Scotland sets aside £100m for mid-market rent homes.

The Scottish Government has reaffirmed its commitment to the construction of 2,800 mid-market rent homes with a £100 million investment. This funding, announced as part of the 2024-25 Programme for Government, will be used alongside institutional investment, such as pension funds, to grow to at least £500 million. This strategic approach aims to leverage more private investment to deliver housing, allowing public funds to stretch further.

Building on the success of the Thriving Investments model, which transformed an initial £47.5 million investment from the Scottish Government into £222.5 million, resulting in up to 1,200 mid-market homes being built across Scotland. Mid-market rent homes are a form of affordable housing designed to assist households with low to moderate incomes in accessing affordable rented accommodation. This initiative helps those facing challenges in accessing social rented housing, buying their own homes, or renting in the private sector.

Housing Minister Paul McLennan expressed the importance of collective efforts and decisive actions in addressing the housing crisis. Scotland has a strong history of housebuilding, with over 133,000 affordable homes delivered since 2007, including more than 94,000 social rented homes. However, there is a recognition that more needs to be done to tackle the housing emergency. Encouraging private investment in the sector is a crucial component of this strategy.

McLennan stated, “This new model will stimulate increased private investment in the mid-market sector, where investors are willing and able to contribute. It will result in the construction of much-needed affordable homes for individuals and families.”

Overall, this funding allocation demonstrates the Scottish Government’s dedication to addressing the housing crisis and creating sustainable solutions for affordable housing in the country.