A funding initiative expected to generate £130 million and provide 1000 new homes for rent across Scotland moved a step closer today.

Under the National Housing Trust (NHT), spearheaded by the Scottish Government and Scottish Futures Trust, developers have been invited to participate in a scheme that will see the purchase of newly-built houses by local authorities with loans underwritten by the Scottish Government.

The NHT procurement has been advertised today and will appear on the Official Journal of the European Union (OJEU) website - all tenders from the public sector valued above a certain financial threshold must be published in the OJEU.

The NHT is designed to kick-start activity on mothballed building sites and create or safeguard around 1,000 jobs in the construction sector.

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Twelve authorities have signed up, including Glasgow City Council, City of Edinburgh Council, Highland Council and Stirling Council.

Housing developers are being asked to respond to the OJEU advert by October 25, 2010.

In Edinburgh where 600 NHT homes are being sought, Housing and Communities Minister Alex Neil said: "Building more affordable homes across Scotland presents a formidable challenge in a climate of increasing financial constraint.

"The National Housing Trust model breaks new ground in the UK and I am delighted that so many councils have embraced this approach as one that can help solve housing pressures locally.

"The scheme has been designed to ensure that homes delivered through the National Housing Trust are affordable and offer good value for taxpayers' money."

Barry White, Chief Executive of the Scottish Futures Trust, commented: "In these challenging economic times, NHT opens the doors to build affordable housing in Scotland. This demonstrates how the public and private sectors can work together in an imaginative way.

"Such innovation is at the heart of Scottish Futures Trust's work to attract additional finance while ensuring value for money for the taxpayer."

The following twelve local authorities have signed the NHT participation agreement: Aberdeen City Council, City of Edinburgh Council, Dumfries and Galloway Council, Dundee City Council, East Lothian Council, East Renfrewshire Council, Falkirk Council, Glasgow City Council, The Highland Council, Midlothian Council, Scottish Borders Council, Stirling Council.

(GK/KMcA)