The Scottish home building industry has welcomed Nicola Sturgeon's call to the UK Government to take "radical steps" and deliver at least £500m of new funding housing investment in Scotland in the 2009 Budget.

Jonathan Fair, Chief Executive of Homes for Scotland, the organisation which represents companies building 95% of the country's new homes, said: "This welcome demand for new money demonstrates the importance the Scottish Government is placing on housing.

"However, in the context of an industry which prior to the onset of the credit crunch was the largest source of private investment in Scotland, it is imperative that our focus broadens further than simply affordable housing alone."

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Mr Fair continued: "whilst the private sector has been at the forefront of calls for both accelerated and increased funding in affordable housing provision in recognition of the benefits this offers in terms of maintaining skills and long-term capacity; the Scottish Government has a number of additional levers at it's disposal which would be of direct and immediate assistance to our members, their employees and the communities within which they operate."

The cheif executive said he looks forward to working closely with the new Housing and Communities Minister Alex Neil on concepts such as the introduction of a Scottish 'Homebuy Direct' model to encourage private development here in our own communities.

(GK/JM)