Question reference: S6W-27213
- Date lodged: 2 May 2024
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Current status: Answered by Paul McLennan on 14 May 2024
Question
To ask the Scottish Government whether it will provide further low interest rate loans to Lar Housing Trust, in light of the reported success of its pathfinder model, in order to advance construction of new affordable homes in Granton, Edinburgh, and elsewhere in Scotland, and, if so, when.
Answer
Since its creation in 2015 to the end of March 2024, LAR Housing Trust has acquired/developed 740 homes for mid-market rent supported by a Scottish Government loan of £55 million. 175 of these were previously National Housing Trust units. Whilst LAR Housing Trust has brought valued diversity to the provision of mid-market rent housing in Scotland, we carefully consider all of our delivery routes to best achieve our objectives and meet our Scottish Public Finance Manual obligations. The Scottish Government has confirmed to LAR Housing Trust that there is no provision for a further low interest rate loan.
Over many years, the Scottish Government has encouraged LAR to leverage in alternative sources of capital. Building on what has been achieved to date, LAR Housing Trust is in an excellent position to innovate and pivot to new opportunities, including making progress on the sites acquired in Granton and elsewhere.