By Steven Bell

COMMUNITIES AND Sport Minister Stewart Maxwell last night hit back at criticism of the Scottish Government’s efforts to support affordable housing in Dundee.

Mr Maxwell said millions of pounds was being ploughed into providing low-cost accommodation at a time when private sector prices are rocketing and there are claims of a crisis in council provision.

“Despite this being the most difficult spending round since devolution, the Scottish Government has been able to increase by £131 million the amount to be spent on affordable housing over the next three years,” he said.

“The total 2008-11 affordable housing budget amounts to over £1.5 billion.

“This is 19% higher than the last administration planned for the period 2005-08.

“In this current financial year over £15 million is being spent in Dundee through the Affordable Housing Investment Programme.

“Increasing the supply of housing that is affordable is a priority for the Scottish Government and was pivotal to our consultation document on the future of housing, Firm Foundations.

“That is why we have established the Housing Supply Task Force and set the proposed target of building at least 35,000 new homes by the middle of the next decade.

“We are proposing to end the right to buy for new build social housing, which will encourage local authorities to start constructing houses again.”

The minister was responding to comments made by city-based Labour MSP Marlyn Glen, who has also tabled questions on the subject in Parliament.

Ms Glen is asking the Scottish Government how many affordable homes will be built in Dundee in each year in the period 2008 to 2011, and how much money they will spend in building them.

Ms Glen said the main features of the SNP Government’s housing policy for Dundee to date had included a “broken promise” of a £2000 grant for every first-time house buyer in Dundee.

She also noted Dundee had been excluded from the new Low-Cost Initiative for First-Time Buyers (LIFT) programme introduced in other parts of the country.

“The SNP’s £2000 election promise, since broken, raised false hopes and expectations amongst first time buyers who thought they would receive that money to get a foot on the housing ladder in the city,” she said.

“Dundee’s exclusion from the new low-cost housing programme comes at a time when the city recorded the highest rise in house prices in Scotland over the past five years, increasing by 130%.”

Ms Glen said the SNP Government’s budget for affordable housing in Scotland in the coming financial year shows a reduction of 6% in real terms.

Mr Maxwell replied, “The new Open Market Shared Equity pilot is simply one element of the Low-cost Initiative for First Time buyers.

“It is intended to complement, not replace, other ways of helping meet affordable housing needs.

“A range of other assistance is also available under LIFT, including New Supply Shared Equity which will provide new homes across Dundee.

“The Open Market Shared Equity pilot operates in seven areas.

“Dundee was not included in the pilot because other areas have seen equivalent or even higher price rises and present particular difficulties for first time buyers.”

He added, “The introduction of the £2000 first-time buyers grant proposal was included in the Firm Foundations consultation document.”