Scottish government unveils plan for new public body to boost affordable housebuilding

He added: “It is a new body that will offer simplicity, scale and speed – boosting delivery and maximising savings as part of our commitment to a decade of public sector modernisation and reform.”

Housing secretary Màiri McAllan will work with councils and the bank to design the functions and operating model of the More Homes Scotland agency.

More details are expected to be revealed in March, though the creation of the agency depends on the outcome of the upcoming Scottish parliament election in May. 

The news comes a week after the government announced a record £4.1bn investment of public money in the Affordable Housing Supply Programme. However, groups in the housing sector have warned this will not be enough to meet Scotland’s housing need.

The SNP administration aims to deliver 36,000 new affordable homes by 2030, including 70% at social rent, and invest £4.9bn overall including through private funding.

David Ritchie, chief executive of the Scottish National Investment Bank, added: “The bank has invested more than £130m in housing to date, with a robust pipeline of more potential housing investments.

“We welcome More Homes Scotland being established to bring momentum in finding housing solutions.

“As a mission-led investor, the bank makes commercial investments that drive long-term societal and economic growth for Scotland. Our ‘Place’ mission is focused on improving communities, and a good home is a key tenet of that.” 

The move has also been welcomed by groups in the housing sector.

Alison Watson, director of Shelter Scotland, said: “We are pleased that the first minister is listening to the voices of people across Scotland who are running out of time waiting for a safe secure affordable home.

“Social housing delivery remains too slow, too little and too late for the 10,000 children in temporary accommodation and the tens of thousands waiting for a home.

“Unless we are prepared to take a different approach to deliver more homes more quickly, then we will see rising homelessness and cuts to council services who are left picking up the bill for our housing shortfall.” 

She added that the charity is currently working with researchers at the University of Glasgow to look at how a national agency with power to acquire land and speed up development could work.

Jane Wood, chief executive of Homes for Scotland, which represents organisations in the housebuilding sector, said news of the agency is an “important and much-needed intervention” from the government.

She said: “There is clearly much detail to be worked through, but the impact of this announcement and the Scottish government’s restated commitment to an all-tenure approach should not be underestimated in terms of its potential to stimulate both private sector confidence and investment. 

“In order to make sure that the ambitions of the Scottish government are achieved, it is now essential that commercial insight and all-tenure expertise feed directly into the design phase.”