Councils will receive a share of £40 million to help families into hundreds of new social homes, Deputy First Minister Nicola Sturgeon confirmed today.

The total funding package is expected to deliver around 1,000 homes, mainly for social rent, and support up to 700 jobs in construction and related sectors, over the next two years.

Local authorities will allocate £40 million to meet the housing needs in their areas.

Ms Sturgeon said: "This funding will deliver up to 1,000 affordable homes that meet people’s needs, a central focus of our housing polices and a principle that underpins everything we do.

"It will help realise our ambition of 5,000 council homes as part of wider plans to deliver more than 30,000 affordable homes during this Parliamentary term.

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"Quite simply, investing in new homes helps people into work by creating a jobs spin-off with the employment and training that takes place during construction.

"This funding illustrates that despite the 26% cut to our capital budget by Westminster, the Scottish Government is determined to continue investing in new social housing.

"If we want a strong economy, we must have access to all of Scotland’s resources, not just the portion of Scotland’s resources that the UK Government chooses to give us."

Pauline Mills, Land & Planning Director for Taylor Wimpey East Scotland said: "As one of Scotland’s largest house builders delivering high-quality new homes is our area of expertise, and the provision of social housing is an integral part of our business across Scotland.

"The announcement today of funds for Councils to provide more new affordable homes, highlights the importance of the house building industry and the key role that it plays in creating a positive impact on the economic landscape of Scotland.

"We’re delighted to have secured this latest contract with Melville Housing Association to build 20 two and three bedroom new affordable homes and apartments as an integral part of our overall development of new homes at Scholars Green in Dalkeith."

This funding package brings the Scottish Government’s budget for housing supply to almost £860 million over three years.

(GK)