Success of mid-market rent homes initiative means more homes are to be built
Following the success of Phases 1 and 2 of the National Housing Trust (NHT) initiative which has seen contracts signed to build over 1,000 homes for mid-market rent on numerous sites across Scotland, a further phase has been launched.
Working with the City of Edinburgh, Fife, Dundee City, Aberdeen City Councils and the Scottish Government, the Scottish Futures Trust (SFT), which runs and manages the NHT programme, has launched procurement of a further phase of NHT on the Public Contracts Scotland website.
Ultimately this will see contracts signed with numerous house builders to build approximately 400 more homes, all of which will be let at mid-market rent.
SFT launched the NHT programme in 2011 to help Scotland’s local authorities meet the rising demand for homes at mid-market rent. Under NHT, developers are appointed to build a specified number of brand new homes on land they already own. Once complete, a local partnership company comprising the developer, the participating local authority and SFT buys the homes and lets them to tenants.
Since the completion of the first NHT development in early 2012, construction has got underway at 22 sites across 10 local authority areas with 13 separate builders. So far, well over 300 homes have been built and are occupied by nearly 500 residents. In March 2013, SFT signed the last contract taking the total number of NHT homes to 1,009.
Importantly, the NHT programme is helping protect or create nearly 1,500 jobs within the construction industry.
Christa Reekie, commercial director at the Scottish Futures Trust stated: “The local authorities have already participated in NHT and we are delighted that they have decided to procure more homes under a further phase of NHT.
“Whilst meeting the needs for homes at mid-market rent, the NHT initiative, currently worth £150m, has also been designed to aid the economy and keep people in jobs by allowing developers and house builders to kick-start construction on stalled sites.
“We are confident that the local authorities will receive very competitive tenders from local builders and developers keen to get construction moving again on their sites.”