A new loans fund offers help to builders who cannot attract private-sector finance to invest in infrastructure for housing projects.

The £10m Housebuilding Infrastructure Loans Fund is an attempt to get stalled housing projects moving again.

Money has already been awarded to projects in Glasgow, West Lothian and Inverness to support roads, sewers, cables and other physical infrastructure.

In the first set of loans, £3m has been given out.

For construction companies and housing projects to access the remaining £7m, they will not have to meet quite as stringent criteria for the cash, as they may have just outline planning permission rather than detailed permission.


Housing Minister Keith Brown said: "The current tough financial climate, exacerbated by Westminster's short-sighted and economically damaging capital spending cuts, has made it hard for companies to take forward major housing developments across Scotland. These first loans that I have announced today will help companies speed up their plans to build the roads or lay the pipes and cables that mean housing developments can proceed. We have revised the criteria for the next round of funding, untying the red tape so that more companies can come forward with their infrastructure proposals."

llan Lundmark of industry body Homes for Scotland said: "With the Scottish home building industry continuing to face challenging market conditions, the announcement confirms the Scottish Government's continued commitment to assisting home builders to invest in the upfront infrastructure needed to unlock development projects across the country."

(NE)