New MMR Homes Boost Scotland’s Economy

The economic and social benefits of delivering mid-market rent (MMR) properties have been highlighted in a recent report commissioned by not-for-profit developers HHA and Lar Housing Trust, along with fund and asset manager for social housing Thriving Investments. Prepared by Turley, the research focuses on the delivery of 2,959 MMR homes across 12 local authority regions in Scotland, accommodating approximately 6,230 residents.

The findings of the report reveal the significant impact created by HHA, Lar Housing Trust, and Thriving Investments:

• £530 million invested in the construction sector, supporting around 2,230 temporary full-time equivalent (FTE) jobs during construction
• An additional £186.3m in Gross Value Added across Scotland during the construction period
• £77m annual earnings for residents, with £59.9m of this spent on retail and leisure, supporting local businesses
• £5.9m in additional Council Tax payments annually

MMR homes, as a form of affordable housing, cater to households on modest incomes who may face challenges in accessing social rented housing or renting privately. These properties are typically priced lower than private rent but slightly higher than affordable housing, making them a crucial housing option for many.

The tenants of MMR homes are often young adults between 25 and 34, employed in sectors such as the NHS, emergency services, social care, and armed forces, with household incomes ranging from £15,000 to £60,000. These homes provide a secure and affordable housing solution in regions where private rents are prohibitively high for low-income working households.

Gail Matheson, CEO at HHA, emphasised the value of MMR homes in providing high-quality housing for those unable to secure social housing or afford private rent. She highlighted the economic benefits and job creation facilitated by these housing developments, underscoring the critical role they play in local communities.

Ann Leslie, Chief Executive of Lar, echoed the importance of bold, innovative approaches in addressing the housing crisis. She stressed the need for a mix of funding options, including loan-based funding, to deliver more affordable homes and revitalise local economies, calling for leadership from the Scottish Government in this regard.

Looking ahead, securing funding from the Scottish Government and other investors could enable the development of over 4,500 new MMR homes in Scotland, supporting thousands of jobs and boosting economic productivity during the construction phase. William Kyle, fund director at Thriving Investments, highlighted the pivotal role of MMR properties in meeting the demand for affordable housing, regenerating brownfield sites, and creating employment opportunities.

The report underscores the success of MMR properties in addressing housing challenges while advocating for continued support and investment to sustain this positive trajectory in affordable housing provision across Scotland.