Letter: A step forward

Alex Neil's call to pension funds to invest in the social housing sector is an interesting idea at a time when public sector cuts are about to start and the need for more affordable housing will be growing. We need innovative funding solutions more than ever.

Whilst in theory this is a welcome initiative, there will be many detailed points that will need clarifying to identify the advantages of pension funds over existing funding sources. A crucial point is whether this potential new source of private funding is intended as a replacement for public funding or to diversify the range of private funding options. If it is the former, then it is unlikely in itself to support the necessary increase for the volume of new affordable housing which will actually need to be built.

Affordable housing provides the basic secure requirement for many people who cannot buy or rent privately. It matters because it reduces the demand for spending in health, education, policing and welfare and has a very direct impact on boosting the construction industry and providing good jobs, therefore strengthening the economy.

It is clear that the government is placing a real emphasis on supporting this vital public service by exploring this avenue and will have our support if it does indeed deliver more new, affordable and good quality homes in future.

KEITH ANDERSON

Chief executive, Port of Leith Housing Association

Constitution Street, Leith