Shelter and other organisations have urged the UK Government to build its way out of the recession by kick starting investment in new housing over the next two years.

 And the new proposed packaged would mean a massive boost of extra cash for affordable housing in Scotland.

 The fiscal stimulus package published today (Monday) makes the case for a programme of additional investment in new social housing over a two-year period through this year’s UK Budget on April 22.

If the package is backed by the UK Government, extra money would be ploughed into housing south of the Border – but Scotland would also benefit to the tune of around £600 million over the next two financial years, through the operation of the Barnett Formula.

Shelter Scotland argues that this money would provide :

• At least 6,000 additional affordable homes, making a significant stride towards delivering the 10,000 affordable rented homes a year that the charity, and other housing bodies in Scotland, believes are needed to meet unmet and future demand. 

• Up to £150 million could be available for a central fund to get development moving on construction sites that are currently stalled.

 The charity argues a programme of increased social housing and infrastructure investment would provide a substantial boost to a particularly vulnerable sector of the economy. 450,000 construction job losses are predicted between 2008-2010 across the UK, with around 26,000 gone in Scotland already. The proposed investment package would safeguard jobs while avoiding a serious shortage of key skills in the industry.

 Graeme Brown, Director of Shelter Scotland, housing and homelessness charity, said: “Successive governments have failed to invest enough in house building and in recent months construction has slumped while the need for homes remains. In Scotland alone there are over 200,000 households on council waiting lists, and over 9,500 households in temporary accommodation.

 “Now, with the recession in full force, the construction industry is faltering while the social housing sector is under greater pressure than ever. We have an internationally acclaimed homelessness target to meet by 2012, which will give every homeless person the right to a home. Investing in affordable rented housing now, would help ensure everyone has not only the right to a home but the keys to one as well.”

 Mr Brown added: “This package points a clear way forward for the UK Government, with a cash spin off for Scotland. It would help provide people who have been on housing waiting lists for too long with a real home, while also creating real jobs. In addition, it would be a step towards ensuring long term stability so that when the UK begins to recover from this economic crisis, we will not be faced with unsustainable house price rises and rocketing inflation.”

Notes to Editors:

1. Shelter believes everyone should have a home and helps 170,000 people a year fight for their rights, get back on their feet, and find and keep a home. We also tackle the root causes of Britain's housing crisis by campaigning for new laws, policies and solutions. 

2. Spokespeople are available for interview, telephone the media office on 0844 515 2442. An ISDN line number is available for broadcast interviews.

3. For more information about Shelter visit www.shelter.org.uk