Innovative funding model to ease housing pressures
A government backed initiative aimed at boosting the number of affordable homes across North and South Lanarkshire has been unveiled by Cabinet Secretary for Infrastructure and Capital Investment, Alex Neil.
Clyde Valley Housing Association has been working with property company Savills and local councils to develop a new funding model that aims to deliver 600 new homes, almost half as affordable homes for rent.
The four year development is backed by £11 million from the Scottish Government with the remainder of the funding sourced through a mix of private equity and loan finance.
Over 150 job or training opportunities are expected to be created through a mix of modern apprenticeships and work placement opportunities.
In Motherwell, Mr Neil praised the approach and said it would help deliver affordable homes across Lanarkshire. He said:
"With the public purse under huge financial strain we need radical and innovative approaches to increase housing supply at maximum value for taxpayers’ money.
“It brings together public and private finance in a novel way to secure over 280 affordable homes across North and South Lanarkshire over the next 4 years."
“Lanarkshire has a desperate shortage of affordable housing, and projects like this help people to get on to the housing ladder.
“This is an example of what can be achieved when the private and public sectors work together and I am pleased that Clyde Valley and Savills have had the confidence to try a different approach.
“This uses Scottish Government resources to leverage substantial private finance into the project, including equity. In return the local communities not only get new homes, but also employment and training opportunities – a real boost for the local economy”
Clyde Valley Chief Executive, Tom Barclay said:
“Today’s announcement by the Cabinet Secretary of this substantial support for the Clyde Valley Housing Network is validation of the tremendous amount of work and innovative thinking by Clyde Valley Group, our advisers Savills, our partner local authorities and the Scottish Government team responsible.
“This initiative model will deliver not only a much needed boost of affordable housing across the region, but will also stimulate a wider housing market, creating essential economic stimulus to the local economy, the construction industry and in terms of on the ground job creation”.
James Coghill, Director in Savills Housing Consultancy team said:
"Savills is delighted to be advising Clyde Valley and that the Scottish Government is supporting this innovative proposal. We can see the boost this can make to local communities and we look forward to the success of this development”
South Lanarkshire Council Leader, Eddie McAvoy said:
“South Lanarkshire Council welcomes this innovative partnership project. This new funding model will help to deliver a significant number of new homes in the area over the next few years.
As well as much needed affordable housing, the scale of this development programme will help maintain local construction sector jobs providing a welcome boost to our local economy in the current financial climate”.
North Lanarkshire Council Leader, Jim McCabe said:
“North Lanarkshire Council welcomes this much needed investment in new housing which will also help support the local economy. Along with our own council new build programme, this will make an important contribution to meeting the need for good quality affordable housing in our area.”