Friday, 19 December 2014

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.

Readers' comments (1)

  • McMadman

    Shame that, overall, it is estimated there will be 700 properties delivered through this mechanism rather than the 1200 originally promised.

    And after 10 years, the Council gets it's money back, the builder the profit - and the tenant gets emptied onto the streets. Great idea. Not.

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