New trust set up with government support
House builders offered incentives to build homes for rent
The Local Affordable Rented Housing Trust (LAR) is a Scottish charity set up to provide long term mid-market rented housing across Scotland.
It is funded by a £55 million loan from the Scottish Government, with matching private investment expected to lift the overall funding package to more than £100m.
House builders and developers, in partnership with the trust and local authorities, are being urged to get involved in delivering a pipeline of affordable housing.
Eligible tenants are allocated homes based on affordability and income criteria, ensuring tenancies are provided to those in most need.
The trust builds on the Scottish Government’s successful National Housing Trust initiative and means, since 2012, approaching 4,000 new affordable homes have been approved through a range of innovative financing mechanisms, unlocking up to half a billion pounds of housing investment.
There is potential for the trust model to be extended and replicated widely in the future to provide more affordable homes to meet the significant demand for mid-rent housing.
East Lothian Council and Taylor Wimpey are delivering the trust’s first housing development at Musselburgh.
Social Justice Secretary Alex Neil, who visited the site, said: “We continue to lead the way in the UK in developing innovative financial models, such as guarantees, loans, grant recycling and new sources of private funding to accelerate the supply of affordable homes. These pioneering approaches help us to make taxpayers’ money stretch further.
“LAR will deliver up to 1,000 homes for mid-market rent offering tenants high quality, affordable mid-rent homes across Scotland, supporting local communities to thrive, tackling inequality and addressing housing need.
“These homes will be in addition to the 30,000 affordable homes, of which at least two thirds will be for social rent, that will be delivered by the end of this Parliament. And there is potential for this model to be extended more widely to meet the significant demand for mid-rent housing.”
Raymond Williamson, chairman of LAR, said: “The LAR team is looking at a number of development sites across Scotland where we can buy homes, which have been or are in the process of being constructed and we would be pleased to hear from builders and developers across Scotland who believe they have something to offer. This is an important step forward in providing homes at reasonable rents.”
Christa Reekie, commercial director of the Scottish Futures Trust, said: “SFT is delighted to have assisted LAR Housing Trust in becoming established. LAR will help to transform the lives of many hundreds of people in Scotland by offering high quality homes at affordable rent levels.”