£130m Scottish housing kick-start launched

Aaron Morby 14 years ago
Share

A £130m funding initiative to trigger construction of more than 1,000 new homes for rent across Scotland moved to the bidding process today.

The National Housing Trust initiative, a joint project of the Scottish Government and the Scottish Futures Trust, proposes a new funding model for affordable housing.

The main aim is kick-start activity on mothballed building sites and create or safeguard thousands of construction jobs.

Under the scheme, local authorities will receive loans to finance new-builds, paying 65% of the purchase price to an affiliated developer up front.

After an agreed rental period, the properties would be sold on and the income used to pay off any outstanding loans.

Housing developers are being asked to respond to the OJEU advert by October 25, 2010. Clare Mills at the Scotiish Futures Trust in Edinburgh is handling the procedure. Email: [email protected]

The bid notice estimates that spending on housing could eventually reach £300m.

Twelve authorities have signed up, including Glasgow City Council, City of Edinburgh Council, Highland Council and Stirling Council.

In Edinburgh where 600 NHT homes are being sought, Scottish Housing and Communities Minister Alex Neil said: “Building more affordable homes across Scotland presents a formidable challenge in a climate of increasing financial constraint.

“The National Housing Trust model breaks new ground and I am delighted that so many councils have embraced this approach as one that can help solve housing pressures locally.

“The scheme has been designed to ensure that homes delivered through the National Housing Trust are affordable and offer good value for taxpayers’ money.”

Barry White, Chief Executive of the Scottish Futures Trust, said: “In these challenging economic times, NHT opens the doors to build affordable housing in Scotland.

“This demonstrates how the public and private sectors can work together in an imaginative way.”

Jonathan Fair from industry body Homes for Scotland said: “The NHT is a prime example of the sort of progressive thinking that must be applied to meeting Scotland’s housing needs at a time when public spending is under tremendous pressure.

“The benefits of such an approach are significant. In addition to helping support economic recovery and maintaining a skill base, the NHT will offer housing options to a market segment currently uncatered for – those stuck between social renting and outright home ownership.”

Councillor Norman Work, vice-convener for Housing at the City of Edinburgh Council, said the Council was delighted to be involved in the scheme.

“This is an innovative way of tackling the shortage of affordable homes not just in Edinburgh but around the country.

“Everyone knows more needs to be done and it’s important the public and private sector work in partnership on this project.

“My message to developers is ‘get on board’ now and let’s give the construction industry and affordable housing market a much-needed boost.”

Local authorities involved

  • Aberdeen City Council
  • City of Edinburgh Council
  • Dumfries and Galloway Council
  • Dundee City Council
  • East Lothian Council
  • East Renfrewshire Council
  • Falkirk Council, Glasgow City Council
  • The Highland Council
  • Midlothian Council
  • Scottish Borders Council
  • Stirling Council

The procedure

The National Housing Trust initiative is an innovative scheme that will enable new build homes to be acquired from developers in a joint partnership scheme between the local authority, developers, the Scottish Futures Trust and the Scottish Government.

For each local authority area the shortlisted developers will be appointed on the basis of their tender submissions which will include details of proposed developments in the area.

Once the framework agreements are in place, the local authorities will be able to proceed by way of call offs.

The authorities will conduct one or more mini-competitions on the basis of the framework contract documents.

The developments will then be awarded to the house builders that submitted the best tender on the basis of the award criteria specified in the contract documents.

Latest project news

Galliford Try to upgrade Red Arrows base

Contractor seals quartet of RAF base upgrades
6 months ago

Galliford Try bags £87m Brent Cross build to rent job

Firm picks up another three blocks at Argent's North London £8bn regeneration scheme
7 months ago

Balfour starts £67m Edinburgh school campus

Passivhaus certified campus buildings will replace Liberton High School
7 months ago

Red wins Bristol retirement village £14m expansion

44 extra care flats to be built at former Frys chocolate factory
7 months ago

Caddick bags UK’s largest fertiliser plant job

Yorkshire contractor seals £28m contract for new plant in Yorkshire
7 months ago

Mace wins concrete bunkers for world’s most powerful laser

Firm will build two 7m tall bunkers with 2m thick radiation resistant concrete walls
8 months ago

Robertson to deliver £20m Alloa Wellbeing Hub and school

Design work will now start on Wellbeing Hub and Lochies primary school
8 months ago

Green light for Canada Water next phase of 380 homes

Zone G plan includes major resi tower, supermarket and park
8 months ago

Mace to start £230m Landsec London office job

Timber Square project will pioneer a hybrid cross laminate timber and steel superstructure
8 months ago

British Land multi-storey logistics hub approved

London urban last-mile logistics hub pipeline hits £1.3bn
8 months ago

£350m Birmingham triple tower scheme approved

Vast curving Ringway Centre to be demolished for 1,750 flats development
8 months ago

Midgard lands £245m Tottenham Hale towers

Three towers of up to 38 storeys complete north London regeneration scheme
8 months ago

Go-ahead for Wates £35m Hartlepool leisure centre job

Work on the Highlight waterfront centre to start in November
8 months ago

Green light for 690-home Birmingham Smithfield scheme

Prosperity Group plans to start work in Autumn next year on major Smithfield scheme
8 months ago

Go-ahead for 289 homes next to Saltaire World Heritage site

Ambitious plan to demolish a vacant Bradford office complex for new residential quarter
8 months ago

Plans in for 800-bed Leeds student and retail scheme

Major scheme will replace The Core shopping centre in the city
8 months ago

McAleer & Rushe awarded £60m Barking flats job

Work to start in November on near 200 rental homes project
8 months ago

ISG clinches £155m Cat D prison expansion

Firm to deliver 780 new places at three existing prison locations
8 months ago

27-storey Salford student tower approved

540-bed student block to be built on former site of McDonalds' regional HQ
8 months ago

Morgan Sindall £48m Dumfries school job approved

Building work to start before the end of 2023
8 months ago

Bouygues/Murphy JV tipped for £2.3bn Thames tunnel job

Frontrunner emerges for Lower Thames Crossing 4.2km tunnel job
8 months ago

Vinci/McAlpine JV to start £105m NHS rehabilitation centre

Treasury clears New Hospital Programme job to start main construction
8 months ago

Three giant lab buildings approved at £700m Oxford R&D district

Phase 2 Oxford North office and lab buildings to deliver 460,000 sq ft of space
8 months ago

RG Group to build tallest student block in the world

Contractor confirmed on 45-storey tower in Leeds
8 months ago

Vinci wins major St Helens town centre revamp

£90m first phase includes new market hall, 120-bed hotel and over 60 flats
8 months ago

Work to start this year on Manchester £250m spa resort

Developer Therme gets green light for re-engineered 28-acre Trafford complex
8 months ago

Barhale JV sign-off for £18m Dewsbury sewage works upgrade

Project forms part of Yorkshire Water’s £500m investment in Phosphorous removal
8 months ago

Murphy seals main build on £124m Essex station

Contractor lands main contract after successful start on enabling works package
8 months ago

GMI lands latest £42m phase of lab cluster

Citylabs life sciences complex in Manchester continues to grow
8 months ago

Green light for Canada Water commercial scheme

Twin-tower scheme will offer "a new type of office for London"
8 months ago

Contractor services