Decisive action to help the construction industry tackle current economic challenges was pledged today.

Deputy First Minister Nicola Sturgeon revealed that accelerated investment of £9m will finance a string of housing developments across Scotland.

The funding will allow housing associations to purchase unsold stock from the private sector, increasing the availability of much needed affordable housing.

First Minister Alex Salmond announced in August that delivery of affordable homes will be accelerated, bringing forward up to £100m of spending through the £1.5bn Affordable Housing Investment Programme.

-- Advertisement --

In October, Communities Minister Stewart Maxwell confirmed the first tranche of funding - £9m - would be accelerated to fund site starts and land acquisition.

Today, announcing £9m, the second tranche of funding, Nicola Sturgeon said: "The Scottish Government is under no illusion about the serious challenges facing Scotland's house builders.

"We are taking decisive action, within our powers, to help alleviate the brunt of the credit crunch on developers, and assist the delivery of more affordable homes.

"Housing associations will be able to buy off the shelf stock from the private sector. It will help the hard pressed construction industry and increase much-needed affordable housing.

John Cassie, Regional Chairman of Persimmon Homes, Scotland, welcomed the Scottish Government's decision.

"We at Persimmon are delighted that our extensive knowledge of working with Housing Associations and the Scottish Government meant we were able to identify the appropriate mix of housing.

"The deal was concluded within only two months, thus ensuring we can build 24 new properties for Almond Housing Association by the end of 2009."

(GK/KMcA)