Building Scotland Fund reaches £70m new home investment milestone

Almost £70 million has been invested in housing projects through the Building Scotland Fund (BSF) since its launch last year.

The money has supported the development of 5,500 new homes and around 600 full time jobs

The BSF, which is a precursor to the Scottish National Investment Bank, provides loans to support the delivery of homes both for sale and for rent.

The most recent loan was made to Stewart Milne Homes, helping the business deliver more than 300 properties. The £12m, provided at a commercial rate, is helping to fund construction activity across three sites in Renfrewshire and the Lothians.

This new investment is in addition to a recent loan of £30m to Sigma Capital Group last month, for up to 1,800 professionally managed family homes for rent. A further £26.8m loan was made to Winchburgh Developments for the development of 3,450 houses.

The BSF also supports Small and Medium-sized Enterprises (SMEs) to help them overcome barriers to accessing development funding.

The first SME to benefit is VKRR Investments which received a loan of £634,660 to convert an office building in Falkirk into five new homes for sale.

Communities secretary Aileen Campbell said: “I am delighted to see the Building Scotland Fund supporting these four very diverse housing firms.

“As we support the continued growth of the Scottish economy, it is important we help smaller builders enter the industry and take on new developments.

“The SME sector provides local employment and enables development on smaller sites which may not be taken on by larger firms.”