£45 million for low cost homes in Scotland

At least 800 new low cost homes in Scotland are to go on site earlier this year thanks to £45 million funding.

The resources will be focussed on stimulating the country's house building industry and tackling homelessness.

The money comes from £31 million in UK budget consequentials allocated to housing developments across Scotland and £14 million been freed up within the Affordable Housing Investment Programme (AHIP) because Glasgow Housing Association has agreed to spread some of the grant funding it is due over a longer period

The additional funding will see the AHIP for 2010-11 rise to £502 million, delivering over 7,100 homes for rent or low cost ownership.

Housing and Communities Minister Alex Neil said: "This Government is putting in place a range of measures to increase the supply of affordable homes, support jobs and increase economic activity. This funding will be targeted at accelerating construction starts."

"It will inject renewed confidence in Scotland's building industry and help to tackle homelessness. Over the three years (2008 - 2011) we aim to approve 21,500 affordable homes across the country."

Further information:
The Scottish Government