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Campaigners warn homes pledge fall short

Saturday 21st March 2009

The Scottish Government’s drive to swell the country’s affordable housing stock by at least 6,500 in the coming year does not go far enough, housing organisations have warned.

Housing minister Alex Neil pledged a government spend of £644 million from April, which he said would create at least 6,500 new or improved homes. He said every local authority area in Scotland would have at least the same amount as 2007/08, with extra cash pumped into areas facing difficulties in meeting the country’s target of housing its homeless by 2012 or with above-average demands on their housing supply.

He told delegates at a Chartered Institute of Housing Scotland conference: ‘I’m not happy with 6,500 [homes], because I believe, with the level of funding we’re committing, we should be able to go over the 7,000 mark and beyond.’

But the Scottish Federation of Housing Associations said the minister’s aspirations still fall a long way short of the 10,000 new affordable homes for rent it wants in the coming year.

And Shelter Scotland said the fact that the £644 million included the £80 million the government had already pledged to bring forward from next year’s budget meant the housing pot for the coming year still fell short of what was needed.

Mr Neil urged delegates to campaign for an extra £500 million from the UK government, which he said was needed to enable Scotland to continue its affordable housing drive next year.

The minister also attacked the UK government for making £2 billion available for ‘failed private finance initiative projects south of the border’.

‘If we had even a quarter of that money for affordable homes in Scotland, we could bring about a dramatic increase in the number of affordable homes we’re able to build,’ he said.

‘£2 billion would write off the entire debt of housing organisations across Scotland. The UK government wants to get its priorities right.’