Housing Infrastructure Fund
The Housing Infrastructure Fund (HIF) enables funding for housing developments that have stalled or can’t proceed due to the excessive cost or nature of the infrastructure works to be delivered.
Launched in 2016, it has invested nearly £50 million in loan and grant across urban and rural areas to fund infrastructure that will help unlock delivery of over 7,000 homes. Approximately 2,000 of those will be affordable.
Round 2 of HIF was launched in October 2021 and two projects have been successful in applying with funding of around £25 million being approved by March 2024.
Principles applying to HIF projects
HIF has helped key strategic housing projects which have been blocked or unable to proceed due to the extent and costs/financing of infrastructure works involved. This is the key eligibility criteria for supporting projects.
Grant support
The HIF programme has provided registered social landlords (RSLs) and local authorities (LAs) with grant support where the scale and nature of infrastructure costs would prevent it from being supported through the Affordable Housing Supply Programme (AHSP).
It has delivered affordable homes in line with LA strategic priorities as stated in their Strategic Housing Development Plans (SHIPs).
HIF loan funding paused
Loan funding was paused in 2021 due to budgetary constraints. This means that loans to deliver housing infrastructure (at commercial rates) will not be available to private sector developers.
Developers or landowners can contact the Scottish National Investment Bank to discuss whether commercial finance might be available from the bank to support their infrastructure investment requirements. The bank invests in pursuit of its missions in accordance with its published investment strategy.