Report launched on benefits of Mid-Market Rent
The report assesses the model as an important, affordable addition to traditional private and social rented housing options, often for young, working people often in the ‘blue light’ industries.
Turley Economics published a new report yesterday from Highland Housing Alliance, Lar Housing Trust, and Thriving Investments outlining the benefits of Mid-Market Rent (MMR) homes for tenants, communities, and the wider economy. Turley analysed development data from the three MMR providers to model the extensive social and economic impacts generated by the portfolio of nearly 2,960 MMR homes across Scotland.
The report assesses the model as an important, affordable addition to traditional private and social rented housing options, often for young, working people often in the ‘blue light’ industries. It underscores how MMR supports the aims and objectives of Scottish Government policy and strategy at all level, and, significantly, assesses the economic benefits that could be generated if the MMR providers are supported with further funding over the next five years to finance their anticipated future pipeline of developments.
Here are some of the report’s other findings:
- The three providers’ 2,959 MMR homes across Scotland (12 local authority areas) generate approximately £530 million in the construction sector
- If sufficient funding can be secured from the Scottish Government and other investors over the next five years, this would enable the development of over 4,500 new MMR homes across Scotland
- MMR tenants are commonly young adults (between the ages of 25 and 34) who are employed and have a gross annual household income of £15,000 to £60,000
- MMR finance models (a mix of low cost and commercially priced finance) is delivering an average annual rent saving of £2,785 per household to tenants, representing a 25% lower rent when compared to median market rent across the combined portfolios
The report provides a strong summary of the excellent value for money that MMR represents to the Scottish Government alongside strong evidence of the positive impacts for MMR tenants accessing high-quality, affordable homes in places they want to live. You can read the full report here: https://hhainverness.com/assets/HHA-Economic-and-Social-Benefits-Assessment-July-2024-MMR-Properties-Scotland-FINAL-lower-res.pdf
