More new houses will be built thanks to the funding package

Communities Minister Malcolm Chisholm confirmed the investment which will build some 132 homes.

The funding comes from Communities Scotland, the Scottish Executive's housing agency.

The news was welcomed by Dumfries Labour MSP Elaine Murray who said it was another "step in the right direction" for her constituency.

"I am delighted that the Scottish Executive has recognised the need for investment in affordable housing in Dumfries and Galloway," she said.

Dr Murray said that local housing associations were under severe pressure and rising house prices created difficulties for first time buyers.

She said: "Across Dumfries and Galloway, 316 new homes for rent or low cost ownership are now either under construction or are now planned - 132 of these financed by the investment announced today.

"It must be a very long time since so much funding was invested in building new homes for rent in Dumfries and Galloway."