Decade warning over homes funding

Highland predicts it needs an average of 784 affordable housing units a year.

Low levels of government funding for the building of social housing could continue for the next 10 years, a Highland councillor has forecast.

Margaret Davidson's warning followed a report from Shelter Scotland suggesting the number of council properties for let was at its lowest in 50 years.

Highland Council's housing chairwoman said government will need to be "imaginative" in how it funds projects.

The authority has previously sought to have its £146m housing debt cleared.

Ms Davidson, who was elected as an Independent, said: "We cannot just keep asking for more money because it is crystal clear that it isn't going to be there over the next decade even.

"The consequence of bailing out the banks last year means public services are going to be really squeezed."

'Very positive'

She said new ways of financing the provision of new social housing - including the setting up of housing co-operative in Scotland - may have to be considered.

Last month, the council announced that it would be working closely with the Scottish Government to tackle a shortage of social rented housing and accommodation for homeless people in the Highlands.

The move followed what the authority said was a "very positive" meeting with Housing Minister Alex Neil.

The projected need for new affordable housing units over the next 12 years in the Highlands averages at 784 per year.

Previously, the authority said it could not meet demands from the public for affordable homes because of a lack of government funding.