Scotland: £9m funding to get builders back to work

The Scottish government has accelerated £9m in funding to fast track housing developments and get builders back on sites.

In an effort to relieve the pressure of the credit crunch, the government will use the money to fund site starts and land acquisitions.

Six building projects in Moray, Dumfries & Galloway, Argyll, the Borders and Fife will receive £4m to accelerate site start dates.

A further £5m will fund land purchases by housing associations to support developments in Highland, Midlothian, Argyll, Dumfries & Galloway and South Lanarkshire.

Scottish communities minister Stewart Maxwell said: “The Scottish government recognises the serious challenges confronting Scotland’s housebuilders.

“This has become a major issue, with serious implications for the industry’s present and future capacity and our ambition to increase long-term housing supply in Scotland.

“That’s why we have taken decisive action, both to mitigate the impacts of the credit crunch on developers, and assist the delivery of more affordable homes.

“This funding will go some way to lay the foundations for the housebuilding industry to bounce back.”