Nichola Strurgeon, Scotland's Deputy First Minister recently announced that the government were going to spend £ 45m builidng 1,200 houses. This seemed strange to me as it worked out at £ 37,500 per unit. So I wrote to her. Here is her representative's reply. I would genuinely be very grateful if someone could dicepher it for me
"Thank you, yes I agree, houses are not built for £37,500 but then Government are only subsidising part of the build.
Our current subsidy level allocated for Council new build is £30,000 per unit. Housing Associations, subject to where they are building and to what standard, is between £42,000 and £56,000.
Assuming 2/3 council new build, as SG is committed to ensuring of our 30,000 unit target 20,000 shall be for social rent, that is 600 units x 30,000 which is £18,000,000. That leaves £12,000,000 / 300 which equals £40,000 per unit. This is below the £42-£56 noted above, however a large number of HA or RSL activity through the Supply programme is in intermediate rent or shared equity which require lower levels of subsidy.
The shared equity or loan schemes have £15m allocated which based on 600 units is £50,000 per unit.
I hope this helps."
