Housing projects supported by Building Scotland Fund

Thousands of new homes and jobs have been supported by the Building Scotland fund since it was formed, according to new data.

Almost £70 million has been invested in housing projects through the Building Scotland Fund (BSF) since its launch last year. This money has supported the development of 5,500 new homes and around 600 full-time jobs.

The BSF, which is a precursor to the Scottish National Investment Bank, provides loans to support the delivery of homes both for sale and for rent, the most recent loan was made to Stewart Milne Homes, helping the business deliver more than 300 properties. The £12 million, provided at a commercial rate, is helping to fund construction activity across three sites in Renfrewshire and the Lothians.

Communities Secretary Aileen Campbell said: “I am delighted to see the Building Scotland Fund supporting these four very diverse housing firms.”

“As we support the continued growth of the Scottish economy, it is important we help smaller builders enter the industry and take on new developments.”

“The SME sector provides local employment and enables development on smaller sites which may not be taken on by larger firms.”

This new investment is in addition to a recent loan of £30 million to Sigma Capital Group last month, for up to 1,800 professionally managed family homes for rent. A further £26.8 million loan was made to Winchburgh Developments for the development of 3,450 houses.

The BSF also supports Small and Medium-sized Enterprises (SME) to help them overcome barriers to accessing development funding. The first SME to benefit is VKRR Investments.

Their loan of £634,660 will enable them to convert an office building in Falkirk into five new homes for sale. Funding is only available up to March 2021 with loans given out as equity finance, mostly on projects at a later stage of construction

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