Innovative housing initiative takes a leap forward
Issued by the Scottish Government
A £115 million initiative for additional investment in affordable housing, driven by the Scottish Government and the Scottish Futures Trust, is beginning to produce results.
Private developers across Scotland are now being informed if their bids to join the National Housing Trust (NHT) initiative have been successful.
Aberdeen, Dundee, Edinburgh, Highland, Falkirk and Scottish Borders Councils are looking to enter into framework agreements with 11 developers for almost 700 new homes.
Dumfries and Galloway and Stirling Councils are currently considering bids they have received, which could boost further the number of new homes provided under the initiative to almost 800.
Under NHT developers and local authorities jointly fund the purchase of newly-built homes so they can be made available for rent at below market rates.
The initiative aims to deliver affordable homes for less public subsidy at a time of heavy cuts in public finances and is also designed to kick-start activity on mothballed building sites.
It is estimated that approximately 160 jobs in the wider economy are supported for every 100 new homes built.
Housing and Communities Minister Alex Neil said: “The National Housing Trust model breaks new ground in the UK and I am pleased that Highland Council has embraced this approach as one that can help ease housing pressures locally.
“This initial phase of NHT will provide a substantial boost to the supply of much needed affordable housing in many parts of Scotland, with the potential for almost 800 units to be taken forward to the next stage.
“Bids in excess of the national target were received, indicating significant market appetite for the initiative. Councils and the Scottish Futures Trust have rigorously assessed these to ensure that successful bids would deliver homes in the right places, of the right type and of the right quality to meet the needs of tenants.
“I hope the NHT can act as a catalyst to encourage bolder, innovative approaches that will maximise supply through increased efficiency and greater leverage.”
Councillor Margaret Davidson, Chairman of Housing & Social Work for The Highland Council said: “The Highland Council welcomes the additional SG support. The National Housing Trust model is one of a range of initiatives that we will continue to use to help address housing need in Highland. It is a welcome boost for some of our hard pressed developers and gives opportunities for housing for some people on the Councils waiting list.”
Barry White, Chief Executive of the Scottish Futures Trust, said: “In these challenging economic times, NHT opens the doors to build more affordable housing in Scotland. It demonstrates how the public and private sectors can work together in an imaginative way.
“Such innovation is at the heart of Scottish Futures Trust's work to attract additional finance while ensuring value for money for the taxpayer.”
Jonathan Fair, Chief Executive of home building industry body Homes for Scotland, said:
“The National Housing trust will help maintain new home building activity across Scotland, retaining jobs and skills that would otherwise be under significant pressure. “Our members will be delighted to be able to get on with delivering these new homes as soon as possible.”