A further £15 million is being invested by the Scottish Government to help deliver more 'affordable' housing across the country.

The investment is being made into the Charitable Bond programme, which provides loans to social housing providers that are then repaid over a period of up to 10 years.

Since 2014, the scheme has helped enable more than 1,000 new 'affordable' homes to be built.

This latest investment will see the programme's 2018/19 budget increase from £25m to £40m, generating an estimated £10m through interest raised on the bonds.

The additional funding was announced by Housing Minister Kevin Stewart during a visit to Kingdom Housing Association's regeneration  project in Kincardine.

The development includes 49 mixed tenure affordable homes, partly funded from charitable bond loans.


Minister Stewart said: "We are always looking at ways we can increase the supply of affordable housing and support developers, housing associations and councils get new projects off the ground.  Part of our pledge to deliver 50,000 affordable homes is to make the most of existing public funds and secure additional private sector investment.

"We are the only government in the UK to invest in charitable bonds. The interest we receive from the bonds is given to social housing providers and is another important step towards achieving our target for affordable homes."

Phil Caroe, Director of Social Finance at Allia, said: "Allia's charitable bond programme with Scottish Government has been a great success over the last three years, offering a unique source of  finance that is supporting new developments around the country.

"We're delighted that the Scottish Government is now increasing its funding for this programme, which will result in even more people in Scotland being able to live in an affordable home."

Bill Banks, Chief Executive with Kingdom Housing Association, said: "At Kingdom we are progressing an increased development programme, which will contribute to the 50,000 target and we are aiming to optimise the range of funding sources available to support and deliver the programme.

"The Allia charitable bond funding of £15.25 million drawn by Kingdom so far is a welcomed addition to this portfolio supporting delivery of up to 293 affordable homes."

The Kincardine development includes 49 mixed tenure affordable homes, partly funded from charitable bond loans.

(LM/MH)