Affordable homes

Over 1,000 Scottish affordable homes supported by charitable bonds



Scottish housing minister Kevin Stewart has announced that investment via charitable bonds has helped to deliver more than 1,000 new affordable homes since 2014.

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Charitable bonds are used to grant loans to social housing providers, which are repaid over a period of up to 10 years.

The 2018/19 budget for charitable investments is increasing from £25m to £40m, with an estimated £10m being generated through interest raised on the bonds.

“We are always looking at ways we can increase the supply of affordable housing and support developers, housing associations and councils get new projects off the ground,” said Mr Stewart.

“Part of our pledge to deliver 50,000 affordable homes is to make the most of existing public funds and secure additional private sector investment.

“The interest we receive from the bonds is given to social housing providers and is another important step towards achieving our target for affordable homes.”

Phil Caroe, director of social finance at Allia, added: “Allia’s charitable bond programme with [the] Scottish government has been a great success over the last three years, offering a unique source of finance that is supporting new developments around the country.

“We’re delighted that the Scottish government is now increasing its funding for this programme, which will result in even more people in Scotland being able to live in an affordable home.”



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