Funding initiative to provide 1,000 new homes across Scotland

Developers have been invited to participate in a scheme that will see the purchase of newly-built houses by local authorities with loans underwritten by the Scottish Government, under the National Housing Trust (NHT).

Spearheaded by the Scottish Government and Scottish Futures Trust, the funding initiative is expected to generate £130m and provide 1,000 new homes for rent across Scotland.

The NHT procurement will appear on the Official Journal of the European Union website, and housing developers are being asked to respond to the advert by October 25, 2010.

The NHT is designed to create or safeguard around 1,000 jobs in the construction sector.

The NHT initiative will enable new build homes to be acquired from developers in a joint partnership scheme between the local authority, developers, the Scottish Futures Trust and the Scottish Government.

The 12 local authorities that have signed the NHT participation agreement are Aberdeen City Council, City of Edinburgh Council, Dumfries and Galloway Council, Dundee City Council, East Lothian Council, East Renfrewshire Council, Falkirk Council, Glasgow City Council, The Highland Council, Midlothian Council, Scottish Borders Council and Stirling Council.

Housing and Communities Minister Alex Neil said: "Building more affordable homes across Scotland presents a formidable challenge in a climate of increasing financial constraint."

"The scheme has been designed to ensure that homes delivered through the National Housing Trust are affordable and offer good value for taxpayers' money."

Further information:
Scottish Government