New initiative launched to boost investment in housing
Following extensive market engagement, Scottish Government has announced its Rental Income Guarantee Scheme (RIGS) to help stimulate the Build to Rent (BTR) sector in Scotland.
BTR is being supported by the government as a new way of providing newly-built, good quality, private rented housing at scale.
What RIGS aims to do, is provide the developer and their investors with greater confidence during the early stages of occupation when the letting risk is likely to be at its highest. RIGS seeks to help developers and their investors to overcome this challenge by offering a guarantee which will compensate the developer for part of the shortfall if the expected levels of rent are not achieved.
RIGS has now received parliamentary approval and will be managed by SFT's experts.
Barry White, chief executive of the Scottish Futures Trust, said: “The launch of RIGS has sent out a clear message which demonstrates Scottish Government’s commitment to the Build to Rent sector as an important way to deliver much-needed quality housing.”
The application process is now open and information on how to apply can be seen here on the RIGS website.