Link and Cairn issue new Allia bonds for 150 homes.

A £22 million investment has been made into a scheme to increase investment in affordable homes and deliver more housing. This investment is a part of Scotland’s Charitable Bond Programme, where the Scottish Government has provided funding to issue two new bonds via finance intermediary Allia to housing providers Link (bond value of £16,006,385) and Cairn Housing Association (bond value of £6,019,085) to provide support for more than 150 new homes.

The Charitable Bond Programme, which has been running since 2014, aims to provide loans to social landlords to construct new affordable homes. The interest generated from these loans is reinvested by the Scottish Government into the affordable housing budget to support more homes for social rent. This initiative was created to meet the demand from housing associations for better access to appropriate finance, offering unsecured loans for up to 15 years.

With this latest extension, the total number of issued bonds will increase to 40, representing a total investment of more than £482m. Housing minister Paul McLennan expressed the importance of bold thinking and investment in Charitable Bonds as a tool to increase investment in the affordable housing budget while also enabling social landlords to access vital funding for new home construction.

McLennan highlighted the successful track record of the affordable housing sector, with 133,000 homes delivered since 2007, out of which 93,000 are allocated for social rent. However, he stressed the necessity for joint cooperation between the Scottish and UK governments and local authorities to effectively address the housing emergency.

Peter Freer, director of debt capital markets and head of Allia C&C’s Scottish office, commended the ongoing success of the Charitable Bond programme with the issuance of two new bonds. He emphasised the positive impact created by Link and Cairn Housing Association in providing much-needed new affordable homes and expressed enthusiasm for continued collaboration with the Scottish Government to further support housing initiatives across Scotland.

In conclusion, the investment in affordable housing through the Charitable Bond Programme signifies a significant step towards addressing the housing crisis in Scotland. Through collaborative efforts and strategic investments, the government aims to provide a sustainable solution to the increasing housing demand while fostering community development and social well-being.