Thousands of new homes delivered through scheme.
Additional investment of £24 million through an innovative
programme to deliver affordable homes across Scotland will see
total funding in the scheme reach half a billion pounds.
Started in 2014, the Charitable Bonds scheme provides loans to
housing associations to build properties for social rent, while
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 benefitted from the scheme, Social Justice
Secretary 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
said:
“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
said:
“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.”
