Housing cash

A GOVERNMENT grant of £430,000 towards building up to eight affordable homes has been welcomed, despite it remaining unclear how the money will be spent.

On Tuesday morning the Scottish government announced they were releasing £40 million local authorities to build 1000 homes across the country.

However councils and housing associations say that the level of subsidy would need to rise considerably to pay for a house to be constructed.

Shetland Islands Council and Hjaltland Housing Association are working together on one of the biggest per capita house building programmes in the country, with 63 properties going up.

Hjaltland chief executive Bryan Leask said most housing associations would give their right hand to have the working relationship hey do with the council.

But he said that they would need to receive a subsidy of around £80,000 per property and would have to find a way of raising extra money before they could go ahead with a building project.

Previously they have been able to approach the council for funding, but in this time of restraint that is not possible.

“We will be looking for innovative solutions, but I am sure we will find a way forwards,” Leask said.

SIC housing executive manager Anita Jamieson said it was too early to specify how they money would be spent.

“As and when additional resources are allocated the council and Hjaltland work together to see how we can make best use of the resources. |

“As the announcement is so ‘new’ we have not had an opportunity to meet to discuss the detail.”

Scotland’s deputy first minister Nicola Sturgeon said she expected the cash to be used to build 1,000 new homes and create 700 construction jobs across the country over the next two years.