Thriving Investments, Lar Housing Trust and HHA have invested half a billion pounds into the construction sector and generated £175m in GVA across Scotland.
Thriving Investments - in partnership with not-for-profit developers HHA and Lar Housing Trust - has highlighted the economic and social benefit created by the delivery of mid-market rent (MMR) properties.
In a report, prepared by Turley, and based on research of 2,959 MMR homes, accommodating approximately 6,230 residents across 12 local authority regions in Scotland, the findings conclude that together, Thriving Investments, HHA and Lar Housing Trust have:
- Delivered £530 million of investment in the construction sector, supporting around 2,230 temporary full time equivalent (FTE) jobs over the total construction period.
- Created an additional £186.3 million in Gross Value Added across Scotland, during the construction period.
- Generated £77 million annual earnings for residents. Subsequently this has supported local businesses, with £59.9 million of this spent on retail and leisure.
- Enabled £5.9 million in additional Council Tax payments annually.
With a housing emergency declared across Scotland, MMR can fill the deficit in quality affordable homes, 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. This would support 2,880 direct, indirect and induced net additional FTE jobs per annum supported during construction. This could generate £181 million uplift in economic productivity throughout the construction phase.
William Kyle, Fund Director at Thriving Investments, said: “It is clear that in a climate of considerable financial constraints and in the midst of a housing crisis, we need innovative solutions to improve affordable housing opportunities.
“The delivery of MMR properties has played a key role in addressing the demand for new homes throughout Scotland, whilst simultaneously brought buildings back into use, regenerated brownfield land and assisted employment opportunities across the sector. The report importantly highlights how we can continue on this successful path with the right funding pillars in place.”
Gail Matheson, CEO at HHA, said: “MMR homes enable people who are unable to secure social housing yet cannot afford private rent, to access high-quality housing. This new report gives a wide lens view of the incredible economic benefit we have helped to deliver, creating new job opportunities and supporting local supply chains in the process.
“The housing emergency continues to hang over the sector and unfortunately, we are a long way from balancing supply and demand for homes. However, this report shows the value MMR homes create both in local communities and at a national level. Its unique model is an important tenure in our housing mix, and I am hopeful that we see more investment earmarked to deliver it at a larger scale across the country.”
Currently, the MMR providers utilise grant funding and loans from the Scottish Government and private investment to deliver developments. Loan funding effectively means that over time as loans are repaid, multiple rounds of homes can be funded from the same amount of capital.
Ann Leslie, Chief Executive of Lar, said: "This excellent report shows the impact that comes from the bold approach taken by MMR providers. In order to tackle the housing crisis gripping the country and reduced housing grant budgets, we need a bold and innovative approach offering a mix of funding options to help provide more affordable homes.
"This report shows that loan based funding must be front and centre of any drive to build more affordable homes offering multiple benefits, including repurposing derelict buildings, creating new communities and breathing life into local economies. Now is a time for leadership from the Scottish Government.”
Find out how we're supporting people across Scotland with our MMR fund, New Avenue Living.