Lar’s financial model offers solution to housing crisis

A financial model implemented by Lar Housing Trust has emerged as a successful blueprint to address Scotland’s pressing housing crisis, the charity has announced. Founded in the autumn of 2015, Lar adopts a loan-based financing approach instead of relying on traditional grant funding to facilitate the development of affordable housing initiatives. The organisation, operating throughout Scotland, began its journey with an initial £55 million loan from the Scottish Government, followed by a supplementary £65 million funding injection from Bank of Scotland / Scottish Widows.
Specialising in mid-market rental properties, Lar is celebrating the official launch of a new development at St Kentigern’s Church in Edinburgh, signalling the completion of its first phase of funding. With housing assets totalling £120 million now in operation nationwide, Lar CEO Ann Leslie expressed her satisfaction with their progress, stating, “In just a few short years, we have demonstrated that an innovative funding model can significantly impact the affordable housing landscape in Scotland. We have successfully allocated over 750 homes across 10 different local authority areas, and we are increasingly involved in intricate regeneration projects that breathe new life into abandoned and dilapidated structures.”
Leslie further added, “The inauguration of this development, involving the challenging renovation of an abandoned church, marks the conclusion of our initial funding phase. The conversion of St Kentigern’s Church into four exquisite townhouses exemplifies what can be achieved with a bold and inventive approach. Previously an eyesore due to neglect, the church now stands as a vibrant community hub along a prominent canal-side location.”
The historic church, which ceased functioning as a place of worship in the 1940s, holds a fascinating past, having served various purposes such as a nursery and a garage. Notably, it gained notoriety when police uncovered a cannabis farm on the premises during a raid. The distinguished occasion of the development’s official unveiling was graced by Jackie Leiper, chair of Lloyds Banking Group’s Scottish Executive Committee.
Leiper commended the redevelopment of St Kentigern’s, remarking that it sets a compelling example of combining restoration of the original church building with contemporary new flats to introduce much-needed, top-quality affordable mid-market rental dwellings to the locality. She emphasised, “Supporting entities like Lar forms an integral part of our endeavour to enable more individuals to reside in the kind of homes they desire, in locations they prefer to be.”
The four townhouses, situated adjacent to a new block of 10 flats constructed in the former church car park, benefit from a ground-source heating system – a rarity for such a densely populated city centre site. Installation of the system required digging to depths exceeding 200m at six distinct points around the area. The external facade and numerous internal elements of the church underwent meticulous restoration and preservation.
Residents have commenced the process of relocating to this development, with rental rates for a two-bedroom apartment set at £802, in contrast to the area’s EH3 postcode average of £1700.