Nicola Sturgeon (SNP), Scotland’s health and wellbeing secretary, said: “This reflects our belief that local authorities have a continuing and developing role to play in the provision of social rented housing.
“Local authorities see little point in building new houses for rent if they are lost through the right to buy [so] we propose to end the right for all new social housing built by local authorities and housing associations.”
The Convention of Scottish Local Authorities said it would like to see all councils allowed to build, not just those that can finance borrowing.
Housing policy officer Caroline Johnson said this restriction “rules out those councils with housing debt”. She said housing investment would still be allocated by the Scottish government, not left up to councils.
Ms Sturgeon also moved to scrap the Communities Scotland quango and bring its regeneration work within Holyrood.