Bond scheme is ‘innovative way’ to help housing associations, says minister

Housing associations are being offered an “innovative way” of obtaining the funding needed to build new homes.

The Charitable Bond programme will allow registered housing associations to access loans, with up to £80 million of funding available for this current financial year.

The interest that is paid on these loans will then be reinvested as grants into the social rented sector, further boosting the supply of affordable housing.

Since 2014, loans worth more than £260 million have been made to housing associations across Scotland, generating almost £50 million in grants.

Housing Secretary Shona Robison said: “The Charitable Bond programme is an innovative way to offer funding to social landlords so that they can deliver as many homes as possible.

“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.”

She added: “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.”

Social enterprise Allia C&C delivers the Charitable Bond programme on behalf of the Scottish Government.

Speaking about the scheme, Peter Freer, director for Scotland at Allia C&C, said: “This programme provides a form of unsecured finance that isn’t otherwise available in the market to enable Scottish housing associations to deliver much needed affordable homes.”