The Action Plan includes ten tangible actions to be carried out over the next two years, with the aim of attracting more people to work and live here, allowing young people to stay and growing the local construction sector.

The Plan - created by the South of Scotland Regional Economic Partnership (REP) - looks to build on the important work already happening to support housing in the region’s local authorities, businesses, Registered Social Landlords (RSLs) and communities.

It involved engagement with over 50 local and national organisations, with business and community representatives advising that action was needed.

Issues include the average cost of a new two-bed home being over £100,000 more expensive in rural places such as the South than the national average.

Between 2011 and 2020, there was a 60% drop in new homes for sale compared to the previous decade in the South, as well as 40% drop in active SME housebuilders in the region.

With an expectation that over 9,000 new homes maybe required in the next ten years in the South, the current lack of quality, affordable housing has also caused issues for employers attracting people to live and work here.

Amongst the actions set out in the Action Plan is a commitment to develop proposals to significantly increase construction skills provision, as well as plans to create new student and key worker accommodation.

The Action Plan also states it will aim to bring together community organisations, RSLs and others to co-develop schemes that create more homes.

A marketing campaign will also be launched, targeted at those in the construction sector in the South who want to start-up, grow and innovate.

Housing minister Paul McLennan joined members of the REP yesterday to help launch the Action Plan at Burnfoot in Hawick, where Scottish Borders Housing Association is currently building 16 new homes across two sites.

Mr McLennan said: “The South of Scotland Housing Action Plan and the partnership work that underpins it is a key step in our collaborative response to the housing pressures facing the region.

“As recognised in the plan, housing plays an important role in promoting economic growth and is a key enabler to making the change that we want to see in our rural and island economies.

“Across the local authorities within the South of Scotland we will make available over £27 million from the Affordable Housing Supply Programme in 2024-25, helping to deliver much needed affordable homes.

“We remain committed to delivering 110,000 affordable homes across Scotland by 2032, of which at least 70% will be for social rent and 10% in rural and island communities.

“I look forward to working with stakeholders and partners on delivering the actions set out in the plan and delivering more affordable homes for people in the South of Scotland.”

Dumfries & Galloway Council leader Gail Macgregor, and chair of the REP, added: “The launch of the new South of Scotland Housing Action Plan is an important milestone in addressing the challenges for housing and homes in the South of Scotland.

“The plan provides a clear path to develop skills and grow the economy across the region, supporting some of the fantastic work already underway.

“I’d like to thank everyone involved in producing the plan, and I look forward to seeing the actions being delivered over the next two years.”

Councillor Euan Jardine, leader of Scottish Borders Council, said: “Whilst Scottish Borders Council has an excellent record of working with our local partners to develop additional housing, particularly affordable homes, it is essential for the future of the South of Scotland that we do all we can to address the housing needs of our residents and support existing businesses and further inward investment.

“The Action Plan does more than just target the building of new homes though, with a focus also on skills and supporting the construction sector which will be essential to ensuring that growth continues long into the future.”

South of Scotland Enterprise chair Russel Griggs OBE, and chair of the REP’s Strategic Action Group on Housing, added: “At the Convention of the South of Scotland meeting last year, partners committed to working together develop and support deliverable solutions to the housing issue.

“A year on, I am delighted that the REP has been able to come together and launch the South of Scotland’s first Housing Action Plan, complimenting the good work already taking place by various partners.

“The Action Plan is a crucial document which I believe will help the South of Scotland’s economy to grow and thrive.”

SBHA chief executive Julia Mulloy, who is also a member of the Strategic Action Group on Housing, said: “The Housing Action Plan reflects the vital role that housing plays in a successful economy.

“We welcome both the process of engagement across the spectrum of housing markets and that the Plan places affordable housing at the heart of economic growth.

“As community anchor organisations in the South of Scotland, housing associations play a significant role in the delivery of this plan and we welcome the opportunity to build on existing strengths as we move to implementation.”

Alex Lamb, managing director of Wheatley Homes South, said: “Addressing the housing challenges across Scotland requires a partnership approach to developing solutions to meet the need for more homes.

“The housing action plan is a vital step towards creating a better future for our communities and to supporting economic growth and stability in Dumfries and Galloway.

“Wheatley Homes South is proud to contribute to the action plan, with our ambitious proposals to build over 800 modern, high-quality, and affordable homes across the region.”

Mr McLennan also visited Ettrickbridge to officially open Kirkhope Steading.

A £1.9m rural housing development, Kirkhope Steading provided five rentable homes and seven workspaces to help breathe new life into the Ettrick Valley.

The development was led by Ettrick and Yarrow Community Development Company with support from South of Scotland Enterprise, Scottish Borders Council, Scottish Land Fund and the Scottish Government’s Rural Housing Fund.