Social landlords will be able to access loans to build more affordable housing in Scotland as a multimillion pound investment programme reopens to applications.
The Charitable Bond programme is delivered by Allia C&C on behalf of the Scottish Government. Under the programme, registered housing associations can access the loans with up to £80 million available in the current financial year. The interest paid will be reinvested as grants into the social rented sector, further boosting the supply of affordable housing.
Since 2014, more than £260 million in loans have been made to housing associations across every corner of Scotland through the programme, generating almost £50 million in grants.
Housing Secretary Shona Robison said:
“The Charitable Bond programme is an innovative way to offer funding to social landlords so that they can deliver as many homes as possible.
“The programme gives social landlords access to funding that they can’t receive elsewhere, and reinvests the interest paid on the loans – further increasing housing supply.
“Scotland has led the way in the delivery of affordable housing across the UK with almost 113,000 affordable homes built since 2007. This investment will help towards our current target of delivering 110,000 affordable homes by 2032.”
Peter Freer, Director for Scotland at Allia C&C, said:
“This programme provides a form of unsecured finance that isn’t otherwise available in the market to enable Scottish housing associations to deliver much needed affordable homes.
“We’re delighted to continue our successful eight-year partnership with the Scottish Government with an even greater target for investment across the sector over the next four years.”
To find out more about raising funding through the Charitable Bond programme, please get in touch with our Scottish office.