œ542m for Scot homes

Scottish Homes is to invest œ367 million on new and improved housing for Scotland in the coming financial year. It expects to pull in a further œ175 million in private sector finance, bringing the total investment to œ542 million.

The programme will deliver 8,500 new or improved homes of which over 3,200 will be for sale, 1,850 will be for those with special needs and over 2,725 will be made available for the homeless. Approximately 84% of the finance will go to housing associations and co-operatives. Expenditure on Scottish Homes own houses will decrease in line with the agency's efforts to reduce the number of properties it owns.

Urban areas will take the lion share of the investment package - some œ250 million, while rural areas will receive œ60 million. Some œ152 million will be targeted at rundown areas in Scotland's four main cities - Glasgow, Edinburgh, Dundee and Aberdeen. Glasgow will gain the most as œ114 million will be pumped into the city's deprived areas to provide 3,000 new or improved homes for sale and rent.