Together commits £500m to help Scottish small businesses

A property finance expert has highlighted the critical role that small and medium-sized housebuilders play in addressing Scotland’s housing crisis. Stuart Heslop, from lender Together, announced the company’s plan to lend £500 million in Scotland at an event celebrating their 50th anniversary.

Heslop emphasised the importance of SMEs in tackling the housing shortage, noting the alarming decrease in the proportion of housing delivered by SME housebuilders in Scotland since 2017. The country, like the rest of the UK, is facing a severe housing shortage, with the Scottish Government declaring a housing emergency earlier this year.

A report from Homes for Scotland revealed that 28% of Scottish households are in some form of housing need. SME business owners and lenders in Scotland expressed a keen desire to invest in their businesses, but various challenges, including lack of investment, have hindered their efforts.

Mr Heslop pointed out that issues such as rent caps, limited access to finance, and supply and labour shortages have driven many SMEs out of the market, leading to a failure to meet the housing demand. He called for increased support from lenders to help SMEs thrive.

Looking ahead, Mr Heslop raised questions about the political landscape in Scotland, particularly with Labour gaining control in Westminster. He highlighted the need for increased investment and focus on Scotland to win over the electorate in the upcoming elections.

In terms of opportunities for housebuilders, Heslop mentioned the abundance of brownfield land in Scotland suitable for development. A study by Together estimated that over 93,000 properties are abandoned and derelict in Scotland, representing significant value that could be unlocked through redevelopment.

Despite the opportunities, one major challenge facing SMEs is access to finance. Heslop criticised mainstream banks for their strict lending criteria and lack of personalised service, emphasising Together’s commitment to building strong relationships with clients and offering practical solutions.

He reassured Scottish SMEs that Together is ready to support them with a £500 million lending commitment, aiming to facilitate growth and development in the housing sector. The message to SMEs is clear – there are options available, and Together is here to help them succeed.