Local authorities and registered social landlords (RSLs) are to benefit from a £44m increase in housing subsidies, allowing them to deliver more social housing.

Deputy First Minister Nicola Sturgeon made the announcement, which will provide councils and housing associations with an extra £16,000 per home.

The news comes on the same day as the publication of a report on Affordability, Financial Capacity and Subsidy Rates, which recommended introducing higher subsidy levels.

The report was put together by a short life working group, with representatives from the Chartered Institute of Housing Scotland, the Scottish Federation of Housing Associations (SFHA), the Glasgow and West of Scotland Forum (GWSF), the Association of Local Authority Chief Housing Officers (ALACHO) and the Convention of Scottish Local Authorities (COSLA).


Currently, Scotland's councils receive up to £30,000 towards the cost of building a new home, while RSLs get around £42,000.

Ms Sturgeon said: "I would like to extend my thanks to the working group for their hard work and commitment on this report.

"We are aware of the pressures being faced by councils and housing associations, and support the recommendations of the working group in full, including increasing subsidies by £16,000.

"Housing is and will remain a priority for this Government and today's announcement of £44 million in funding brings our total budget for affordable housing to nearly £900 million over three years.

"Increasing the supply of affordable housing is a vital part of our efforts to build a better and fairer Scotland.

"We are now two years into our five year target of delivering at least 30,000 additional affordable homes and we are collectively making good progress towards making this target, with last month’s housing statistics showing that we have already completed almost 12,900 additional affordable homes.

"In announcing the end of Right to Buy last week I also signalled our commitment to ensuring that we keep and make the best use of our existing housing stock. Housing is central to the health and wellbeing of individuals and communities and I am confident that the additional resources announced today will strengthen our commitment to provide the people of Scotland with high quality, sustainable homes that they can afford and which meets their needs."

(JP/CD)