Home » Social Housing » Funding doubled to build affordable homes in Scotland

Funding doubled to build affordable homes in Scotland

The total investment, worth more than £111 million will be matched by £283 million from councils, housing associations and private developers.

Together with 848 homes announced last week funded through Glasgow and Edinburgh city councils, this brings the total to 4,310, of which 74 per cent will be for social rent.

Dozens of housing associations submitted bids to the new fund, matching or undercutting the benchmark subsidy level of £40,000 per unit.

Over the two funding rounds, savings mean housing associations will need £31 million less in public subsidy compared to last year’s subsidy rates.

Addressing the Scottish Federation of Housing Associations annual conference in Glasgow, Housing Minister Keith Brown said:

"Yesterday we announced the outcome of the spending review that will be targeted at maximising capital investment to boost economic recovery.

"The spending review also means that, including the allocation that will be made through local government, the budget for affordable housing supply for the next 3 years will be above £600 million.

"Despite the draconian cuts in capital spending imposed by the UK Government, we have shown that investment in new affordable housing can boost our economy through the direct impact on construction and related jobs.

"I have made clear our commitment to deliver 30,000 affordable homes during this Parliament. And today, I am making the commitment that at least two-thirds of these homes will be for social rent.

"I will continue to expect a benchmark of £40,000 subsidy for housing association developments – with higher levels available only where absolutely necessary for priority developments that would otherwise be unviable."

Have your say on this story using the comment section below