Thousands of homes will be built or improved

The Scottish Executive cash will be used to build or improve 5,350 homes - most of which will be for rent.

Some �65m of the �284m package will be spent on rural housing - a rise of almost �6m on this year's budget.

Communities Minister Margaret Curran said: "The focus of this programme is to target money at disadvantaged communities where the need is greatest."

She said the executive wanted to help people on low incomes to rent or buy a house.

"This programme sees the biggest ever spend proportionally on rural housing in Scotland," she said.

Improved homes

In Glasgow, �88m will be used to create 1,383 new and improved homes through a development programme and via Glasgow Housing Association.

Almost �18m will be allocated towards 357 properties in the Highlands, while 341 homes in priority areas of Edinburgh will be made available through an investment of �18.5m.

More than 250 homes new and improved homes will also be created in Argyll and Bute.

In total, almost 4,500 houses will be made available across Scotland for rental by housing associations and the remainder will be targeted at purchase by people on modest incomes.

'Housing crisis'

The executive has also set �20m aside for implementing the findings of a review of affordable housing, which is due to be completed later this year.

Housing charity Shelter Scotland welcomed the executive's attention to the issue, but expressed concern that failure to dramatically increase levels of investment will jeopardise new rights for homeless and badly housed people due to the lack of housing available.

The charity's Rachel Martin said: "Scotland is in the midst of a major housing crisis. How many people need to be priced out of the market before action is taken?

"The reality is that it is not only people on the lowest incomes who are being priced out of the market.

"The affordable housing crisis affects everyone and unless the executive takes urgent action the problem will only get worse."