East Lothian Council has announced plans to spend an extra £100m to provide 1,000 new affordable homes in the county over the next five years.

The decision was taken at a meeting of the full Council on Tuesday and represents a significant acceleration of the current building programme to help meet the challenge of providing more affordable housing.

The Council currently has around 8,000 properties, with 50% of its stock having been sold under 'Right to Buy' legislation. Over 5,000 people are on the housing waiting list while, last year, the stock turnover dropped to around 300 homes.

As a result of its plans to invest in more new homes, the Council will also provide valuable support to the construction industry during the recession. The exact amount spent will vary each year depending on the building opportunities available but has been estimated at between £5m and £35m annually, culminating in a total of £100m over five years. The funding, which is on top of the £39m investment already earmarked for affordable housing, will mainly come from increased borrowing.


The Council is also looking into recent changes in the Scottish Government's rules on Council tax receipts, specifically in the areas of second homes and empty homes discounts, to increase funding. It will be seeking ministerial approval for its plans to use this revenue of around £2m over the five-year period towards the cost of borrowing for new Council houses.

Cabinet member for Housing and Community Services, Councillor Stuart Currie, told the meeting: "Over the past six months, East Lothian has received significant levels of investment from the Scottish Government for both Council and Housing Association development. This funding is already being put to good use during 2009/10, with the go-ahead being given for a minimum of 300 new affordable homes

"Our aim is to balance this investment in new homes with our commitment to modernise existing Council houses, while keeping rent increases to a minimum.

"We believe that the changes approved today will support our tenants, housing applicants and the construction industry, by protecting jobs and boosting the local economy. Our plans represent a significant step forward in meeting the growing demand for housing in East Lothian."

(GK/JM)