The number of new Government funded affordable homes completed in Scotland rose to 5,846 in 2009-10, official figures confirmed today.

The figure represents the highest recorded since the financial year 1981-82. 2,609 more new affordable homes were built in 2009-10 that in 2006-07.

However, 35 per cent fewer private sector new homes were completed in 2009 than in 2008.

Between 2006 and 2009 there was a slump in the number of private new build houses dropping from 21,324 to 11,447.

Housing and Communities Minister Alex Neil said: "It is encouraging that last year there was a record number of new affordable homes built in Scotland. Indeed, not since the early eighties have we witnessed such a surge in new affordable homes across the country.

"Unfortunately, the level of private new build completions has continued to fall sharply in comparison with previous years.

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"However, to help Scotland's hard-pressed house builders we acted decisively and stepped in when the private housing sector was experiencing an unprecedented fall in building activity. We moved quickly to bring forward some of next year's affordable housing budget as accelerated expenditure.

"Scotland's housing system faces major challenges. Not least, confronting the fall out from £500 million of cuts, imposed by the Treasury and set out in the draft Scottish budget presented to Parliament.

"This week I joined the Cabinet Secretary for Health and Wellbeing, Nicola Sturgeon, to launch a discussion document about future housing policy in Scotland.

"It signals a need for Scotland's housing system to employ 'radical thinking and bold new ideas' to counter the financial realities presented by reductions in public spending."

The Housing Statistics for Scotland web pages include comprehensive time series data to allow in-depth analyses of housing activity in Scotland up to December 31, 2009 to March 31, 2010.

A £521 million cut to the Scottish Government's budget was announced by the then Chancellor in 2009, offset by consequentials of £24 million. The UK Pre-Budget Report published in December 2009 resulted in consequentials for Scotland of £23 million. The Scottish Government announced in April 2010 the allocation of a further £76 million in consequentials following the former Chancellor's 2010 budget.

(GK)