As night follows day organisations across all sectors will crow about their successes to promote their wares. In too many cases, however, this is simply an internal subjective view based on hubris and gut feeling, but it forms a useful window dressing for PR purposes.
However, a recent report has provided three housing organisations with empirical evidence to highlight the enormous impact they are having on the sector. This evidence-based information is a timely reminder that they are worth supporting and it is important the Scottish Government sits up and takes notice of the findings.
The report commissioned by Lar Housing Trust, Highland Housing Alliance (HHA) and Thriving Investments, highlights the impact they are collectively having on the sector, by providing mid-market rental (MMR) homes to those who don’t qualify for social housing nor can afford private rents. The economic and social benefit created by them is backed up by hard facts in the report prepared by Turley.
Their research is based on the delivery by the three organisations of almost 3,000 MMR homes benefitting over 6,000 tenants across 12 local authority areas through a mix of grants, loan funding and private investment. The key highlights show that the three providers have:
* delivered £530 million of investment in the construction sector, supporting around 2,230 temporary full time equivalent (FTE) jobs over the total construction period
* created an additional £186.3 million in Gross Value Added across Scotland, during the construction period
* generated £77 million annual earnings for residents. Subsequently, this has supported local businesses, with £59.9 million of this spent on retail and leisure
* enabled £5.9 million in additional Council Tax payments annually
This excellent report shows the impact that comes from the bold approach taken by MMR providers – in Lar’s case its funding is entirely loan based. In order to tackle the housing crisis gripping the country and with reduced housing grant budgets, a bold and innovative approach is needed, offering a mix of funding options to help provide more affordable homes.
This report shows that loan-based funding must be front and centre of any drive to build more affordable homes offering multiple benefits, including repurposing derelict buildings, creating new communities and breathing life into local economies. Now is a time for leadership from the Scottish Government.
Furthermore, if sufficient funding can be secured from the Scottish Government and other investors over the next five years, this would enable the development of over 4,500 new MMR homes across Scotland. This would support 2,880 direct, indirect and induced net additional FTE jobs per annum supported during construction. This could also generate £181 million uplift in economic productivity throughout the construction phase.
These numbers are not just worth noting, they require follow up action from the Cabinet Secretary for Finance and Local Government and the Minister for Housing.
