First bids for NHT funding
The first deals have been signed under Scotland’s flagship programme to kick-start house building.
The £100 million National Housing Trust, led by the Scottish Government and Scottish Futures Trust, launched last September. Councils borrow a portion of a scheme’s costs, a private developer funds the rest and the Scottish Government underwrites the deal.
Last week, Highland Council, with builder Robertson Homes, announced it will borrow £5 million from the Public Works Loan Board to deliver an
£8 million programme of 42 homes by March 2012. Scottish Borders Council will fund 65 per cent of a £7.5 million scheme of 51 houses with private developer Tweed Homes of Peebles.
All homes will be available for sub-market rent for five to 10 years, and will then be sold on the open market. Sale proceeds with repay the loans, with the developer pocketing any profit.