Scottish Government News - Milestone For National Housing Trust
15 September 2015
1,000 new homes for rent built through innovative funding initiative.
More than 1,000 affordable homes for rent, with a total value of £146 million, have now been delivered through the National Housing Trust initiative (NHT) over the last four years.
The completion of homes in Westercraigs, Inverness helped reach this milestone, with the initiative on track to deliver more than 2,000 NHT homes in communities across Scotland.
The scheme has also boosted the housing industry with the delivery of these first 1,000 homes supporting around 1,300 jobs.
The Scottish Government, working with 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 for five to ten years before being sold, with tenants given priority to buy at the end of the rental period.
The money borrowed by councils to help fund the purchase of NHT homes in their areas is underwritten by the Scottish Government.
Announcing the news at MacKay Hannah’s Scotland’s Housing conference, Housing Minister Margaret Burgess said: “It is a remarkable achievement for all those involved that more than 1,000 NHT homes have now been completed across Scotland.
“By giving people the chance to have a good quality home at an affordable rent, this ground-breaking initiative is making a huge difference to people’s lives.
“NHT is providing affordable homes without the need for grant subsidy and is well on track to deliver over 2,000 new homes in communities across the country.
“The initiative is also boosting our construction sector and wider economy, helping to strengthen communities, promote social justice and tackle inequality.
“Against a challenging financial background, the Scottish Government is doing everything it can to increase supply. Over the lifetime of this Parliament, planned investment in affordable housing will exceed £1.7 billion and we will surpass our target of 30,000 new, affordable homes.”
Gail Matheson, chief executive of the Highland Housing Alliance (HHA) which delivered the 1,000th NHT home said: "The HHA has been delighted to have been involved with the National Housing Trust initiative. Since the introduction in 2011, we have built 135 homes with a further 17 due for completion shortly. The construction work has been a boost to the economic activity in the area and the homes have provided many people and families with a very real way of being able to become home owners.
“A deposit to support a mortgage is a requirement for lenders and NHT allows people to save for a mortgage whilst staying in the home that they will buy. The initiative has proved to be extremely popular and demand remains high for the flats and houses that we have built."
Christa Reekie, commercial director at the Scottish Futures Trust, said: “Today’s announcement clearly illustrates the huge impact the National Housing Trust programme is having on many communities across Scotland.
“Well over 1,000 people are now paying affordable rent for their homes as well as having lower fuel bills to pay as their homes are more energy efficient. Many small and local builders are also benefiting as construction of the homes has acted as a lifeline, helping them retain staff and secure funding for the opening up of new sites.
“The NHT programme has been a hugely popular initiative and I am extremely proud for SFT to be playing such a significant role in this. NHT is helping to make a real difference to the lives of many people in Scotland.”