The economic downturn and a squeeze on public finances will make supplying affordable housing a major challenge, industry representatives heard today.

Housing Minister Alex Neil said housing policy was at a 'crossroad' and there was a pressing need to adopt new thinking and fresh approaches to fund affordable housing.

In May, the Scottish Government will publish a consultation document to launch a debate on how we meet the challenges facing housing over the next five years and beyond.

Addressing delegates at the Chartered Institute of Housing annual conference, Alex Neil said: "Housing policy is at a crossroad. Traditional methods of providing housing will need to change because of the scale of the new challenges - climate change; new lending climate; squeeze on public funding.

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"That is why we need to recognise that radical measures are required to shape future housing policy in Scotland

"We will need new approaches: - clearer priorities; new ways of raising finance; and a new focus on making best use of the existing stock."

Mr Neil placed emphasis on value for taxpayers' money, saying that it will underpin the Government's investment in housing.

"And recognising that we face the challenge of addressing the causes of climate change, safeguarding the environment must be a key part of future housing policy," he continued.

"Over the summer, we want to engage with all housing stakeholders and end users in a wide-ranging consultation to ensure we build on the momentum already in evidence across the housing system.

"Towards the end of the year, we will publish a White Paper that will act as a blueprint for the direction of housing policy for a decade."

(GK/BMcC)