The Scottish Government has announced it will provide £30 million of funding to build more homes for private rent.
It has been reported the investment will be provided to Sigma Capital Group through the Building Scotland Fund. The £30 million will contribute towards a £43 million Scottish Private Rental Sector (PRS) Fund set up by Sigma to deal with the growing demand for rental homes throughout Scotland.
The fund is the first of its kind in Scotland and is expected to allow an additional 1,800 properties to be built for private rent.
Latest statistics have revealed that households in the private rented sector has grown ten per cent in the last 18 years, from five per cent in 1999 to 15 per cent in 2017. While the total number of households has increased 13 per cent, (from 2.19 million to 2.46 million), the percentage of homes in owner occupation has dropped by four per cent (from 66 per cent to 62 per cent) in 12 years.
The Scottish Government believe the ‘build to rent’ model will reduce stress and uncertainty that tenants can feel. Aileen Campbell, Communities Secretary, commented:
“Renting is becoming a long-term option for many people, at many stages of life. We want people to have the security to make that house their home – whether they are looking for a house for three years or 30 years.
“The additional long-term stability these properties provide will make a huge difference for many households, especially those wanting to create a family home and settle into a community.”
Graham Barnet, Sigma chief executive, said:
“We are delighted to have the support of the Scottish Government’s Building Scotland Fund.
“We see significant demand for our high-quality homes in Scotland and look forward to using this new fund to assist in addressing Scotland’s housing needs.”