Trust launched for affordable rented housing

A new investment vehicle that will provide up to 1,000 affordable homes for rent across Scotland has been launched today.

The Local Affordable Rented Housing Trust (LAR) is a Scottish charity set up to provide long term mid-market rented housing across Scotland. Eligible tenants will be allocated homes based on affordability and income criteria, with tenancies being provided to those in most need.

LAR is funded by a £55m loan from the Scottish Government, with matching private investment expected to raise the package to more than £100m. Ministers want housebuilders and developers, in partnership with LAR and local authorities, to become involved.

They hope the model will be extended and replicated widely in future "to provide more affordable homes to meet the significant demand for mid-rent housing".

Speaking in Musselburgh, where East Lothian Council and Taylor Wimpey are set to deliver the first LAR housing development, Social Justice Secretary Alex Neil said: “We continue to lead the way in the UK in developing innovative financial models, such as guarantees, loans, grant recycling and new sources of private funding to accelerate the supply of affordable homes. These pioneering approaches help us to make taxpayers’ money stretch further."

Raymond Williamson, chairman of LAR, added: “The LAR team is looking at a number of development sites across Scotland where we can buy homes, which have been or are in the process of being constructed and we would be pleased to hear from builders and developers across Scotland who believe they have something to offer. This is an important step forward in providing homes at reasonable rents.”