�9m bid to assist housing sector

The money will be used to start a range of projects across the country

A �9m package of funding has been brought forward by the Scottish Government to try to help house builders fight the credit crunch.

Part of the money will help start six projects in Moray, Dumfries and Galloway, Argyll, the Borders and Fife.

The remainder will allow housing associations to purchase land in Highland, Midlothian, Argyll, Dumfries and Galloway and South Lanarkshire.

Last month MSPs were told the sector could face 30,000 job losses this year.

Communities Minister Stewart Maxwell said the government recognised the "serious challenges" facing the industry.

Scotland must see a significant increase in the numbers of rented homes being built, particularly as the credit crunch continues to bite Graeme Brown Shelter Scotland director

"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," he said.

"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."

Director of the homeless charity Shelter Scotland, Graeme Brown, said it was clear more affordable homes were needed.

He said: "This is a welcome start as part of a programme already announced by the Scottish Government.

"Scotland must see a significant increase in the numbers of rented homes being built, particularly as the credit crunch continues to bite."

Homes for Scotland - which represents house builders - said it was pleased to see the first round of funds brought forward.

First step

Chief Executive Jonathan Fair said: "Bringing forward these projects will help inject some activity back into new home construction as well as providing more of the affordable homes that Scotland so desperately needs.

"However, with private new build starts down by over 70% in the last quarter and much development now effectively on hold, this is just a small first step.

"We need to see other projects which are currently in the system evaluated quickly and all remaining funding allocations massively accelerated to make any kind of difference to housing supply in Scotland."

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