THE Scottish Government's bid to bring private finance into social housing has been boosted with the unveiling of an innovative project in Lanarkshire.

Clyde Valley Housing Association has teamed with property company Savills and local councils to develop a new funding model that aims to deliver 600 new homes, almost half of them affordable homes for rent.

The development is backed by £11 million from the Scottish Government with the remainder of the funding sourced through a mix of private equity and loan finance. More than 150 job or training opportunities are expected to be created in modern apprenticeships and work placements.

Alex Neil, Cabinet Secretary for Infrastructure and Capital Investment, said: "With the public purse under huge financial strain we need radical and innovative approaches to increase housing supply at maximum value for taxpayers' money.

"It brings together public and private finance in a novel way to secure over 280 affordable homes across North and South Lanarkshire over the next four years."

He said Lanarkshire had a "desperate shortage of afford able housing" and needed projects to help people get onto the housing ladder. The minister added: "This uses Scottish Government resources to leverage substantial private finance into the project, including equity."

Tom Barclay, chief executive of Clyde Valley Housing Association, said the outcome was "validation of the tremendous amount of work and innovative thinking" by the parties involved, while Eddie McAvoy leader of South Lanarkshire council said the project would maintain important construction employment.

Mr Neil is also seeking to attract pension fund investment into housing associations and last year claimed the support of the Strathclyde and Calmac pension funds, though both said later they were "only listening" to the idea.