WIREDGOV

Innovative funding model easing housing pressures.

Almost 800 affordable homes for rent, with a total value of £115 million, have been delivered through the National Housing Trust initiative (NHT) over the last three years.

A further 850 NHT homes have received approval across Scotland through the original and subsequent versions of the initiative.

The Scottish Government, with support from the Scottish Futures Trust developed the original NHT model for councils and developers.

Under the original version of the model, developers and local authorities jointly fund the purchase of newly-built homes, which are then made available for rent at below market rates.

The money borrowed by councils to help fund the purchase of NHT homes in their areas is underwritten by the Scottish Government.

In Dundee, visiting the city’s first NHT development, Housing Minister Margaret Burgess said:

“NHT was the first guarantee-based model for housing in the UK. It broke new ground and is easing housing pressures locally whilst supporting jobs in the construction industry and wider economy.

"The initiative is well on track to deliver over 2,000 much-needed new homes in communities across the country, all without the need for grant subsidy.

“The Scottish Government is doing everything possible to maximise our investment in housing and deliver our target of 30,000 new, affordable homes over the lifetime of this Parliament."

Christa Reekie, commercial director at Scottish Futures Trust, explained: 

“The NHT programme has created a new and successful way to deliver affordable rent housing and key to its continued success is the unique partnerships that are being created among SFT, councils and house builders.

“The real and tangible value of the programme for the Scottish Futures Trust is that hundreds of people are now living in quality, affordable-rent homes and the construction of those homes provides work not only for larger house builders but also for SMEs .”

John Low, Managing Director of Stewart Milne Homes North Scotland, said:

“At the very beginning of NHT we recognised the important role it could play in giving people and families the opportunity to rent or buy a new home at affordable rates.

“We have already worked with Aberdeen City Council on delivering 120 new NHT homes in and around the city and believe that the initiative is supporting the delivery of affordable homes across the country.

"Maintaining a supply of new homes is a key element of Scotland’s economic development landscape and the NHT has proved to be an innovative and successful means of meeting part of the overall demand."

Notes to Editors

The total value (sum of agreed purchase price paid for each of the units, according to valuations) of the completed NHT homes equates to approximately £115 million.

Further information about the NHT initiative is available at www.scotland.gov.uk/nht