Rhoda Grant, Highlands and Islands Labour regional MSP, has attacked the Scottish Government for cutting investment in housing associations.

Mrs Grant said, "The government’s reduction in funding to housing associations is having a dramatic negative impact on the plans of various housing associations across Scotland and the Highlands.

"Housing associations will receive between £5,000 and £6,000 less for each new home due to the cuts and despite the strong demand for social housing, associations are amending projects and having difficulty with long-term future planning.

"Albyn Housing for example, was willing to develop up to 450 units per year at Invergordon but due to the decrease in their government funding this has been reduced to 200-250 units.

"I have spoken to housing association staff elsewhere in the Highlands and heard of their difficulties in funding projects.

"During the current economic difficulties it would seem entirely sensible to build houses, thereby proving employment for builders and tradesmen and ultimately good quality homes for those on waiting lists.

"The Scottish Federation of Housing Associations has surveyed its members to assess the impact across the country and the results are similar in all areas.

"Their chairman has already called on the Scottish Government ‘to reverse its funding cuts to allow housing associations to get on and build new homes.’

"Projects are being cut and plans for new builds delayed due to the lack of government investment.

"Another undesirable outcome is that housing associations rents are rising in some areas to help make up the funding shortfall."

Mrs Grant added, "We have a new Housing Minister in Alex Neil and he really needs to listen to and respond to the pleas from the housing associations.

"The houses not being built are badly needed and I and my colleagues will be keeping up the pressure on the Scottish Government to reverse their ill thought housing policy and properly fund this vitally important sector."

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