This investment aligns to both our place mission, to build communities and promote equality, and our net zero mission, to support Scotland’s transition to net zero.
Our investment will enable thousands of people to access the affordable rental accommodation they need, built to a quality they want, and located in areas close to their jobs and families.
The fund finances homes priced at 'Mid Market Rent'. This means that tenants pay a lower price than they would typically find in the private rental market allowing individuals and families on modest incomes to access affordable rental properties.
The homes will be built to a high standard of energy efficiency supporting Scotland’s transition to net zero.
The Bank’s commitment of £40 million as a Limited Partner takes the fund’s total size to £183 million. Following investment from the Bank, the Fund has a new target of £240 million, supporting the building of up to 1,500 homes.
The PfP Capital Mid Market Rent fund was launched in 2018, and was underpinned with a loan of £47.5m from the Scottish Government. The Fund is managed by PfP Capital, a subsidiary of Places for People, one of the largest regulated Social Housing providers in the UK.
Eilidh Mactaggart, Chief Executive Officer, Scottish National Investment Bank:
“Our investment will enhance the lives of thousands of people, providing long-term access to high quality, energy-efficient, affordable housing. The quality of people’s homes impacts directly on their quality of life. This Fund is designed to help individuals and families who are living in unsuitable accommodation, or who are unable to find an affordable home in the area where they need to live. This can include keyworkers who typically benefit greatly in mid-market rent accommodation from living closer to work.”
William Kyle, Fund Director, PfP Capital:
“The capital provided by the Scottish National Investment Bank allows us to both exceed our initial target of 1,000 affordable homes and to accelerate beyond this as we attract additional funds.”