Finance Main Topic At SFHA Fringe Event

Raising finance to build affordable homes for rent through the bond market was just one idea floated by the Housing Minister at an SFHA event in Inverness. More than 30 people attended a breakfast fringe event at the SNP conference on Saturday which was also addressed by Andrew Field, Deputy Chief Executive of the SFHA and Donald Lockhart, Development Director of Albyn Housing Society.

Housing Minister, Alex Neil, told the audience there was a window of opportunity to address Scotland's need for more affordable homes for rent and the Scottish Government was working with the SFHA and housing associations to identify alternative funding streams as pressures on public spending grew.He said £50m in loans had recently been secured from the European Investment Bank to help housing associations in Scotland to build properties. And there would be millions more in loans available from the EIB not just for housing but, in certain circumstances, for communal facilities too.

Private sector investment should also be explored for affordable rentedhousing and developers should be offered incentives such as tax breaks to build housing to rent. VAT should also be reduced on reprovisioning to create a mini boom in renovations, the Minister said.

However, he added that he did not have autonomy in the decision making process as until Scotland had independence his hands were tied on reserved matters.