Multimillion pound mortgage scheme for social landlords relaunches.
Social landlords will be capable to entry loans to construct extra inexpensive housing as a multimillion pound funding programme reopens to functions.
Below the Charitable Bond programme, registered housing associations can entry the loans with as much as £80 million obtainable within the present monetary 12 months. The curiosity paid might be reinvested as grants into the social rented sector, additional boosting the provision of inexpensive housing.
Since 2014, greater than £260 million in loans have been made to housing associations throughout each nook of Scotland by the programme, producing nearly £50 million in grants.
Housing Secretary Shona Robison mentioned:
“The Charitable Bond programme is an progressive strategy to supply funding to social landlords in order that they will ship as many houses as potential.
“The programme provides social landlords entry to funding that they will’t obtain elsewhere, and reinvests the curiosity paid on the loans – additional growing housing provide.
“Scotland has led the best way within the supply of inexpensive housing throughout the UK with nearly 113,000 inexpensive houses constructed since 2007. This funding will assist in the direction of our present goal of delivering 110,000 inexpensive houses by 2032.”
The Charitable Bond programme is delivered on behalf of the Scottish Authorities by Allia C&C, a social enterprise finance agency that arranges funding for housing associations and different charities.
Peter Freer, Director for Scotland at Allia C&C, mentioned:
“This programme gives a type of unsecured finance that isn’t in any other case obtainable available in the market to allow Scottish housing associations to ship a lot wanted inexpensive houses.
“We’re delighted to proceed our profitable eight-year partnership with the Scottish Authorities with a fair better goal for funding throughout the sector over the following 4 years.”
Background
Interactive map of tasks supported by the Charitable Bond programme.
Scottish Registered Social Landlords can entry unsecured loans ranging from £1 million on phrases of as much as 15 years. The curiosity paid on these loans creates a fund which is used to make housing grants for the availability of extra social rented housing.
This would be the third spherical of the Charitable Bond programme. Following pilot tasks in 2014 and 2015, the primary spherical of the programme ran from 2015 to 2017, and the second spherical from 2017 to March 2021.
