Fife Council would have to build 500 affordable homes per year for the next 10 years to meet the region’s housing needs, it has been announced.
The local authority hopes to spend ÂŁ40 million creating between 400 and 450 council houses over the next two years alone.
This figure would be matched by local housing associations, meaning up to 900 new homes in total across the kingdom.
But officers have warned the possible impact on rent arrears of the roll-out of Universal Credit, along with a lack of available land, could put the building plans at risk unless action is taken.
The council is seeking agreement from the Scottish Government and the Department of Work and Pensions that the rent element of Universal Credit is paid directly to landlords.
This will guarantee the council has enough money to continue its building.
Head of housing John Mills said the service would be looking to buy surplus land from other public sector organisations, such as NHS Fife and the police, as well as from within the council.
He added, however, that there would come a point when private landlords would also have to be approached to ensure there was enough land.
The project between 2017 and 2019 will be the third phase of house building the council has undertaken since 2009 and Mr Mills said lessons had been learned during the first two stages.
“We are stopping building one-bedroom homes and we are building two-bedroom bungalows and larger family homes with four or more bedrooms in Fife to meet the needs from our housing list,” he said.
“We have been asked by the administration to bring out a programme we believe we can deliver with current funding resources.
“We are seen as a deliverer of affordable housing.”
The current five-year programme to provide 2,700 affordable homes by 2017 is on track, councillors have been told.
This follows an initial programme to deliver 76 new council houses.
Housing spokesperson, Councillor Judy Hamilton said: “From a standing start we have built an affordable housing team and a supply chain.
“It’s really good news we can provide another 800 to 900.”