Plan for upto 1,000 homes to be built and rented as affordable housing for five to 10 years before being sold

The Scottish government is to pump £130m into mothballed housing developments which will be rented out as affordable homes.

Up to 1,000 new homes, which have previously been on hold due to the recession, are expected to be built within the scheme.

It will work by councils paying housebuilders 65% of the purchase price upfront, guaranteed by the Scottish government, and the balance covered by the developer.

The houses will then be rented to tenants for periods of five to 10 years, before being sold.

Housing minister Alex Neil said: "The housing market is changing and we as a government have to change with it. We have Treasury approval for it and we hope to lay the first bricks of these partner houses by the autumn."

Around 18 councils have shown interest so far.

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