Perth & Kinross Council has approved a significant payment from a specialist cash reserve that will allow a new affordable housing development to be built.

The payment from the Council Tax Income on Second Homes Earmarked Reserve will be made to Perthshire Housing Association (PHA) for the purchase of a site for the development of 22 new houses at Burrelton.

The money will also pay for the costs associated with forming the roads, drains and other services at the development site.

The payment was approved unanimously at a meeting of the Council’s Strategic Policy and Resources Executive Sub Committee on Monday 23 March.

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In February 2005 the Council agreed that additional money collected by reducing the Council tax discount on second homes could be used to support the development of affordable housing throughout the local area.

The Council has reduced the 50% second home discount to 10%. The reduction covers around 1,800 properties and has brought in significant additional income.

This extra income goes into the Council Tax Income on Second Homes Earmarked Reserve and is available to Registered Social Landlords to meet local priorities for affordable housing.

Strategic Policy and Resources Committee Convener and Leader of the Council, Councillor Ian Miller, said: "This is an innovative way to make money available for much-needed affordable housing in Perth and Kinross, and I am delighted to be able to make this money available to PHA for this project.

"Perth and Kinross has a pressing need for additional affordable housing for rent and low-cost home ownership. The provision of funds through the Second Homes Earmarked Reserve is just one of the ways the Council is working to address the situation."

(GK/JM)