On this page:

News Release

This item was published during the term of a previous administration that ended in April 2007

Housing

Listen

Affordable housing target achieved

08/05/2006

The Executive has met its Partnership Agreement pledge to provide more than 18,000 affordable homes.

Addressing a housing conference in Edinburgh, Communities Minister Malcolm Chisholm, said:

"Our record investment is making a real difference for to thousands of families across Scotland but clearly we need to do more to tackle shortages.

"In the three year period to March 2006, Communities Scotland has ensured approval of 18,231 homes against a target of 18,000.

"Eighteen months ago, we set more challenging targets when I announced £1.2 billion investment to provide 21,500 affordable homes by 2008.

"Last year this provided 6500 homes against a target of 6400.

"I am delighted at this progress. It has been due to a lot of hard work by Communities Scotland working with councils, housing associations and developers.

"But more needs to be done and I am determined to build on this momentum. This year we are putting in £439 million to provide 7100 affordable homes.

"Most of the new homes are for rent. But Homestake, our new scheme to help first time buyers and others on low incomes get the keys to their own homes, has been a real success story.

"It is unique in the UK. We envisaged it would be helping 1000 new owners a year - but it has done that in the first six months of operation.

"Each part of Scotland has a distinctive housing market and challenges.

"We need flexible and innovative approaches to meet local needs across Scotland. We are increasing investment in rural areas to £119 million which accounts for around 30 per cent of the programme.

"It is vital that that we look at housing needs in the long term. That is why we are looking to give local authorities an enhanced role in targeting strategic investment on the ground.

"Local land supply is vital to that process. One of the major benefits in our modernisation of the planning system, outlined in the Planning Bill, will be up to date development plans with adequate provision for development and with strong involvement by communities from the outset."

The pledge to provide 18,000 affordable homes by 2006 was made in the 2003 Partnership Agreement. New and more challenging targets were set in the Spending Review of October 2004 to invest £1.2 billion to provide 21,500 new affordable homes (16,500 for rent and 5000 for purchase) from 2005 to 2008.

Of the £1.2 billion, £439 million has now been allocated for this financial year (2006/07). This is expected to deliver 7100 affordable homes (5650 for rent and 1450 to buy). Around 30 per cent of this investment (£119 million) will go to rural areas,

The Homestake scheme is run by Communities Scotland, the Executive's housing and regeneration agency. More details can be found at: www.communitiesscotland.gov.uk

Page updated: Wednesday, May 10, 2006