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May and Sturgeon sign off on city deal that includes £313m to boost housebuilding
A £1.3bn city deal in Scotland signed off by Theresa May and Nicola Sturgeon today will make £313m available to boost housing development.
The Edinburgh and South East Scotland City Region Deal will see both governments commit £300m towards the £1.3bn deal, and forms part of an agreement between the UK Government, Scottish Government, local authorities and the region’s universities and colleges. There are also regional partners from the private and third sectors involved.
The deal has allocated £313m for housing, which is made up from a £65m contribution from the two governments and £248m from other partners.
The Scottish government said its investment would include “the creation of a new housing company and housing infrastructure funding to enable the delivery of 41,000 new homes”.
The deal covers Edinburgh, West Lothian, East Lothian, Midlothian, Fife and the Scottish Borders, which combined make up almost a quarter of Scotland’s population.
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According to the heads of terms of the city deal agreed last year, housing is a key driver of the investment and is an “opportunity to address inclusion across the region”.
The report notes that: “Prosperity and success is not universal across the region: 21% of children are living in poverty; there is a lack of mid-market and affordable housing; and too many people are unable to move on from low-wage/low-skill jobs.
“The deal will address these issues, create new economic opportunities, and is expected to provide up to 21,000 new jobs. The region’s new skills programme, alongside improved transport and housing provision, will ensure that businesses and communities across the region will benefit and will be given the chance to take advantage of these exciting new opportunities.”
Ms May said: “These city deals build on existing strengths to open up new possibilities for the future in Scotland and the whole of the UK as part of our modern Industrial Strategy.”
Tammy Swift-Adams, director of planning at Homes for Scotland, said: “This funding will allow progress to be made on the city region’s ambition to boost jobs and economic growth.
“To really reap the benefit of this deal, the region’s councils must match that ambition with bold planning for housing.”
The Scottish Federation of Housing Associations welcomed the announcement but said it was "essential" that a large percentage of the 41,000 new homes promised are affordbale housing or for social rent.
UPDATE: at 9.17am 8.8.18
The article was updated to include a comment from the Scottish Federation of Housing Associations
