Large pension funds are being targeted to invest in affordable housing in Scotland, it was revealed today.

Housing and Communities Minister Alex Neil told leaders from the UK's biggest pension funds that the Scottish Government is looking for new ways to fund low cost homes.

Housing Associations are already actively involved in new funding models such as the National Housing Trust, and securing finance from sources such as the European Investment Bank.

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There are more than 200 housing associations in Scotland, managing assets of £8 billion and with an annual rental income of more than £900 million.

In Liverpool, Alex Neil said: "Everyone knows the financial pressures facing affordable housing with the UK Government's planned cut in public spending expected to impact on the level of future investment.

"That is why Scotland has taken a lead in the UK to look at new ways of funding the homes people need.

"I believe there now is a golden opportunity for pension funds to provide good, long-term returns for their members and as a social investment to help build stronger communities.

"There is a strong tradition of joint public and private investment for new build and maintaining the quality of housing stock."

(GK)