AN additional investment of £24 million million through a programme to deliver affordable homes across Scotland has seen total funding in the scheme reach half a billion pounds.
Launched in 2014, the charitable bonds scheme provides loans to housing associations to build properties for social rent, whilst also generating additional funds for the Scottish Government’s affordable housing budget.
So far, the programme has supported the delivery of more than 4,000 new homes through direct loans to registered social landlords. This has generated a further £146 million to support the delivery of 1,300 social rented homes.
On a visit to an affordable housing development in Rosewell, Midlothian, which has benefited from the scheme, Scottish Government social justice secretary Shirley-Anne Somerville confirmed that additional investment will support the issuing of new bonds to three housing associations.
Link Group, Kingdom Housing Association, and Wheatley Group will be provided with loan finance to build around 175 homes while generating additional funds for future projects.
Ms Somerville said, “We need to use all the tools available to deliver more new affordable homes and help tackle the housing emergency. The charitable bonds programme has successfully supplemented investment in our affordable housing budget while also allowing social landlords to access additional borrowing to build much needed new homes.
“Taking our investment to more than £500 million demonstrates our commitment to continue that success and see more affordable homes built – building on the 4,000 already delivered through this scheme. We will also continue to support the delivery of social homes through the £768 million investment in affordable housing over the next financial year which will enable the delivery of at least 8,000 more homes, as set out in the Scottish Government’s Budget – an increase of more than £200 million.
“The Scottish Government is committed to tackling the housing emergency – and while there is more to do, there is real progress being delivered.”
Scottish Federation of Housing Associations CEO Sally Thomas added, “It’s never been more crucial that we deliver many more secure, warm and affordable homes. The charitable bonds scheme is an important part of doing so, and it’s great to see SFHA members receiving these funds to deliver the homes we desperately need.
“Social homes make lives and places better. As we move forward, working our way out of the housing emergency, continuing, consistent and multi-year government investment in our social homes will be essential – not only to provide the homes we need but also to tackle poverty and help us create a fairer Scotland.”
Allia C&C director and head of Scottish office, Peter Freer, commented, “Allia issued its first charitable bonds in 1999, raising just under £1 million to support local housing and community projects in Sheffield. From these small beginnings, we’re proud to now celebrate over £500 million of Scottish Government investment in our bonds since 2014. Through this highly successful partnership, we have provided simple finance and grants to housing associations of all sizes all across Scotland, funding the creation of thousands of new affordable homes.”
