Scottish Government pledges £9 million to help house builders fight credit crunch » Housing » 24dash.com

The Scottish Government has announced a £9 million funding package to help house builders north of the border fight the credit crunch.

Communities Minister Stewart Maxwell confirmed the funding has been brought forward as the first tranche of accelerated funds for site starts and land acquisition.

Around £4 million will help accelerate site starts on six housing projects in Moray, Dumfries & Galloway, Argyll, the Borders and Fife.

And a further £5 million will fund land purchase by housing associations to support development in Highland, Midlothian, Argyll, Dumfries & Galloway and South Lanarkshire.

First Minister Alex Salmond recently announced that the delivery of affordable homes across Scotland will be accelerated, as a result of bringing forward up to 100 million pounds of spending through the Affordable Housing Investment Programme.

Mr Maxwell said: "This Scottish Government recognises the serious challenges confronting Scotland's house builders.

"This has become a major issue, with serious implications for the industry's present and future capacity and our ambition to increase long-term housing supply in Scotland.

"That's why we have taken decisive action, both to help mitigate the impacts of the Credit Crunch on developers, and assist the delivery of more affordable homes.

"This funding will go some way to lay the foundations for the house-building industry to bounce back."

The 1.5 billion pound Affordable Housing Investment Programme is allocated mainly to RSLs (Registered Social Landlords).

Approximately 70 per cent of the programme is spent on helping RSLs to meet demand for new social housing for rent, on average subsidising just over two-thirds of the construction costs of each new housing unit.