Investing £100 Million In Mid-market Rent

26th September 2024

The construction of 2,800 mid-market rent homes will be supported by £100 million of investment from the Scottish Government.

As announced as part of the 2024-25 Programme for Government, funding will be used alongside institutional investment - such as pension funds - to grow to at least £500 million.

This commitment forms part of the Government's approach to leverage in more private investment to deliver housing, making public funds go further.

It will build on the success of the Thriving Investments model which has grown an initial £47.5 million investment from the Scottish Government to £222.5 million to deliver up to 1,200 mid-market homes across Scotland.

Mid-market rent is a type of affordable housing aimed at assisting households on low to moderate incomes to access affordable rented accommodation and helps those who have difficulty accessing social rented housing, buying their own home or renting privately.

Housing Minister Paul McLennan said, "Tackling the housing emergency requires a collective effort and bold decisions. We already have a strong track record in housebuilding in Scotland and this commitment will ensure public funds are used more efficiently.

"Since 2007, we have supported the delivery of more than 133,000 affordable homes, including more than 94,000 social rented homes. However, we know we can do more to tackle the housing emergency and encouraging more private investment into the sector is one key aspect of that.

"This new model will encourage more private investment into the mid-market sector that we know is willing and able to invest and it will deliver affordable homes that people need."

Thriving Investments, (formerly Places for People Capital) was the successful bidder to the MMR Invitation launched in February 2016 to support the continued expansion of MMR in Scotland. A £47.5m loan agreement between SG and PfP was agreed in June 2018. Since then they have grown their fund to £222.5m.

Thriving Investments has delivered 736 affordable homes with an additional 335 properties due for completion by early 2025. It is anticipated that the fund will deliver around 1,200 MMR homes across Scotland.

Scottish Government will commission a fund manager to deliver the new fund.