Scotland’s state bank and one of the country’s biggest growth funds have provided vital funding for two housing projects as builders broaden their search for finance.

Cruden has secured £15 million from BGF, enabling it to bring forward a number of sites from its landbank.

The investment comes amid a management reshuffle as Fraser Lynes steps up to CEO, working alongside CFO Euan Haggerty, with executive chairman Kevin Reid and group managing director Steven Simpson transitioning to non-executive director roles.

John Cassie, former regional chair of Persimmon, will join the Cruden board as non-executive chair.

Edinburgh-based housebuilder, Whiteburn Projects, has secured a £6.56m development loan from the Scottish National Investment Bank to help build 50 private homes and 12 affordable homes in Peebles.

Small builders, such as Whiteburn, have struggled to access finance due a challenging macroeconomic environment as costs rise.

Last year, the Scottish Government declared a housing emergency. Meanwhile, the number of SME housebuilders operating in Scotland has fallen to its lowest level in 20 years.

The affordable homes will be owned and managed by Scottish Borders Housing Association.

New fit-out business

Ronnie Kennedy and Chris Kidd, owners of Glasgow-based Get Fully Furnished, and Chris Dougray, a veteran of Scotland’s commercial real  estate sector, have joined forces to launch Kilter Space, providing furniture, fixtures and equipment  providers for hotels and student accommodation.

Glasgow-based Kilter Space plans to work with architects, designers and operators from the earliest project stages.

Mr Dougray said: “The hotel and student accommodation markets in Scotland are  expanding rapidly, yet there has been a lack of a truly integrated, locally based furniture, fixtures and equipment service.”

Housing Secretary’s plea

Scottish Housing Secretary Màiri McAllan said the Chancellor could ‘reinvigorate’ housebuilding in Scotland in the Budget by reversing cuts to the Holyrood Government’s capital funding.

Ms McAllan made the call ahead of meeting key investors and stakeholders in London to showcase Scotland’s housing sector and encourage more investment.

She said the Scottish government has committed up to £4.9 billion to a major delivery programme which will deliver up to 36,000 homes.

“However, these plans could be hampered by the UK Government’s planned cuts to our capital funding and in a shortfall in Financial Transactions, which are a vital tool in delivering homes across Scotland,” she said.

Financial Transactions are a key source of funding for the Affordable Housing Supply Programme.