Channelling accelerated capital funding into the delivery of more desperately needed homes would boost both jobs and the economy, according to Homes for Scotland.

The industry body was responding to plans revealed by First Minister Nicola Sturgeon to implement a stimulus to the Scottish economy in the wake of the EU referendum, starting with an additional £100 million of infrastructure funding in this financial year.

Chief executive Nicola Barclay said: “This £100m funding boost is welcomed as a means to support and stimulate the economy in what are uncertain times for many industries, including the home building sector.

“With projects being assessed for accelerated funding based on key criteria such as the number of jobs that will be supported or created and the likely impact on the supply chain, those focused on the delivery of more new homes should be prioritised given the significant social and economic benefits this offers.

“Every new home built in Scotland supports four jobs and helps boost economic growth through the supply chain. The industry also contributes to improving health and education outcomes and fighting fuel poverty.

“We would therefore urge the Scottish Government to prioritise housing when considering how these funds will be allocated in order to secure the thriving economic future we all want to see.”

Gail Hunter, director RICS in Scotland, added: “The Scottish Government is right to recognise the continued uncertainty affecting business confidence and development. Increased investment in job creation and infrastructure investment are vital to creating stability. With a growing housing crisis, and concerns around connectivity, both the Scottish and UK Governments must encourage prospective investors to consider infrastructure projects, and maintain Government investment; together these measures will generate the highest economic impact, and will help create and maintain jobs.

“Our most recent Construction Market Survey indicated a decline in market confidence, therefore accelerated capital spending on projects will provide confidence to the construction industry through infrastructure funding and development. This will help increase stability during a period of uncertainty and ensure that the UK and Scotland are well-placed to take advantage of growth opportunities in the future.”