Under the scheme, councils will promise to pay developers 65% of the market value of any completed houses if they restart work on those stalled schemes.
The developer and council will then set up a joint special purpose vehicle to rent out the properties for up to 10 years before selling them on. The rent money will pay the interest on the council’s loan and cover maintenance costs.
The SFT has revealed a significant uptake of interest in the programme, with the housing trust’s target of building 1,000 new homes far surpassed.
Proposals have been received for building work on 50 sites across Scotland, covering 2,400 homes in total.
Scotland’s housing minister Alex Neil told local press that the Scottish government is now planning a second round of the housing scheme – which currently covers 12 council – to expand it across the country.