The executive needs to find �331m extra for affordable housing

The Chartered Institute of Housing (CIH) in Scotland said an extra �331m a year was needed to meet the demand for inexpensive housing to rent.

It said 8,200 homes each year were needed to satisfy the soaring need for affordable homes in Scotland.

It claims as many as 43% of first-time buyers cannot afford to buy on the open market in the current property boom.

'Tiny drop'

Director of CIH in Scotland Alan Ferguson said: "The executive needs to fund the building of nearly twice as many affordable homes to rent as it is currently committed to.

"We reckon this will cost an extra �331m a year, equivalent to about �40,000 per new home and �331m is a tiny drop for the executive budget of nearly �26bn."

Communities Minister Margaret Curran said the results of the executive's review of the affordable housing situation would be announced in the next few weeks.

She said: "The review is focusing on the housing needs of first-time buyers and key workers seeking home ownership as well as rented accommodation.