Affordable Housing (Aberdeen)

Question Time — Scottish Executive — General Questions – in the Scottish Parliament at 11:39 am on 18 December 2008.

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Photo of Nicol Stephen Nicol Stephen Liberal Democrat 11:39, 18 December 2008

To ask the Scottish Executive what action is being taken to alleviate Aberdeen's affordable housing shortage. (S3O-5318)

Photo of Stewart Maxwell Stewart Maxwell Scottish National Party

As the strategic housing authority, Aberdeen City Council has primary responsibility for addressing housing need within its boundary. However, the Scottish Government is providing a grant of £115 million to build more than 1,500 new affordable homes in Grampian between 2007 and 2011 through the Devanha procurement initiative. More than 40 per cent of those homes will be built in Aberdeen city.

On 5 September 2008, I approved Aberdeen City Council's application for pressured area designation for 35 lettings areas within the city. It is estimated that that mechanism will prevent the loss of 413 council and registered social landlord properties through right-to-buy sales in the next five years. In addition, the open market shared equity pilot is available in Aberdeen with a budget of £935,000 this year.

Photo of Nicol Stephen Nicol Stephen Liberal Democrat

The minister will know that, in the city of Aberdeen, as in all other parts of Scotland, private sector housing development has all but ground to a halt, with associated redundancies. Despite that, demand for housing remains high. Of the £100 million of funding for additional housing that the Scottish Government is bringing forward from 2010-11 to help to maintain investment in the housing sector and provide affordable housing, how much will be made available to the city of Aberdeen? If he cannot give me the figure now, will he confirm that Aberdeen and Aberdeenshire will receive a fair share of the funding?

Photo of Stewart Maxwell Stewart Maxwell Scottish National Party

Of course, there is now an additional amount, over and above the £100 million, as a result of the pre-budget report.

We have already allocated the first £18 million of the accelerated investment programme for this year, and a further £17 million will be announced soon. We asked all local authorities in Scotland to suggest projects that they believe should be considered for the £17 million allocation. Aberdeen City Council has put forward a number of projects that will be considered, along with others from around the country, and a further announcement will be made early in the new year.

Photo of Brian Adam Brian Adam Scottish National Party

Can the minister tell me what the budget allocation for affordable housing in Aberdeen was during the four-year term of the previous Administration and what it will be during this Government's term in office?

Photo of Stewart Maxwell Stewart Maxwell Scottish National Party

The budget allocation for Aberdeen City Council during the period 2003 to 2007 was some £30.6 million. I am pleased to say that the budget allocation during the Government's term in office will be some £40.6 million. That will be welcomed by the people of Aberdeen.