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05/06/2009

Affordable Housing Investment Reform

The Scottish Government today responded to a consultation on the future of housing investment in Scotland.

Housing Minister Alex Neil said that reforming investment in affordable housing will 'harness the energy of Scotland's dynamic housing associations'.

He said that in a 'turbulent financial climate, resources must be targeted to ensure the biggest returns, providing the best services for the tenants of today and tomorrow'.

Investment reform will be shaped by five key proposals:
  1. Improving the efficiency of housing associations' activities across the board, including procurement.
  2. Setting a standard for development performance, which will in future be a requirement for receipt of Government subsidy.
  3. By the end of the next spending review, we will award three-year budgets to those associations and groups of associations that are best placed to make use of it - the sector's "leading developers".
  4. Supporting collaborative groups as a way of bringing local authorities and housing associations together.
  5. A new focus on sharing best practice.
Mr Neil said: "Scottish housing associations have a proud track record of developing and managing homes across the length and breadth of the country.
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"They have made a real difference to many of our most vulnerable communities. We have listened and not ridden roughshod over the views of associations and all organisations, which have responded to the consultation.

"I'm committed to getting rid of unnecessary red tape and introducing longer term funding arrangements to help financial planning and aid efficient procurement. Together, with a bit of Scottish innovation, forward planning and resilience to the elements, I have no doubt we have what it takes to build a sector that will weather the storm."

The consultation was announced on December 9, 2008.

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