Cash injection of more than £500m earmarked to boost green house-building

Building boost: Money expected to create jobs and buoy the construction industry.Deadline

Scotland’s councils are set to share a cash injection of over £500m to help them build greener homes.

The £582m, announced on Tuesday, is part of the Scottish Government’s Affordable Housing Supply Programme and will be used to create jobs and boost the economy in the property market.

Local authorities and housing associations in receipt of the investment will use it to build more energy-efficient homes.

Rural areas, which experience higher development costs, will get extra assistance to make sure those living in even the most remote parts of the country do not miss out.

Announcing the funding, Housing Minister Keith Brown said: “Housing is and will remain a priority for this Government and we will continue to invest in new affordable homes. Despite the severe cuts to our budgets by the UK Government, this is a substantial funding boost that will support house building across Scotland. We have listened to councils and housing associations and put in place a system of funding for housing based on forward planning instead of making councils and housing associations bid for funds. This will provide greater certainty and allow councils to make plans for the future.

“This Government has successfully championed innovation in house building, which means that we can now deliver more houses for the money we spend. Against that background, we are also encouraging the construction of greener, more energy efficient homes. And we also recognise the particular challenge for housing in remote and rural areas and will provide greater Government subsidy for housing developments in those areas.

“This funding keeps us on track to deliver more than 6,000 affordable homes per year, of which 4,000 will be social homes. But we must continue to work together to get the most from our resources and ensure that we deliver our vision that everyone should have a safe, warm home which they can afford.“

Mary Taylor, CEO of the Scottish Federation of Housing Associations, welcomed the announcement and pledged to work with ministers to increase access to affordable housing.

She said: "Building more affordable housing is an urgent priority and so we welcome this clarification of the new funding arrangements and the fact that the Scottish Government is continuing to provide investment. The new funding regime is more streamlined, while allowing for more flexibility for rural areas and vitally, for more energy-efficient housing. We welcome the three-year programme, which will make planning easier.

“There remain significant challenges and increasing pressures for our member housing associations and co-operatives in delivering genuinely affordable housing. Our sector will continue to work with government and private lenders to address these so that we can build badly-needed affordable homes for the many people in Scotland who need them.”

The announcement brings the total investment in the Affordable Housing Supply Programme to £710m.

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