Posted 25.02.16
Plans for a new Scotland-wide housing initiative that could help deliver thousands of purpose-built homes for private rent have been unveiled.
The Private Rented Sector (PRS) Rental Income Guarantee scheme would see the Scottish Government sharing a proportion of rental income risk associated with large-scale new developments.
The guarantee is intended to compensate owners for a financial shortfall in qualifying projects arising as a result of lower than projected rental income.
Expert panel, the PRS Working Party, estimates the guarantee could directly support construction of 2,000 additional homes in the new build-to-rent sector, and has the potential to deliver thousands more when combined with other measures.
The introduction of a guarantee was one of the key recommendations flowing from the work of the Scottish Government-supported PRS Champion Gerry More, who is advised by the Working Party experts.
Gerry More said:
"New purpose-built PRS homes can rapidly increase the provision of much needed housing, whilst setting a new standard through innovative design and professional service quality, positively transforming the experience of rented housing in Scotland.
"The Rental Income Guarantee Scheme is a targeted and relatively short-term support mechanism to help kick-start institutional investment and to secure the rapid and volume delivery of high quality additional new housing. In doing so, it will boost flexibility, choice and affordability in the housing market."
