no decisions have been taken.’
A Cosla spokesperson did not wish to comment.
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Readers' comments (2)
Harry Lime | 25/11/2009 9:23 am
I've read this, and re-read it, and then read it again. It just seems too simple, too easy - surely it couldn't work? It's exactly what thousands of young working families are crying out for all round the UK. The chance to rent properties at close to market levels, but with the security of tenure that a landlord like a council or RSL could provide. Until we get something like this, the UK will continue to be the odd man out in relation to the rest of Europes view on home ownership and renting and the boom/bust housing price bubble will continue for evermore.......
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Peter | 25/11/2009 3:40 pm
You right Harry it is very simple. I have loathe policy makers for many years but they never want to do things simply. They love to pack everything with layers upon layers of irrelevant nonsense.
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