The Scottish Federation of Housing Associations (SFHA) set out the case for the Scottish Government to use its new borrowing powers to invest in badly-needed new affordable housing, as the Scottish Parliament debated the Scotland Bill on Wednesday.

Mary Taylor, Chief Executive of the SFHA, said: "Helping to fund new affordable homes is a safe and secure use of public funds, which will provide a strong economic and social return, as well as tackling the pressing shortage of affordable homes that exists across Scotland. However, the budget for new affordable rented homes has been successively cut in recent years.

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"Housing associations and co-operatives have already proved they can use government investment, added to private finance they raise themselves, to build large numbers of high quality, energy efficient housing, that will serve our communities well.

"That’s why we have briefed MSPs on the advantages of using new borrowing powers, set to be gained through the Scotland Bill, to build quality affordable rented homes in Scotland.

"Availability of land is a key issue and new powers in the Bill over taxation on land transactions also have the potential to increase land available for affordable housing developments."

Dr Taylor continued: "There are powerful arguments for investment in housing, in terms of the beneficial effect on the economy, job creation and apprenticeships, as well as vital social benefits that improved living conditions bring – whether in education, health, or tackling fuel poverty.

"Underlying all that is the huge need for affordable housing, with 335,000 households on housing association and co-operative housing waiting lists in Scotland.

"We urge MSPs and the Scottish Government to bear these arguments in mind when deciding what to use the powers for."

(GK)