More homes for private rent
Private rental market to be given £30 million investment.newnew
People renting will have more choice in where they live and greater security over their home through a £30 million investment from the Building Scotland Fund, according to an announcement by the Scottish Government.
The loan funding will allow an additional 1,800 properties to be built for private rent.
The Build to Rent model aims to reduce the stress and uncertainty of repeated moves for tenants, as investors typically plan to keep the properties for a minimum of 30 years.
The properties are also professionally managed, meaning tenants can expect a high-quality property and an overall better rental experience.
Communities Secretary Aileen Campbell said: “Renting accommodation is becoming a long-term option for many people, at many stages of life, for example when starting a family or when retiring. We want everyone who rents to be able to live in a house that suits their needs, and in an area where they want to live, including near family, friends or schools.
“We want people to have the security to make that house their home - whether they are looking for a house for three years or 30 years.
“The Private Residential Tenancy already offers greater security for tenants, balanced with appropriate safeguards for landlords and investors. These additional new properties to the sector can give people long-term security and the confidence they are renting from an experienced, professional management company.
“The additional long-term stability these properties provide will make a huge difference for many households, especially those wanting to create a family home and settle into a community.”
Graham Barnet, chief executive of Sigma, said:
“We are delighted to have the support of the Scottish Government’s Building Scotland Fund.
“Our approach to housing delivery has been working extremely well in England and is helping to deliver thousands of new houses for the private rental market.
“We see significant demand for our high-quality, professionally managed homes in Scotland and look forward to using this new fund to assist in addressing Scotland’s housing needs. We are also continuing to explore other opportunities to extend our business model.”
The investment from the Scottish Government’s Building Scotland Fund will be delivered through Sigma Capital Group plc.
The company has created a £43 million Scottish Private Rental Sector Fund, of which £30 million comes from the Building Scotland Fund. The fund is a precursor to the Scottish National Investment Bank and reflects the principles behind it.
More information on the £150 million Building Scotland Fund and Scottish National Investment Bank can be found on the Scottish Government’s website.
Private residential tenancies are open-ended, with no fixed-term period and no end date, and can only be ended if the tenant chooses to leave and gives notice, or if one or more of the 18 grounds for eviction apply.