Plans for £120 million of new council house building were unveiled by First Minister Alex Salmond on Thursday.

The Scottish Government will provide £30 million to leverage a further £90 million worth of investment by local authorities - creating 1,000 new homes while supporting around 1,200 housing sector jobs and some 700 more in related trades.

Building on last year's initial two rounds of Scottish Government 'kick-start' funding, today's announcement means a total of 3,300 new council houses will be constructed under the initiative.

The First Minister said: "We are working in partnership with local government to provide a new generation of council housing and I'm delighted to announce these plans for a further 1,000 new homes across Scotland. The Scottish Government's financial commitment to this scheme, now totalling £80 million, represents the first central government funding of new council houses in three decades and will leverage more than £300 million investment by local authorities.

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"We are also legislating to protect all new social housing by exempting it from the Right to Buy scheme that has removed so much of our social housing stock since the 1980s. Not only are we providing more families with a safe and secure roof over their heads, but today's announcement delivers another timely boost to the construction industry. The funding for the extra 1,000 council houses alone will support around 1,200 jobs in the construction industry and some 700 more in related trades."

Mr Salmond announced the plans at First Minister's Questions in Parliament, ahead of a visit with Cllr Pat Watters, President of the Convention of Scottish Local Authorities, to Edinburgh's West Pilton Crescent where demolition and site preparation is underway for a new housing supported by last year's funding round.

Cllr Watters said: "Local authorities across Scotland have played an important role in building high-quality affordable and sustainable council homes for our communities. Councils recognise that housing is at the heart of our everyday lives and binds our communities together. Local authorities have demonstrated a willingness to kick start this programme and have made a commitment to build 3,298 council homes for rent under this initiative - on top of other plans to build more council houses. Not only will councils be building family homes, they are also developing specialist accommodation for people with varying needs.

"Councils have demonstrated their enthusiasm and capacity to deliver in the level of investment to revive council house building. The kick-start money of £80 million from the Scottish Government combined with local authorities' own financial investment of £315 million puts councils in a position to deliver mixed and sustainable communities.

"Building through the recession, local authorities are working in partnership with key organisations to ensure that they are playing their part in the economic recovery of the construction industry."

(GK)