Lease-back plan could see 1,000 Highlands council houses built

THOUSANDS of new council houses could be built across Scotland under a pioneering model aimed at delivering affordable housing.

Alex Neil, the housing minister revealed yesterday, as the Cabinet met in Dornoch, that the Scottish Government is discussing a pilot with Highland Council that could see up to 1,000 new homes in the region.

The proposed "lend and lease back" scheme will be discussed by councillors next week.

Under the plan, as council houses become vacant they would transfer to a private partner in return for a capital payment. This would then be used to build new houses for let as council tenancies.

Mr Neil said: "You are sitting with a huge stock of housing that has a very substantial value and you can release some of that money to borrow money to fund new-build housing. Its using the assets a lot more effectively."