Scottish Government relaunch £15m loan scheme in bid to build more affordable housing

An investment programme aimed at helping social landlords to build more affordable housing has been reopened.

The Charitable Bond programme was established in response to demand from housing associations for better access to appropriate finances.

It provides unsecured loans for up to 15 years with no payments of interest or capital before maturity.

Under the programme, registered housing associations can access the loans with up to £80m available in the current financial year.

The interest paid will be reinvested as grants into the social rented sector, boosting the supply of affordable housing.

Since 2014, more than £260m in loans have been made to housing associations across Scotland.

Housing secretary Shona Robison said the investment will help the Scottish Government towards its target of delivering 110,000 affordable homes by 2032.

“The Charitable Bond programme is an innovative way to offer funding to social landlords so that they can deliver as many homes as possible,” she said.

“The programme gives social landlords access to funding that they can’t receive elsewhere and reinvests the interest paid on the loans – further increasing housing supply.

“Scotland has led the way in the delivery of affordable housing across the UK with almost 113,000 affordable homes built since 2007.

“This investment will help towards our current target of delivering 110,000 affordable homes by 2032.”